Alamos Gold rises on record second-quarter output

Shares of Alamos Gold (TSX: AGI; NYSE: AGI) jumped on Thursday after the Canadian miner announced a record performance in the second quarter.

The miner produced 139,100 oz. of gold, higher than its targeted range of 123,000-133,000 oz., driven by solid performances from its Island Gold mine in Ontario and La Yagui Grande mine in Mexico, Alamos said in a release. 

Shares of Alamos Gold rose 5% on Thursday morning in Toronto before retreating to less than 1% better at $23.74 in the afternoon as wider markets plunged. The miner has a market capitalization of $9.9 billion.

Combined with lower costs, the company achieved a record-free cash flow of US$106.9 million in the second quarter, up more than 300% from the first quarter of 2024, while continuing to fund the Phase 3+ expansion at Island Gold.

“The expansion is progressing well and remains on track to be completed during the first half of 2026,” Alamos Gold CEO John McCluskey said.

“With the completion of the acquisition of Argonaut earlier this month, the integration of the Magino and Island Gold mines is well underway. Given their proximity, the integration of the two operations is expected to create one of the largest and lowest cost gold mines in Canada.”

Boosted by rising gold prices, Alamos also delivered record revenue of US$332.6 million in the second quarter, a 27% year-on-year increase. The company reported adjusted net earnings of US$96.9 million, or US24¢ a share.

“We remain well positioned to achieve full-year guidance and deliver significant production growth at declining costs over the next several years,” McCluskey said.