Alamos Gold Reports First Quarter 2026 Results Strong margin expansion drives record cash flow from operations and solid ongoing free cash flow of $102 million
Alamos Gold Inc.
Brookfield Place, 181 Bay Street, Suite 3910, P.O. Box #823 Toronto, Ontario M5J 2T3 Telephone: (416) 368-9932 or 1 (866) 788-8801
All amounts are in United States dollars, unless otherwise stated.
Alamos Gold Reports First Quarter 2026 Results
Strong margin expansion drives record cash flow from operations and solid ongoing free cash flow of $102 million
Toronto, Ontario (April 29, 2026) - Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported its financial results for the quarter ended March 31, 2026.
“Our first quarter production was in line with guidance driven by a solid performance from the Island Gold District. Underground mining rates at Island Gold increased to a new record, and milling rates at Magino increased significantly over the past six weeks following the implementation of additional improvements. We expect all three of our operations to contribute to a 20% increase in production in the second quarter, with further growth into the second half of the year at substantially lower costs driven by the ongoing ramp up of mining rates at Island Gold. We expect this trend of growing production and declining costs to continue through the end of the decade as we advance our portfolio of high-return growth projects, underpinning one of the strongest outlooks in the sector,” said John A. McCluskey, President and Chief Executive Officer.
First Quarter 2026 Operational and Financial Highlights
- Produced 123,900 ounces of gold in the first quarter of 2026, in-line with quarterly guidance with strong results from the Island Gold District offsetting lower than planned production at Young-Davidson. Production is expected to increase in the second quarter with further growth in the second half of the year, putting the Company on track to achieve full year production guidance
- Sold 121,924 ounces of gold at an average realized price of $4,829 per ounce, generating record quarterly revenues of $596.7 million, including silver sales. This represented a 79% increase from the first quarter of 2025 and marked the fourth consecutive quarter of record revenues
• Cost of sales were $205.5 million, or $1,685 per ounce in the first quarter. Total cash costs1 of $1,230 per ounce and all-in sustaining costs ("AISC"1) of $1,862 per ounce for the first quarter were above the top end of guidance for the first half of 2026, as previously guided. Total cash costs and AISC are expected to decrease in the second quarter and further into the second half of the year, driven by low-cost growth from the Island Gold District, and lower costs from Young-Davidson
- First quarter cash flow from operating activities was $242.5 million (including a record $338.0 million before changes in working capital and taxes paid1, or $0.80 per share)
- Generated strong free cash flow1 of $101.7 million in the first quarter, while continuing to invest in high return growth projects, and net of $82.0 million paid in cash taxes
- Reported net earnings were $191.4 million for the first quarter, or $0.46 per share. Adjusted net earnings1 were $232.0 million, or $0.55 per share1. Adjusted earnings include after-tax adjustment for net losses on commodity hedge derivatives of $20.2 million, adjustments for net unrealized foreign exchange losses recorded within deferred taxes and foreign exchange totaling $19.3 million, and other adjustments of $1.1 million
- Cash and cash equivalents increased to $659.5 million at March 31, 2026, up from $623.1 million at the end of 2025. This reflected strong ongoing free cash flow while funding high-return growth, increased shareholder returns, and $42.7 million used to retire additional legacy gold hedges. The Company remains well-positioned to internally fund all of its growth initiatives with strong ongoing free cash flow, net cash of $459.5 million, and approximately $1.2 billion of total liquidity
- Announced a 60% increase in the quarterly dividend rate to $0.04 per share, with $16.6 million paid in the first quarter
1 | Alamos Gold Inc
- Repurchased and eliminated approximately one-third of legacy gold hedges from Argonaut Gold Inc. ("Argonaut") that were scheduled to mature in the second half of 2026, providing further upside to higher gold prices. These contracts totaled 15,000 ounces at an average price of $1,821 per ounce. The Company utilized existing cash to eliminate the hedges at a cost of $42.7 million for an effective price of approximately $4,667 per ounce
- Announced the IGD Expansion Study on February 3, 2026, outlining a long-life operation that is expected to become one of the largest, lowest-cost, and most profitable gold mines in Canada with annual production expected to increase to average 534,000 ounces over the initial 10 years (starting in 2028) at average mine-site AISC of $1,025 per ounce. At a gold price of $4,500 per ounce and USD/CAD foreign exchange rate of $0.74:1, the Island Gold District has an estimated after-tax net present value ("NPV") (5%) of $12.2 billion, making it one of the most valuable gold mines in Canada. The IGD Expansion is progressing well and remains on track for completion in 2028
- Advanced the Phase 3+ Shaft Expansion at the Island Gold District. This included completing the shaft sink and advancing construction of the paste plant and administrative complex. Construction of the shaft and surface infrastructure is expected to be substantially complete by the end of 2026, and commissioning of the shaft completed in early 2027
- Reported year-end 2025 Mineral Reserves of 15.9 million ounces (265 million tonnes ("mt")), a 32% increase from the end of 2024, with grades also increasing 5% to 1.87 grams per tonne (“g/t Au”). This marked the seventh consecutive year Mineral Reserves have increased for a cumulative increase of 64%, with grades also increasing 24% over that time frame
(1) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section at the end of this press release and associated MD&A for a description and calculation of these measures.
2 | Alamos Gold Inc
Highlight Summary
| Three Months Ended March 31, | |
|---|---|
| 2026 | 2025 |
Financial Results (in millions)
| Operating revenues | $596.7 | $333.0 |
| Cost of sales(1) | $205.5 | $195.2 |
| Earnings from operations | $344.8 | $94.7 |
| Earnings before income taxes | $315.2 | $25.7 |
| Net earnings | $191.4 | $15.2 |
| Adjusted net earnings(2) | $232.0 | $59.8 |
Adjusted earnings before interest, taxes, depreciation and $383.2 $145.4 amortization (2)
| Cash provided by operating activities | $242.5 | $79.6 |
| Cash provided by operating activities before changes in working capital and taxes paid(2) | $338.0 | $131.4 |
| Capital expenditures (sustaining)(2) | $45.2 | $26.8 |
| Sustaining finance leases(2)(3) | $3.8 | $4.3 |
| Capital expenditures (growth)(2) | $127.2 | $66.3 |
| Capital expenditures (capitalized exploration) | $11.1 | $6.6 |
| Free cash flow(2)(3) | $101.7 | ($20.1) |
Operating Results
123,900 125,000 Gold production (ounces)
121,924 117,583 Gold sales (ounces)
Per Ounce Data
Average realized gold price (5) $4,829 $2,802 Average spot gold price (London PM Fix) $4,873 $2,859 Cost of sales per ounce of gold sold $1,685 $1,660 (includes amortization) (1)
Total cash costs per ounce of gold sold (2) $1,230 $1,158 All-in sustaining costs per ounce of gold sold (2) $1,862 $1,661
Share Data
| Earnings per share, basic | $0.46 | $0.04 |
| Earnings per share, diluted | $0.45 | $0.04 |
| Adjusted earnings per share, basic(2) | $0.55 | $0.14 |
| Weighted average common shares outstanding (basic) (000’s) | 419,899 | 420,415 |
Financial Position (in millions)
$659.5 $623.1 Cash and cash equivalents (4)
(1) Cost of sales includes mining and processing costs, royalties, and amortization expense.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section at the end of this press release and associated MD&A for a description and calculation of these measures.
(3) Sustaining finance leases at the Island Gold District are not included as additions to mineral property, plant and equipment in cash flows used in investing activities.
(4) Cash and cash equivalents in the comparatives reflect the balance as at December 31, 2025.
(5) Average realized gold price for the three months ended March 31, 2026 included the delivery of ounces into the gold prepayment facility based on the prepay price of $4,166 ($2,524 per ounce for the three months ended March 31, 2025).
3 | Alamos Gold Inc
| Three Months Ended March 31, | |
|---|---|
| 2026 | 2025 |
Gold production (ounces)
| Island Gold District(7) | 61,200 | 59,200 |
| Young-Davidson | 30,000 | 35,400 |
| Mulatos District(8) | 32,700 | 30,400 |
Gold sales (ounces)
| Island Gold District(7) | 57,109 | 53,388 |
| Young-Davidson | 31,042 | 35,475 |
| Mulatos District(8) | 33,773 | 28,720 |
Cost of sales (in millions) (1)
| Island Gold District(7) | $87.8 | $79.5 |
| Young-Davidson | $67.4 | $65.1 |
| Mulatos District(8) | $50.1 | $50.6 |
Cost of sales per ounce of gold sold (includes amortization) (1)
| Island Gold District(7) | $1,537 | $1,489 |
| Young-Davidson | $2,171 | $1,835 |
| Mulatos District(8) | $1,483 | $1,762 |
Total cash costs per ounce of gold sold (2)
| Island Gold District(7) | $1,189 | $1,040 |
| Young-Davidson | $1,643 | $1,311 |
| Mulatos District(8) | $921 | $1,191 |
Mine-site all-in sustaining costs per ounce of gold sold (2)(3)
| Island Gold District(7) | $1,760 | $1,418 |
| Young-Davidson | $2,181 | $1,615 |
| Mulatos District(8) | $995 | $1,278 |
Capital expenditures (sustaining, growth, and capitalized exploration) (in millions) (2)
| Island Gold District(4)(7) | $123.0 | $72.3 |
| Young-Davidson(5) | $25.9 | $18.8 |
| Mulatos District(6)(8) | $17.3 | $4.0 |
| Other | $21.1 | $8.9 |
(1) Cost of sales includes mining and processing costs, royalties, and amortization expense.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section at the end of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative expense and corporate share-based compensation expense.
(4) Includes capitalized exploration at Island Gold District of $3.4 million for the three months ended March 31, 2026 ($3.9 million for the three months March 31, 2025).
(5) Includes capitalized exploration at Young-Davidson $3.4 million for the three months ended March 31, 2026 ($2.0 million for the three months ended March 31, 2025).
(6) Includes capitalized exploration at Mulatos District $2.2 million for the three months ended March 31, 2026 ($0.7 million for the three months ended March 31, 2025).
(7) The Island Gold District includes Island Gold and Magino mines.
(8) The Mulatos District includes Mulatos and La Yaqui Grande mines.
4 | Alamos Gold Inc
Environment, Social and Governance Summary Performance
Health and Safety
- Total Recordable Injury Frequency Rate1 of 1.47 in the first quarter, consistent with the fourth quarter of 2025
- Lost time injury frequency rate1 of nil in the first quarter, consistent with the fourth quarter of 2025
- During the first quarter, Alamos had 20 recordable injuries across its sites and no lost time injuries
The Company’s Home Safe Every Day safety leadership training program, and newly introduced Home Safe Eight safety initiative, continue to be delivered across the workforce. Alamos’ Home Safe Eight is a new initiative consisting of eight non-negotiable safety rules targeting high-risk activities. These enhanced initiatives focus on areas such as energy isolation, working at heights, and safe vehicle operation, and are designed to significantly reduce the potential for injury through consistent and disciplined application.
Alamos strives to maintain a safe, healthy working environment for all, with a strong safety culture where everyone is continually reminded of the importance of keeping themselves and their colleagues healthy and injury-free. The Company’s overarching commitment is to have all employees and contractors return Home Safe Every Day.
Environment
- Continued reclamation activities at the Cerro Pelon, El Victor and San Carlos pits in the Mulatos District, with work expected to be completed in the second quarter of 2026
- Zero significant environmental incidents
There were four reportable spills in the first quarter. At the Young-Davidson mine, two reportable spills occurred: one involving a sodium sulfide container, and another resulting from a natural gas line leak. At the Island Gold District, one spill occurred involving an engine oil container. At the Mulatos District, a small amount of heap leach material spilled beyond the leach pad and was quickly remediated.
All spills were promptly addressed by site teams at the time of occurrence and are not expected to have any lasting impact on the natural environment. The Company remains committed to preserving the long-term health and viability of the natural environment surrounding its operations and projects. This includes investing in new initiatives to reduce the Company's environmental footprint, with the goal of minimizing the impacts of its activities.
Community
Alamos continued to provide charitable donations, sponsorships, medical support and infrastructure investments within its local communities, including:
- Ongoing financial support for various institutions in Kirkland Lake to support their services and continued operations
- Sponsorship of various events and teams, including the Canadian Mining Games, Junior Explorers Challenge, Temagami First Nation Ice Road Challenge, Larder Lake Fishing Derby, and a local team participating in the Youth Bowl Canada Championship
- Cash donations to various health, education, and food programs in the communities in which Alamos operates
The Company believes that excellence in sustainability provides a net benefit to all stakeholders and continues to engage with local communities to better understand local challenges and priorities. Ongoing investments in local infrastructure, health care, education, cultural and community programs remain a focus of the Company.
Governance and Disclosure
- Completed annual fieldwork and assurance of Alamos’ compliance with the World Gold Council’s Responsible Gold Mining Principles (“RGMPs”). Alamos expects to publish its 2025 RGMP Report in the second quarter of 2026
The Company maintains the highest standards of corporate governance to ensure that corporate decision-making reflects its values, including the Company’s commitment to sustainable development.
(1) Frequency rate is calculated as incidents per 200,000 hours worked.
5 | Alamos Gold Inc
Outlook and Strategy
| 2026 Guidance | |||||
| Island Gold | Young- | Mulatos | Lynn Lake | ||
| District | Davidson | District | Total |
Gold production (000's ounces) 290 - 330 155 - 175 125 - 145 — 570 - 650 Cost of sales, including amortization (in millions) (2) $920 Cost of sales, including amortization ($ per ounce) (2) $1,450 - $1,550 Total cash costs ($ per ounce) (1) $875 - $975 $1,350 - $1,450 $930 - $1,030 — $1,020 - $1,120 All-in sustaining costs ($ per ounce) (1) $1,500 - $1,600 Mine-site all-in sustaining costs ($ per ounce) (1)(3) $1,340 - $1,440 $1,730 - $1,830 $1,000 - $1,100 — Capital expenditures ($ millions)
| Sustaining capital(1)(4) | $135 - $150 | $55 - $65 | $3 - $5 | — | $193 - $220 | |
| Growth capital(1)(4) | $355 - $385 | $25 - $30 | $137 - $145 | $140 - $160 | $657 - $720 | |
| Total sustaining and growth capital(1)(4) | $490 - $535 | $80 - $95 | $140 - $150 | $140 - $160 | $850 - $940 | |
| Capitalized exploration(1) | $33 | $12 | $9 | $6 | $60 | |
| Total capital expenditures and capitalized exploration(1) | $523 - $568 | $92 - $107 | $149 - $159 | $146 - $166 $910 - $1,000 |
(1) Refer to the "Non-GAAP Measures and Additional GAAP" section at the end of this press release and associated MD&A for a description of these measures.
(2) Cost of sales includes mining and processing costs, royalties, and amortization expense but excludes silver credit, and is calculated based on the mid-point of total cash cost guidance.
(3) For the purposes of calculating mine-site all-in sustaining costs at individual mine sites the Company allocates a portion of share based compensation to the mine sites, but does not include an allocation of corporate and administrative expenses to the mine sites.
(4) Sustaining and growth capital guidance excludes capitalized exploration.
The Company’s objective is to operate a sustainable business model that supports growing returns to all stakeholders over the long-term, through growing production, expanding margins, and increasing profitability. This includes a balanced approach to capital allocation focused on generating strong ongoing free cash flow while reinvesting in high-return internal growth opportunities, and supporting higher returns to shareholders.
During the first quarter, the Company delivered on these objectives across multiple fronts, including meeting quarterly guidance while continuing to advance its high-return growth projects. First quarter production of 123,900 ounces was in line with guidance with a strong performance from the Island Gold District more than offsetting lower production from Young-Davidson. As previously guided, total cash costs and AISC were above first half guidance, with both expected to decrease in the second quarter and more significantly in the second half of the year. Reflecting strong ongoing margins, the Company generated $101.7 million of free cash flow in the first quarter while funding its peer leading pipeline of growth projects, and net of $82.0 million of cash taxes paid. Higher production, lower costs and lower cash taxes are expected to drive stronger free cash flow through the remainder of year.
Underground mining rates at Island Gold increased to average a new record of over 1,400 tpd during the first quarter, while the addition of the supplementary crushed ore feed in the second half of February and other operational improvements supported the ramp up of processing rates in the Magino mill to average 9,200 tpd over the past six weeks. The ramp up of underground mining rates is expected to continue through the year supporting growing production from the Island Gold District.
All three operations are expected to contribute to a substantial growth in the second quarter with production expected to increase to between 145,000 and 155,000 ounces. With stronger production expected into the second half of the year, the Company remains on track to achieve full year guidance. Reflecting the stronger production, AISC are expected to decrease approximately 5% in the second quarter with a more significant improvement into the second half of the year. The Company continues to monitor the impact of ongoing inflationary pressures across its cost structure. This includes higher labour, contractor, diesel, electricity and natural gas costs, and the downstream impact of higher energy prices on other consumables. The Company expects to manage these cost pressures with productivity improvements through the year driving costs lower and significant margin expansion at current gold prices.
This trend of growing production and declining costs is expected to continue through the end of the decade driven by the Company's portfolio of high-return and low-cost growth projects. This includes the Island Gold District shaft and mill expansion, PDA and Lynn Lake, all of which continued to advance during the first quarter. These projects are expected to nearly double gold production to approximately one million ounces annually by 2030, underpinning one of the strongest outlooks in the sector.
6 | Alamos Gold Inc
The Island Gold District will be a key driver of this growth over the next several years. The Phase 3+ Shaft Expansion achieved a significant milestone during the first quarter with the completion of the shaft sink to its planned depth of 1,381 metres ("m"). Work on the shaft bottom infrastructure will continue through 2026 with commissioning of the shaft expected to be completed early in 2027. This is expected to drive consolidated gold production to a range of between 650,000 and 730,000 ounces in 2027, a 13% increase from 2026.
In parallel, work on the Magino mill expansion to 20,000 tpd continues to progress with construction and exterior cladding of the new mill building well underway. The completion of the IGD Expansion in 2028 is expected to support a further increase in production to a range of 755,000 to 835,000 ounces, representing a 15% increase from 2027 and cumulative 46% increase from 2025.
Further growth is expected into 2029 with initial production from Lynn Lake, and the ramp up of underground mining rates at Island Gold to 3,000 tpd, as outlined in the IGD Expansion Study. By 2030, production is expected to increase to a rate of approximately one million ounces annually.
Total cash costs and AISC in 2027 are expected to decrease 19% and 10%, respectively, from 2025 driven by lowcost growth from the Island Gold District with the completion of the shaft and connecting the Magino mill to low-cost grid power. A further decrease in costs is expected into 2028 with AISC expected to be between $1,200 and $1,300 per ounce, representing an 18% decrease from 2025. This is expected to be driven by the first full year of production from PDA in Mexico and a further increase in low-cost production from the Island Gold District with the completion of the IGD Expansion. Costs are expected to continue decreasing into 2029 and 2030 with the ramp up of underground mining rates at Island Gold to 3,000 tpd, and the start of production from the low-cost Lynn Lake project.
Capital spending in 2026 is expected to range between $850 and $940 million, excluding capitalized exploration of $60 million. The largest portion of this budget will be focused on the completion of the shaft expansion and larger mill expansion within the Island Gold District. Capital spending is expected to decline slightly in 2027 with increased spending at Lynn Lake offset by lower spending on PDA and the Island Gold District. In 2028, capital spending is expected to decrease approximately 24% compared to 2027 as the IGD Expansion is completed. A more significant decrease is expected into 2029 and 2030 with the completion of construction at Lynn Lake.
A record $97 million has been budgeted globally for exploration in 2026, a 37% increase from the $71 million spent in 2025. The increase reflects significant ongoing exploration success, including a 32% increase in Global Mineral Reserves to 15.9 million ounces in 2025, with grades also increasing 5% to 1.87 g/t Au (265 mt). This includes expanded budgets at each of the Island Gold District, Young-Davidson and Lynn Lake. The Island Gold District remains the largest portion of the budget with $43 million planned for 2026, following up on another year of substantial Mineral Reserve growth.
The Company remains well positioned to fund its high-return growth projects internally with strong ongoing free cash flow, $659.5 million of cash and cash equivalents at the end of the first quarter of 2026, and approximately $1.2 billion of total liquidity. At current gold prices, the Company expects to continue generating strong free cash flow while funding its growth projects, with significant increases starting in 2027 with the completion of the Phase 3+ Shaft Expansion. The Company also remains focused on shareholder returns. Given the strong ongoing free cash flow, and significant growth expected over the next several years, the Company increased its quarterly dividend rate by 60% to $0.04 per share in the first quarter, and will continue to assess opportunities to be active on its share buyback.
7 | Alamos Gold Inc
First Quarter 2026 Results
Island Gold District Financial and Operational Review
| Three Months Ended March 31 | |
|---|---|
| 2026 | 2025 |
Gold production (ounces) 61,200 59,200 Gold sales (ounces) 57,109 53,388
Financial Review (in millions)
| Operating Revenues | $279.3 | $152.0 |
| Cost of sales(1) | $87.8 | $79.5 |
| Earnings from operations | $189.7 | $71.4 |
| Cash provided by operating activities | $177.2 | $86.9 |
| Capital expenditures (sustaining)(2) | $27.9 | $15.5 |
| Lease payments (sustaining)(2),(5) | $3.8 | $4.3 |
| Capital expenditures (growth)(2) | $87.9 | $48.6 |
| Capital expenditures (capitalized exploration)(2) | $3.4 | $3.9 |
| Mine-site free cash flow(2),(5) | $58.0 | $18.9 |
| Cost of sales, including amortization per ounce of gold sold(1) | $1,537 | $1,489 |
| Total cash costs per ounce of gold sold(2) | $1,189 | $1,040 |
| Mine-site all-in sustaining costs per ounce of gold sold(2),(3) | $1,760 | $1,418 |
Island Gold Mine Underground Operations
| Tonnes of ore mined | 128,113 | 110,226 |
| Tonnes of ore mined per day | 1,423 | 1,225 |
| Average grade of gold(4) | 9.38 | 11.50 |
| Metres developed | 1,756 | 2,157 |
Island Gold Mill Operations (8)
| Tonnes of ore processed | 113,164 | 109,067 |
| Tonnes of ore processed per day | 1,257 | 1,212 |
| Average grade of gold(4) | 9.95 | 11.36 |
| Contained ounces milled | 36,188 | 39,838 |
| Average recovery rate | 97% | 98% |
Magino Mine Open Pit Operations
| Tonnes of ore mined - open pit(6) | 1,073,079 | 1,064,870 |
| Tonnes of ore mined per day | 11,923 | 11,832 |
| Total waste mined - open pit(7) | 3,418,216 | 3,446,128 |
| Total tonnes mined - open pit | 4,491,294 | 4,510,998 |
| Waste-to-ore ratio(7) | 3.19 | 3.24 |
| Average grade of gold(4) | 0.81 | 0.77 |
Magino Mill Operations (8)
| Tonnes of ore processed | 675,984 | 651,153 |
| Tonnes of ore processed per day | 7,511 | 7,235 |
| Average grade of gold processed(4) | 1.18 | 0.86 |
| Contained ounces milled | 25,539 | 17,920 |
| Average recovery rate | 94% | 92% |
Island Gold District Mill Operations
| Tonnes of ore processed per day | 8,768 | 8,447 |
| Average grade of gold processed(4) | 2.43 | 2.36 |
| Average recovery rate | 96% | 97% |
(1) Cost of sales includes mining and processing costs, royalties, and amortization.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section at the end of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative expense and corporate share-based compensation expense.
(4) Grams per tonne of gold.
(5) Mine-site free cash flow does not include lease payments which are classified as cash flows used in financing activities on the consolidated financial statements.
(6) Includes ore stockpiled during the periods.
(7) Total waste mined includes operating waste and capitalized stripping.
(8) Magino mill results include the processing of open pit ore from Magino and excess underground ore not processed within the Island Gold mill for the three months ended March 31, 2026. Grades of gold processed from the Magino mine averaged 1.07 g/t Au.
8 | Alamos Gold Inc
The Island Gold District produced 61,200 ounces in the first quarter of 2026, slightly higher than the fourth quarter of 2025 and prior year period.
Island Gold Operational Review
Underground mining rates increased to average a record 1,423 tpd in the first quarter, 16% higher than the prior year period and consistent with first quarter guidance. Mining rates are expected to steadily increase through the remainder of the year to 2,000 tpd by the end of 2026. A further increase in mining rates to 2,400 tpd is expected early in 2027 with the commissioning of the shaft infrastructure.
Underground grades mined averaged 9.38 g/t Au during the first quarter, in line with guidance. Grades are expected to remain at similar levels in the second quarter and increase in the second half of the year to average close to the mid-point of guidance for the full year.
Processing rates within the Island Gold mill averaged 1,257 tpd for the first quarter, with excess underground ore processed in the Magino mill. Mill recoveries averaged 97% for the first quarter, in line with expectations.
As outlined in the IGD Expansion Study, the Island Gold mill will continue operating until early 2028 and process approximately 1,265 tpd of higher grade underground ore. The remaining underground ore mined beyond the Island Gold mill capacity will be blended at increasing rates with open pit ore and processed within the Magino mill. Following the expected completion of the larger Magino mill expansion to 20,000 tpd in early 2028, the Island Gold mill will be shut down and all underground and open pit ore will be processed within the larger and more costeffective Magino mill.
Magino Operational Review
Total mining rates averaged 49,903 tpd during the first quarter, including 11,923 tpd of ore, consistent with the prior year period. Grades mined of 0.81 g/t Au for the first quarter were 5% higher than the prior year period and slightly above annual guidance.
Milling rates averaged 7,511 tpd in the first quarter, 4% higher than the prior year period and slightly below first quarter guidance of 7,800 tpd. During the first quarter, a temporary crusher was added to provide supplemental ore feed after the existing secondary crusher arrangement. Following the completion of this new installation in the second half of February, milling rates increased substantially, averaging 9,200 tpd over the past six weeks. Milling rates are expected to remain at similar levels during the second quarter reflecting scheduled liner changes in the ball and SAG mills, as well as conveyor belt replacements. Milling rates are expected to increase to steady state levels of approximately 10,000 tpd by the third quarter, consistent with guidance.
As outlined in the IGD Expansion Study, further improvements are planned for the existing crushing and conveying circuit as part of a larger expansion to 20,000 tpd. These include the addition of a gyratory crusher, ore bins, and a new truck dump configuration allowing for the direct tipping of ore. In addition to the connection to grid power, these changes will significantly improve the performance of the existing crushing circuit by reducing ore rehandling and ensuring more consistent and higher ore flow to the mill.
Grades processed averaged 1.18 g/t Au during the first quarter, and included approximately 10,000 tonnes of higher grade underground ore. Recoveries for the first quarter were 94%.
Island Gold District Financial Review
Revenues of $279.3 million in the first quarter were 84% higher than the prior year period, driven by higher realized gold prices and an increase in ounces sold.
Cost of sales of $87.8 million in the first quarter were 10% higher than the prior year period, due to higher ounces sold and ongoing inflation.
Total cash costs of $1,189 per ounce and mine-site AISC of $1,760 per ounce in the first quarter were higher than the prior year period, driven by increased royalty costs, ongoing labour inflation, higher diesel and energy costs, and contractor costs. In addition, increased mine-site AISC reflected higher sustaining capital in support of the IGD Expansion to 20,000 tpd. Total cash costs and mine-site AISC were in line with plan and are expected to decrease in the second half of the year.
9 | Alamos Gold Inc
Capital expenditures totaled $123.0 million in the first quarter, including $27.9 million of sustaining capital, $3.8 million of sustaining lease payments, and $3.4 million of capitalized exploration. Growth capital spending of $87.9 million was primarily focused on the Phase 3+ Shaft Expansion, including shaft site infrastructure, paste plant, and underground development, as well as the larger Magino mill expansion to 20,000 tpd. The shaft sink was completed in the first quarter, reaching the planned depth of 1,381 m.
The Island Gold District generated strong mine-site free cash flow of $58.0 million in the first quarter, net of the significant capital investment related to the Phase 3+ Shaft and IGD Expansions. At current gold prices, the Island Gold District is expected to continue generating strong free cash flow while funding the expansion of the operation and a robust exploration program, with significant free cash flow growth starting in the latter part of 2026.
10 | Alamos Gold Inc
Young-Davidson Financial and Operational Review
| Three Months Ended March 31 | |
|---|---|
| 2026 | 2025 |
Gold production (ounces) 30,000 35,400 Gold sales (ounces) 31,042 35,475
Financial Review (in millions)
| Operating Revenues | $153.6 | $101.2 |
| Cost of sales(1) | $67.4 | $65.1 |
| Earnings from operations | $84.7 | $35.1 |
| Cash provided by operating activities | $97.4 | $58.0 |
| Capital expenditures (sustaining)(2) | $16.6 | $10.7 |
| Capital expenditures (growth)(2) | $5.9 | $6.1 |
| Capital expenditures (capitalized exploration)(2) | $3.4 | $2.0 |
| Mine-site free cash flow(2) | $71.5 | $39.2 |
| Cost of sales, including amortization per ounce of gold sold(1) | $2,171 | $1,835 |
| Total cash costs per ounce of gold sold(2) | $1,643 | $1,311 |
| Mine site all-in sustaining costs per ounce of gold sold(2),(3) | $2,181 | $1,615 |
Underground Operations
| Tonnes of ore mined | 648,489 | 608,601 |
| Tonnes of ore mined per day | 7,205 | 6,762 |
| Average grade of gold(4) | 1.73 | 2.00 |
| Metres developed | 2,387 | 2,132 |
Mill Operations
| Tonnes of ore processed | 610,700 | 599,215 |
| Tonnes of ore processed per day | 6,786 | 6,658 |
| Average grade of gold(4) | 1.75 | 2.01 |
| Contained ounces milled | 34,267 | 38,765 |
| Average recovery rate | 89% | 91% |
(1) Cost of sales includes mining and processing costs, royalties and amortization.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section at the end of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative expense and corporate share-based compensation expense.
(4) Grams per tonne of gold.
Operational review
Young-Davidson produced 30,000 ounces of gold in the first quarter, 15% lower than the prior year period due to lower grades mined and processed. With higher mining rates and grades expected to drive stronger production through the remainder of the year, the operation remains on track to achieve full year guidance.
Mining rates averaged 7,205 tpd in the first quarter, below first quarter guidance of 7,600 tpd reflecting a longer than expected timeline to complete rehabilitation work on one of three existing ore passes, as well as delays in commissioning a newly constructed ore pass resulting in more rehandling of ore. Both passes are now fully operational, bringing the total number of active ore passes to four. This is expected to increase operational flexibility and support increased mining rates of approximately 8,000 tpd in the second quarter and through the remainder of the year.
Grades mined of 1.73 g/t Au for the first quarter were below the low end of annual guidance of 1.90 g/t Au reflecting higher than planned mining dilution. This was primarily driven by stope overbreak within a small number of stopes. As part of ongoing standard operating practices, the Company continues to review its drilling and blasting design with a focus on minimizing dilution. Mined grades are expected to increase to within guided levels through the remainder of the year.
11 | Alamos Gold Inc
Milling rates averaged 6,786 tpd in the first quarter, below guidance reflecting longer than planned downtime for scheduled maintenance and an unscheduled repair to a transformer in the mill. Milling rates are expected to increase to average 8,000 tpd through the rest of the year. Excess underground ore mined but not processed in the first quarter will be processed through the remainder of the year. Milled grades averaged 1.75 g/t Au for the first quarter, consistent with mined grades. Mill recoveries averaged 89% for the first quarter, slightly lower than the prior year period and annual guidance reflecting lower grades processed.
Financial Review
Revenues increased to $153.6 million in the first quarter, 52% higher than the prior year period, driven by higher realized gold prices, partially offset by lower ounces sold.
Cost of sales of $67.4 million in the first quarter were 4% higher than the prior year period, reflecting inflation, partially offset by lower ounces sold.
First quarter total cash costs of $1,643 per ounce and mine-site AISC of $2,181 per ounce were higher than the prior year period, primarily due to lower grades processed, increased electricity and diesel costs, higher royalty expense, and ongoing labour inflation. The increase in mine-site AISC also reflected higher sustaining capital expenditures across a lower number of ounces sold. Both total cash costs and mine-site AISC are expected to decrease into the second quarter and through the rest of the year driven by higher mining rates and grades.
Capital expenditures in the first quarter totaled $25.9 million, including $16.6 million of sustaining capital and $5.9 million of growth capital. Additionally, $3.4 million was invested in capitalized exploration during the quarter.
Young-Davidson continues to generate strong ongoing mine-site free cash flow, including $71.5 million in the first quarter. With a 14-year Mineral Reserve life, the operation is well-positioned to generate strong ongoing free cash flow over the long-term.
12 | Alamos Gold Inc