Alamos Gold Announces Strong 2025 Financial Performance with Major Dividend Hike
Alamos Gold Inc., a prominent mining company listed on the TSX and NYSE under the symbol AGI, has released its financial results for the fourth quarter and full year ended December 31, 2025. The company reported significant achievements, including record free cash flow generation and a substantial increase in shareholder returns.
Record Financial Metrics Despite Operational Hurdles
In 2025, Alamos Gold faced challenges at its Canadian operations, which led to lower-than-planned production and higher costs. Severe winter weather and other operational issues impacted mining and processing rates, particularly late in the year. Full-year gold production totaled 545,400 ounces, a 4% decrease from 2024, with fourth-quarter production at 141,500 ounces, consistent with the previous quarter but below guidance.
Despite these setbacks, the company established new financial records. Record free cash flow reached $351.7 million for the year, including a record $156.9 million in the fourth quarter. This strong performance supported a 60% increase in the quarterly dividend to $0.04 per share, effective in the first quarter of 2026.
Key Operational and Financial Highlights
The company's operations across its districts contributed to robust financial outcomes:
- Island Gold District: Produced 250,400 ounces of gold in 2025 and generated record annual mine-site free cash flow of $205.0 million, funding the Phase 3+ Shaft Expansion and exploration initiatives.
- Young-Davidson: Produced 153,400 ounces of gold and achieved record mine-site free cash flow of $249.9 million, with a record $89.7 million in the fourth quarter.
- Mulatos District: Produced 141,600 ounces of gold and delivered strong mine-site free cash flow of $221.5 million, including a record $92.3 million in the fourth quarter.
Financially, Alamos Gold reported record annual revenues of approximately $1.8 billion, a 34% increase from 2024, driven by full-year sales of 531,230 ounces of gold at an average realized price of $3,372 per ounce. Fourth-quarter revenues hit a record $575.3 million, a 53% increase year-over-year.
Costs, Earnings, and Shareholder Returns
Cost of sales for 2025 were $809.5 million, or $1,524 per ounce, with total cash costs at $1,077 per ounce and all-in sustaining costs (AISC) at $1,524 per ounce, above revised guidance due to production challenges. Reported net earnings for the year were $885.8 million, or $2.11 per share, while adjusted net earnings were $587.1 million, or $1.40 per share.
The company returned $80.9 million to shareholders in 2025, nearly double the $41.0 million returned in 2024, through share repurchases and dividend payments. Cash and cash equivalents increased to $623.1 million at year-end, up from $327.2 million in 2024, reflecting strong free cash flow generation.
Strategic Growth Initiatives and Future Outlook
John A. McCluskey, President and Chief Executive Officer of Alamos Gold, emphasized the company's growth projects, including the Phase 3+ Shaft Expansion and a 32% increase in Mineral Reserves. He stated, "We expect these growth projects to drive a significant improvement into 2026, and sustained low-cost growth over the next five years to approximately one million ounces annually by 2030." All growth is focused in Canada and will be funded internally while generating increasing free cash flow.
Additional strategic moves included repaying $50 million of debt in the fourth quarter and eliminating half of the 2026 legacy gold hedges from Argonaut Gold Inc., enhancing upside to current gold prices. The company remains well-positioned with net cash of $423.1 million and total liquidity of approximately $1.2 billion to support its growth initiatives.
