Alamos Gold Inc (NYSE:AGI) reported adjusted earnings of $0.34 per share for the second quarter, surpassing the analyst consensus of $0.32. This strong performance was driven by higher gold production and increased realized gold prices.
The company recorded quarterly revenue of $438.2 million, just slightly below the consensus estimate of $438.56 million, but representing significant growth compared to previous periods. During the quarter, Alamos sold 135,027 ounces of gold at an average realized price of $3,223 per ounce. Following the earnings announcement, the company’s shares rose 0.7% in trading.
Gold production reached 137,300 ounces in Q2, a 10% increase over the first quarter and in line with the company’s quarterly guidance. This production boost helped drive record cash flow from operating activities, totaling $199.5 million — a 151% increase from the prior quarter.
“We expect further production growth into the second half of the year driven by a combination of higher grades and milling rates, and remain on track to achieve full year production guidance. Given external factors related to our higher share price and gold price, as well as the slower start to the year at Magino and Young-Davidson, we have increased our annual cost guidance.
This is not reflective of our long-term outlook with costs expected to continue to improve into the second half of the year, and a more substantial decrease expected over the next several years,” said John A. McCluskey, President and Chief Executive Officer.
Alamos Gold continues to benefit from the strong gold price environment while maintaining steady production levels across its operations.
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