Alamos Gold Inc. (NYSE: AGI) reported strong third-quarter results for 2026, with operating revenue reaching $510.4 million, a 10% increase compared to the same period in 2025. The company attributed this growth to higher realized gold prices, which averaged $4,258 per ounce. Gold sales amounted to 118,361 ounces, driven by record production from the Island Gold District, which produced 68,700 ounces, a quarterly record for the operation.
The company's total cash costs were $1,375 per ounce, while all-in sustaining costs (AISC) stood at $1,956 per ounce. Despite these costs, Alamos Gold generated $75.6 million in free cash flow and maintained a robust cash position of $597.4 million. The company also continued its strategy of eliminating legacy gold hedges, repurchasing $86.2 million in forward sale contracts inherited from Argonaut Gold.
However, the quarter was not without challenges. The Phase 3+ Shaft Expansion at the Island Gold District faced delays due to ground support requirements, pushing the completion timeline to mid-2027. The budget for this project also increased by 5% to reflect additional work requirements and inflationary pressures. Additionally, underground development rates at the Puerto Del Aire (PDA) project were slower than planned, which is expected to result in lower production during the second half of 2027.
CEO John McCluskey highlighted the company's progress in eliminating legacy gold hedges, stating that 96% of these contracts have been bought back since the 2024 acquisition of Argonaut Gold. The company also received a $160 million payment from the sale of its Turkish assets and expects a final $150 million payment in October 2027. Alamos Gold remains focused on its long-term production target of one million ounces annually by 2030, supported by ongoing expansions and new project developments.