TORONTO, Feb. 18, 2026 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (TSX:AGI, NYSE:AGI) ("Alamos" or the "Company") today reported its financial results for the quarter and year ended December 31, 2025.
"Our full year production was lower than planned and costs higher due to a challenging year at our Canadian operations. Despite these challenges, we established a number of new financial records including record free cash flow of $352 million while investing in our high-return growth initiatives. This included advancing the Phase 3+ Shaft Expansion, delivering a 32% increase in Mineral Reserves, and incorporating that growth into a larger expansion of the Island Gold District," said John A. McCluskey, President and Chief Executive Officer.
"Collectively, 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 of this growth is in Canada, and we expect to fund it all internally while generating increasing free cash flow. Reflecting this strong outlook and growing free cash flow, we are pleased to announce a 60% increase in our dividend," Mr. McCluskey added.
Fourth Quarter and Full Year 2025 Highlights
Operational and Financial Highlights
Produced 545,400 ounces of gold in 2025, below revised annual guidance and a 4% decrease from 2024. Lower mining and processing rates at the Canadian operations as a result of severe winter weather, as well as other operational challenges, impacted production late in the year. Fourth quarter production of 141,500 ounces was consistent with the third quarter but below quarterly guidance
The Island Gold District produced 250,400 ounces of gold in 2025 and generated record annual mine-site free cash flow1 of $205.0 million after funding all Phase 3+ Shaft Expansion capital and exploration initiatives
Young-Davidson produced 153,400 ounces of gold in 2025 and generated record mine-site free cash flow of $249.9 million, including a record $89.7 million in the fourth quarter
The Mulatos District produced 141,600 ounces of gold in 2025 and generated strong mine-site free cash flow of $221.5 million, including a record $92.3 million in the fourth quarter
Cost of sales were $809.5 million or $1,524 per ounce in 2025, and $219.5 million, or $1,544 per ounce in the fourth quarter
Total cash costs1 of $1,077 per ounce and all-in sustaining costs ("AISC"1) of $1,524 per ounce for the full year were above revised annual guidance. Total cash costs of $1,111 per ounce and AISC of $1,592 per ounce for the fourth quarter were higher than the third quarter and quarterly guidance, driven by lower than planned production from the Island Gold District and Young-Davidson
Full year sales totaled 531,230 ounces of gold at an average realized price of $3,372 per ounce, generating record annual revenues of approximately $1.8 billion, including silver sales, representing a 34% increase from 2024. This included fourth quarter sales of 142,147 ounces of gold at an average realized price of $3,998 per ounce, generating record quarterly revenues of $575.3 million. This represented a 53% increase from the fourth quarter of 2024 and marked the third consecutive quarter of record revenues
Generated record annual cash flow from operating activities of $795.3 million (including $924.3 million before changes in working capital and taxes paid1, or $2.20 per share1), a 20% increase from 2024. Fourth quarter cash flow from operating activities was $250.9 million (including $284.7 million before changes in working capital and taxes paid, or $0.68 per share)
Generated record annual free cash flow1 of $351.7 million, including a record $156.9 million in the fourth quarter, while continuing to reinvest in high-return growth projects including the Phase 3+ Shaft Expansion, IGD Expansion to 20,000 tonnes per day ("tpd"), Lynn Lake, PDA, and a record exploration program
Reported net earnings were $885.8 million in 2025, or $2.11 per share. Adjusted net earnings1 were $587.1 million in 2025, or $1.40 per share1. Adjusted earnings include after-tax adjustments for an impairment reversal and gain on sale of assets of $419.6 million, loss on commodity hedge derivatives of $152.1 million, as well as adjustments for net unrealized foreign exchange gain recorded within deferred taxes and foreign exchange totaling $27.4 million, and other adjustments of $3.8 million
Reported net earnings were $434.9 million for the fourth quarter, or $1.03 per share. Adjusted net earnings for the fourth quarter were $227.6 million, or $0.54 per share. Adjusted net earnings include after-tax adjustments for a gain on sale of assets of $226.7 million, loss on commodity hedge derivatives of $34.9 million, as well as adjustments for unrealized foreign exchange gain recorded within deferred taxes and foreign exchange totaling $6.0 million, and other adjustments of $9.5 million
Cash and cash equivalents were $623.1 million at December 31, 2025, up from $463.1 million at the end of the third quarter, and $327.2 million at the end of 2024. This reflects record free cash flow generation, while continuing to reinvest in high-return growth, supporting increased shareholder returns, debt reduction, and the repurchase of hedges. The Company remains well-positioned to internally fund all of its growth initiatives with strong ongoing free cash flow, net cash of $423.1 million, and approximately $1.2 billion of total liquidity
Returned $80.9 million to shareholders in 2025, nearly double the $41.0 million returned in 2024. This included the repurchase of 1.3 million shares at a cost of $38.8 million, and dividend payments totalling $42.1 million. In addition, the Company announced a 60% increase in the quarterly dividend to $0.04 per share, starting in the first quarter of 2026
Repaid $50 million of debt during the fourth quarter, leaving $200 million drawn on the credit facility at the end of 2025
Eliminated half of the 2026 legacy gold hedges from Argonaut Gold Inc. ("Argonaut") in the fourth quarter with the repurchase and elimination of all forward sale contracts that were scheduled to mature in the first half of 2026. These contracts totaled 50,000 ounces at an average price of $1,821 per ounce. The cost to eliminate the hedges was $113.5 million, at an effective price of approximately $4,091 per ounce, providing further upside to current gold prices. This was funded by $63.5 million in cash and a gold sale prepayment for $50.0 million in exchange for the delivery of 12,255 ounces in the first half of 2026 at a prepay price of $4,166 per ounce
Mineral Reserves and Resources, Growth Projects and Other Highlights
Announced the Island Gold District Expansion Study ("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. Compared to the Base Case Life of Mine Plan (the "Base Case LOM Plan") released in June 2025, the IGD Expansion incorporates a 30% increase in Mineral Reserves and an expansion of the Magino mill to 20,000 tpd, driving increased annual production of 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
Issued three-year guidance on February 4, 2026, with production expected to increase 12% in 2026 to between 570,000 and 650,000 ounces, and 46% by 2028 to between 755,000 and 835,000 ounces. AISC are expected to decrease 18% by 2028 relative to 2025, driven by low-cost growth from the Island Gold District following the completion of the Phase 3+ Shaft Expansion late in 2026 and the IGD Expansion in 2028. Further growth in production and reduction in costs is expected after the completion of the Lynn Lake project in 2029
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"). The growth was driven by the successful conversion of a large portion of Mineral Resources to Reserves at the Island Gold District. Measured and Indicated Mineral Resources also increased 6% to 5.5 million ounces (119 mt grading 1.44 g/t Au) driven by additions at Young-Davidson, Lynn Lake and Mulatos. Inferred Mineral Resources decreased 63% to 2.0 million ounces (35 mt grading 1.82 g/t Au) reflecting the successful conversion of Mineral Resources at the Island Gold District to Reserves
Advanced the Phase 3+ Shaft Expansion at the Island Gold District. This included shaft sink progressing to a depth of 1,350 metres ("m"), or 98% of the ultimate depth, and advancing the paste plant construction. The Phase 3+ Shaft Expansion completion is expected in the fourth quarter of 2026
Announced an updated development plan for the Lynn Lake project incorporating the BT and Linkwood deposits, and several scope changes including a 13% increase in mill capacity to 9,000 tpd, driving production higher and stronger economics. Lynn Lake is expected to average 186,000 ounces over its initial 10-years at first quartile mine-site AISC of $829 per ounce. Construction activities are expected to ramp up in the spring of 2026, with initial production expected in the first half of 2029
Received approval of an amendment to the existing environmental impact assessment (Manifestación de Impacto Ambiental) by Mexico's Secretariat of Environment and Natural Resources in January 2025, allowing for the start of construction on the PDA project within the Mulatos District. PDA remains on budget and on schedule for initial production by mid-2027
Closed the sale of the Company's Turkish development projects, which consist of Kirazlı, Ağı Dağı and Çamyurt, to Tümad Madencilik Sanayi ve Ticaret A.Ş ("Tümad") for total cash consideration of $470 million in October 2025. Upon closing, Alamos received the first payment of $160 million. The remaining cash payments, totaling $310 million, are expected to be received on the first and second anniversaries of the closing of the transaction
Closed the sale of the option to earn 100% interest in the non-core Quartz Mountain Gold Project ("Quartz Mountain"), located in Oregon, to Q-Gold Resources Ltd. ("Q-Gold") in October 2025. Quartz Mountain was sold for total consideration of up to $21 million and a 9.9% equity interest in Q-Gold
Alamos was recognized for the second consecutive year as a TSX30TM 2025 winner by the Toronto Stock Exchange in September 2025. The annual ranking recognizes the 30 top performing stocks over a three-year period. Alamos' share price increased 310% over the trailing three-year period
(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.
Highlight Summary
Three Months EndedDecember 31,
Years EndedDecember 31,
2025
2024
2025
2024
Financial Results (in millions)
Operating revenues
$575.3
$375.8
$1,808.8
$1,346.9
Cost of sales(1)
$219.5
$200.9
$809.5
$751.1
Earnings from operations
$330.9
$158.4
$1,097.5
$561.9
Earnings before income taxes
$510.9
$157.2
$1,089.7
$502.2
Net earnings
$434.9
$87.6
$885.8
$284.3
Adjusted net earnings(2)
$227.6
$103.2
$587.1
$328.9
Adjusted earnings before interest, taxes, depreciation and amortization(2)
$384.6
$207.2
$1,073.7
$691.5
Cash provided by operating activities
$250.9
$192.2
$795.3
$661.1
Cash provided by operating activities before changes in working capital and taxes paid(2)
$284.7
$207.9
$924.3
$726.2
Capital expenditures (sustaining)(2)
$49.5
$30.0
$144.6
$110.1
Sustaining finance leases(2)(3)
$3.9
$5.2
$16.5
$10.6
Capital expenditures (growth)(2)
$97.0
$101.2
$318.2
$279.5
Capital expenditures (capitalized exploration)
$11.0
$7.5
$44.3
$28.0
Free cash flow(2)(3)
$156.9
$53.5
$351.7
$272.3
Operating Results
Gold production (ounces)
141,500
140,200
545,400
567,000
Gold sales (ounces)
142,147
141,258
531,230
560,234
Per Ounce Data
Average realized gold price(5)
$3,998
$2,632
$3,372
$2,379
Average spot gold price (London PM Fix)
$4,135
$2,663
$3,432
$2,386
Cost of sales per ounce of gold sold(includes amortization)(1)
$1,544
$1,422
$1,524
$1,341
Total cash costs per ounce of gold sold(2)
$1,111
$981
$1,077
$927
All-in sustaining costs per ounce of gold sold(2)
$1,592
$1,327
$1,524
$1,252
Share Data
Earnings per share, basic
$1.03
$0.21
$2.11
$0.70
Earnings per share, diluted
$1.03
$0.21
$2.10
$0.69
Adjusted earnings per share, basic(2)
$0.54
$0.25
$1.40
$0.81
Weighted average common shares outstanding (basic) (000's)
420,386
420,192
420,444
408,165
Financial Position (in millions)
Cash and cash equivalents(4)
$623.1
$327.2
(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, 2024.(5) Average realized gold price for the three months and year ended December 31, 2025 included the delivery of ounces into the gold prepayment facility based on the prepaid price of $2,524 per ounce.(6) Comparative figures reflect the inclusion of the Magino Mine as of its acquisition on July 12, 2024.
Three Months EndedDecember 31,
Years EndedDecember 31,
2025
2024
2025
2024
Gold production (ounces)
Island Gold District(7)
60,000
55,600
250,400
188,000
Young-Davidson
41,400
45,700
153,400
174,000
Mulatos District(8)
40,100
38,900
141,600
205,000
Gold sales (ounces)
Island Gold District(7)
62,002
56,100
241,359
183,441
Young-Davidson
42,287
45,441
153,382
173,274
Mulatos District(8)
37,858
39,717
136,489
203,519
Cost of sales (in millions)(1)
Island Gold District(7)
$93.0
$70.1
$344.2
$206.1
Young-Davidson
$74.6
$65.9
$270.1
$261.9
Mulatos District(8)
$51.4
$64.9
$194.7
$283.1
Cost of sales per ounce of gold sold (includes amortization)(1)
Island Gold District(7)
$1,500
$1,250
$1,426
$1,124
Young-Davidson
$1,764
$1,450
$1,761
$1,511
Mulatos District(8)
$1,358
$1,634
$1,426
$1,391
Total cash costs per ounce of gold sold(2)
Island Gold District(7)
$1,164
$911
$1,044
$804
Young-Davidson
$1,234
$955
$1,244
$1,047
Mulatos District(8)
$885
$1,113
$947
$935
Mine-site all-in sustaining costs per ounce of gold sold(2)(3)
Island Gold District(7)
$1,626
$1,342
$1,473
$1,199
Young-Davidson
$1,835
$1,191
$1,633
$1,314
Mulatos District(8)
$946
$1,198
$1,018
$1,001
Capital expenditures (sustaining, growth, and capitalized exploration) (in millions)(2)
Island Gold District(4)(7)(9)
$107.0
$108.4
$346.5
$295.6
Young-Davidson(5)
$33.2
$21.3
$93.6
$86.1
Mulatos District(6)(8)
$11.2
$5.3
$30.1
$20.1
Other
$10.0
$8.9
$53.4
$26.4
(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) 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 $4.4 million and $18.5 million for the three months and year ended December 31, 2025 ($3.9 million and $14.6 million for the three months and year ended December 31, 2024 ). (5) Includes capitalized exploration at Young-Davidson of $0.6 million and $9.7 million for the three months and year ended December 31, 2025 ($2.0 million and $5.9 million for the three months and year ended December 31, 2024).(6) Includes capitalized exploration at Mulatos District of $2.6 million and $12.7 million for the three months and year ended December 31, 2025 ($1.6 million and $7.5 million for the three months and year ended December 31, 2024).(7) The Island Gold District includes Island Gold and Magino mines for the three months and year ended December 31, 2025. Comparative figures reflect the inclusion of the Magino Mine as of its acquisition on July 12, 2024.(8) The Mulatos District includes Mulatos and La Yaqui Grande mines.(9) Sustaining capital expenditures for Island Gold District include certain finance leases classified as sustaining.
Environment, Social and Governance Summary Performance
Health and Safety
Total Recordable Injury Frequency Rate1 ("TRIFR") of 1.47 in the fourth quarter
Lost time injury frequency rate1 ("LTIFR") of nil in the fourth quarter
Alamos had 19 recordable injuries across its sites and no lost time injuries in the fourth quarter. For the full year, Alamos had 56 recordable injuries across its sites including 3 LTIs
For the full year, TRIFR was 1.14 and LTIFR was 0.06, down 35% and 42%, respectively, from the prior year
Alamos had a strong safety performance in 2025, achieving its lowest TRIFR on record, while recognizing that continued effort is required to achieve our ultimate goal of zero harm. 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.
In 2026, the Company plans to roll out safety leadership training across all sites in connection with the launch of Alamos' Home Safe Eight, a new initiative consisting of eight non‑negotiable safety rules targeting high‑risk activities. These rules, which focus on areas such as energy isolation, working at heights, and safe vehicle operation, are designed to significantly reduce the potential for injury through consistent and disciplined application.
Environment
Zero significant environmental incidents for the fourth quarter and full year, and one reportable spill in the fourth quarter
Continued reclamation activities at the Cerro Pelon, El Victor and San Carlos pits in the Mulatos District
The one reportable spill occurred at the Island Gold District, where approximately 40 cubic metres of tailings slurry was released due to a pipeline decoupling at the Magino mill. This was promptly addressed at the time of occurrence and is not expected to have any lasting impact on the natural environment. The Company is committed to preserving the long-term health and viability of the natural environment that surrounds 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:
Provision of free internet access to the village of Matarachi in Senora, Mexico to create social, educational and economic development opportunities in the region
Distribution of holiday vouchers and hampers to community members in Matachewan, Lynn Lake, and Marcel Colomb First Nation
Cash donations to Dubreuilville Food Bank, Lady Dunn Health Center Foundation, as well as several other health, education, and food programs in the communities in which Alamos operates
Purchase of a heating unit for the Matachewan Fire Department
Delivered Mining Showcase to more than 250 students from five high schools near the Island Gold District, as well as a community open house for approximately 300 local residents
The Company believes that excellence in sustainability provides a net benefit to all stakeholders. The Company continues to engage with local communities to 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
The Mulatos District received the Exceptional Companies Award by the Business Coordinating Council for its contributions to the UN Sustainable Development Goals. The Mulatos District also received the Sonora Philanthropy Prize, awarded by the Esposos Rodríguez Foundation, Maldonado Foundation, Educativa y Cultural Don José S. Healy Foundation, and the University of Sonora
Achieved its highest-ever CDP Climate Change score in December, receiving a "B" for its disclosure. Alamos also achieved a score of 56 on S&P Global's annual Corporate Sustainability Assessment, its highest score to date
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.
Outlook and Strategy
2026 Guidance
Island Gold District
Young-Davidson
Mulatos District
Lynn Lake
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 re-investing in high-return internal growth opportunities, and supporting higher returns to shareholders.
2025 Year in Review
From an operational perspective, the past year was not reflective of the Company's long track record of execution. Full year production of 545,000 ounces was lower than planned, down 4% from 2024, and at higher costs. Despite the operational challenges, the Company delivered a record financial performance in 2025 and made strong progress on its growth initiatives.
Revenues increased 34% from 2024 to a record $1.8 billion. Through higher gold prices and increasing margins, the Company generated record free cash flow of $351.7 million while continuing to fund its high-return growth initiatives, and a record exploration program. All three operations generated strong mine-site free cash flow, including $221.5 million from the Mulatos District, a record $249.9 million from Young-Davidson, and a record $205.0 million from the Island Gold District while funding the Phase 3+ Shaft Expansion.
Additionally, the Company made strong progress on its growth initiatives, which are expected to nearly double gold production to approximately one million ounces annually by 2030, underpinning one of the strongest outlooks in the sector. The Phase 3+ Expansion continues to advance with the shaft on track to begin skipping ore by the end of 2026. Work on the expansion of the Magino mill began during 2025, while the Company completed an evaluation of the optimal size of a larger expansion of the Island Gold District given the significant ongoing growth in Mineral Reserves and Resources.
The study was completed earlier this month, with the announcement of the IGD Expansion to 20,000 tpd which is expected to create one of the largest, lowest-cost, and most profitable gold mines in Canada. Following the expected completion of the expansion in 2028, annual production is expected to average 534,000 ounces over the initial 10 years, a 27% increase from the Base Case LOM announced in June 2025, and a 113% increase from 2025, at low mine-site AISC of $1,025 per ounce. The Expansion Study also incorporated a 30% increase in Mineral Reserves to eight million ounces compared to the Base Case LOM Plan, supporting a 19 year mine life.
The expansion has attractive economics with an after-tax IRR of 53% and after-tax NPV of $8.2 billion at the base case gold price of $3,200 per ounce. At a gold price of $4,500 per ounce, the after-tax IRR increases to 69% and after-tax NPV increases to $12.2 billion outlining one of the largest and most valuable gold operations in Canada. Given the significant exploration upside within the main Island Gold structure, and regionally with potential for several higher-grade targets to be incorporated into the expanded operation, there is excellent potential for the value of the Island Gold District to continue to grow (refer to the press release dated February 3, 2026 for more details).
Work on the expansion of the Magino mill began during 2025, with all infrastructure designed to support the larger expansion to 20,000 tpd. With all earthworks and concrete foundation complete, and the steel structure of the new mill building already constructed, the larger IGD Expansion is already well underway and significantly derisked.
Given the previously announced delay in the ramp up of construction of the Lynn Lake project during 2025 due to forest fires in Manitoba, the Company utilized the additional time to re-engineer and optimize the development plan. This included incorporating the BT and Linkwood satellite deposits into the project which has significantly extended the mine life to well beyond 20 years, and scaling up the size of the planned mill by 13% to 9,000 tpd, supporting higher rates of production and stronger economics. Construction activities are expected to ramp up starting in the spring of 2026 with initial production expected in the first half of 2029. Lynn Lake is an important component of the Company's strong growth profile with production expected to average 186,000 ounces over its initial 10 years, at low mine-site AISC of $829 per ounce.
Development activities on PDA advanced with procurement of long lead time items and mobilizing the contractor for portal construction and start of underground development. Construction activities are expected to ramp up in 2026 with PDA on track for initial production mid-2027.
From an exploration perspective, it was another successful year across the Company's portfolio of assets. Global Mineral Reserves increased 32% to 15.9 million ounces with grades also increasing 5% to 1.87 g/t Au (265 mt). 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. The increase was driven by the successful conversion of a large portion of Mineral Resources to Reserves at the Island Gold District.
2026 Outlook
The Company provided three-year production and operating guidance in February 2026, which outlined growing production at declining costs over the next three years. Refer to the Company's February 4, 2026 guidance press release for a summary of the key assumptions and related risks associated with the comprehensive 2026 guidance and three-year production, cost and capital outlook.
Consolidated production is expected to increase 12% from 2025 (based on the mid-point) to a range of between 570,000 and 650,000 ounces. This is expected to be driven by the ramp up of underground mining rates through the year at Island Gold in conjunction with the completion of the Phase 3+ Shaft Expansion towards the end of 2026, as well as increased mining rates at Young-Davidson. First quarter production is expected to be between 120,000 and 135,000 ounces at AISC slightly above the top end of the first half guidance range of $1,725 per ounce. Production is expected to be higher in the second half of the year driven by the ongoing ramp up of underground mining rates at Island Gold.
Total cash costs and AISC per ounce are expected to be consistent with 2025 for the full year, and trend lower through the year driven by low-cost growth at the Island Gold District. Costs are expected to be above the full year guidance range in the first half of the year, with a significant decrease expected into the second half of 2026 driven by the ramp up of underground mining rates at Island Gold. A further decrease in costs is expected in each of 2027 and 2028.
Gold production is expected to increase to a range of between 650,000 and 730,000 ounces in 2027, a 13% increase from 2026, and 27% increase from 2025. The Island Gold District is expected to drive this growth with 2027 representing the first full year operating from the new shaft infrastructure, supporting higher underground mining rates. The completion of the IGD Expansion in 2028 is expected to drive 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 18% and 11%, respectively, from 2026 driven by low-cost 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 in the range of between $1,200 and $1,300 per ounce. This represents a 9% decrease from 2027 and nearly 20% 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, as outlined in the IGD Expansion Study, and the start of production from the low-cost Lynn Lake project.
Capital spending in 2026 is expected to increase from 2025 to a range of $850 to $940 million, excluding capitalized exploration of $60 million. This reflects the inclusion of capital for the IGD Expansion, acceleration of certain capital expenditures at the Canadian mine-sites, and ongoing inflation. 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.
The 2026 global exploration budget has increased to a record $97 million, a 35% increase from the 2025 budget of $72 million reflecting significant exploration success across its assets. 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.
Cash taxes attributable to the Mulatos District and Canadian operations are expected to total between $160 and $180 million globally in 2026 based on a budgeted gold price of $4,000 per ounce, with approximately half of this amount expected to be paid in the first quarter. Mexico will comprise approximately 65% of global cash taxes. Given the rapid increase in gold prices over the past two years, existing tax pools in Canada are being utilized at a faster pace with more substantial taxes to be paid in Canada in 2026 compared to the previous years.
Additionally, as previously guided, the Company's cash flow during 2026 will be impacted by the planned delivery of 12,255 ounces into the gold prepayment facility. The ounces will be delivered monthly in the first half of 2026 (approximately 2,043 ounces per month) and recorded as revenue based on the prepay price of $4,166 per ounce. There will be no cash flow associated with the sale of these ounces in 2026, with proceeds already received in 2025. Proceeds from the prepay and $63.5 million of cash were used to repurchase and eliminate legacy Argonaut hedges which totaled 50,000 ounces in the first half of 2026.
The Company remains well positioned to fund its high-return growth projects internally with strong ongoing free cash flow, $623.1 million of cash and cash equivalents at the end of 2025, 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 following the completion of the Phase 3+ Shaft Expansion in 2026, PDA in 2027, IGD Expansion in 2028 and Lynn Lake in 2029. The Company also remains focused on shareholder returns. Given the strong free cash flow being generated, the Company increased its quarterly dividend by 60% to $0.04 per share, starting in the first quarter of 2026, while continuing to assess opportunities to be active on its share buyback.
Fourth Quarter and Year-End 2025 results
Island Gold District Financial and Operational Review (6)
Three Months EndedDecember 31,
Years EndedDecember 31,
2025
2024
2025
2024
Gold production (ounces)
60,000
55,600
250,400
188,000
Gold sales (ounces)
62,002
56,100
241,359
183,441
Financial Review (in millions)
Operating Revenues
$258.1
$148.1
$833.9
$444.3
Cost of sales(1)
$93.0
$70.1
$344.2
$206.1
Earnings from operations
$163.1
$76.6
$483.9
$232.5
Cash provided by operating activities
$164.5
$83.2
$535.0
$257.0
Capital expenditures (sustaining)(2)
$23.7
$18.1
$83.2
$60.0
Lease payments (sustaining)(2),(5)
$3.9
$5.2
$16.5
$10.6
Capital expenditures (growth)(2)
$75.0
$81.2
$228.3
$203.5
Capital expenditures (capitalized exploration)(2)
$4.4
$3.9
$18.5
$14.6
Mine-site free cash flow(2),(5)
$61.4
($20.0)
$205.0
($28.0)
Cost of sales, including amortization per ounce of gold sold(1)
$1,500
$1,250
$1,426
$1,124
Total cash costs per ounce of gold sold(2)
$1,164
$911
$1,044
$804
Mine-site all-in sustaining costs per ounce of gold sold(2),(3)
$1,626
$1,342
$1,473
$1,199
Island Gold Mine
Underground Operations
Tonnes of ore mined
106,400
112,980
451,672
396,686
Tonnes of ore mined per day
1,157
1,228
1,237
1,084
Average grade of gold(4)
10.61
11.05
11.44
12.39
Metres developed
1,539
1,914
7,597
6,626
Island Gold Mill Operations(9)
Tonnes of ore processed
108,160
110,096
342,334
392,460
Tonnes of ore processed per day
1,176
1,197
1,160
1,072
Average grade of gold(4)
10.71
11.19
11.61
12.47
Contained ounces milled
37,226
39,614
127,804
157,379
Average recovery rate
98
%
98
%
98
%
98
%
Magino Mine
Open Pit Operations
Tonnes of ore mined - open pit(7)
1,526,445
1,020,260
5,465,033
1,838,496
Tonnes of ore mined per day
16,592
11,090
14,973
10,689
Total waste mined - open pit(8)
2,650,693
3,877,170
13,754,912
6,759,562
Total tonnes mined - open pit
4,177,138
4,897,430
19,219,944
8,598,059
Waste-to-ore ratio(8)
1.74
3.96
2.52
4.18
Average grade of gold(4)
0.83
0.73
0.82
0.81
Magino Mill Operations(10)
Tonnes of ore processed
793,541
615,076
3,004,449
1,165,551
Tonnes of ore processed per day
8,625
6,686
8,231
6,776
Average grade of gold processed(4)
1.11
0.89
1.34
0.91
Contained ounces milled
28,386
17,571
129,385
33,941
Average recovery rate
95
%
94
%
95
%
95
%
(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) Comparative figures reflect the inclusion of the Magino Mine as of its acquisition on July 12, 2024.(7) Includes ore stockpiled during the periods. (8) Total waste mined includes operating waste and capitalized stripping.(9) Island Gold average milling rates exclude the period where mill was on care and maintenance between July 16 and September 23, 2025.(10) Magino mill results include the processing of open pit ore from Magino and excess underground ore not processed within the Island Gold mill.
The Island Gold District produced 60,000 ounces in the fourth quarter of 2025, an 8% increase from the prior year period reflecting higher tonnes processed. Fourth quarter production was down from the third quarter and below plan due to lower underground mining rates as well as reduced mill throughput. For the full year, the Island Gold District produced 250,400 ounces, slightly below the low-end of revised annual guidance.
Island Gold Operational Review
Underground mining rates averaged 1,157 tpd in the fourth quarter, a 6% decrease from the prior year period and slightly below full year guidance reflecting additional rehabilitation work related to the seismic event in October, as well as downtime in late December due to severe winter weather. Severe snowstorms and subsequent road closures prevented delivery of supplies and access to site by personnel and emergency services. This required a stand down of underground mining operations for three days. For the full year, underground mining rates averaged 1,237 tpd, a 14% increase compared to the prior year and within the annual guidance range.
The majority of the underground rehabilitation work was completed during the quarter but was more extensive than originally anticipated, which impacted mining rates. With substantial progress made through the end of November, underground mining rates improved to average 1,220 tpd for the month of December. Excluding the impact of the three days of weather-related downtime near the end of the quarter, mining rates would have averaged approximately 1,350 tpd in December. Rehabilitation work required for the ramp up of mining rates through 2026 as part of the Phase 3+ Shaft Expansion has been substantially completed. Mining rates are expected to increase to average approximately 1,400 tpd in the first quarter, and continue increasing to average 2,000 tpd by the end of 2026, coinciding with the completion of the shaft infrastructure. A further increase to 2,400 tpd is expected early in 2027.
Underground grades mined averaged 10.61 g/t Au for the fourth quarter and 11.44 g/t Au for the full year, both in line with guidance. In 2026, grades are expected to increase through the year from 9.0 g/t Au in the first quarter to 11.5 g/t Au in the fourth quarter and average close to the Mineral Reserve grade for the year.
The Island Gold mill throughput averaged 1,176 tpd for the fourth quarter, consistent with mining rates. Mill throughput averaged 1,160 tpd for the full year, slightly below mining rates, with excess underground ore being processed at the Magino mill. Mill recoveries averaged 98% for the fourth quarter and full year, slightly above guidance.
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. The Island Gold mill is expected to be shut down early 2028, after the completion of the larger Magino mill expansion to 20,000 tpd, when all underground and open pit ore will be processed within the larger and more cost-effective Magino mill.
Magino Operational Review
Total mining rates averaged 45,404 tpd during the fourth quarter. This included 16,592 tpd of ore, a 50% increase from the prior year period and above full year guidance. For the full year, ore mined averaged 14,973 tpd, in line with guidance. Grades mined of 0.83 g/t Au for the fourth quarter and 0.82 g/t Au for the full year were both consistent with annual guidance.
Milling rates averaged 8,625 tpd in the fourth quarter, up slightly from the third quarter and 29% higher than the prior year period. For the full year, milling rates averaged 8,231 tpd, below annual guidance. Through most of the quarter, milling rates averaged more than 9,000 tpd before being impacted by the above noted severe winter weather issues late in December. Additionally, an earlier than planned replacement of the liner within the discharge end of the SAG mill reduced mill throughput during the quarter.
The weather-related road closures impacted the regular delivery of compressed natural gas ("CNG") to the CNG plant, which currently supplies the mill with power. This resulted in three days of downtime to the mill. Excluding this impact, milling rates would have averaged nearly 9,000 tpd, a 7% improvement from the third quarter.
As part of the Phase 3+ Shaft Expansion, the Magino mill is expected to be connected to grid power in late 2026, which will eliminate the reliance on CNG going forward. The connection to lower cost grid power will not only provide a more reliable source of power, but also drive processing costs lower.
In addition to the improvements resulting from the connection to grid power, the Company has completed a restructuring of the maintenance and mill operating management teams, and continues to work with third-party specialists to implement additional modifications to improve reliability. This includes the addition of a temporary crusher during the first quarter to provide supplemental crushed ore feed after the existing secondary crusher arrangement. These modifications are expected to drive improved milling rates into the second quarter, with a further increase to consistent levels of 10,000 tpd from the third quarter onward.
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 of 1.11 g/t Au during the fourth quarter were slightly above the annual guidance and reflect the inclusion of 5,000 tonnes of higher grade underground ore during the quarter. Combined grades from underground and open pit ore processed in the Magino mill during the full year were 1.34 g/t Au. Recoveries for the fourth quarter and full year were 95%, consistent with annual guidance.
Island Gold District Financial Review
Revenues of $258.1 million in the fourth quarter were 74% higher than the prior year period, driven by higher realized gold prices and an increase in ounces sold reflecting higher tonnes processed from the Island Gold District. Similarly, revenues of $833.9 million for the full year were 88% higher than the prior year, primarily due to higher realized gold prices and increased ounces sold.
Cost of sales of $93.0 million in the fourth quarter and $344.2 million for the full year were 33% and 67% higher than the prior year periods, respectively, due to higher ounces sold and increased unit costs.
Total cash costs of $1,164 per ounce and mine-site AISC of $1,626 per ounce in the fourth quarter were higher than the prior year period, driven by a higher proportion of production from Magino, increase in royalty expense, and increases in maintenance and contractor costs. Total cash costs and mine-site AISC were above the revised annual guidance range, driven by lower mill throughput at Magino, lower mining rates at Island Gold, and higher royalty expense. For the full year, total cash costs of $1,044 per ounce and mine-site AISC of $1,473 per ounce were above the revised annual guidance range, driven by lower production at Magino and higher underground mining costs.
Total capital expenditures were $107.0 million in the fourth quarter, including $23.7 million of sustaining capital, $3.9 million of sustaining lease payments, and $4.4 million of capitalized exploration. Growth capital spending of $75.0 million was primarily focused on the Phase 3+ Shaft Expansion, including shaft site infrastructure, paste plant, mill expansion, and underground development. Work on the 1350 level shaft station continued during the fourth quarter with the overall shaft sink scheduled to be completed by the end of the first quarter of 2026, and initial skipping of ore from the shaft infrastructure expected in the fourth quarter of 2026. Capital expenditures, inclusive of capitalized exploration, totaled $346.5 million for the full year, lower than the revised guidance range due to timing of spend.
The Island Gold District generated strong mine-site free cash flow of $61.4 million in the fourth quarter and a record $205.0 million for the full year, net of the significant capital investment related to the Phase 3+ Shaft Expansion and exploration. 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 expected in 2027 onwards.
Young-Davidson Financial and Operational Review
Three Months EndedDecember 31,
Years EndedDecember 31,
2025
2024
2025
2024
Gold production (ounces)
41,400
45,700
153,400
174,000
Gold sales (ounces)
42,287
45,441
153,382
173,274
Financial Review (in millions)
Operating Revenues
$176.8
$120.5
$534.1
$415.3
Cost of sales(1)
$74.6
$65.9
$270.1
$261.9
Earnings from operations
$100.9
$53.7
$260.6
$207.5
Cash provided by operating activities
$122.9
$71.6
$343.5
$227.0
Capital expenditures (sustaining)(2)
$25.3
$10.6
$59.1
$45.7
Capital expenditures (growth)(2)
$7.3
$8.7
$24.8
$34.5
Capital expenditures (capitalized exploration)(2)
$0.6
$2.0
$9.7
$5.9
Mine-site free cash flow(2)
$89.7
$50.3
$249.9
$140.9
Cost of sales, including amortization per ounce of gold sold(1)
$1,764
$1,450
$1,761
$1,511
Total cash costs per ounce of gold sold(2)
$1,234
$955
$1,244
$1,047
Mine site all-in sustaining costs per ounce of gold sold(2),(3)
$1,835
$1,191
$1,633
$1,314
Underground Operations
Tonnes of ore mined
655,972
738,717
2,586,691
2,786,639
Tonnes of ore mined per day
7,130
8,030
7,087
7,614
Average grade of gold(4)
2.10
2.10
2.01
2.08
Metres developed
2,002
1,953
8,137
8,274
Mill Operations
Tonnes of ore processed
746,153
746,709
2,705,669
2,806,192
Tonnes of ore processed per day
8,110
8,116
7,413
7,667
Average grade of gold(4)
1.92
2.10
1.94
2.08
Contained ounces milled
46,019
50,325
168,373
187,321
Average recovery rate
90
%
91
%
91
%
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 41,400 ounces of gold in the fourth quarter, 9% higher than the third quarter driven by an increase in tonnes and grades processed. Relative to the prior year period, production decreased 9% driven by lower mining rates. Production for the full year totaled 153,400 ounces, below revised guidance, and the prior year, due to lower mining rates and grades.
Mining rates averaged 7,130 tpd in the fourth quarter, below the prior year period and annual guidance reflecting severe winter weather conditions late in December, rehabilitation work required on one of three ore passes, and the failure of a small portion of a paste plug underground. For the full year, mining rates averaged 7,087 tpd, below the prior year and annual guidance.
Mining rates are expected to increase to average 7,600 tpd in the first quarter of 2026 reflecting additional ore pass availability and capacity. A new ore pass is also being commissioned during the first quarter, such that four will be available by the second quarter. This is expected to provide additional operational flexibility and support increased mining rates of approximately 8,000 tpd in the second quarter and through the rest of the year.
Grades mined of 2.10 g/t Au for the fourth quarter were consistent with the prior year period but lower than planned due to higher mining dilution within the stope impacted by the paste plug failure. Prior to this issue, grades mined averaged 2.20 g/t Au in October and November. Grades mined of 2.01 g/t Au for the full year were 3% lower than the prior year and slightly below the annual guidance range.
Milling rates averaged 8,110 tpd in the fourth quarter, consistent with the prior year period and above mining rates with low-grade stockpiled ore processed given the excess mill capacity. For the full year, milling rates averaged 7,413 tpd, 3% lower than the prior year. Milled grades averaged 1.92 g/t Au for the fourth quarter and 1.94 g/t Au for the full year, lower than mined grades reflecting the contribution of lower grade stockpiled ore. Mill recoveries averaged 90% for the fourth quarter and 91% for the full year, in-line with annual guidance.
Financial Review
Revenues increased to $176.8 million in the fourth quarter, 47% higher than the prior year period, driven by higher realized gold prices, partially offset by lower ounces sold. For the full year, revenues of $534.1 million were 29% higher than the prior year, driven by the same factors.
Cost of sales of $74.6 million in the fourth quarter were 13% higher than the prior year period, reflecting a higher royalty expense, ongoing labour inflation, and lower grades processed, partially offset by lower ounces sold. Cost of sales of $270.1 million for the full year were 3% higher than the prior year, driven by the same factors.
Fourth quarter total cash costs of $1,234 per ounce and mine-site AISC of $1,835 per ounce were higher than the prior year period, primarily due to lower grades processed, higher royalty expense, and ongoing labour inflation. The increase in mine-site AISC was also impacted by higher sustaining capital expenditures, as planned, over less ounces sold. Total cash costs of $1,244 per ounce and mine-site AISC of $1,633 per ounce for the full of year were higher than the prior year, driven by the same factors.
Capital expenditures in the fourth quarter totaled $33.2 million, including $25.3 million of sustaining capital and $7.3 million of growth capital. Additionally, $0.6 million was invested in capitalized exploration during the quarter. Capital expenditures, inclusive of capitalized exploration, totaled $93.6 million for the full year, slightly higher than annual guidance.
Young-Davidson continues to generate strong ongoing mine-site free cash flow, including a record $89.7 million in the fourth quarter and $249.9 million for the full year, surpassing the previous annual record of $140.9 million. With a 14-year Mineral Reserve life, the operation is well-positioned to generate strong ongoing free cash flow over the long-term.
Mulatos District Financial and Operational Review
Three Months EndedDecember 31,
Years EndedDecember 31,
2025
2024
2025
2024
Gold production (ounces)
40,100
38,900
141,600
205,000
Gold sales (ounces)
37,858
39,717
136,489
203,519
Financial Review(in millions)
