Alamos Gold Inc 6-K, filed Oct 29, 2026
Alamos Gold Inc (AGI)
6-K
2026-10-29
For: 2026-09-30
View Original
Added on
October 29, 2026
About this 6-K
Alamos Gold Inc filed this 6-K on October 29, 2026.
Alamos Gold reported production of 119,000 ounces and revenue of $510.4 million for the quarter ended September 30, 2026, with net earnings of $165.6 million; shaft commissioning is delayed to mid-2027. AI summary
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 2026
Commission File Number: 001-35783
Alamos Gold Inc.
(Translation of registrant’s name into English)
181 Bay Street, Suite 3910
Toronto, Ontario, Canada
M5J 2T3
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F o Form 40-F x
The information contained in Exhibits 99.2 and 99.3 of this Form 6-K is incorporated by reference into the registrant’s registration statements on Form F-10: File No. 333-289416, Form F-3: File No. 333-236697 and Form S-8: File Nos. 333-206182 and 333-280913.
EXHIBIT INDEX
| EXHIBIT NO. | DESCRIPTION | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Alamos Gold Inc. | ||||||||||||||||||||
| Date: October 29, 2026 | ||||||||||||||||||||
| By: | /s/ Scott K. Parsons | |||||||||||||||||||
| Name: | Scott K. Parsons | |||||||||||||||||||
| Title: | Senior Vice President, Corporate Development & Investor Relations | |||||||||||||||||||
TRADING SYMBOL: TSX:AGI NYSE:AGI
Alamos Gold Inc. | ||||||||
CIBC Square, 141 Bay Street, Suite 4800 | ||||||||
Toronto, Ontario, Canada M5J 0G3 | ||||||||
Telephone: (416) 368-9932 or 1 (866) 788-8801 | ||||||||
All amounts are in United States dollars, unless otherwise stated.
Alamos Gold Reports Third Quarter 2026 Results
Toronto, Ontario (October 28, 2026) - Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported its financial results for the quarter ended September 30, 2026.
“Our third quarter production was in line with quarterly guidance with a record performance from the Island Gold District offsetting lower planned production from Young-Davidson. The Island Gold District achieved a number of records in the quarter including record production, underground mining rates and milling rates. We expect a further increase in underground mining rates, as well as higher grades from the Island Gold District to drive a significant increase in consolidated production in the fourth quarter, at lower costs, and remain on track to achieve our revised annual production and cost guidance,” said John A. McCluskey, President and Chief Executive Officer.
“We expect significant growth from the Island Gold District over the next several years driven by the completion of the shaft expansion in 2027 and mill expansion in 2028. Commissioning of the shaft has been delayed approximately one quarter to mid-2027 given additional time required to complete the ore and waste handling system, but has no impact on our longer-term outlook. Through the expansions of the Island Gold District and development of Lynn Lake, we remain on track to nearly double our rate of production to approximately one million ounces annually by 2030, at substantially lower costs,” Mr. McCluskey added.
Third Quarter 2026 Operational and Financial Highlights
•Produced 119,000 ounces of gold in the third quarter of 2026, meeting quarterly guidance. This included record production from the Island Gold District, reflecting record underground mining rates and milling rates. This was offset by lower production from Young-Davidson driven by lower mining rates and grades, as previously guided. With production expected to increase in the fourth quarter, the Company is on track to achieve its full year production guidance which was revised in July
•Island Gold District continues to perform well, with underground mining rates increasing to average a record 1,790 tonnes per day ("tpd"). Magino milling rates also increased to a new quarterly record, averaging 10,313 tpd. The higher mining and milling rates drove record quarterly production of 68,700 ounces. The operation remains on track to achieve its full year production guidance, with a further increase in underground mining rates and higher grades expected to drive significant production growth in the fourth quarter
•Third quarter gold sales totaled 118,361 ounces at an average realized price of $4,258 per ounce, generating quarterly revenues of $510.4 million, including silver sales. This represented a 10% increase from the third quarter of 2025
•Cash flow from operating activities in the third quarter was $216.3 million ($234.9 million before changes in working capital and taxes paid1, or $0.56 per share)
•Generated strong ongoing free cash flow1 of $75.6 million in the third quarter, while continuing to invest in high-return growth and a significant exploration program
•Cost of sales was $214.2 million, or $1,810 per ounce in the third quarter. As previously guided, all-in sustaining costs ("AISC"1) of $1,956 per ounce increased from the second quarter, driven by lower production at Young-Davidson and higher sustaining capital at the Island Gold District. Total cash costs1 of $1,375 per ounce were
1 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
also up from the second quarter. The Company remains on track to achieve revised full year cost guidance with total cash costs and AISC expected to decrease in the fourth quarter
•Reported net earnings were $165.6 million for the third quarter, or $0.40 per share. Adjusted net earnings1 were $184.0 million, or $0.44 per share1. Adjusted net earnings include an after-tax adjustment for net loss on commodity hedge derivatives of $9.9 million, adjustments for net unrealized foreign exchange losses recorded within deferred taxes and foreign exchange gains totaling $7.1 million, and other adjustments of $1.4 million
•Cash and cash equivalents totaled $597.4 million at September 30, 2026, down slightly from the second quarter primarily reflecting the use of $86.2 million to eliminate the majority of remaining legacy gold hedges inherited from Argonaut Gold ("Argonaut"). The Company remains well-positioned to internally fund all of its growth initiatives and increased shareholder returns with strong ongoing free cash flow
•Subsequent to quarter end, $160 million was received on October 9, which represented the one-year anniversary payment for the sale of the Turkish projects completed in 2025. The final $150 million cash payment is scheduled to be received in October 2027
•Returned $22.3 million to shareholders during the third quarter. This included the repurchase of 191,944 shares at a cost of $5.7 million ($29.70 per share), and dividend of $16.6 million (quarterly $0.04 per share). Subsequent to quarter end, the Company increased its share repurchases with a further 549,757 shares repurchased at a cost of $16.6 million ($30.25 per share). Given its strong financial position and outlook, the Company expects to continue to be active on its share buyback
•Repurchased and eliminated a further 33,000 of the remaining 50,000 ounces of legacy gold hedges from Argonaut in the third quarter. These contracts were scheduled to mature in the first half of 2027 with an average forward sale price of $1,819 per ounce, providing further upside to higher gold prices in 2027. The Company utilized existing cash to eliminate the hedges at a cost of $86.2 million for an effective price of approximately $4,429 per ounce. Subsequent to quarter end, a further 3,000 ounces of forward sale contracts were repurchased and eliminated such that a total of 315,000 ounces, or 96%, of the 329,000 ounces of forward contracts inherited from Argonaut, have been retired prior to maturity. The remaining 14,000 ounces of forward contracts are expected to be eliminated prior to maturity after which there will be no obligation remaining under the legacy Argonaut hedges
•Continued to advance construction of the Company's key growth projects. Work on the Phase 3+ Shaft Expansion is progressing, although the completion of commissioning of the shaft is delayed by approximately one quarter to mid-2027 given additional time required to complete the ore and waste handling system
•Construction of the PDA mill remains on track for completion mid-2027; however, the ramp up of underground development rates has been slower than planned which is expected to result in lower mining rates in the second half of 2027
•Lynn Lake construction is ramping up as expected with initial production on track for the first half of 2029. The Company remains well positioned to achieve its longer term consolidated production rate of approximately one million ounces annually by 2030
(1) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this press release and associated MD&A for a description and calculation of these measures.
2 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Highlight Summary
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Financial Results (in millions) | ||||||||||||||
| Operating revenues | $510.4 | $462.3 | $1,701.2 | $1,233.5 | ||||||||||
Cost of sales (1) | $214.2 | $194.1 | $651.6 | $590.0 | ||||||||||
| Earnings from operations | $268.7 | $455.7 | $970.8 | $766.6 | ||||||||||
| Earnings before income taxes | $259.1 | $371.5 | $984.3 | $578.8 | ||||||||||
| Net earnings | $165.6 | $276.3 | $627.4 | $450.9 | ||||||||||
Adjusted net earnings (2) | $184.0 | $155.5 | $663.6 | $359.5 | ||||||||||
Adjusted earnings before interest, taxes, depreciation and amortization (2) | $312.0 | $283.5 | $1,119.0 | $689.1 | ||||||||||
| Cash provided by operating activities | $216.3 | $265.3 | $690.6 | $544.4 | ||||||||||
Cash provided by operating activities before changes in working capital and taxes paid (2) | $234.9 | $275.3 | $859.8 | $639.6 | ||||||||||
Capital expenditures (sustaining) (2) | $49.9 | $34.8 | $130.7 | $95.1 | ||||||||||
Finance leases (sustaining) (2)(3) | $3.0 | $4.3 | $10.2 | $12.6 | ||||||||||
Capital expenditures (growth) (2) | $164.4 | $83.3 | $421.6 | $221.2 | ||||||||||
| Capital expenditures (capitalized exploration) | $12.6 | $16.9 | $38.7 | $33.3 | ||||||||||
Free cash flow (2)(3) | $75.6 | $130.3 | $320.8 | $194.8 | ||||||||||
| Operating Results | ||||||||||||||
| Gold production (ounces) | 119,000 | 141,700 | 373,500 | 403,900 | ||||||||||
| Gold sales (ounces) | 118,361 | 136,473 | 371,118 | 389,083 | ||||||||||
| Per Ounce Data | ||||||||||||||
Average realized gold price (5) | $4,258 | $3,359 | $4,532 | $3,144 | ||||||||||
| Average spot gold price (London PM Fix) | $4,262 | $3,457 | $4,545 | $3,201 | ||||||||||
Cost of sales per ounce of gold sold (includes amortization) (1) | $1,810 | $1,422 | $1,756 | $1,516 | ||||||||||
Total cash costs per ounce of gold sold (2) | $1,375 | $973 | $1,302 | $1,065 | ||||||||||
All-in sustaining costs per ounce of gold sold (2) | $1,956 | $1,375 | $1,845 | $1,499 | ||||||||||
| Share Data | ||||||||||||||
| Earnings per share, basic | $0.40 | $0.66 | $1.50 | $1.07 | ||||||||||
| Earnings per share, diluted | $0.39 | $0.65 | $1.49 | $1.07 | ||||||||||
Adjusted earnings per share, basic (2) | $0.44 | $0.37 | $1.58 | $0.86 | ||||||||||
| Weighted average common shares outstanding (basic) (000’s) | 418,572 | 420,500 | 419,383 | 420,463 | ||||||||||
| Financial Position (in millions) | ||||||||||||||
Cash and cash equivalents (4) | $597.4 | $623.1 | ||||||||||||
(1)Cost of sales includes mining and processing costs, inventory net realizable value adjustment, royalties, and amortization expense.
(2)Refer to the “Non-GAAP Measures and Additional GAAP Measures” section 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 nine months ended September 30, 2026 reflected the settlements of ounces under the gold prepayment facility based on the prepay price of $4,166 per ounce ($2,524 per ounce for the three and nine months ended September 30, 2025). Settlements under the facility were completed in the second quarter of 2026, and there were no related settlements in the third quarter of 2026.
3 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||
| Gold production (ounces) | ||||||||||||||
Island Gold District (7) | 68,700 | 66,800 | 197,400 | 190,400 | ||||||||||
| Young-Davidson | 22,700 | 37,900 | 85,700 | 112,000 | ||||||||||
Mulatos District (8) | 27,600 | 37,000 | 90,400 | 101,500 | ||||||||||
| Gold sales (ounces) | ||||||||||||||
Island Gold District (7) | 66,837 | 62,011 | 189,672 | 179,357 | ||||||||||
| Young-Davidson | 23,809 | 37,406 | 87,710 | 111,095 | ||||||||||
Mulatos District (8) | 27,715 | 37,056 | 93,736 | 98,631 | ||||||||||
Cost of sales (in millions) (1) | ||||||||||||||
Island Gold District (7) | $106.5 | $83.4 | $301.0 | $251.2 | ||||||||||
| Young-Davidson | $62.3 | $65.2 | $195.3 | $195.5 | ||||||||||
Mulatos District (8) | $44.9 | $45.5 | $154.5 | $143.3 | ||||||||||
Cost of sales per ounce of gold sold (includes amortization) (1) | ||||||||||||||
Island Gold District (7) | $1,593 | $1,345 | $1,587 | $1,401 | ||||||||||
| Young-Davidson | $2,617 | $1,743 | $2,227 | $1,760 | ||||||||||
Mulatos District (8) | $1,620 | $1,228 | $1,648 | $1,453 | ||||||||||
Total cash costs per ounce of gold sold (2) | ||||||||||||||
Island Gold District (7) | $1,242 | $964 | $1,247 | $1,002 | ||||||||||
| Young-Davidson | $2,041 | $1,200 | $1,712 | $1,248 | ||||||||||
Mulatos District (8) | $1,122 | $761 | $1,028 | $971 | ||||||||||
Mine-site all-in sustaining costs per ounce of gold sold (2)(3) | ||||||||||||||
Island Gold District (7) | $1,782 | $1,432 | $1,752 | $1,420 | ||||||||||
| Young-Davidson | $2,764 | $1,476 | $2,240 | $1,555 | ||||||||||
Mulatos District (8) | $1,209 | $831 | $1,105 | $1,045 | ||||||||||
Capital expenditures (sustaining, growth, capitalized exploration and leases) (in millions) (2) | ||||||||||||||
Island Gold District (4)(7) | $134.5 | $92.8 | $356.2 | $239.5 | ||||||||||
Young-Davidson (5) | $24.9 | $20.2 | $71.0 | $60.4 | ||||||||||
Mulatos District (6)(8) | $27.7 | $11.2 | $69.7 | $18.9 | ||||||||||
| Other | $42.8 | $15.1 | $104.3 | $43.4 | ||||||||||
(1)Cost of sales includes mining and processing costs, inventory net realizable value adjustment, royalties, and amortization expense.
(2)Refer to the “Non-GAAP Measures and Additional GAAP Measures” section 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 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)Includes capitalized exploration at Island Gold District of $7.1 million and $17.3 million for the three and nine months ended September 30, 2026, respectively ($5.1 million and $14.1 million for the three and nine months ended September 30, 2025, respectively).
(5)Includes capitalized exploration at Young-Davidson of $2.8 million and $8.9 million for the three and nine months ended September 30, 2026, respectively ($4.2 million and $9.1 million for the three and nine months ended September 30, 2025, respectively).
(6)Includes capitalized exploration at Mulatos District of $2.4 million and $7.7 million for the three and nine months ended September 30, 2026, respectively ($7.6 million and $10.1 million for the three and nine months ended September 30, 2025, respectively).
(7)The Island Gold District includes the Island Gold and Magino mines.
(8)The Mulatos District includes the Mulatos and La Yaqui Grande mines.
4 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Environment, Social and Governance Summary Performance
Health and Safety
•Total Recordable Injury Frequency Rate1 (“TRIFR”) of 1.90 in the third quarter, an increase from the second quarter and prior year period
•Lost Time Injury Frequency Rate1 (“LTIFR”) of 0.12 in the third quarter
•Alamos had 32 recordable injuries across its sites, including two lost time injuries in the third quarter
•Year-to-date TRIFR of 1.60 and LTIFR of 0.07 are higher than the prior year period
The Company acknowledges the increase in injury frequency rate is not to its standards. During the quarter, the Company initiated work stand-downs across its operations led by site management and corporate senior management, refocusing on safe and sustainable production.
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
•Zero significant environmental incidents in the third quarter and year to date
•Reclamation activities at the Cerro Pelon, El Victor and San Carlos pits in the Mulatos District were completed
There was one reportable incident in the third quarter. At the Young-Davidson mine paste plant, there was a 400 cubic metres process water slurry overflow outside of the building containment area. This material was cleaned up immediately with no environmental impact.
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 impact of its activities.
Community
Alamos continued to provide charitable donations, sponsorships, medical support and infrastructure investments within its local communities, including:
•Installation of additional infrastructure at the Matarachi Community Center, and new playground equipment purchased for the Matarachi Park
•Completing the first phase of the Mulatos community beekeeping initiative, having trained 32 families from across seven communities and three municipalities, creating new opportunities for income diversification, community capacity building, and biodiversity conservation
•Sponsorship of various events and teams, including golf tournament fundraisers, and music and community festivals around the Company’s operations
•Cash donations to various health, education, and food programs in the communities in which Alamos operates
In addition, in September, Alamos joined community discussions in Pukatawagan, Manitoba, to celebrate the Impact Living Agreement signed in the prior year with Mathias Colomb Cree Nation and reaffirm the Company’s commitment to a strong partnership.
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.
5 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Governance and Disclosure
•Completed annual submissions to the Carbon Disclosure Project, reporting Alamos’ 2025 climate performance
•Advanced Alamos’ annual ESG Report and Conflict-Free Gold Report, expected to be published during the fourth quarter
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 (5) | |||||||||||||||||
| Island Gold District | Young-Davidson | Mulatos District | Lynn Lake | Total | |||||||||||||
Gold production (000's ounces) | 290 - 310 | 100 - 115 | 120 - 135 | — | 510 - 560 | ||||||||||||
Cost of sales, including amortization (in millions) (2) | $890 | ||||||||||||||||
Total cash costs ($ per ounce) (1) | $1,025 - $1,125 | $1,750 - $1,850 | $1,050 - $1,150 | — | $1,175 - $1,275 | ||||||||||||
All-in sustaining costs ($ per ounce) (1)(3) | $1,550 - $1,650 | $2,500 - $2,600 | $1,125 - $1,225 | — | $1,775 - $1,875 | ||||||||||||
Capital expenditures ($ millions) | |||||||||||||||||
Sustaining capital (1)(4) | $135 - $150 | $90 - $100 | $3 - $5 | — | $228 - $255 | ||||||||||||
Growth capital (1)(4) | $355 - $385 | $25 - $30 | $137 - $145 | $140 - $160 | $657 - $720 | ||||||||||||
Total sustaining and growth capital (1)(4) | $490 - $535 | $115 - $130 | $140 - $150 | $140 - $160 | $885 - $975 | ||||||||||||
Capitalized exploration (1) | $33 | $12 | $9 | $6 | $60 | ||||||||||||
Total capital expenditures and capitalized exploration (1) | $523 - $568 | $127 - $142 | $149 - $159 | $146 - $166 | $945 - $1,035 | ||||||||||||
(1)Refer to the "Non-GAAP Measures and Additional GAAP Measures" section 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 inventory net realizable value adjustment, and is calculated based on the mid-point of total cash cost guidance.
(3)Total consolidated all-in sustaining costs include corporate and administrative, and share based compensation expenses. 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.
(5)Initial annual guidance was issued on February 4, 2026 and was revised on July 29, 2026.
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.
Third quarter production of 119,000 ounces was in line with quarterly guidance, with a record performance from the Island Gold District offsetting lower planned production from Young-Davidson. As previously guided, AISC increased from the second quarter but is expected to improve in the fourth quarter. With higher production and lower costs expected in the fourth quarter, the Company remains on track to meet full year production and cost guidance which had been revised in July.
Production in the fourth quarter is expected to increase to between 140,000 and 160,000 ounces with total cash costs and AISC both decreasing to within the range of revised annual guidance. The improvement in both production and costs is expected to be driven by further growth from the Island Gold District which continues to perform well, achieving a number of records in the third quarter.
Underground mining rates within the Island Gold District increased 15% from the second quarter, to a record 1,790 tpd. Magino milling rates also increased 16% from the second quarter, to a record 10,313 tpd. Both contributed to record quarterly production at the operation of 68,700 ounces. Increasing underground mining rates and higher grades are expected to drive a more significant increase in production from the Island Gold District in the fourth quarter.
6 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
The Company continues to generate strong ongoing free cash flow while advancing its portfolio of high-return growth projects which are expected to support further production growth and lower costs over the next several years. Free cash flow totaled $75.6 million in the third quarter, net of a significant reinvestment in growth and exploration, supporting the Company's other capital allocation priorities. This included a further $22.3 million of shares repurchased since the second quarter, and eliminating the majority of the remaining legacy Argonaut hedges that were set to mature in the first half of 2027 at a cost of $92.9 million.
The Company's key growth projects all continued to advance during the third quarter, including the Island Gold District shaft and mill expansion, PDA and Lynn Lake. These projects are expected to nearly double production to approximately one million ounces annually by 2030, at substantially lower costs, underpinning one of the strongest outlooks in the sector.
The Island Gold District will be a key driver of this growth and cost improvement over the next several years. With the shaft sink completed earlier in the year, the current focus is on completing shaft equipping, and work on the shaft bottom infrastructure. During the excavation of the bins in the ore and waste handling system, a dyke was encountered that will require additional ground support. In addition, the Company is proactively enhancing ground support across the loading pocket and the broader ore and waste handling system. As a result, the commissioning of the shaft has been delayed by approximately one quarter and is now expected to be completed mid-2027.
Underground mining rates are expected to continue increasing above 2,000 tpd in the first half of 2027; however, the ramp up to 2,400 tpd is not expected until the second half of the year. As a result, underground mining rates are expected to be lower than previously guided during the first half of 2027. The commissioning of the shaft is expected to drive consolidated gold production higher and costs lower as underground mining rates ramp up.
The Magino mill expansion to 20,000 tpd is progressing well and is expected to drive a further increase in production and decrease in costs in 2028.
Construction of the PDA mill remains on track for completion mid-2027; however, lower underground development rates are expected to result in lower than planned production from PDA during the second half of 2027. The slower pace of development reflects the requirement for additional ground support, as well as contractor performance. The Company expects improved development rates moving forward, but the performance to date is expected to impact the ramp up in mining rates through the second half of 2027.
The ramp up of construction activities at Lynn Lake is advancing according to schedule, with installation of the permanent camp completed and foundation work for the process plant underway. The project remains on track to deliver initial production in the first half of 2029, contributing to further growth in consolidated production.
The short-term delays within the Island Gold District and PDA, as well as the previously disclosed impact on mining rates at Young-Davidson, are expected to impact near-term production and costs into 2027; however, they are not expected to impact the medium to longer term outlook. The Company expects significant production growth over the next several years and remains on track to nearly double production to approximately one million ounces annually by 2030, at substantially lower costs.
The Company remains well positioned to fund its high-return growth projects internally with strong ongoing free cash flow, $597.4 million of cash and cash equivalents at the end of the third quarter of 2026, and approximately $1.15 billion of total liquidity. At current gold prices, the Company expects significant free cash flow growth over the next several years with the completion of the Phase 3+ Shaft and IGD Expansions. The Company remains focused on delivering increasing shareholder returns with $122.5 million distributed thus far in 2026 through dividends and share buybacks. This included a 60% increase in the quarterly dividend rate in the first quarter, and the repurchase of $72.3 million of shares. Thus far in 2026, the Company has also utilized $227.9 million to eliminate legacy Argonaut gold hedges.
Given its strong outlook with significant free cash flow growth expected over the next several years, the Company expects to continue to be active on its share buyback while balancing its other capital allocation priorities.
7 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Third Quarter 2026 Results
Island Gold District Financial and Operational Review
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Gold production (ounces) | 68,700 | 66,800 | 197,400 | 190,400 | ||||||||||
| Gold sales (ounces) | 66,837 | 62,011 | 189,672 | 179,357 | ||||||||||
| Financial Review (in millions) | ||||||||||||||
| Operating revenues | $285.1 | $213.0 | $861.2 | $575.8 | ||||||||||
Cost of sales (1) | $106.5 | $83.4 | $301.0 | $251.2 | ||||||||||
| Earnings from operations | $176.6 | $128.6 | $554.8 | $320.8 | ||||||||||
| Cash provided by operating activities | $203.7 | $160.9 | $576.1 | $370.5 | ||||||||||
Capital expenditures (sustaining) (2) | $32.3 | $23.9 | $83.0 | $59.5 | ||||||||||
Finance leases (sustaining) (2),(5) | $3.0 | $4.3 | $10.2 | $12.6 | ||||||||||
Capital expenditures (growth) (2) | $92.1 | $59.5 | $245.7 | $153.3 | ||||||||||
Capital expenditures (capitalized exploration) (2) | $7.1 | $5.1 | $17.3 | $14.1 | ||||||||||
Mine-site free cash flow (2),(5) | $72.2 | $72.4 | $230.1 | $143.6 | ||||||||||
Cost of sales, including amortization per ounce of gold sold (1) | $1,593 | $1,345 | $1,587 | $1,401 | ||||||||||
Total cash costs per ounce of gold sold (2) | $1,242 | $964 | $1,247 | $1,002 | ||||||||||
Mine-site all-in sustaining costs per ounce of gold sold (2),(3) | $1,782 | $1,432 | $1,752 | $1,420 | ||||||||||
| Island Gold Mine | ||||||||||||||
| Underground Operations | ||||||||||||||
Tonnes of ore mined (9) | 164,634 | 121,864 | 433,826 | 345,272 | ||||||||||
Tonnes of ore mined per day (9) | 1,790 | 1,325 | 1,589 | 1,265 | ||||||||||
Average grade of gold (4),(9) | 8.69 | 12.05 | 9.04 | 11.69 | ||||||||||
| Metres developed | 2,128 | 1,779 | 6,072 | 6,058 | ||||||||||
Island Gold Mill Operations (8) | ||||||||||||||
| Tonnes of ore processed | 117,460 | 23,906 | 342,710 | 234,174 | ||||||||||
Tonnes of ore processed per day (10) | 1,277 | 1,087 | 1,255 | 1,154 | ||||||||||
Average grade of gold (4) | 9.37 | 13.20 | 9.81 | 12.03 | ||||||||||
| Contained ounces milled | 35,395 | 10,148 | 108,143 | 90,578 | ||||||||||
| Average recovery rate | 97% | 99% | 97% | 98% | ||||||||||
Magino Mine | ||||||||||||||
Open Pit Operations | ||||||||||||||
Tonnes of ore mined - open pit (6) | 1,807,233 | 1,622,689 | 4,062,943 | 3,938,588 | ||||||||||
| Tonnes of ore mined per day | 19,644 | 17,638 | 14,883 | 14,427 | ||||||||||
Total waste mined - open pit (7) | 3,995,799 | 3,764,681 | 11,224,595 | 11,104,219 | ||||||||||
| Total tonnes mined - open pit | 5,803,032 | 5,387,370 | 15,287,538 | 15,042,807 | ||||||||||
Waste-to-ore ratio (7) | 2.21 | 2.32 | 2.76 | 2.82 | ||||||||||
Average grade of gold (4) | 0.65 | 0.84 | 0.73 | 0.81 | ||||||||||
Magino Mill Operations (8) | ||||||||||||||
| Tonnes of ore processed | 948,782 | 776,796 | 2,431,243 | 2,210,908 | ||||||||||
| Tonnes of ore processed per day | 10,313 | 8,443 | 8,906 | 8,099 | ||||||||||
Average grade of gold processed (4) | 1.17 | 2.28 | 1.20 | 1.42 | ||||||||||
| Contained ounces milled | 35,702 | 56,923 | 94,141 | 101,000 | ||||||||||
| Average recovery rate | 95% | 96% | 95% | 95% | ||||||||||
| Island Gold District Mill Operations | ||||||||||||||
| Tonnes of ore processed per day | 11,590 | 8,703 | 10,161 | 8,956 | ||||||||||
Average grade of gold processed (4) | 2.07 | 2.61 | 2.27 | 2.44 | ||||||||||
| Average recovery rate | 96% | 97% | 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 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 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)Grams per tonne of gold (“g/t Au”).
(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. Grades of gold processed from the Magino mine averaged 0.88 g/t Au and 1.00 g/t Au, respectively, for the three and nine months ended September 30, 2026.
8 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
(9)Excludes 13,541 tonnes of ore grading 2.98 g/t Au that was recovered from the ore pad and processed during the second quarter of 2026.
(10)Island Gold average milling rates exclude the period where mill was on care and maintenance between July 16 and September 23, 2025.
The Island Gold District produced a record 68,700 ounces in the third quarter of 2026, 3% higher than the prior year period and a 2% increase compared to the second quarter. With higher underground mining rates and grades expected to drive increasing production in the fourth quarter, the Island Gold District remains on track to achieve its full year production guidance of between 290,000 and 310,000 ounces.
Island Gold Operational Review
Underground mining rates increased to average a record 1,790 tpd in the third quarter, 35% higher than the prior year period and a 15% increase from the previous quarter. Mining rates are expected to increase further during the fourth quarter and remain on track to reach 2,000 tpd by the end of 2026.
With the shaft sink completed earlier in the year, the current focus is on completing shaft equipping, and work on the shaft bottom infrastructure. During the excavation of the bins in the ore and waste handling system, a dyke was encountered that will require additional ground support. In addition, the Company is proactively enhancing ground support across the loading pocket and the broader ore and waste handling system. As a result, the commissioning of the shaft has been delayed by approximately one quarter and is now expected to be completed mid-2027.
Underground mining rates are expected to continue increasing above 2,000 tpd in the first half of 2027; however, the ramp up to 2,400 tpd is not expected until the second half of the year. As a result, underground mining rates are expected to be lower than previously guided during the first half of 2027.
Underground grades mined averaged 8.69 g/t Au during the third quarter, slightly below the second quarter and guidance due to higher than expected dilution within certain higher grade stopes mined in August. Dilution performance was in line with expectations in September. Grades are expected to improve to near the top end of the annual guidance range of 11.5 g/t Au in the fourth quarter.
Processing rates within the Island Gold mill averaged 1,277 tpd for the third quarter, with excess underground ore mined during the quarter processed within the Magino mill. Mill recoveries averaged 97% for the third quarter, in line with expectations.
The Island Gold mill will continue operating into the first quarter of 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 Magino mill expansion to 20,000 tpd in the first quarter of 2028, the Island Gold mill will be shut down and 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 63,076 tpd during the third quarter, including 19,644 tpd of ore, which was 11% higher than the prior year period. Grades mined of 0.65 g/t Au for the third quarter were 23% lower than the prior year period and slightly below the guidance range for 2026, primarily due to changes in mining sequence in the pit. Year-to-date grades mined were in line with guidance.
Magino milling rates averaged a new quarterly record of 10,313 tpd in the third quarter, a 16% increase from the second quarter, and above targeted rates of 10,000 tpd in the second half of 2026. The increase reflects the improving performance and reliability of the overall circuit driven by an enhanced maintenance program which is supporting increased availability, as well as supplemental ore feed from the temporary crusher. Milling rates are expected to remain at steady state levels of 10,000 tpd in the fourth quarter and through 2027.
As outlined in the IGD Expansion Study announced on February 3, 2026, further improvements are planned for the existing crushing and conveying circuit as part of the mill 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.
9 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Grades processed averaged 1.17 g/t Au during the third quarter, and included approximately 48,000 tonnes of higher grade underground ore. Recoveries for the third quarter were 95%, consistent with guidance.
Island Gold District Financial Review
Revenues of $285.1 million in the third quarter were 34% higher than the prior year period, driven by higher realized gold prices and an increase in ounces sold. Similarly, revenues of $861.2 million for the first nine months of the year were 50% higher than the prior year period, driven by the same factors.
Cost of sales of $106.5 million in the third quarter and $301.0 million for the first nine months of the year were 28% and 20% higher than the comparative periods, respectively, driven by higher underground and open pit tonnes mined and ongoing inflation.
Total cash costs of $1,242 per ounce and mine-site AISC of $1,782 per ounce in the third quarter were higher than the prior year period, driven by lower grades mined from underground and open pit operations, increased labour and contractor costs, and increased diesel costs. In addition, mine-site AISC was impacted by higher sustaining capital in support of the IGD Expansion to 20,000 tpd. For the first nine months of the year, total cash costs of $1,247 per ounce and mine-site AISC of $1,752 per ounce were higher than the prior year period, driven by the same factors. Total cash costs and mine-site AISC are both expected to decrease in the fourth quarter bringing full year costs in line with revised annual guidance.
Capital expenditures totaled $134.5 million in the third quarter, including $32.3 million of sustaining capital, $3.0 million of sustaining lease payments, and $7.1 million of capitalized exploration. Growth capital spending of $92.1 million was primarily focused on the Phase 3+ Shaft and IGD Expansions, including shaft site infrastructure and underground development, as well as the Magino mill expansion to 20,000 tpd. Both sustaining and growth capital spending are expected to increase in the fourth quarter to be consistent with full year guidance.
The Island Gold District generated strong mine-site free cash flow of $72.2 million in the third quarter and $230.1 million for the first nine months, net of 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 growth over the next several years as production increases and costs decrease.
10 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Young-Davidson Financial and Operational Review
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Gold production (ounces) | 22,700 | 37,900 | 85,700 | 112,000 | ||||||||||
| Gold sales (ounces) | 23,809 | 37,406 | 87,710 | 111,095 | ||||||||||
| Financial Review (in millions) | ||||||||||||||
| Operating revenues | $104.3 | $130.0 | $408.0 | $357.3 | ||||||||||
Cost of sales (1) | $62.3 | $65.2 | $195.3 | $195.5 | ||||||||||
| Earnings from operations | $41.2 | $64.6 | $209.2 | $159.7 | ||||||||||
| Cash provided by operating activities | $55.3 | $82.5 | $240.3 | $220.6 | ||||||||||
Capital expenditures (sustaining) (2) | $17.1 | $10.2 | $45.9 | $33.8 | ||||||||||
Capital expenditures (growth) (2) | $5.0 | $5.8 | $16.2 | $17.5 | ||||||||||
Capital expenditures (capitalized exploration) (2) | $2.8 | $4.2 | $8.9 | $9.1 | ||||||||||
Mine-site free cash flow (2) | $30.4 | $62.3 | $169.3 | $160.2 | ||||||||||
Cost of sales, including amortization per ounce of gold sold (1) | $2,617 | $1,743 | $2,227 | $1,760 | ||||||||||
Total cash costs per ounce of gold sold (2) | $2,041 | $1,200 | $1,712 | $1,248 | ||||||||||
Mine-site all-in sustaining costs per ounce of gold sold (2),(3) | $2,764 | $1,476 | $2,240 | $1,555 | ||||||||||
| Underground Operations | ||||||||||||||
| Tonnes of ore mined | 472,400 | 667,801 | 1,769,857 | 1,930,719 | ||||||||||
| Tonnes of ore mined per day | 5,135 | 7,259 | 6,483 | 7,072 | ||||||||||
Average grade of gold (4) | 1.60 | 1.92 | 1.71 | 1.98 | ||||||||||
| Metres developed | 1,423 | 1,800 | 5,507 | 6,135 | ||||||||||
| Mill Operations | ||||||||||||||
| Tonnes of ore processed | 650,136 | 720,933 | 1,935,497 | 1,959,516 | ||||||||||
| Tonnes of ore processed per day | 7,067 | 7,836 | 7,090 | 7,178 | ||||||||||
Average grade of gold (4) | 1.20 | 1.79 | 1.55 | 1.94 | ||||||||||
| Contained ounces milled | 25,117 | 41,387 | 96,593 | 122,354 | ||||||||||
| Average recovery rate | 90% | 91% | 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 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 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)Grams per tonne of gold.
Operational Review
Young-Davidson produced 22,700 ounces of gold in the third quarter, 40% below the prior year period due to lower mining rates and grades. As previously guided in July, mining rates and grades are expected to be lower than originally planned as a result of the localized seismic event that impacted a portion of the operation during the second quarter. Mining rates were consistent with revised guidance in the third quarter and with similar production expected in the fourth quarter, the operation is on track to meet its revised 2026 production guidance of between 100,000 and 115,000 ounces.
Mining rates averaged 5,135 tpd in the third quarter, in line with revised guidance of 5,000 tpd for the second half of 2026. The Company is advancing rehabilitation work on the 9410 level, and continuing the implementation of enhanced ground support throughout the lower portion of the mine. In addition, an updated mine plan is being evaluated, designed to minimize stress through an optimized ore extraction sequence. These initiatives are expected to support a gradual increase in mining rates through 2027 and 2028. An update on future mining rates and costs will be provided following the completion of the updated mine plan, with an expected release early in 2027 in conjunction with the Company's three-year guidance.
Grades mined of 1.60 g/t Au for the third quarter were slightly lower than planned.
Milling rates averaged 7,067 tpd in the third quarter, higher than mining rates as lower-grade surface stockpiles were processed. As a result, milled grades of 1.20 g/t Au were below mined grades in the third quarter. Milling rates
11 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
are expected to continue to exceed mining rates, and grades processed to be below mined grades, in the fourth quarter as additional stockpiles are processed. Mill recoveries averaged 90% for the third quarter and were consistent with guidance.
Financial Review
Revenues were $104.3 million in the third quarter, 20% lower than the prior year period, reflecting lower ounces sold, partially offset by higher realized gold prices. For the first nine months of the year, revenues of $408.0 million were 14% higher than the prior year period as higher realized gold prices more than offset lower ounces sold.
Cost of sales of $62.3 million in the third quarter was 4% lower than the prior year period, driven by lower mining rates, partially offset by ongoing inflation and enhanced ground support measures. Cost of sales of $195.3 million for the first nine months of the year was in line with the prior year period.
Third quarter total cash costs of $2,041 per ounce and mine-site AISC of $2,764 per ounce were higher than the prior year period, reflecting higher cost per tonne mined given the lower mining rates, lower grades mined, as well as rehabilitation work and enhanced ground support measures. Ongoing labour inflation also contributed to the increase. For the first nine months of the year, total cash costs of $1,712 per ounce and mine-site AISC of $2,240 per ounce were higher than the prior year period, driven by the same factors. Mine-site AISC are expected to increase in the fourth quarter given the timing of sustaining capital spend, bringing full year costs in line with revised guidance.
Capital expenditures in the third quarter totaled $24.9 million, including $17.1 million of sustaining capital, $5.0 million of growth capital, and $2.8 million of capitalized exploration. Capital expenditures, inclusive of capitalized exploration, totaled $71.0 million for the first nine months of the year. Capital spending is expected to increase in the fourth quarter bringing full year spending to the lower end of revised annual guidance.
Mine-site free cash flow was $30.4 million in the third quarter, 51% lower than the prior year period, primarily driven by lower ounces sold. Mine-site free cash flow was $169.3 million for the first nine months of the year, 6% higher than the prior year period. The operation is well-positioned to continue generating strong ongoing free cash flow over the long-term at current gold prices.
12 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Mulatos District Financial and Operational Review
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Gold production (ounces) | 27,600 | 37,000 | 90,400 | 101,500 | ||||||||||
| Gold sales (ounces) | 27,715 | 37,056 | 93,736 | 98,631 | ||||||||||
Financial Review (in millions) | ||||||||||||||
| Operating revenues | $121.0 | $130.8 | $438.5 | $325.4 | ||||||||||
Cost of sales (1) | $44.9 | $45.5 | $154.5 | $143.3 | ||||||||||
| Earnings from operations | $72.9 | $85.3 | $274.5 | $175.6 | ||||||||||
| Cash provided by operating activities | $66.4 | $84.6 | $230.4 | $148.1 | ||||||||||
Capital expenditures (sustaining) (2) | $0.5 | $0.7 | $1.8 | $1.8 | ||||||||||
Capital expenditures (growth) (2) | $24.8 | $2.9 | $60.2 | $7.0 | ||||||||||
Capital expenditures (capitalized exploration) (2) | $2.4 | $7.6 | $7.7 | $10.1 | ||||||||||
Mine-site free cash flow (2) | $38.7 | $73.4 | $160.7 | $129.2 | ||||||||||
Cost of sales, including amortization per ounce of gold sold (1) | $1,620 | $1,228 | $1,648 | $1,453 | ||||||||||
Total cash costs per ounce of gold sold (2) | $1,122 | $761 | $1,028 | $971 | ||||||||||
Mine-site all-in sustaining costs per ounce of gold sold (2),(3) | $1,209 | $831 | $1,105 | $1,045 | ||||||||||
| La Yaqui Grande Mine | ||||||||||||||
Open Pit Operations | ||||||||||||||
| Tonnes of ore mined - open pit | 548,157 | 997,286 | 2,248,782 | 3,007,335 | ||||||||||
| Total waste mined - open pit | 3,553,670 | 3,895,690 | 12,017,548 | 12,115,215 | ||||||||||
| Total tonnes mined - open pit | 4,101,827 | 4,892,976 | 14,266,330 | 15,122,550 | ||||||||||
| Waste-to-ore ratio | 6.48 | 3.91 | 5.34 | 4.03 | ||||||||||
Crushing and Heap Leach Operations | ||||||||||||||
| Tonnes of ore stacked | 539,283 | 1,011,191 | 2,346,838 | 3,050,211 | ||||||||||
Average grade of gold processed (4) | 0.94 | 1.48 | 1.17 | 1.25 | ||||||||||
| Contained ounces stacked | 16,307 | 48,037 | 88,312 | 122,927 | ||||||||||
| Average recovery rate | 143% | 61% | 85% | 62% | ||||||||||
| Ore crushed per day (tonnes) | 5,900 | 11,000 | 8,600 | 11,200 | ||||||||||
(1)Cost of sales includes mining and processing costs, inventory net realizable value adjustment, royalties, and amortization expense.
(2)Refer to the “Non-GAAP Measures and Additional GAAP Measures” section 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 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)Grams per tonne of gold.
Mulatos District Operational Review
The Mulatos District produced 27,600 ounces in the third quarter, a 25% decrease from the prior year period, reflecting lower production at La Yaqui Grande as well as a lower contribution from residual leaching of the Mulatos leach pad. Production was also down slightly from the second quarter reflecting lower grades and stacking rates. The Mulatos District remains on track to meet its revised production guidance of between 120,000 and 135,000 ounces with higher grades and stacking rates expected to contribute to stronger production in the fourth quarter.
La Yaqui Grande produced 23,400 ounces in the third quarter, 20% lower than the prior year period. Stacking rates averaged 5,900 tpd in the third quarter, below guidance, reflecting the impact of the rainy season and limited mining areas at the bottom of the open pit as La Yaqui Grande nears the end of its mine life. With the end of the rainy season, mining and stacking rates are expected to improve in the fourth quarter. Grades stacked averaged 0.94 g/t Au in the third quarter, and are expected to increase in the fourth quarter, consistent with guidance. Recovery rates averaged 143%, driven by recovery of ounces stacked in prior periods.
La Yaqui Grande is expected to start residual leaching after cessation of open pit mining operations, in the first half of 2027, contributing to ongoing production through 2027. Mulatos has been in the residual leaching phase since December 2023 and produced 4,200 ounces in the third quarter.
13 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Mulatos District Financial Review
Revenues of $121.0 million in the third quarter were 7% lower than the prior year period, reflecting lower ounces sold, partially offset by higher realized gold prices. For the first nine months of the year, revenues of $438.5 million were 35% higher than the prior year period due to higher realized gold prices, slightly offset by lower ounces sold.
Cost of sales of $44.9 million in the third quarter was consistent with the prior year period as lower tonnes mined and stacked were offset by inflation. For the first nine months of the year, cost of sales of $154.5 million was 8% higher than the prior year period driven by the Mulatos leach pad inventory adjustment recorded in the second quarter. As at September 30, 2026, the remaining inventory balance on the Mulatos leach pad was $8.5 million, which the Company expects to recover through residual leaching over the remainder of the year.
Total cash costs of $1,122 per ounce and mine-site AISC of $1,209 per ounce in the third quarter were higher than the prior year period, reflecting increased unit costs from residual leaching at Mulatos, as well as lower stacking rates and grades processed at La Yaqui Grande. For the first nine months of the year, total cash costs of $1,028 per ounce and mine-site AISC of $1,105 per ounce were higher than the prior year period driven by the same factors.
Capital expenditures totaled $27.7 million in the third quarter, including $0.5 million of sustaining capital and $2.4 million of capitalized exploration. Growth capital spending related to PDA of $24.8 million included underground development, as well as structural steel and concrete foundation work for the mill. Spending on PDA is expected to increase in the fourth quarter of the year as construction activities continue to ramp up. Capital expenditures, inclusive of capitalized exploration, totaled $69.7 million for the first nine months of the year.
Construction of the PDA mill remains on track for completion mid-2027, while lower than planned underground development rates are expected to result in lower production from PDA during the second half of 2027. The slower pace of development reflects unexpected ground conditions in some areas, which are requiring additional ground support, as well as contractor performance. The Company expects improved development rates moving forward, but the performance to date is expected to impact the ramp up in mining rates through the second half of 2027. The Company will provide more details on the impact to production and costs with the release of the updated three-year guidance early in 2027.
The Mulatos District generated strong mine-site free cash flow of $38.7 million in the third quarter and $160.7 million for the first nine months, net of significant capital investment related to PDA and a substantial exploration program. This was net of $16.9 million of cash tax payments in the third quarter, and $94.7 million in cash taxes paid in the first nine months of the year. The Company expects cash tax installments in Mexico of between $15 and $20 million in the fourth quarter, related to the 2026 tax year, based on a budgeted gold price of $4,000 per ounce.
Third Quarter 2026 Development Activities
Island Gold District (Ontario, Canada)
Phase 3+ Shaft and IGD Expansion
In 2022, the Company announced the Phase 3+ Shaft Expansion at Island Gold from 1,200 tpd to 2,400 tpd. The expansion includes the construction of a shaft and paste plant, as well as accelerated development to support the higher mining rates.
With the shaft sink completed earlier in the year, the current focus is on completing shaft equipping, and work on the shaft bottom infrastructure. During the excavation of the bins in the ore and waste handling system, a dyke was encountered that will require additional ground support. In addition, the Company is proactively enhancing ground support across the loading pocket and the broader ore and waste handling system. As a result, the commissioning of the shaft has been delayed by approximately one quarter and is now expected to be completed mid-2027.
Underground mining rates are expected to continue increasing above 2,000 tpd in the first half of 2027; however, the ramp up to 2,400 tpd is not expected until the second half of the year. As a result, underground mining rates are expected to be lower than previously guided during the first half of 2027.
14 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Following the completion of the Phase 3+ Shaft Expansion project, the operation will transition from trucking ore and waste up the ramp to skipping ore and waste to surface, driving production higher and costs significantly lower.
On February 3, 2026, the Company announced the IGD Expansion Study outlining a larger, long-life, low-cost mine with an average annual gold production of 534,000 ounces over the initial 10 years (starting in 2028) at average mine-site AISC of $1,025 per ounce. The IGD Expansion growth capital of $542 million will be spent on the expansion of the Magino mill to 20,000 tpd, accelerated underground development, and mobile equipment to support higher underground and open pit mining rates of 3,000 tpd and 17,000 tpd, respectively.
The Island Gold mill will continue operating and will be dedicated to processing approximately 1,265 tpd of higher grade underground ore until the expected completion of the Magino mill expansion in the first quarter of 2028. The remaining underground ore mined, beyond the Island Gold mill capacity of 1,265 tpd, will be blended at increasing rates with open pit ore and processed within the Magino mill.
During the third quarter of 2026, the Company spent $92.1 million in growth capital at the Island Gold District. Progress during the third quarter is summarized as follows:
•Commissioning of the water handling facility substantially completed
•Continued shaft equipping and work on the ore and waste handling system in advance of shaft commissioning in mid-2027
•Magino mill expansion to 20,000 tpd is progressing with excavation and concrete works advancing for the crushers and fine ore bins, and refinery structural steel and foundation concrete works ongoing
•Advanced construction of the truck shop and truck wash with commissioning expected in the first quarter of 2027
•Paste plant construction substantially complete with commissioning expected to coincide with shaft commissioning
•Continued construction of the new administrative complex with completion expected in the fourth quarter of 2026
•Advanced lateral development in support of the ramp up of underground mining rates through 2026 and into 2027
As of September 30, 2026, approximately $815 million was spent on the Phase 3+ Shaft Expansion. Given inflation over the past year, as well as additional work in the ore and waste handling system, the Company expects total project capital to be approximately 5% higher than the $835 million budgeted.
Phase 3+ Shaft Expansion Estimate Growth capital ($ millions) | February 20261 | Spent to date1,2 | Committed to date1 | % Spent & Committed | ||||||||||
| Shaft & Shaft Surface Complex | $ | 324 | $ | 301 | $ | 11 | 96% | |||||||
| Accelerated Underground Development, Infrastructure, and Equipment | 255 | 234 | 7 | 95% | ||||||||||
Site Infrastructure, Mill and Other3 | 165 | 184 | 6 | 115% | ||||||||||
| General Indirect Costs | 91 | 96 | 3 | 109% | ||||||||||
| Total Phase 3+ Shaft Expansion Growth Capital | $ | 835 | $ | 815 | $ | 27 | 101% | |||||||
As of September 30, 2026, 45% of growth capital related to the IGD Expansion has been spent and committed, with the majority of spending focused on the Magino mill expansion.
IGD Expansion Estimate Growth capital ($ millions) | February 20261 | Spent to date1,2 | Committed to date1 | % Spent & Committed | ||||||||||
| Mill Expansion | $ | 199 | $ | 71 | $ | 56 | 64% | |||||||
| Accelerated Underground Development | 166 | 24 | — | 14% | ||||||||||
| Mining Equipment | 81 | 16 | 25 | 51% | ||||||||||
| Site Infrastructure and Other | 96 | 27 | 23 | 52% | ||||||||||
| Total IGD Expansion Growth Capital | $ | 542 | $ | 138 | $ | 104 | 45% | |||||||
15 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
1.Reflects updated capital estimates released in February 2026 as part of the IGD Expansion, based on CAD/USD exchange $0.74:1. Spent to date based on average CAD/USD of $0.73:1 since the start of 2022. Committed to date based on the spot CAD/USD rate as at September 30, 2026 of $0.70:1.
2.Amount spent to date accounted for on an accrual basis, including working capital movements.
3.Includes power upgrade spent to-date on a 100% basis and does not reflect partner’s contributions.
Island Gold shaft site area - October 2026
16 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
1350L shaft station equipping in progress - October 2026
17 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Magino mill expansion - October 2026
Lynn Lake (Manitoba, Canada)
On January 13, 2025, the Company announced a positive construction decision on the Lynn Lake project. With the approval of the Closure Plan in January 2025, the required permitting and pre-construction conditions have been met allowing for the start of construction on the project.
In February 2025, an internal economic study and development plan was released on the BT and Linkwood satellite deposits located in proximity to the Lynn Lake project. In February 2026, an updated development plan for the Lynn Lake project was announced incorporating the BT and Linkwood deposits. Given the significantly longer mine life, the Company re-engineered and optimized a number of elements within the broader development plan. This included several scope changes, most notably increasing the mill capacity by 13% to 9,000 tpd, driving higher production and stronger economics. The initial capital for the project is $937 million, of which $871 million remained to be spent as of January 1, 2026.
The updated parameters for the Lynn Lake project, incorporating the revised initial capital, larger Mineral Reserve base including BT and Linkwood, and increased mill throughput, are as follows:
•Average annual production of 186,000 ounces over the initial 10 years
•Low mine-site AISC of $829 per ounce over the initial 10 years ($1,039 per ounce over the life of mine)
•Long mine life of 25 years with total production of three million ounces (based on Mineral Reserves at the end of 2024)
•Attractive economics with significant near-mine and regional exploration upside
Capital spending on the Lynn Lake project in 2026 is expected to be between $140 and $160 million. Construction activities in 2026 include permanent camp construction, bulk earthworks, power infrastructure upgrades, and orders for long lead-time items.
18 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
The majority of initial capital will be spent in 2027 and 2028, with first production expected in the first half of 2029. With attractive economics and significant exploration upside, the Lynn Lake project is a key component of the Company’s leading high-return organic growth profile.
During the third quarter of 2026, the Company spent $40.2 million in development capital at the Lynn Lake project, with key activities summarized as follows:
•Commissioned the permanent camp with occupancy permit obtained and 120 dorm rooms opened
•Progressed process plant site preparation and foundations work
•Commenced commissioning of the water and sewage treatment facilities
•Continued site-wide infrastructure construction, including roads, laydown areas, and settlement pond
•Advanced drill and blasting activities for the starter pit at MacLellan
| Lynn Lake Project Initial Capital ($ millions) | February 20261 | Spent to date1,2 | Committed to date1 | % Spent & Committed | ||||||||||
| Mine Development and Site Preparation | $ | 146 | $ | 56 | $ | 69 | 86% | |||||||
| Process Plant, Utilities and Equipment | 334 | 45 | 65 | 33% | ||||||||||
| Site Infrastructure and Other | 121 | 25 | 22 | 39% | ||||||||||
| General Indirect Costs | 262 | 58 | — | 22% | ||||||||||
| Capitalized Operating Costs | 74 | 1 | — | 1% | ||||||||||
| Total Initial Capital | $ | 937 | $ | 185 | $ | 156 | 36% | |||||||
1.Reflects updated capital estimates released in February 2026, based on CAD/USD exchange $0.74:1. Spent to date based on average CAD/USD of $0.72:1 since the start of 2025. Committed to date based on the spot CAD/USD rate as at September 30, 2026 of $0.70:1.
2.Amount spent to date accounted for on an accrual basis, including working capital movements.
19 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Lynn Lake permanent camp - October 2026
Lynn Lake process plant area - October 2026
20 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
PDA (Sonora, Mexico)
On September 4, 2024, the Company reported the results of the development plan for the PDA project located within the Mulatos District. PDA is a higher-grade underground deposit adjacent to the Mulatos open pit and will benefit from the use of existing crushing infrastructure from Cerro Pelon, supporting lower initial capital and project execution risk.
In January 2025, the Company announced it was granted approval of an amendment to its existing environmental impact assessment (Manifestación de Impacto Ambiental) by Mexico’s Secretariat of Environment and Natural Resources, allowing for the start of construction on the PDA project. Total initial capital estimate of $165 million remains unchanged with approximately $72.9 million spent to date. Remaining initial capital will be spent in the fourth quarter of 2026 and 2027.
Construction of the PDA mill remains on track for completion mid-2027, while lower than planned underground development rates are expected to result in lower production from PDA during the second half of 2027. The slower pace of development reflects unexpected ground conditions in some areas, which are requiring additional ground support, as well as contractor performance. The Company expects improved development rates moving forward, but the performance to date is expected to impact the ramp up in mining rates through the second half of 2027. The Company will provide more details on the impact to production and costs with the release of the updated three-year guidance early in 2027.
During the third quarter of 2026, the Company spent $24.8 million in growth capital at the PDA project, with key activities summarized as follows:
•Finalized all major equipment purchase orders with most deliveries expected during the fourth quarter
•Advanced underground mine development with 573 metres (“m”) completed during the third quarter
•Primary crusher and fine crushing construction continued to advance, with electrical conduit installation, power and control cable pulling, conveyor belt vulcanization, and control cabin installation completed
•Completed approximately 75% of mill structural works
•Completed installation of the primary and scavenger flotation cells
•Commenced structural works for the dewatering and water tanks, with receiver and air line installation ongoing
•Advanced distribution power line construction, with excavation completed for 18 of 24 pole pits
21 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
PDA portals - October 2026
PDA crusher and mill area - October 2026
Third Quarter 2026 Exploration Activities
Island Gold District (Ontario, Canada)
22 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
A total of $43 million has been budgeted for exploration at the Island Gold District in 2026, up from $24 million spent in 2025. The exploration program will continue to build on the success from 2025 with high-grade gold mineralization extended across the Island Gold deposit, as well as within multiple structures within the hanging wall and footwall.
In 2025, drilling programs at Island Gold and Magino focused on delineation drilling to convert the large Inferred Mineral Resource base to Mineral Reserves. This program was executed successfully and resulted in a significant increase in Mineral Reserves at both Island Gold and Magino, which was incorporated into the IGD Expansion that was announced on February 3, 2026. With the deposit open laterally and at depth, there is significant potential for further growth in Mineral Reserves and Resources.
A total of 50,000 m of underground exploration drilling is planned in 2026 with a focus on defining new Mineral Reserves and Resources in proximity to existing production horizons and infrastructure. This includes drilling across the strike extent of the main Island Gold deposit (E1E and C-Zones), as well as within a growing number of newly defined hanging-wall and footwall zones.
These potential high-grade Mineral Reserve and Resource additions would be low cost to develop, given their proximity to existing infrastructure, and provide increased operational flexibility as mining rates increase. To support the underground exploration program, 1,090 m of underground exploration drift development is planned to extend drill platforms on multiple levels.
Additionally, 48,000 m of surface exploration drilling has been budgeted targeting the area between the Island Gold and Magino deposits, as well as the down-plunge extension of the Island Gold deposit, below a depth of 1,500 m.
The regional exploration program at the Island Gold District includes 16,000 m of surface drilling. The focus of the regional program will be following up on high-grade mineralization intersected in the 2025 drill program at Cline-Pick located approximately seven km northeast of the Island Gold mine.
During the third quarter of 2026, 12,660 m of underground exploration drilling was completed in 60 holes, and 10,099 m of underground delineation drilling across 44 holes. Additionally, 13,063 m of surface exploration drilling was completed in 20 holes. Year to date, 33,615 m of underground exploration drilling was completed in 133 holes, or 67% of the budgeted metres, and 22,609 m of underground delineation drilling across 95 holes. Additionally, 30,207 m of surface exploration drilling was completed in 30 holes, representing 63% of the budget for the year.
As part of the regional exploration program, 8,463 m of drilling was completed in 16 holes at Cline-Pick in the third quarter. Year to date, 17,110 m of drilling has been completed in 31 holes at Cline-Pick, exceeding the budgeted regional drill program for the year.
As detailed in the June exploration update (see press release dated June 22, 2026), high-grade mineralization was extended across multiple areas which are being targeted as sources of additional higher-grade mill feed within the expanded Magino mill. This includes defining a new zone of high-grade mineralization 250 m west of underground Mineral Reserves and Mineral Resources (Island Gold West Extension), and continuing to extend high-grade mineralization within the Island West up-plunge area, and the past producing Cline-Pick and Edwards mines. These targets represent opportunities for further production growth by increasing the proportion of higher-grade ore to be fed within the expanded Magino mill.
Total exploration expenditures during the third quarter were $9.1 million, of which $7.1 million was capitalized. In the first nine months of the year, the Company incurred exploration expenditures of $22.7 million, of which $17.3 million was capitalized.
Young-Davidson (Ontario, Canada)
A total of $17 million has been budgeted for exploration at Young-Davidson in 2026, up from $13 million spent in 2025. This includes 48,000 m of underground exploration drilling focused on extending mineralization within the Young-Davidson syenite, which hosts the majority of Mineral Reserves and Mineral Resources, and to test and expand on gold mineralization that has been intersected within two areas of focus in the hanging wall. This new style of mineralization is located in close proximity to the existing mid-mine infrastructure.
23 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
The regional program includes 10,000 m of drilling focused on evaluating several targets including the Otisse NE target and the Biralger target located approximately 3 km and 17 km northeast of Young-Davidson, respectively. A comprehensive data compilation project commenced in 2025, and will be completed in 2026 for the Wydee and Matachewan projects, both acquired in 2024, and located in proximity to Young-Davidson.
During the third quarter, 17,039 m of underground exploration drilling was completed in 52 holes across multiple levels. Drilling is targeting syenite-hosted mineralization, as well as continuing to test mineralization in the hanging wall sediments and mafic-ultramafic stratigraphy. Year to date, 46,008 m of drilling has been completed in 132 holes. The seismic event that occurred at Young-Davidson in June has not impacted the budgeted exploration program in 2026.
A total of 4,865 m of regional surface exploration drilling was completed in 16 holes in the first quarter focused on evaluating the Otisse NE and Biralger targets. No regional exploration drilling was undertaken in the third quarter; however, drilling is planned in the fourth quarter.
Total exploration expenditures during the third quarter of 2026 were $3.6 million, of which $2.8 million was capitalized. For the first nine months of the year, exploration expenditures totaled $12.4 million, of which $8.9 million was capitalized.
Mulatos District (Sonora, Mexico)
A total of $21 million has been budgeted at Mulatos for exploration in 2026, consistent with $20 million spent in 2025. The regional drilling program is expected to total 44,500 m and includes 20,000 m of surface exploration drilling at the Cerro Pelon sulphide target, 9,000 m at the recently discovered Halcon target, and an additional 15,500 m planned across several early to advanced stage targets within the Mulatos District. The planned addition of a mill to process higher-grade sulphides has created new opportunities for growth within the Mulatos District, including Cerro Pelon and the Halcon target.
During the third quarter, 4,483 m of surface exploration drilling was completed in 15 holes at Cerro Pelon, and 7,623 m were completed in 15 holes at Halcon. Additionally, 2,310 m were drilled in five regional holes across the district. For the first nine months of the year, 40,334 m have been drilled at Mulatos in 123 drill holes, representing close to 90% of budgeted metres for the year.
Total exploration expenditures during the third quarter were $5.6 million, of which $2.4 million was capitalized. For the first nine months of the year, exploration expenditures totaled $17.2 million, of which $7.7 million was capitalized.
Lynn Lake (Manitoba, Canada)
A total of $6 million has been budgeted for exploration at the Lynn Lake project in 2026. This is up from $3 million spent in 2025. The exploration budget includes 13,500 m to test the potential for underground mining opportunities below the Gordon and MacLellan open pits.
In total, 13,740 m of drilling was completed in 25 holes at the Gordon and MacLellan deposits in the first half of the year. Results have been received, and geological models are being updated to be used for 2027 drill planning purposes.
Exploration spending totaled $0.3 million in the third quarter and $4.8 million for the first nine months of the year, all of which was capitalized.
Qiqavik (Quebec, Canada)
A total of $7 million has been budgeted for exploration at the Qiqavik project in 2026, similar to 2025. Qiqavik is a camp-scale property covering 60,400 ha in the Cape Smith Greenstone Belt in Nunavik, Quebec. The Qiqavik project covers 50 km of strike covering prospective gold hosting environments and several major crustal-scale structures such as the Qiqavik Break and the Bergeron fault. Early-stage exploration completed to date indicates that high-grade gold occurrences are controlled by structural splays off the Qiqavik Break.
24 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
The 2026 exploration program will follow up on discoveries made across several target areas during the 2025 drill program, and test the next series of highest priority targets as outlined in a press release dated January 28, 2026. The success of this early-stage greenfield drilling program across multiple target areas continues to support the significant gold endowment potential of the Qiqavik project.
During the third quarter, the Company completed a comprehensive exploration program at the Qiqavik project consisting of diamond drilling, geological mapping, prospecting, till sampling, and drone-based magnetic surveys (5,395 line-km). A total of 7,461 m of drilling was completed in 23 holes across seven target zones, including both follow-up drilling on established mineralized trends and initial testing of newly generated targets, for which assays are pending. Exploration activities successfully refined the geological and structural framework of the property, identified additional gold-bearing occurrences, and advanced the understanding of relationships between gold-bearing boulder trains and their potential bedrock source areas. Information generated through the 2026 program is expected to support the prioritization of follow-up targets and future discovery-focused drilling campaigns.
Exploration spending was $5.6 million in the third quarter and $7.4 million for the first nine months of the year, all of which was expensed.
Review of Third Quarter Financial Results
During the third quarter of 2026, the Company sold 118,361 ounces of gold for operating revenues of $510.4 million, a 10% increase from the prior year period. The increase was due to higher realized gold prices partially offset by lower ounces sold at Young-Davidson and the Mulatos District.
The average realized gold price in the third quarter was $4,258 per ounce, 27% higher than the prior year period, and in line with the average London PM fix for the quarter.
Cost of sales (which includes mining and processing costs, royalties, and amortization expense) was $214.2 million in the third quarter, 10% higher than the prior year period. Key drivers of changes to cost of sales as compared to the prior year period were as follows:
Mining and processing costs were $163.8 million, 21% higher than the prior year period. The increase primarily reflects ongoing inflation, and higher underground and open pit tonnes mined at the Island Gold District, partially offset by lower mining rates at Young-Davidson and La Yaqui Grande.
Total cash costs of $1,375 per ounce and AISC of $1,956 per ounce were higher than the prior year period, driven by ongoing inflation, lower grades mined at the Island Gold District, and higher cost per tonne mined at Young-Davidson given the lower mining rates. Lower stacking rates and grades processed at La Yaqui Grande also contributed to the increase, as stacking rates were temporarily impacted by the rainy season. In addition, AISC was impacted by higher sustaining capital reflecting expenditures at the Island Gold District in support of the IGD Expansion to 20,000 tpd, as well as rehabilitation work and enhanced ground support measures at Young-Davidson.
Royalty expense was $6.2 million in the third quarter, consistent with the prior year period.
Amortization of $44.2 million was 15% lower than the prior year period driven by lower ounces sold. Amortization was $373 per ounce sold, 2% lower than the prior year period, primarily due to an increase in the depletion base resulting from the 2025 year-end Mineral Reserves and Resources update.
The Company recognized earnings from operations of $268.7 million in the third quarter, 41% lower than the prior year period. The prior year period included a one-time impairment reversal of $218.8 million related to the sale of the Turkish Projects.
25 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
In the third quarter, net loss on commodity derivatives was $14.6 million, compared to $80.0 million in the prior year period. The decrease was driven by fewer remaining legacy gold hedges from Argonaut following the retirement of hedges prior to settlement, and a lower mark-to-market adjustment reflecting a smaller change in gold prices during the quarter. During the third quarter, the Company repurchased and eliminated 33,000 of the remaining 50,000 ounces of legacy gold hedges at a cost of $86.2 million for an effective price of approximately $4,429 per ounce. These contracts were scheduled to mature in the first half of 2027 with an average forward sale price of $1,819 per ounce, providing further upside to higher gold prices in 2027.
The Company reported net earnings of $165.6 million in the third quarter, compared to $276.3 million in the prior year period. On an adjusted basis, earnings were $184.0 million, or $0.44 per share. Adjusted net earnings include an after-tax adjustment for net loss on commodity hedge derivatives of $9.9 million, adjustments for net unrealized foreign exchange losses recorded within deferred taxes and foreign exchange gains totaling $7.1 million, and other adjustments of $1.4 million.
26 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Associated Documents
This press release should be read in conjunction with the Company’s consolidated financial statements for the three-month period ended September 30, 2026 and associated Management’s Discussion and Analysis (“MD&A”), which are available from the Company's website, www.alamosgold.com, in the "Investors" section under "Reports and Financials", and on SEDAR+ (www.sedarplus.ca) and EDGAR (www.sec.gov).
Reminder of Third Quarter 2026 Results Conference Call
Senior management will host a conference call on Thursday, October 29, 2026 at 10:00 am ET to discuss the results. Participants may join the conference call via webcast or through the following dial-in numbers:
Via Webcast:
To view the live webcast, please register at www.alamosgold.com, or through the following link view webcast.
Via Phone:
Toronto and International: (647) 495-7514
Toll free (Canada and the United States): (888) 596-4144
Participant passcode: 1813237#
Alternatively, you may register your phone number here within 30 minutes of the scheduled start of the call to receive an instant automated call back.
A playback will be available until November 28, 2026 by dialling (647) 362-9199 or (800) 770-2030 within Canada and the United States. The passcode is 1813237#. The webcast will be archived at www.alamosgold.com.
Qualified Persons
Chris Bostwick, FAusIMM, Alamos’ Senior Vice President, Technical Services, who is a qualified person within the meaning of National Instrument 43-101 ("Qualified Person"), has reviewed and approved the scientific and technical information contained in this press release.
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from three operations in North America. This includes the Island Gold District and Young-Davidson mine in northern Ontario, Canada, and the Mulatos District in Sonora State, Mexico. Additionally, the Company has a strong portfolio of growth projects including the IGD Expansion, and the Lynn Lake project in Manitoba, Canada. Alamos employs more than 2,400 people and is committed to the highest standards of sustainable development. The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons | |||||
Senior Vice-President, Corporate Development & Investor Relations | |||||
(416) 368-9932 x 5439 | |||||
Khalid Elhaj | |||||
Vice President, Business Development & Investor Relations | |||||
(416) 368-9932 x 5427 | |||||
The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
27 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Cautionary Note Regarding Forward-Looking Statements
This press release contains or incorporates by reference “forward-looking statements” and “forward-looking information” as defined under applicable Canadian and U.S. securities legislation. All statements, other than statements of historical fact, which address events, results, outcomes or developments that the Company expects to occur are, or may be deemed to be, forward-looking statements. Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology such as "expect", “assume”, “schedule”, "believe", "anticipate", "intend", "objective", “strive”, "estimate", “potential”, "forecast", "budget", “target”, “on track”, “outlook”, “continue”, “plan” or variations of such words and phrases and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved or the negative connotation of such terms.
Such statements in this press release may include (without limitation) information, assumptions, expectations and guidance as to strategy, plans, and future financial and operating performance, such as those regarding: free cash flow; mine-site free cash flow; costs (including total cash costs, AISC, mine-site AISC, capital expenditures, growth and sustaining capital, capitalized exploration, exploration spending); budgets; tax rates and the payment of taxes; total liquidity; returns to stakeholders; opportunities for share repurchases under the Company's Normal Course Issuer Bid; repurchase of legacy Argonaut hedges; impacts of inflation and increasing labour and contractor costs; mine plans; mine life; Mineral Reserve life; Mineral Reserves and Resources; gold and other metal price assumptions; foreign exchange rates; sector outlook; size, value and profitability of operations and the Company's balanced approach to capital allocation; expanding margins; project economics; project risks; mining methodologies; underground development rates; mining, stacking, milling and processing rates; total mill feed and throughput rates; recovery rates; anticipated gold production, production rates, timing of production, further production potential and growth; gold grades; exploration potential, budgets, focuses, programs, targets, and projected results; investment in and funding of growth initiatives and projects; operational impacts on the natural environment; the Company's approach to reduction of its environmental footprint, greenhouse gas emissions, and related investments in new initiatives; community relations, engagement activities, and initiatives; corporate governance; plans with respect to health and safety; project milestones and timing and effects of completion of the IGD Expansion and the Phase 3+ Shaft Expansion; Magino mill expansion and intended effects on costs and processing; infrastructure upgrades; power projects; in the Mulatos District, the Puerto Del Aire project, including construction of the PDA mill, Cerro Pelon and the Halcon target, and anticipated timing of commencement of residual leaching at La Yaqui Grande; construction developments at the Lynn Lake project, project milestones and production projections and timing; exploration potential at the Qiqavik Gold project; scheduled final installment of $150m in respect of the sale of the Company's Turkish development projects; and any other statements that express management's expectations or estimates of future performance, operational, geological or financial results.
Alamos cautions that forward-looking statements are necessarily based upon several factors and assumptions that, while considered reasonable by the Company at the time of making such statements, are inherently subject to significant business, economic, technical, legal, political and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information.
Risk factors that may affect Alamos’ ability to achieve the expectations set forth in the forward-looking statements in this document include, but are not limited to: the actual results of current exploration activities; changes to current estimates of Mineral Reserves and Resources; changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing and recovery rate estimates which may be impacted by unscheduled maintenance, weather issues, labour and contractor availability and other operating or technical difficulties in connection with mining or development activities, including geotechnical challenges); conclusions of economic and geological evaluations; the costs and timing of exploration, construction and development of new deposits; changes in project parameters as plans continue to be refined; operations may be exposed to illnesses, diseases, epidemics and pandemics which may impact, among other things, the broader market and the trading price of the Company's shares; the duration of any regulatory responses to any illness, disease, epidemic or pandemic; government and the Company’s attempts to reduce the spread of any illness, disease, epidemic or pandemic which may affect many aspects of the Company's operations including the ability to transport personnel to and from site, contractor and supply availability and the ability to sell or deliver gold doré bars; provincial, state and federal orders or mandates (including with respect to mining operations generally or auxiliary businesses or services required for the Company’s operations) in Canada, Mexico and other jurisdictions in which the Company does or may conduct business; political and economic conditions and developments in the jurisdictions in which the Company operates and in the world generally; fluctuations in the price of gold or certain other commodities such as, diesel fuel, natural gas, and electricity; changes in foreign exchange rates (particularly CAD, MXN and USD); the impact of inflation and any tariffs, trade barriers and/or regulatory costs; changes in the Company's credit rating; any decision to declare a quarterly dividend; employee and community relations; litigation, administrative or regulatory proceedings
28 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
and any resulting court, administrative, regulatory or arbitral decision(s) or order(s); disruptions affecting operations; power outages; availability of and increased costs associated with mining inputs and labour; delays in implementing growth and improvement initiatives; delays with the Phase 3+ Shaft Expansion or the IGD Expansion; delays in or obstructions to construction of the 115kV powerline for the Island Gold District; delays with the expansion of the Magino mill, paste plant construction project, construction of the Lynn Lake Project, construction of the PDA project, and/or the development or updating of mine plans; changes with respect to the intended method of accessing, mining the deposit, and processing any ore at PDA; delays in receiving or failure to receive the third installment payment in respect of the sale of the Company's Turkish development projects; risks associated with the start-up of new mines; the risk that the Company’s mines may not perform as planned; uncertainty with the Company’s ability to secure additional capital to execute its business plans; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining necessary licenses and permits, including the necessary licenses, permits, authorizations and/or approvals from the appropriate regulatory authorities for the Company’s development stage and operating assets; labour and contractor availability (and being able to secure the same on favourable terms); contests over title to properties; expropriation or nationalization of property; inherent risks and hazards associated with mining and mineral processing including industrial hazards and industrial accidents; environmental hazards including, without limitation, fires, floods, storm-related damage, seismic activity and unusual or unexpected formations, pressures and cave-ins; changes in national and local government legislation, controls or regulations in Canada, Mexico, the United States and other jurisdictions in which the Company does or may carry on business in the future; increased costs and risks related to the potential impact of climate change; failure to comply with environmental and health and safety laws and regulations; disruptions in the maintenance or provision of required infrastructure and information technology systems; risk of loss due to sabotage, protests and other civil disturbances; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows; risks arising from holding derivative instruments; and business opportunities that may be pursued by the Company.
Additional risk factors and details with respect to risk factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release are set out in the Company's latest 40-F/Annual Information Form and its Management's Discussion and Analysis for the year ended December 31, 2025, each under the heading “Risk Factors”, which is available on the SEDAR+ website at www.sedarplus.ca or on EDGAR at www.sec.gov. The foregoing should be reviewed in conjunction with the information, risk factors and assumptions found in this MD&A.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Cautionary Note to U.S. Investors
Measured, Indicated and Inferred Resources: All resource and reserve estimates included in this press release or documents referenced in this press release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards"). NI 43-101 is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Mining disclosure in the United States was previously required to comply with SEC Industry Guide 7 (“SEC Industry Guide 7”) under the United States Securities Exchange Act of 1934, as amended. The U.S. Securities and Exchange Commission (the “SEC”) has adopted final rules, to replace SEC Industry Guide 7 with new mining disclosure rules under sub-part 1300 of Regulation S-K of the U.S. Securities Act (“Regulation S-K 1300”) which became mandatory for U.S. reporting companies beginning with the first fiscal year commencing on or after January 1, 2021. Under Regulation S-K 1300, the SEC now recognizes estimates of “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources”. In addition, the SEC has amended its definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” to be substantially similar to international standards.
Investors are cautioned that while the above terms are “substantially similar” to CIM Definitions, there are differences in the definitions under Regulation S-K 1300 and the CIM Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the mineral reserve or mineral resource estimates under the standards adopted under Regulation S-K 1300. U.S. investors are also cautioned that while the SEC recognizes “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under Regulation S-K 1300, investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. Mineralization described using these terms has a greater degree of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume that any measured
29 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
mineral resources, indicated mineral resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable.
International Financial Reporting Standards: The condensed interim consolidated financial statements of the Company have been prepared by management in accordance with International Financial Reporting Standard 34, Interim Financial Reporting, as issued by the International Accounting Standards Board. These accounting principles differ in certain material respects from accounting principles generally accepted in the United States of America. The Company’s reporting currency is the United States dollar unless otherwise noted.
Non-GAAP Measures and Additional GAAP Measures
The Company has included certain non-GAAP financial measures to supplement its condensed interim consolidated financial statements for the three and nine months ended September 30, 2026 and 2025, which are presented in accordance with IFRS, including the following:
•adjusted net earnings and adjusted earnings per share;
•cash flow from operating activities before changes in working capital and taxes paid;
•Company-wide free cash flow;
•total mine-site free cash flow;
•mine-site free cash flow;
•total cash costs per ounce of gold sold;
•AISC per ounce of gold sold;
•mine-site AISC per ounce of gold sold;
•sustaining and non-sustaining capital expenditures; and
•adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA").
The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management's determination of the components of non-GAAP and additional measures is evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are duly noted and retrospectively applied as applicable.
Adjusted Net Earnings and Adjusted Earnings per Share
“Adjusted net earnings” and “adjusted earnings per share” are non-GAAP financial measures with no standard meaning under IFRS which exclude the following from net earnings:
•Foreign exchange gains or losses
•Items included in other loss
•Impairment expense/reversal of impairment
•Net gain or loss on commodity derivatives
•Certain non-recurring items
•Foreign exchange gain or loss recorded in deferred tax expense
•The income and mining tax impact of items included in other loss
The Company uses adjusted net earnings for its own internal purposes. Management’s internal budgets and forecasts and public guidance do not reflect the items which have been excluded from the determination of adjusted net earnings. Consequently, the
30 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
presentation of adjusted net earnings enables shareholders to better understand the underlying operating performance of the core mining business through the eyes of management. Management periodically evaluates the components of adjusted net earnings based on an internal assessment of performance measures that are useful for evaluating the operating performance of the Company’s business and a review of the non-GAAP measures used by mining industry analysts and other mining companies.
Adjusted net earnings is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of operating profit or cash flows from operations as determined under IFRS. The following table reconciles this non-GAAP measure to the most directly comparable IFRS measure.
| (in millions) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net earnings | $165.6 | $276.3 | $627.4 | $450.9 | ||||||||||
| Adjustments: | ||||||||||||||
| Foreign exchange (gain) loss | (0.9) | 1.5 | (4.3) | 7.7 | ||||||||||
| Impairment reversal, net of tax | — | (192.9) | — | (192.9) | ||||||||||
| Inventory net realizable value adjustment, net of tax | — | — | 7.0 | — | ||||||||||
| Net loss on commodity derivatives, net of tax | 9.9 | 53.8 | 2.7 | 117.2 | ||||||||||
| Other loss | 1.8 | 3.9 | 4.8 | 7.1 | ||||||||||
| Unrealized foreign exchange loss (gain) recorded in deferred tax expense | 8.0 | 13.9 | 27.1 | (29.1) | ||||||||||
| Other income and mining tax adjustments | (0.4) | (1.0) | (1.1) | (1.4) | ||||||||||
| Adjusted net earnings | $184.0 | $155.5 | $663.6 | $359.5 | ||||||||||
| Adjusted earnings per share - basic | $0.44 | $0.37 | $1.58 | $0.86 | ||||||||||
Cash Flow from Operating Activities before Changes in Working Capital and Taxes Paid
“Cash flow from operating activities before changes in working capital and taxes paid” is a non-GAAP performance measure that could provide an indication of the Company’s ability to generate cash flows from operations, and is calculated by adding back the change in working capital and taxes paid to cash flow from operating activities. “Cash flow from operating activities before changes in working capital and taxes paid” is a non-GAAP financial measure with no standard meaning under IFRS. The following table reconciles this non-GAAP measure to the most directly comparable IFRS measure.
| (in millions) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Cash flow from operating activities | $216.3 | $265.3 | $690.6 | $544.4 | ||||||||||
| Add: Changes in working capital and taxes paid | 18.6 | 10.0 | 169.2 | 95.2 | ||||||||||
| Cash flow from operating activities before changes in working capital and taxes paid | $234.9 | $275.3 | $859.8 | $639.6 | ||||||||||
Company-wide Free Cash Flow
“Company-wide free cash flow" is a non-GAAP performance measure calculated from cash flow from operating activities, less mineral property, plant and equipment expenditures and non-recurring costs. The Company believes this to be a useful indicator of its ability to operate without reliance on additional borrowing or usage of existing cash company-wide. Company-wide free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other mining companies. Company-wide free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
31 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
| (in millions) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Cash flow from operating activities | $216.3 | $265.3 | $690.6 | $544.4 | ||||||||||
| Less: mineral property, plant and equipment expenditures | (226.9) | (135.0) | (591.0) | (349.6) | ||||||||||
Add: early settlement of legacy Argonaut hedges (1) | 86.2 | — | 221.2 | — | ||||||||||
| Company-wide free cash flow | $75.6 | $130.3 | $320.8 | $194.8 | ||||||||||
(1)Represents the early settlement of 33,000 ounces and 83,000 ounces, respectively, during the three and nine months ended September 30, 2026, of the remaining legacy Argonaut hedges.
Mine-site Free Cash Flow
"Mine-site free cash flow" is a non-GAAP financial performance measure calculated as cash flow from operating mine-sites, less mine-site mineral property, plant and equipment expenditures. The Company believes this to be a useful indicator of its ability to operate without reliance on additional borrowing or usage of existing cash. Mine-site free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other mining companies. Mine-site free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
| Consolidated Mine-Site Free Cash Flow | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions) | ||||||||||||||
| Cash flow from operating activities | $216.3 | $265.3 | $690.6 | $544.4 | ||||||||||
Add: operating cash flow used by non-mine site activity (1) | 109.1 | 62.7 | 356.2 | 194.8 | ||||||||||
| Cash flow from operating mine-sites | $325.4 | $328.0 | $1,046.8 | $739.2 | ||||||||||
| Mineral property, plant and equipment expenditures | $226.9 | $135.0 | $591.0 | $349.6 | ||||||||||
| Less: capital expenditures from development projects and corporate | (42.8) | (15.1) | (104.3) | (43.4) | ||||||||||
| Capital expenditure and capital advances from mine-sites | $184.1 | $119.9 | $486.7 | $306.2 | ||||||||||
| Total mine-site free cash flow | $141.3 | $208.1 | $560.1 | $433.0 | ||||||||||
| Island Gold District Mine-Site Free Cash Flow | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions) | ||||||||||||||
Cash flow from operating activities (1) | $203.7 | $160.9 | $576.1 | $370.5 | ||||||||||
| Mineral property, plant and equipment expenditures | (131.5) | (88.5) | (346.0) | (226.9) | ||||||||||
| Mine-site free cash flow | $72.2 | $72.4 | $230.1 | $143.6 | ||||||||||
| Young-Davidson Mine-Site Free Cash Flow | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions) | ||||||||||||||
Cash flow from operating activities (1) | $55.3 | $82.5 | $240.3 | $220.6 | ||||||||||
| Mineral property, plant and equipment expenditures | (24.9) | (20.2) | (71.0) | (60.4) | ||||||||||
| Mine-site free cash flow | $30.4 | $62.3 | $169.3 | $160.2 | ||||||||||
| Mulatos District Mine-Site Free Cash Flow | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions) | ||||||||||||||
| Cash flow from operating activities | $66.4 | $84.6 | $230.4 | $148.1 | ||||||||||
| Mineral property, plant and equipment expenditures | (27.7) | (11.2) | (69.7) | (18.9) | ||||||||||
| Mine-site free cash flow | $38.7 | $73.4 | $160.7 | $129.2 | ||||||||||
(1)Cash from operating activities for the Canadian operations excludes the impact of the nil ounces and 12,255 ounces settled under the gold prepayment arrangement for the three and nine months ended September 30, 2026, respectively (three and nine months ended September 30, 2025 - 12,346 ounces and 37,038 ounces, respectively). The non-cash adjustment to reflect the settlement of the gold prepayment arrangement is included in Company-wide free cash flow.
32 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Total Cash Costs per ounce
Total cash costs per ounce is a non-GAAP term typically used by gold mining companies to evaluate the costs of producing gold and to assess the ability of a mining company to generate cash flow from operating activities. Total cash costs per ounce includes mining and processing costs plus applicable royalties, and net of costs allocated to by-product and net realizable value adjustments. Total cash costs per ounce is exclusive of exploration costs. As well, the Company excludes mark-to-market adjustments for the revaluation of previously issued share-based compensation, therefore, total cash costs will incorporate the cost of long term incentives associated with the grant date fair value for instruments issued.
Total cash costs per ounce is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of cash flow from operating activities under IFRS or operating costs presented under IFRS.
All-in Sustaining Costs per ounce and Mine-site All-in Sustaining Costs
The Company adopted an “all-in sustaining costs per ounce” non-GAAP performance measure in accordance with the World Gold Council. The Company believes the measure more fully defines the total costs associated with producing gold; however, this performance measure has no standardized meaning. Accordingly, there may be some variation in the method of computation of “all-in sustaining costs per ounce” as determined by the Company compared with other mining companies. In this context, “all-in sustaining costs per ounce” for the consolidated Company reflects total mining and processing costs, corporate and administrative costs, share-based compensation, sustaining exploration costs, sustaining capital, sustaining finance leases and other operating costs. The Company excludes mark-to-market adjustments for the revaluation of previously issued share-based compensation, therefore all-in sustaining costs will incorporate the cost of long term incentives associated with the grant date fair value for instruments issued.
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, as detailed in the reconciliations below.
Sustaining capital expenditures are expenditures that do not increase annual gold ounce production at a mine site and exclude all expenditures at the Company’s development projects as well as certain expenditures at the Company’s operating sites that are deemed expansionary in nature. Non-sustaining capital expenditures or growth capital are expenditures primarily incurred at development projects and costs related to major projects at existing operations, where these projects will materially benefit the mine site. Capitalized exploration expenditures are expenditures that meet the IFRS definition for capitalization and are incurred to further expand the known Mineral Reserves and Resources at existing operations or development projects. For each mine-site reconciliation, corporate and administrative costs, and non-site specific costs are not included in the all-in sustaining cost per ounce calculation.
All-in sustaining costs per gold ounce is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of cash flow from operating activities under IFRS or operating costs presented under IFRS.
Total Cash Costs and All-in Sustaining Costs per Ounce Reconciliation Tables
The following tables reconcile these non-GAAP measures to the most directly comparable IFRS measures on a Company-wide and individual mine-site basis.
33 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
| Total Cash Costs and AISC Reconciliation - Company-wide | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions, except ounces and per ounce figures) | ||||||||||||||
| Mining and processing | $163.8 | $135.9 | $483.1 | $415.3 | ||||||||||
Share-based compensation mark-to-market allocated to sites (included in mining and processing) (2) | (1.0) | (5.3) | (0.3) | (9.3) | ||||||||||
| Costs allocated to silver by-product | (6.3) | (4.0) | (19.4) | (10.4) | ||||||||||
| Royalties | 6.2 | 6.2 | 19.8 | 18.6 | ||||||||||
| Total cash costs | $162.7 | $132.8 | $483.2 | $414.2 | ||||||||||
| Gold ounces sold | 118,361 | 136,473 | 371,118 | 389,083 | ||||||||||
| Total cash costs per ounce | $1,375 | $973 | $1,302 | $1,065 | ||||||||||
| Total cash costs | $162.7 | $132.8 | $483.2 | $414.2 | ||||||||||
Corporate and administrative (1) | 10.2 | 9.6 | 32.3 | 29.6 | ||||||||||
Sustaining capital expenditures (3) | 49.9 | 34.8 | 130.7 | 95.1 | ||||||||||
| Sustaining finance leases | 3.0 | 4.3 | 10.2 | 12.6 | ||||||||||
| Interest on sustaining finance leases | 0.3 | 0.4 | 1.1 | 1.7 | ||||||||||
| Share-based compensation | 5.0 | 16.7 | 18.7 | 47.1 | ||||||||||
Share-based compensation mark-to-market allocated to corporate (2) | (2.7) | (13.8) | (0.6) | (25.4) | ||||||||||
| Sustaining exploration | 0.6 | 0.4 | 1.9 | 1.5 | ||||||||||
| Accretion of decommissioning liabilities | 2.5 | 2.4 | 7.2 | 7.0 | ||||||||||
| Total all-in sustaining costs | $231.5 | $187.6 | $684.7 | $583.4 | ||||||||||
| Gold ounces sold | 118,361 | 136,473 | 371,118 | 389,083 | ||||||||||
| Total all-in sustaining costs per ounce | $1,956 | $1,375 | $1,845 | $1,499 | ||||||||||
(1)Corporate and administrative expenses exclude expenses incurred at development properties.
(2)Share-based compensation included in total cash costs and AISC excludes the impact of mark-to-market adjustments for changes in the Company’s share price in the periods allocated to sites (included in mining and processing costs) and corporate head office (included in share-based compensation expense). See Note 10 (d) of the condensed interim consolidated financial statements for the three and nine months ended September 30, 2026 and 2025 for further details.
(3)Sustaining capital expenditures are defined as those expenditures which do not increase annual gold ounce production at a mine site and exclude all expenditures at growth projects and certain expenditures at operating sites which are deemed expansionary in nature. Total sustaining capital expenditures for the periods are as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions) | ||||||||||||||
| Mineral property, plant and equipment expenditures | $226.9 | $135.0 | $591.0 | $349.6 | ||||||||||
| Less: non-sustaining capital expenditures at: | ||||||||||||||
| Island Gold District | (99.2) | (64.6) | (263.0) | (167.4) | ||||||||||
| Young-Davidson | (7.8) | (10.0) | (25.1) | (26.6) | ||||||||||
| Mulatos District | (27.2) | (10.5) | (67.9) | (17.1) | ||||||||||
| Corporate and other | (42.8) | (15.1) | (104.3) | (43.4) | ||||||||||
| Sustaining capital expenditures | $49.9 | $34.8 | $130.7 | $95.1 | ||||||||||
34 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
| Island Gold District Total Cash Costs and Mine-site AISC Reconciliation | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions, except ounces and per ounce figures) | ||||||||||||||
| Mining and processing | $80.9 | $59.2 | $230.1 | $174.7 | ||||||||||
Share-based compensation mark-to-market allocated to sites (included in mining and processing) (1) | (0.3) | (2.0) | (0.1) | (3.5) | ||||||||||
| Costs allocated to silver by-product | (1.0) | (0.2) | (2.4) | (1.1) | ||||||||||
| Royalties | 3.4 | 2.8 | 9.0 | 9.7 | ||||||||||
| Total cash costs | $83.0 | $59.8 | $236.6 | $179.8 | ||||||||||
| Gold ounces sold | 66,837 | 62,011 | 189,672 | 179,357 | ||||||||||
| Mine-site total cash costs per ounce | $1,242 | $964 | $1,247 | $1,002 | ||||||||||
| Total cash costs | $83.0 | $59.8 | $236.6 | $179.8 | ||||||||||
| Sustaining capital expenditures | 32.3 | 23.9 | 83.0 | 59.5 | ||||||||||
| Sustaining finance leases | 3.0 | 4.3 | 10.2 | 12.6 | ||||||||||
| Interest on sustaining finance leases | 0.3 | 0.4 | 1.1 | 1.7 | ||||||||||
| Accretion of decommissioning liabilities | 0.5 | 0.4 | 1.4 | 1.1 | ||||||||||
| Total all-in sustaining costs | $119.1 | $88.8 | $332.3 | $254.7 | ||||||||||
| Gold ounces sold | 66,837 | 62,011 | 189,672 | 179,357 | ||||||||||
| Mine-site all-in sustaining costs per ounce | $1,782 | $1,432 | $1,752 | $1,420 | ||||||||||
| Young-Davidson Total Cash Costs and Mine-site AISC Reconciliation | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions, except ounces and per ounce figures) | ||||||||||||||
| Mining and processing | $49.6 | $45.5 | $149.5 | $138.3 | ||||||||||
Share-based compensation mark-to-market allocated to sites (included in mining and processing) (1) | (0.4) | (1.8) | (0.1) | (3.1) | ||||||||||
| Costs allocated to silver by-product | (2.2) | (0.9) | (5.6) | (2.2) | ||||||||||
| Royalties | 1.6 | 2.1 | 6.4 | 5.6 | ||||||||||
| Total cash costs | $48.6 | $44.9 | $150.2 | $138.6 | ||||||||||
| Gold ounces sold | 23,809 | 37,406 | 87,710 | 111,095 | ||||||||||
| Mine-site total cash costs per ounce | $2,041 | $1,200 | $1,712 | $1,248 | ||||||||||
| Total cash costs | $48.6 | $44.9 | $150.2 | $138.6 | ||||||||||
| Sustaining capital expenditures | 17.1 | 10.2 | 45.9 | 33.8 | ||||||||||
| Accretion of decommissioning liabilities | 0.1 | 0.1 | 0.4 | 0.4 | ||||||||||
| Total all-in sustaining costs | $65.8 | $55.2 | $196.5 | $172.8 | ||||||||||
| Gold ounces sold | 23,809 | 37,406 | 87,710 | 111,095 | ||||||||||
| Mine-site all-in sustaining costs per ounce | $2,764 | $1,476 | $2,240 | $1,555 | ||||||||||
35 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
| Mulatos District Total Cash Costs and Mine-site AISC Reconciliation | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions, except ounces and per ounce figures) | ||||||||||||||
| Mining and processing | $33.3 | $31.2 | $103.5 | $102.3 | ||||||||||
Share-based compensation mark-to-market allocated to sites (included in mining and processing) (1) | (0.3) | (1.5) | (0.1) | (2.7) | ||||||||||
| Costs allocated to silver by-product | (3.1) | (2.8) | (11.4) | (7.1) | ||||||||||
| Royalties | 1.2 | 1.3 | 4.4 | 3.3 | ||||||||||
| Total cash costs | $31.1 | $28.2 | $96.4 | $95.8 | ||||||||||
| Gold ounces sold | 27,715 | 37,056 | 93,736 | 98,631 | ||||||||||
| Mine-site total cash costs per ounce | $1,122 | $761 | $1,028 | $971 | ||||||||||
| Total cash costs | $31.1 | $28.2 | $96.4 | $95.8 | ||||||||||
| Sustaining capital expenditures | 0.5 | 0.7 | 1.8 | 1.8 | ||||||||||
| Accretion of decommissioning liabilities | 1.9 | 1.9 | 5.4 | 5.5 | ||||||||||
| Total all-in sustaining costs | $33.5 | $30.8 | $103.6 | $103.1 | ||||||||||
| Gold ounces sold | 27,715 | 37,056 | 93,736 | 98,631 | ||||||||||
| Mine-site all-in sustaining costs per ounce | $1,209 | $831 | $1,105 | $1,045 | ||||||||||
(1)Share-based compensation included in mine-site total cash costs and mine-site AISC excludes the impact of mark-to-market adjustments for changes in the Company’s share price in the periods allocated to sites included in mining and processing costs.
Adjusted EBITDA
Adjusted EBITDA represents net earnings before interest, taxes, depreciation, and amortization and removes the effects of certain items that the Company believes are not reflective of the Company's underlying performance for the reporting period. The measure also removes the impact of non-cash items such as impairment loss charges or reversals, and net gain or loss on derivative financial instruments. Adjusted EBITDA is an indicator of the Company’s ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.
Adjusted EBITDA does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The following table reconciles this non-GAAP measure to the most directly comparable IFRS measure.
| (in millions) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net earnings | $165.6 | $276.3 | $627.4 | $450.9 | ||||||||||
| Adjustments: | ||||||||||||||
| Reversal of impairment | — | (218.8) | — | (218.8) | ||||||||||
| Inventory net realizable value adjustment | — | — | 10.8 | — | ||||||||||
| Finance income | (5.9) | (1.2) | (18.0) | (1.2) | ||||||||||
| Amortization | 44.2 | 52.0 | 137.9 | 156.1 | ||||||||||
| Net loss on commodity derivatives | 14.6 | 80.0 | 4.0 | 174.2 | ||||||||||
| Deferred income tax expense | 48.6 | 48.7 | 156.6 | 35.3 | ||||||||||
| Current income tax expense | 44.9 | 46.5 | 200.3 | 92.6 | ||||||||||
| Adjusted EBITDA | $312.0 | $283.5 | $1,119.0 | $689.1 | ||||||||||
Additional GAAP Measures
Additional GAAP measures are presented on the Company’s condensed interim consolidated financial statements and are not meant to be a substitute for other subtotals or totals presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. The following additional GAAP measures are used and are intended to provide an indication of the Company’s mine and operating performance:
•Earnings from operations - represents the amount of earnings before net finance expense/income, foreign exchange loss/gain, other loss, net loss/gain on commodity derivatives and income tax expense
36 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Unaudited Condensed Interim Consolidated Statements of Financial Position, Comprehensive
Income, and Cash Flow
ALAMOS GOLD INC.
Condensed Interim Consolidated Statements of Financial Position
(Unaudited - stated in millions of United States dollars)
| September 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $597.4 | $623.1 | |||||||||
| Equity securities | 44.2 | 58.9 | |||||||||
Amounts receivable | 59.1 | 45.0 | |||||||||
Inventories | 215.6 | 225.4 | |||||||||
Deferred payment consideration | 162.6 | 157.1 | |||||||||
| Other current assets | 36.1 | 26.0 | |||||||||
| Total Current Assets | 1,115.0 | 1,135.5 | |||||||||
| Non-Current Assets | |||||||||||
| Mineral property, plant and equipment | 5,462.8 | 4,957.5 | |||||||||
Deferred income taxes | 41.1 | 34.0 | |||||||||
Inventories | 130.9 | 84.9 | |||||||||
Deferred payment consideration | 147.1 | 142.0 | |||||||||
Other non-current assets | 11.4 | 30.7 | |||||||||
| Total Assets | $6,908.3 | $6,384.6 | |||||||||
| LIABILITIES | |||||||||||
| Current Liabilities | |||||||||||
| Accounts payable and accrued liabilities | $386.8 | $316.1 | |||||||||
| Derivative liabilities | 48.7 | 128.0 | |||||||||
| Deferred revenue | — | 50.0 | |||||||||
| Income taxes payable | 95.1 | 53.6 | |||||||||
| Current portion of lease liabilities | 9.3 | 11.8 | |||||||||
| Current portion of decommissioning liabilities | 14.0 | 8.1 | |||||||||
| Total Current Liabilities | 553.9 | 567.6 | |||||||||
| Non-Current Liabilities | |||||||||||
| Deferred income taxes | 1,032.0 | 873.3 | |||||||||
| Derivative liabilities | — | 129.1 | |||||||||
| Debt | 200.0 | 200.0 | |||||||||
| Lease liabilities | 17.2 | 11.2 | |||||||||
| Decommissioning liabilities | 149.5 | 153.4 | |||||||||
| Other non-current liabilities | 4.0 | 4.2 | |||||||||
| Total Liabilities | 1,956.6 | 1,938.8 | |||||||||
| EQUITY | |||||||||||
| Share capital | $4,131.3 | $4,140.6 | |||||||||
| Contributed surplus | 84.5 | 87.7 | |||||||||
| Accumulated other comprehensive (loss) income | (18.8) | 0.3 | |||||||||
| Retained earnings | 754.7 | 217.2 | |||||||||
| Total Equity | 4,951.7 | 4,445.8 | |||||||||
| Total Liabilities and Equity | $6,908.3 | $6,384.6 | |||||||||
37 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
ALAMOS GOLD INC.
Condensed Interim Consolidated Statements of Comprehensive Income
(Unaudited - stated in millions of United States dollars, except share and per share amounts)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| OPERATING REVENUES | $510.4 | $462.3 | $1,701.2 | $1,233.5 | |||||||||||||||||||
| COST OF SALES | |||||||||||||||||||||||
| Mining and processing | 163.8 | 135.9 | 483.1 | 415.3 | |||||||||||||||||||
| Inventory net realizable value adjustment | — | — | 10.8 | — | |||||||||||||||||||
| Royalties | 6.2 | 6.2 | 19.8 | 18.6 | |||||||||||||||||||
| Amortization | 44.2 | 52.0 | 137.9 | 156.1 | |||||||||||||||||||
214.2 | 194.1 | 651.6 | 590.0 | ||||||||||||||||||||
| EXPENSES | |||||||||||||||||||||||
| Exploration | 12.3 | 5.0 | 27.8 | 19.0 | |||||||||||||||||||
| Corporate and administrative | 10.2 | 9.6 | 32.3 | 29.6 | |||||||||||||||||||
| Share-based compensation | 5.0 | 16.7 | 18.7 | 47.1 | |||||||||||||||||||
| Reversal of impairment | — | (218.8) | — | (218.8) | |||||||||||||||||||
241.7 | 6.6 | 730.4 | 466.9 | ||||||||||||||||||||
| EARNINGS FROM OPERATIONS | 268.7 | 455.7 | 970.8 | 766.6 | |||||||||||||||||||
| OTHER (EXPENSES) INCOME | |||||||||||||||||||||||
| Net loss on commodity derivatives | (14.6) | (80.0) | (4.0) | (174.2) | |||||||||||||||||||
| Finance income | 5.9 | 1.2 | 18.0 | 1.2 | |||||||||||||||||||
| Foreign exchange gain | 0.9 | (1.5) | 4.3 | (7.7) | |||||||||||||||||||
| Other loss | (1.8) | (3.9) | (4.8) | (7.1) | |||||||||||||||||||
| EARNINGS BEFORE INCOME TAXES | $259.1 | $371.5 | $984.3 | $578.8 | |||||||||||||||||||
INCOME TAXES | |||||||||||||||||||||||
| Current income tax expense | (44.9) | (46.5) | (200.3) | (92.6) | |||||||||||||||||||
| Deferred income tax expense | (48.6) | (48.7) | (156.6) | (35.3) | |||||||||||||||||||
| NET EARNINGS | $165.6 | $276.3 | $627.4 | $450.9 | |||||||||||||||||||
| Items that may be subsequently reclassified to net earnings: | |||||||||||||||||||||||
| Net change in fair value of currency hedging instruments, net of taxes | (3.8) | (3.3) | (7.6) | 7.1 | |||||||||||||||||||
| Net change in fair value of fuel hedging instruments, net of taxes | 0.3 | — | 0.9 | — | |||||||||||||||||||
| Items that will not be reclassified to net earnings: | |||||||||||||||||||||||
| Unrealized gain (loss) on equity securities, net of taxes | 4.5 | 19.5 | (12.0) | 28.4 | |||||||||||||||||||
| Total other comprehensive income (loss) | $1.0 | $16.2 | ($18.7) | $35.5 | |||||||||||||||||||
| COMPREHENSIVE INCOME | $166.6 | $292.5 | $608.7 | $486.4 | |||||||||||||||||||
| EARNINGS PER SHARE | |||||||||||||||||||||||
| – basic | $0.40 | $0.66 | $1.50 | $1.07 | |||||||||||||||||||
| – diluted | $0.39 | $0.65 | $1.49 | $1.07 | |||||||||||||||||||
38 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
ALAMOS GOLD INC.
Condensed Interim Consolidated Statements of Cash Flows
(Unaudited - stated in millions of United States dollars)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| CASH PROVIDED BY (USED IN): | |||||||||||||||||||||||
| OPERATING ACTIVITIES | |||||||||||||||||||||||
| Net earnings | $165.6 | $276.3 | $627.4 | $450.9 | |||||||||||||||||||
| Adjustments for items not involving cash: | |||||||||||||||||||||||
| Amortization | 44.2 | 52.0 | 137.9 | 156.1 | |||||||||||||||||||
| Reversal of impairment | (218.8) | (218.8) | |||||||||||||||||||||
| Inventory net realizable value adjustment | — | — | 10.8 | ||||||||||||||||||||
| Foreign exchange (gain) loss | (0.9) | 1.5 | (4.3) | 7.7 | |||||||||||||||||||
| Current income tax expense | 44.9 | 46.5 | 200.3 | 92.6 | |||||||||||||||||||
| Deferred income tax expense | 48.6 | 48.7 | 156.6 | 35.3 | |||||||||||||||||||
| Share-based compensation | 7.0 | 22.5 | 20.9 | 58.0 | |||||||||||||||||||
| Finance income | (5.9) | (1.2) | (18.0) | (1.2) | |||||||||||||||||||
| Net loss on commodity derivatives | 14.6 | 80.0 | 4.0 | 174.2 | |||||||||||||||||||
| Deferred revenue recognized | — | (31.2) | (51.0) | (93.5) | |||||||||||||||||||
| Settlement of legacy Argonaut gold hedges | (86.2) | — | (221.2) | — | |||||||||||||||||||
| Other items | 3.0 | (1.0) | (3.6) | (21.7) | |||||||||||||||||||
| Changes in working capital and taxes paid | (18.6) | (10.0) | (169.2) | (95.2) | |||||||||||||||||||
216.3 | 265.3 | 690.6 | 544.4 | ||||||||||||||||||||
| INVESTING ACTIVITIES | |||||||||||||||||||||||
| Mineral property, plant and equipment | (226.9) | (135.0) | (591.0) | (349.6) | |||||||||||||||||||
| Interest capitalized to mineral property, plant and equipment | (3.0) | (4.3) | (9.2) | (13.2) | |||||||||||||||||||
| Repurchase of royalty on Young-Davidson | — | — | — | (2.0) | |||||||||||||||||||
| Proceeds from disposition of equity securities | — | 5.6 | 0.6 | 7.4 | |||||||||||||||||||
| Investment in equity securities | — | — | (0.6) | (0.2) | |||||||||||||||||||
| Transaction costs arising on asset dispositions and acquisitions | — | (0.2) | — | (0.2) | |||||||||||||||||||
(229.9) | (133.9) | (600.2) | (357.8) | ||||||||||||||||||||
| FINANCING ACTIVITIES | |||||||||||||||||||||||
| Dividends paid | (16.2) | (10.1) | (48.6) | (29.4) | |||||||||||||||||||
| Repurchase and cancellation of common shares | (5.7) | — | (55.7) | (10.0) | |||||||||||||||||||
| Credit facility transaction costs, standby fees and interest | (1.1) | (0.3) | (1.9) | (2.2) | |||||||||||||||||||
| Proceeds from the exercise of options and warrants | 0.2 | 1.3 | 0.8 | 3.1 | |||||||||||||||||||
| Lease payments | (3.0) | (4.3) | (10.2) | (12.6) | |||||||||||||||||||
(25.8) | (13.4) | (115.6) | (51.1) | ||||||||||||||||||||
| Effect of exchange rates on cash and cash equivalents | (0.1) | 0.2 | (0.5) | 0.4 | |||||||||||||||||||
| Net (decrease) increase in cash and cash equivalents | (39.5) | 118.2 | (25.7) | 135.9 | |||||||||||||||||||
| Cash and cash equivalents - beginning of period | 636.9 | 344.9 | 623.1 | 327.2 | |||||||||||||||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $597.4 | $463.1 | $597.4 | $463.1 | |||||||||||||||||||
39 | Alamos Gold Inc
ALAMOS GOLD INC.Management’s Discussion and Analysis
(in United States dollars, unless otherwise stated)
For the Three and Nine Months ended September 30, 2026 and 2025
ALAMOS GOLD INC.For the Three and Nine Months Ended September 30, 2026 and 2025
Table of Contents
Overview of the Business | |||||
Highlight Summary | |||||
Third Quarter 2026 Highlights | |||||
Environment, Social and Governance Summary Performance | |||||
Third Quarter 2026 Business Developments | |||||
Outlook and Strategy | |||||
Island Gold District | |||||
| Young-Davidson Mine | |||||
Mulatos District | |||||
Third Quarter 2026 Development Activities | |||||
Third Quarter 2026 Exploration Activities | |||||
Key External Performance Drivers | |||||
Summarized Financial and Operating Results | |||||
Review of Third Quarter Financial Results | |||||
Review of Nine Months Financial Results | |||||
Consolidated Expenses and Other | |||||
Consolidated Income Tax Expense | |||||
Financial Condition | |||||
Liquidity and Capital Resources | |||||
Outstanding Share Data | |||||
Related Party Transactions | |||||
Off-Balance Sheet Arrangements | |||||
Financial Instruments | |||||
Summary of Quarterly Financial and Operating Results | |||||
Non-GAAP Measures and Additional GAAP Measures | |||||
Accounting Estimates, Judgements, Policies and Changes | |||||
Internal Control over Financial Reporting | |||||
Changes in Internal Control over Financial Reporting | |||||
Disclosure Controls | |||||
Limitations of Controls and Procedures | |||||
Cautionary Note to United States Investors | |||||
Cautionary Note Regarding Forward-Looking Statements | |||||
2026 Management’s Discussion and Analysis | ||||||||
This Management’s Discussion and Analysis (“MD&A”), dated October 28, 2026, relates to the financial condition and results of the consolidated operations of Alamos Gold Inc. (“Alamos” or “Company”), and should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2025 and unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2026 and notes thereto. The condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS" or "GAAP") as issued by the International Accounting Standards Board ("IASB"), applicable to the preparation of interim financial statements in accordance with IAS 34 - Interim Financial Reporting. All results are presented in United States dollars (“US dollars”, "USD" or “$”), unless otherwise stated.
This MD&A contains forward-looking statements that are subject to the risks and uncertainties identified in the "Cautionary Note Regarding Forward-Looking Statements" section of this MD&A. United States investors are also advised to refer to the "Cautionary Note to United States Investors" section of this MD&A.
Overview of the Business
Alamos is a Canadian-based intermediate gold producer with diversified production from three operations in North America. This includes the Island Gold District (comprising the Island Gold and Magino mines) and Young-Davidson mine ("Young-Davidson") in Northern Ontario, Canada and the Mulatos District (comprising the Mulatos and La Yaqui Grande mines) in Sonora State, Mexico. Additionally, the Company has a strong portfolio of growth projects, including the Phase 3+ Shaft Expansion (“Phase 3+ Shaft Expansion”) and the Island Gold District Expansion ("IGD Expansion") in the Island Gold District, the Lynn Lake project in Manitoba, Canada and the Puerto Del Aire (“PDA”) project in the Mulatos District. Alamos employs more than 2,400 people and is committed to the highest standards of sustainable development.
The Company’s common shares are listed on the Toronto Stock Exchange (TSX: AGI) and the New York Stock Exchange (NYSE: AGI). Further information about Alamos can be found in the Company’s regulatory filings, including the Company's Annual Information Form, available on SEDAR+ at www.sedarplus.ca, on EDGAR at www.sec.gov, and on the Company’s website at www.alamosgold.com.
32026 Management’s Discussion and Analysis | ||||||||
Highlight Summary
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Financial Results (in millions) | ||||||||||||||
| Operating revenues | $510.4 | $462.3 | $1,701.2 | $1,233.5 | ||||||||||
Cost of sales (1) | $214.2 | $194.1 | $651.6 | $590.0 | ||||||||||
| Earnings from operations | $268.7 | $455.7 | $970.8 | $766.6 | ||||||||||
| Earnings before income taxes | $259.1 | $371.5 | $984.3 | $578.8 | ||||||||||
| Net earnings | $165.6 | $276.3 | $627.4 | $450.9 | ||||||||||
Adjusted net earnings (2) | $184.0 | $155.5 | $663.6 | $359.5 | ||||||||||
Adjusted earnings before interest, taxes, depreciation and amortization (2) | $312.0 | $283.5 | $1,119.0 | $689.1 | ||||||||||
| Cash provided by operating activities | $216.3 | $265.3 | $690.6 | $544.4 | ||||||||||
Cash provided by operating activities before changes in working capital and taxes paid (2) | $234.9 | $275.3 | $859.8 | $639.6 | ||||||||||
Capital expenditures (sustaining) (2) | $49.9 | $34.8 | $130.7 | $95.1 | ||||||||||
Finance leases (sustaining) (2)(3) | $3.0 | $4.3 | $10.2 | $12.6 | ||||||||||
Capital expenditures (growth) (2) | $164.4 | $83.3 | $421.6 | $221.2 | ||||||||||
| Capital expenditures (capitalized exploration) | $12.6 | $16.9 | $38.7 | $33.3 | ||||||||||
Free cash flow (2)(3) | $75.6 | $130.3 | $320.8 | $194.8 | ||||||||||
| Operating Results | ||||||||||||||
| Gold production (ounces) | 119,000 | 141,700 | 373,500 | 403,900 | ||||||||||
| Gold sales (ounces) | 118,361 | 136,473 | 371,118 | 389,083 | ||||||||||
| Per Ounce Data | ||||||||||||||
Average realized gold price (5) | $4,258 | $3,359 | $4,532 | $3,144 | ||||||||||
| Average spot gold price (London PM Fix) | $4,262 | $3,457 | $4,545 | $3,201 | ||||||||||
Cost of sales per ounce of gold sold (includes amortization) (1) | $1,810 | $1,422 | $1,756 | $1,516 | ||||||||||
Total cash costs per ounce of gold sold (2) | $1,375 | $973 | $1,302 | $1,065 | ||||||||||
All-in sustaining costs per ounce of gold sold (2) | $1,956 | $1,375 | $1,845 | $1,499 | ||||||||||
| Share Data | ||||||||||||||
| Earnings per share, basic | $0.40 | $0.66 | $1.50 | $1.07 | ||||||||||
| Earnings per share, diluted | $0.39 | $0.65 | $1.49 | $1.07 | ||||||||||
Adjusted earnings per share, basic (2) | $0.44 | $0.37 | $1.58 | $0.86 | ||||||||||
| Weighted average common shares outstanding (basic) (000’s) | 418,572 | 420,500 | 419,383 | 420,463 | ||||||||||
| Financial Position (in millions) | ||||||||||||||
Cash and cash equivalents (4) | $597.4 | $623.1 | ||||||||||||
(1)Cost of sales includes mining and processing costs, inventory net realizable value adjustment, royalties, and amortization expense.
(2)Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this 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 nine months ended September 30, 2026 reflected the settlements of ounces under the gold prepayment facility based on the prepay price of $4,166 per ounce ($2,524 per ounce for the three and nine months ended September 30, 2025). Settlements under the facility were completed in the second quarter of 2026, and there were no related settlements in the third quarter of 2026.
42026 Management’s Discussion and Analysis | ||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Gold production (ounces) | ||||||||||||||
Island Gold District (7) | 68,700 | 66,800 | 197,400 | 190,400 | ||||||||||
| Young-Davidson | 22,700 | 37,900 | 85,700 | 112,000 | ||||||||||
Mulatos District (8) | 27,600 | 37,000 | 90,400 | 101,500 | ||||||||||
| Gold sales (ounces) | ||||||||||||||
Island Gold District (7) | 66,837 | 62,011 | 189,672 | 179,357 | ||||||||||
| Young-Davidson | 23,809 | 37,406 | 87,710 | 111,095 | ||||||||||
Mulatos District (8) | 27,715 | 37,056 | 93,736 | 98,631 | ||||||||||
Cost of sales (in millions) (1) | ||||||||||||||
Island Gold District (7) | $106.5 | $83.4 | $301.0 | $251.2 | ||||||||||
| Young-Davidson | $62.3 | $65.2 | $195.3 | $195.5 | ||||||||||
Mulatos District (8) | $44.9 | $45.5 | $154.5 | $143.3 | ||||||||||
Cost of sales per ounce of gold sold (includes amortization) (1) | ||||||||||||||
Island Gold District (7) | $1,593 | $1,345 | $1,587 | $1,401 | ||||||||||
| Young-Davidson | $2,617 | $1,743 | $2,227 | $1,760 | ||||||||||
Mulatos District (8) | $1,620 | $1,228 | $1,648 | $1,453 | ||||||||||
Total cash costs per ounce of gold sold (2) | ||||||||||||||
Island Gold District (7) | $1,242 | $964 | $1,247 | $1,002 | ||||||||||
| Young-Davidson | $2,041 | $1,200 | $1,712 | $1,248 | ||||||||||
Mulatos District (8) | $1,122 | $761 | $1,028 | $971 | ||||||||||
Mine-site all-in sustaining costs per ounce of gold sold (2)(3) | ||||||||||||||
Island Gold District (7) | $1,782 | $1,432 | $1,752 | $1,420 | ||||||||||
| Young-Davidson | $2,764 | $1,476 | $2,240 | $1,555 | ||||||||||
Mulatos District (8) | $1,209 | $831 | $1,105 | $1,045 | ||||||||||
Capital expenditures (sustaining, growth, capitalized exploration and leases) (in millions) (2) | ||||||||||||||
Island Gold District (4)(7) | $134.5 | $92.8 | $356.2 | $239.5 | ||||||||||
Young-Davidson (5) | $24.9 | $20.2 | $71.0 | $60.4 | ||||||||||
Mulatos District (6)(8) | $27.7 | $11.2 | $69.7 | $18.9 | ||||||||||
| Other | $42.8 | $15.1 | $104.3 | $43.4 | ||||||||||
(1)Cost of sales includes mining and processing costs, inventory net realizable value adjustment, royalties, and amortization expense.
(2)Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this MD&A for a description and calculation of these measures.
(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)Includes capitalized exploration at Island Gold District of $7.1 million and $17.3 million for the three and nine months ended September 30, 2026, respectively ($5.1 million and $14.1 million for the three and nine months ended September 30, 2025, respectively).
(5)Includes capitalized exploration at Young-Davidson of $2.8 million and $8.9 million for the three and nine months ended September 30, 2026, respectively ($4.2 million and $9.1 million for the three and nine months ended September 30, 2025, respectively).
(6)Includes capitalized exploration at Mulatos District of $2.4 million and $7.7 million for the three and nine months ended September 30, 2026, respectively ($7.6 million and $10.1 million for the three and nine months ended September 30, 2025, respectively).
(7)The Island Gold District includes the Island Gold and Magino mines.
(8)The Mulatos District includes the Mulatos and La Yaqui Grande mines.
52026 Management’s Discussion and Analysis | ||||||||
Third Quarter 2026 Highlights
Operational and Financial Highlights
•Produced 119,000 ounces of gold in the third quarter of 2026, meeting quarterly guidance. This included record production from the Island Gold District, reflecting record underground mining rates and milling rates. This was offset by lower production from Young-Davidson driven by lower mining rates and grades, as previously guided. With production expected to increase in the fourth quarter, the Company is on track to achieve its full year production guidance which was revised in July
•Island Gold District continues to perform well, with underground mining rates increasing to average a record 1,790 tonnes per day ("tpd"). Magino milling rates also increased to a new quarterly record, averaging 10,313 tpd. The higher mining and milling rates drove record quarterly production of 68,700 ounces. The operation remains on track to achieve its full year production guidance, with a further increase in underground mining rates and higher grades expected to drive significant production growth in the fourth quarter
•Third quarter gold sales totaled 118,361 ounces at an average realized price of $4,258 per ounce, generating quarterly revenues of $510.4 million, including silver sales. This represented a 10% increase from the third quarter of 2025
•Cash flow from operating activities in the third quarter was $216.3 million ($234.9 million before changes in working capital and taxes paid1, or $0.56 per share)
•Generated strong ongoing free cash flow1 of $75.6 million in the third quarter, while continuing to invest in high-return growth and a significant exploration program
•Cost of sales was $214.2 million, or $1,810 per ounce in the third quarter. As previously guided, all-in sustaining costs ("AISC"1) of $1,956 per ounce increased from the second quarter, driven by lower production at Young-Davidson and higher sustaining capital at the Island Gold District. Total cash costs1 of $1,375 per ounce were also up from the second quarter. The Company remains on track to achieve revised full year cost guidance with total cash costs and AISC expected to decrease in the fourth quarter
•Reported net earnings were $165.6 million for the third quarter, or $0.40 per share. Adjusted net earnings1 were $184.0 million, or $0.44 per share1. Adjusted net earnings include an after-tax adjustment for net loss on commodity hedge derivatives of $9.9 million, adjustments for net unrealized foreign exchange losses recorded within deferred taxes and foreign exchange gains totaling $7.1 million, and other adjustments of $1.4 million
•Cash and cash equivalents totaled $597.4 million at September 30, 2026, down slightly from the second quarter primarily reflecting the use of $86.2 million to eliminate the majority of remaining legacy gold hedges inherited from Argonaut Gold ("Argonaut"). The Company remains well-positioned to internally fund all of its growth initiatives and increased shareholder returns with strong ongoing free cash flow
•Subsequent to quarter end, $160 million was received on October 9, which represented the one-year anniversary payment for the sale of the Turkish projects completed in 2025. The final $150 million cash payment is scheduled to be received in October 2027.
•Returned $22.3 million to shareholders during the third quarter. This included the repurchase of 191,944 shares at a cost of $5.7 million ($29.70 per share), and dividend of $16.6 million (quarterly $0.04 per share). Subsequent to quarter end, the Company increased its share repurchases with a further 549,757 shares repurchased at a cost of $16.6 million ($30.25 per share). Given its strong financial position and outlook, the Company expects to continue to be active on its share buyback
•Repurchased and eliminated a further 33,000 of the remaining 50,000 ounces of legacy gold hedges from Argonaut in the third quarter. These contracts were scheduled to mature in the first half of 2027 with an average forward sale price of $1,819 per ounce, providing further upside to higher gold prices in 2027. The Company utilized existing cash to eliminate the hedges at a cost of $86.2 million for an effective price of approximately $4,429 per ounce. Subsequent to quarter end, a further 3,000 ounces of forward sale contracts were repurchased and eliminated such that a total of 315,000 ounces, or 96%, of the 329,000 ounces of forward contracts inherited from Argonaut, have been retired prior to maturity. The remaining 14,000 ounces of forward contracts are expected to be eliminated prior to maturity after which there will be no obligation remaining under the legacy Argonaut hedges
•Continued to advance construction of the Company's key growth projects. Work on the Phase 3+ Shaft Expansion is progressing, although the completion of commissioning of the shaft is delayed by approximately one quarter to mid-2027 given additional time required to complete the ore and waste handling system
•Construction of the PDA mill remains on track for completion mid-2027; however, the ramp up of underground development rates has been slower than planned which is expected to result in lower mining rates in the second half of 2027
•Lynn Lake construction is ramping up as expected with initial production on track for the first half of 2029. The Company remains well positioned to achieve its longer term consolidated production rate of approximately one million ounces annually by 2030
(1) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this MD&A for a description and calculation of these measures.
62026 Management’s Discussion and Analysis | ||||||||
Environment, Social and Governance Summary Performance
Health and Safety
•Total Recordable Injury Frequency Rate1 (“TRIFR”) of 1.90 in the third quarter, an increase from the second quarter and prior year period
•Lost Time Injury Frequency Rate1 (“LTIFR”) of 0.12 in the third quarter
•Alamos had 32 recordable injuries across its sites, including two lost time injuries in the third quarter
•Year-to-date TRIFR of 1.60 and LTIFR of 0.07 are higher than the prior year period
The Company acknowledges the increase in injury frequency rate is not to its standards. During the quarter, the Company initiated work stand-downs across its operations led by site management and corporate senior management, refocusing on safe and sustainable production.
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
•Zero significant environmental incidents in the third quarter and year to date
•Reclamation activities at the Cerro Pelon, El Victor and San Carlos pits in the Mulatos District were completed
There was one reportable incident in the third quarter. At the Young-Davidson mine paste plant, there was a 400 cubic metres process water slurry overflow outside of the building containment area. This material was cleaned up immediately with no environmental impact.
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 impact of its activities.
Community
Alamos continued to provide charitable donations, sponsorships, medical support and infrastructure investments within its local communities, including:
•Installation of additional infrastructure at the Matarachi Community Center, and new playground equipment purchased for the Matarachi Park
•Completing the first phase of the Mulatos community beekeeping initiative, having trained 32 families from across seven communities and three municipalities, creating new opportunities for income diversification, community capacity building, and biodiversity conservation
•Sponsorship of various events and teams, including golf tournament fundraisers, and music and community festivals around the Company's operations
•Cash donations to various health, education, and food programs in the communities in which Alamos operates
In addition, in September, Alamos joined community discussions in Pukatawagan, Manitoba, to celebrate the Impact Living Agreement signed in the prior year with Mathias Colomb Cree Nation and reaffirm the Company's commitment to a strong partnership.
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 submissions to the Carbon Disclosure Project, reporting Alamos’ 2025 climate performance
•Advanced Alamos’ annual ESG Report and Conflict-Free Gold Report, expected to be published during the fourth quarter
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.
72026 Management’s Discussion and Analysis | ||||||||
Third Quarter 2026 Business Developments
Legacy Hedges
In the third quarter, the Company repurchased and eliminated a further 33,000 of the remaining 50,000 ounces of legacy gold hedges from Argonaut. These contracts were scheduled to mature in the first half of 2027 with an average forward sale price of $1,819 per ounce, providing further upside to higher gold prices in 2027. The Company utilized existing cash to eliminate the hedges at a cost of $86.2 million for an effective price of approximately $4,429 per ounce. Subsequent to quarter end, a further 3,000 ounces of forward sale contracts were repurchased and eliminated such that a total of 315,000 ounces, or 96%, of the 329,000 ounces of forward contracts inherited from Argonaut, have been retired prior to maturity. The remaining 14,000 ounces of forward contracts are expected to be eliminated prior to maturity after which there will be no obligation remaining under the legacy Argonaut hedges.
Share Buyback
In the third quarter, the Company repurchased 191,944 shares at a cost of $5.7 million, or $29.70 per share, under its Normal Course Issuer Bid. Including dividends and share buybacks, the Company has returned $105.9 million to shareholders during the nine months ended September 30, 2026. Subsequent to quarter end, the Company increased its share repurchases with a further 549,757 shares repurchased at a cost of $16.6 million ($30.25 per share). Given its strong financial position and outlook, the Company expects to continue to be active on its share buyback.
Receipt of the First Anniversary Payments
On October 9, 2026, the Company received the first anniversary payment of $160 million related to the sale of its Turkish development projects, bringing total cash proceeds received to date to $320 million, with the final payment of $150 million due in October 2027.
On October 27, 2026, the Company received the first anniversary payment of $3.2 million, consisting of 22,859,861 common shares of Q-Gold Resources Ltd., related to the sale of its Quartz Mountain Gold Project, bringing total proceeds received to date to $8.9 million. The two remaining payments of $2.5 million each are due in October 2027 and October 2028.
82026 Management’s Discussion and Analysis | ||||||||
Outlook and Strategy
2026 Guidance (5) | |||||||||||||||||||||||||||||||||||||||||
| Island Gold District | Young-Davidson | Mulatos District | Lynn Lake | Total | |||||||||||||||||||||||||||||||||||||
Gold production (000's ounces) | 290 - 310 | 100 - 115 | 120 - 135 | — | 510 - 560 | ||||||||||||||||||||||||||||||||||||
Cost of sales, including amortization (in millions) (2) | $890 | ||||||||||||||||||||||||||||||||||||||||
Total cash costs ($ per ounce) (1) | $1,025 - $1,125 | $1,750 - $1,850 | $1,050 - $1,150 | — | $1,175 - $1,275 | ||||||||||||||||||||||||||||||||||||
All-in sustaining costs ($ per ounce) (1)(3) | $1,550 - $1,650 | $2,500 - $2,600 | $1,125 - $1,225 | — | $1,775 - $1,875 | ||||||||||||||||||||||||||||||||||||
Capital expenditures ($ millions) | |||||||||||||||||||||||||||||||||||||||||
Sustaining capital (1)(4) | $135 - $150 | $90 - $100 | $3 - $5 | — | $228 - $255 | ||||||||||||||||||||||||||||||||||||
Growth capital (1)(4) | $355 - $385 | $25 - $30 | $137 - $145 | $140 - $160 | $657 - $720 | ||||||||||||||||||||||||||||||||||||
Total sustaining and growth capital (1)(4) | $490 - $535 | $115 - $130 | $140 - $150 | $140 - $160 | $885 - $975 | ||||||||||||||||||||||||||||||||||||
Capitalized exploration (1) | $33 | $12 | $9 | $6 | $60 | ||||||||||||||||||||||||||||||||||||
Total capital expenditures and capitalized exploration (1) | $523 - $568 | $127 - $142 | $149 - $159 | $146 - $166 | $945 - $1,035 | ||||||||||||||||||||||||||||||||||||
(1)Refer to the "Non-GAAP Measures and Additional GAAP Measures" section of this 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 inventory net realizable value adjustment, and is calculated based on the mid-point of total cash cost guidance.
(3)Total consolidated all-in sustaining costs include corporate and administrative, and share based compensation expenses. 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.
(5)Initial annual guidance was issued on February 4, 2026 and was revised on July 29, 2026.
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.
Third quarter production of 119,000 ounces was in line with quarterly guidance, with a record performance from the Island Gold District offsetting lower planned production from Young-Davidson. As previously guided, AISC increased from the second quarter but is expected to improve in the fourth quarter. With higher production and lower costs expected in the fourth quarter, the Company remains on track to meet full year production and cost guidance which had been revised in July.
Production in the fourth quarter is expected to increase to between 140,000 and 160,000 ounces with total cash costs and AISC both decreasing to within the range of revised annual guidance. The improvement in both production and costs is expected to be driven by further growth from the Island Gold District which continues to perform well, achieving a number of records in the third quarter.
Underground mining rates within the Island Gold District increased 15% from the second quarter, to a record 1,790 tpd. Magino milling rates also increased 16% from the second quarter, to a record 10,313 tpd. Both contributed to record quarterly production at the operation of 68,700 ounces. Increasing underground mining rates and higher grades are expected to drive a more significant increase in production from the Island Gold District in the fourth quarter.
The Company continues to generate strong ongoing free cash flow while advancing its portfolio of high-return growth projects which are expected to support further production growth and lower costs over the next several years. Free cash flow totaled $75.6 million in the third quarter, net of a significant reinvestment in growth and exploration, supporting the Company's other capital allocation priorities. This included a further $22.3 million of shares repurchased since the second quarter, and eliminating the majority of the remaining legacy Argonaut hedges that were set to mature in the first half of 2027 at a cost of $92.9 million.
The Company's key growth projects all continued to advance during the third quarter, including the Island Gold District shaft and mill expansion, PDA and Lynn Lake. These projects are expected to nearly double production to approximately one million ounces annually by 2030, at substantially lower costs, underpinning one of the strongest outlooks in the sector.
The Island Gold District will be a key driver of this growth and cost improvement over the next several years. With the shaft sink completed earlier in the year, the current focus is on completing shaft equipping, and work on the shaft bottom infrastructure. During the excavation of the bins in the ore and waste handling system, a dyke was encountered that will require additional ground support. In addition, the Company is proactively enhancing ground support across the loading pocket and the broader ore and waste handling system. As a result, the commissioning of the shaft has been delayed by approximately one quarter and is now expected to be completed mid-2027.
Underground mining rates are expected to continue increasing above 2,000 tpd in the first half of 2027; however, the ramp up to 2,400 tpd is not expected until the second half of the year. As a result, underground mining rates are expected to be lower than
92026 Management’s Discussion and Analysis | ||||||||
previously guided during the first half of 2027. The commissioning of the shaft is expected to drive consolidated gold production higher and costs lower as underground mining rates ramp up.
The Magino mill expansion to 20,000 tpd is progressing well and is expected to drive a further increase in production and decrease in costs in 2028.
Construction of the PDA mill remains on track for completion mid-2027; however, lower underground development rates are expected to result in lower than planned production from PDA during the second half of 2027. The slower pace of development reflects the requirement for additional ground support, as well as contractor performance. The Company expects improved development rates moving forward, but the performance to date is expected to impact the ramp up in mining rates through the second half of 2027.
The ramp up of construction activities at Lynn Lake is advancing according to schedule, with installation of the permanent camp completed and foundation work for the process plant underway. The project remains on track to deliver initial production in the first half of 2029, contributing to further growth in consolidated production.
The short-term delays within the Island Gold District and PDA, as well as the previously disclosed impact on mining rates at Young-Davidson, are expected to impact near-term production and costs into 2027; however, they are not expected to impact the medium to longer term outlook. The Company expects significant production growth over the next several years and remains on track to nearly double production to approximately one million ounces annually by 2030, at substantially lower costs.
The Company remains well positioned to fund its high-return growth projects internally with strong ongoing free cash flow, $597.4 million of cash and cash equivalents at the end of the third quarter of 2026, and approximately $1.15 billion of total liquidity. At current gold prices, the Company expects significant free cash flow growth over the next several years with the completion of the Phase 3+ Shaft and IGD Expansions. The Company remains focused on delivering increasing shareholder returns with $122.5 million distributed thus far in 2026 through dividends and share buybacks. This included a 60% increase in the quarterly dividend rate in the first quarter, and the repurchase of $72.3 million of shares. Thus far in 2026, the Company has also utilized $227.9 million to eliminate legacy Argonaut gold hedges.
Given its strong outlook with significant free cash flow growth expected over the next several years, the Company expects to continue to be active on its share buyback while balancing its other capital allocation priorities.
102026 Management’s Discussion and Analysis | ||||||||
Island Gold District
The Island Gold District is comprised of the adjacent Island Gold and Magino mines, located just east of the town of Dubreuilville, Ontario, Canada, 83 kilometres (“km”) northeast of Wawa. Alamos holds 100% of all mining titles related to the Island Gold District, which comprises approximately 58,921 hectares ("ha"). The Island Gold mine began production in October 2007. The Magino mine declared commercial production in the fourth quarter of 2023.
Island Gold District Financial and Operational Review
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Gold production (ounces) | 68,700 | 66,800 | 197,400 | 190,400 | |||||||||||||
| Gold sales (ounces) | 66,837 | 62,011 | 189,672 | 179,357 | |||||||||||||
| Financial Review (in millions) | |||||||||||||||||
| Operating revenues | $285.1 | $213.0 | $861.2 | $575.8 | |||||||||||||
Cost of sales (1) | $106.5 | $83.4 | $301.0 | $251.2 | |||||||||||||
| Earnings from operations | $176.6 | $128.6 | $554.8 | $320.8 | |||||||||||||
| Cash provided by operating activities | $203.7 | $160.9 | $576.1 | $370.5 | |||||||||||||
Capital expenditures (sustaining) (2) | $32.3 | $23.9 | $83.0 | $59.5 | |||||||||||||
Finance leases (sustaining) (2),(5) | $3.0 | $4.3 | $10.2 | $12.6 | |||||||||||||
Capital expenditures (growth) (2) | $92.1 | $59.5 | $245.7 | $153.3 | |||||||||||||
Capital expenditures (capitalized exploration) (2) | $7.1 | $5.1 | $17.3 | $14.1 | |||||||||||||
Mine-site free cash flow (2),(5) | $72.2 | $72.4 | $230.1 | $143.6 | |||||||||||||
Cost of sales, including amortization per ounce of gold sold (1) | $1,593 | $1,345 | $1,587 | $1,401 | |||||||||||||
Total cash costs per ounce of gold sold (2) | $1,242 | $964 | $1,247 | $1,002 | |||||||||||||
Mine-site all-in sustaining costs per ounce of gold sold (2),(3) | $1,782 | $1,432 | $1,752 | $1,420 | |||||||||||||
| Island Gold Mine | |||||||||||||||||
| Underground Operations | |||||||||||||||||
Tonnes of ore mined (9) | 164,634 | 121,864 | 433,826 | 345,272 | |||||||||||||
Tonnes of ore mined per day (9) | 1,790 | 1,325 | 1,589 | 1,265 | |||||||||||||
Average grade of gold (4),(9) | 8.69 | 12.05 | 9.04 | 11.69 | |||||||||||||
| Metres developed | 2,128 | 1,779 | 6,072 | 6,058 | |||||||||||||
Island Gold Mill Operations (8) | |||||||||||||||||
| Tonnes of ore processed | 117,460 | 23,906 | 342,710 | 234,174 | |||||||||||||
Tonnes of ore processed per day (10) | 1,277 | 1,087 | 1,255 | 1,154 | |||||||||||||
Average grade of gold (4) | 9.37 | 13.20 | 9.81 | 12.03 | |||||||||||||
| Contained ounces milled | 35,395 | 10,148 | 108,143 | 90,578 | |||||||||||||
| Average recovery rate | 97 | % | 99 | % | 97 | % | 98 | % | |||||||||
Magino Mine | |||||||||||||||||
Open Pit Operations | |||||||||||||||||
Tonnes of ore mined - open pit (6) | 1,807,233 | 1,622,689 | 4,062,943 | 3,938,588 | |||||||||||||
| Tonnes of ore mined per day | 19,644 | 17,638 | 14,883 | 14,427 | |||||||||||||
Total waste mined - open pit (7) | 3,995,799 | 3,764,681 | 11,224,595 | 11,104,219 | |||||||||||||
| Total tonnes mined - open pit | 5,803,032 | 5,387,370 | 15,287,538 | 15,042,807 | |||||||||||||
Waste-to-ore ratio (7) | 2.21 | 2.32 | 2.76 | 2.82 | |||||||||||||
Average grade of gold (4) | 0.65 | 0.84 | 0.73 | 0.81 | |||||||||||||
Magino Mill Operations (8) | |||||||||||||||||
| Tonnes of ore processed | 948,782 | 776,796 | 2,431,243 | 2,210,908 | |||||||||||||
| Tonnes of ore processed per day | 10,313 | 8,443 | 8,906 | 8,099 | |||||||||||||
Average grade of gold processed (4) | 1.17 | 2.28 | 1.20 | 1.42 | |||||||||||||
| Contained ounces milled | 35,702 | 56,923 | 94,141 | 101,000 | |||||||||||||
| Average recovery rate | 95 | % | 96 | % | 95 | % | 95 | % | |||||||||
| Island Gold District Mill Operations | |||||||||||||||||
| Tonnes of ore processed per day | 11,590 | 8,703 | 10,161 | 8,956 | |||||||||||||
Average grade of gold processed (4) | 2.07 | 2.61 | 2.27 | 2.44 | |||||||||||||
| Average recovery rate | 96 | % | 97 | % | 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 of this MD&A for a description and calculation of these measures.
(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)Grams per tonne of gold ("g/t Au").
112026 Management’s Discussion and Analysis | ||||||||
(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. Grades of gold processed from the Magino mine averaged 0.88 g/t Au and 1.00 g/t Au, respectively, for the three and nine months ended September 30, 2026.
(9)Excludes 13,541 tonnes of ore grading 2.98 g/t Au that was recovered from the ore pad and processed during the second quarter of 2026.
(10)Island Gold average milling rates exclude the period where mill was on care and maintenance between July 16 and September 23, 2025.
The Island Gold District produced a record 68,700 ounces in the third quarter of 2026, 3% higher than the prior year period and a 2% increase compared to the second quarter. With higher underground mining rates and grades expected to drive increasing production in the fourth quarter, the Island Gold District remains on track to achieve its full year production guidance of between 290,000 and 310,000 ounces.
Island Gold Operational Review
Underground mining rates increased to average a record 1,790 tpd in the third quarter, 35% higher than the prior year period and a 15% increase from the previous quarter. Mining rates are expected to increase further during the fourth quarter and remain on track to reach 2,000 tpd by the end of 2026.
With the shaft sink completed earlier in the year, the current focus is on completing shaft equipping, and work on the shaft bottom infrastructure. During the excavation of the bins in the ore and waste handling system, a dyke was encountered that will require additional ground support. In addition, the Company is proactively enhancing ground support across the loading pocket and the broader ore and waste handling system. As a result, the commissioning of the shaft has been delayed by approximately one quarter and is now expected to be completed mid-2027.
Underground mining rates are expected to continue increasing above 2,000 tpd in the first half of 2027; however, the ramp up to 2,400 tpd is not expected until the second half of the year. As a result, underground mining rates are expected to be lower than previously guided during the first half of 2027.
Underground grades mined averaged 8.69 g/t Au during the third quarter, slightly below the second quarter and guidance due to higher than expected dilution within certain higher grade stopes mined in August. Dilution performance was in line with expectations in September. Grades are expected to improve to near the top end of the annual guidance range of 11.5 g/t Au in the fourth quarter.
Processing rates within the Island Gold mill averaged 1,277 tpd for the third quarter, with excess underground ore mined during the quarter processed within the Magino mill. Mill recoveries averaged 97% for the third quarter, in line with expectations.
The Island Gold mill will continue operating into the first quarter of 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 Magino mill expansion to 20,000 tpd in the first quarter of 2028, the Island Gold mill will be shut down and 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 63,076 tpd during the third quarter, including 19,644 tpd of ore, which was 11% higher than the prior year period. Grades mined of 0.65 g/t Au for the third quarter were 23% lower than the prior year period and slightly below the guidance range for 2026, primarily due to changes in mining sequence in the pit. Year-to-date grades mined were in line with guidance.
Magino milling rates averaged a new quarterly record of 10,313 tpd in the third quarter, a 16% increase from the second quarter, and above targeted rates of 10,000 tpd in the second half of 2026. The increase reflects the improving performance and reliability of the overall circuit driven by an enhanced maintenance program which is supporting increased availability, as well as supplemental ore feed from the temporary crusher. Milling rates are expected to remain at steady state levels of 10,000 tpd in the fourth quarter and through 2027.
As outlined in the IGD Expansion Study announced on February 3, 2026, further improvements are planned for the existing crushing and conveying circuit as part of the mill 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 1.17 g/t Au during the third quarter, and included approximately 48,000 tonnes of higher grade underground ore. Recoveries for the third quarter were 95%, consistent with guidance.
Island Gold District Financial Review
Revenues of $285.1 million in the third quarter were 34% higher than the prior year period, driven by higher realized gold prices and an increase in ounces sold. Similarly, revenues of $861.2 million for the first nine months of the year were 50% higher than the prior year period, driven by the same factors.
122026 Management’s Discussion and Analysis | ||||||||
Cost of sales of $106.5 million in the third quarter and $301.0 million for the first nine months of the year were 28% and 20% higher than the comparative periods, respectively, driven by higher underground and open pit tonnes mined and ongoing inflation.
Total cash costs of $1,242 per ounce and mine-site AISC of $1,782 per ounce in the third quarter were higher than the prior year period, driven by lower grades mined from underground and open pit operations, increased labour and contractor costs, and increased diesel costs. In addition, mine-site AISC was impacted by higher sustaining capital in support of the IGD Expansion to 20,000 tpd. For the first nine months of the year, total cash costs of $1,247 per ounce and mine-site AISC of $1,752 per ounce were higher than the prior year period, driven by the same factors. Total cash costs and mine-site AISC are both expected to decrease in the fourth quarter bringing full year costs in line with revised annual guidance.
Capital expenditures totaled $134.5 million in the third quarter, including $32.3 million of sustaining capital, $3.0 million of sustaining lease payments, and $7.1 million of capitalized exploration. Growth capital spending of $92.1 million was primarily focused on the Phase 3+ Shaft and IGD Expansions, including shaft site infrastructure and underground development, as well as the Magino mill expansion to 20,000 tpd. Both sustaining and growth capital spending are expected to increase in the fourth quarter to be consistent with full year guidance.
The Island Gold District generated strong mine-site free cash flow of $72.2 million in the third quarter and $230.1 million for the first nine months, net of 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 growth over the next several years as production increases and costs decrease.
132026 Management’s Discussion and Analysis | ||||||||
Young-Davidson
The Young-Davidson mine is located near the town of Matachewan in Northern Ontario, Canada. The property consists of contiguous mineral leases and claims totaling approximately 18,700 ha and is situated on the site of two past producing mines. The Young-Davidson mine declared commercial production in 2013 and has since produced over two million ounces of gold.
Young-Davidson Financial and Operational Review
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Gold production (ounces) | 22,700 | 37,900 | 85,700 | 112,000 | ||||||||||
| Gold sales (ounces) | 23,809 | 37,406 | 87,710 | 111,095 | ||||||||||
| Financial Review (in millions) | ||||||||||||||
| Operating revenues | $104.3 | $130.0 | $408.0 | $357.3 | ||||||||||
Cost of sales (1) | $62.3 | $65.2 | $195.3 | $195.5 | ||||||||||
| Earnings from operations | $41.2 | $64.6 | $209.2 | $159.7 | ||||||||||
| Cash provided by operating activities | $55.3 | $82.5 | $240.3 | $220.6 | ||||||||||
Capital expenditures (sustaining) (2) | $17.1 | $10.2 | $45.9 | $33.8 | ||||||||||
Capital expenditures (growth) (2) | $5.0 | $5.8 | $16.2 | $17.5 | ||||||||||
Capital expenditures (capitalized exploration) (2) | $2.8 | $4.2 | $8.9 | $9.1 | ||||||||||
Mine-site free cash flow (2) | $30.4 | $62.3 | $169.3 | $160.2 | ||||||||||
Cost of sales, including amortization per ounce of gold sold (1) | $2,617 | $1,743 | $2,227 | $1,760 | ||||||||||
Total cash costs per ounce of gold sold (2) | $2,041 | $1,200 | $1,712 | $1,248 | ||||||||||
Mine-site all-in sustaining costs per ounce of gold sold (2),(3) | $2,764 | $1,476 | $2,240 | $1,555 | ||||||||||
| Underground Operations | ||||||||||||||
| Tonnes of ore mined | 472,400 | 667,801 | 1,769,857 | 1,930,719 | ||||||||||
| Tonnes of ore mined per day | 5,135 | 7,259 | 6,483 | 7,072 | ||||||||||
Average grade of gold (4) | 1.60 | 1.92 | 1.71 | 1.98 | ||||||||||
| Metres developed | 1,423 | 1,800 | 5,507 | 6,135 | ||||||||||
| Mill Operations | ||||||||||||||
| Tonnes of ore processed | 650,136 | 720,933 | 1,935,497 | 1,959,516 | ||||||||||
| Tonnes of ore processed per day | 7,067 | 7,836 | 7,090 | 7,178 | ||||||||||
Average grade of gold (4) | 1.20 | 1.79 | 1.55 | 1.94 | ||||||||||
| Contained ounces milled | 25,117 | 41,387 | 96,593 | 122,354 | ||||||||||
| Average recovery rate | 90 | % | 91 | % | 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 of this MD&A for a description and calculation of these measures.
(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)Grams per tonne of gold.
Operational Review
Young-Davidson produced 22,700 ounces of gold in the third quarter, 40% below the prior year period due to lower mining rates and grades. As previously guided in July, mining rates and grades are expected to be lower than originally planned as a result of the localized seismic event that impacted a portion of the operation during the second quarter. Mining rates were consistent with revised guidance in the third quarter and with similar production expected in the fourth quarter, the operation is on track to meet its revised 2026 production guidance of between 100,000 and 115,000 ounces.
Mining rates averaged 5,135 tpd in the third quarter, in line with revised guidance of 5,000 tpd for the second half of 2026. The Company is advancing rehabilitation work on the 9410 level, and continuing the implementation of enhanced ground support throughout the lower portion of the mine. In addition, an updated mine plan is being evaluated, designed to minimize stress through an optimized ore extraction sequence. These initiatives are expected to support a gradual increase in mining rates through 2027 and 2028. An update on future mining rates and costs will be provided following the completion of the updated mine plan, with an expected release early in 2027 in conjunction with the Company's three-year guidance.
Grades mined of 1.60 g/t Au for the third quarter were slightly lower than planned.
Milling rates averaged 7,067 tpd in the third quarter, higher than mining rates as lower-grade surface stockpiles were processed. As a result, milled grades of 1.20 g/t Au were below mined grades in the third quarter. Milling rates are expected to continue to
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exceed mining rates, and grades processed to be below mined grades, in the fourth quarter as additional stockpiles are processed. Mill recoveries averaged 90% for the third quarter and were consistent with guidance.
Financial Review
Revenues were $104.3 million in the third quarter, 20% lower than the prior year period, reflecting lower ounces sold, partially offset by higher realized gold prices. For the first nine months of the year, revenues of $408.0 million were 14% higher than the prior year period as higher realized gold prices more than offset lower ounces sold.
Cost of sales of $62.3 million in the third quarter was 4% lower than the prior year period, driven by lower mining rates, partially offset by ongoing inflation and enhanced ground support measures. Cost of sales of $195.3 million for the first nine months of the year was in line with the prior year period.
Third quarter total cash costs of $2,041 per ounce and mine-site AISC of $2,764 per ounce were higher than the prior year period, reflecting higher cost per tonne mined given the lower mining rates, lower grades mined, as well as rehabilitation work and enhanced ground support measures. Ongoing labour inflation also contributed to the increase. For the first nine months of the year, total cash costs of $1,712 per ounce and mine-site AISC of $2,240 per ounce were higher than the prior year period, driven by the same factors. Mine-site AISC are expected to increase in the fourth quarter given the timing of sustaining capital spend, bringing full year costs in line with revised guidance.
Capital expenditures in the third quarter totaled $24.9 million, including $17.1 million of sustaining capital, $5.0 million of growth capital, and $2.8 million of capitalized exploration. Capital expenditures, inclusive of capitalized exploration, totaled $71.0 million for the first nine months of the year. Capital spending is expected to increase in the fourth quarter bringing full year spending to the lower end of revised annual guidance.
Mine-site free cash flow was $30.4 million in the third quarter, 51% lower than the prior year period, primarily driven by lower ounces sold. Mine-site free cash flow was $169.3 million for the first nine months of the year, 6% higher than the prior year period. The operation is well-positioned to continue generating strong ongoing free cash flow over the long-term at current gold prices.
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Mulatos District
The Mulatos District (Mulatos and La Yaqui Grande mines) is located within the Salamandra Concessions in the Sierra Madre Occidental mountain range in the State of Sonora, Mexico. The Company controls a total of approximately 34,364 ha of mineral concessions within the Mulatos District. The Mulatos mine achieved commercial production in 2006, with La Yaqui Grande commencing operations in June 2022.
Mulatos District Financial and Operational Review
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Gold production (ounces) | 27,600 | 37,000 | 90,400 | 101,500 | ||||||||||
| Gold sales (ounces) | 27,715 | 37,056 | 93,736 | 98,631 | ||||||||||
Financial Review (in millions) | ||||||||||||||
| Operating revenues | $121.0 | $130.8 | $438.5 | $325.4 | ||||||||||
Cost of sales (1) | $44.9 | $45.5 | $154.5 | $143.3 | ||||||||||
| Earnings from operations | $72.9 | $85.3 | $274.5 | $175.6 | ||||||||||
| Cash provided by operating activities | $66.4 | $84.6 | $230.4 | $148.1 | ||||||||||
Capital expenditures (sustaining) (2) | $0.5 | $0.7 | $1.8 | $1.8 | ||||||||||
Capital expenditures (growth) (2) | $24.8 | $2.9 | $60.2 | $7.0 | ||||||||||
Capital expenditures (capitalized exploration) (2) | $2.4 | $7.6 | $7.7 | $10.1 | ||||||||||
Mine-site free cash flow (2) | $38.7 | $73.4 | $160.7 | $129.2 | ||||||||||
Cost of sales, including amortization per ounce of gold sold (1) | $1,620 | $1,228 | $1,648 | $1,453 | ||||||||||
Total cash costs per ounce of gold sold (2) | $1,122 | $761 | $1,028 | $971 | ||||||||||
Mine-site all-in sustaining costs per ounce of gold sold (2),(3) | $1,209 | $831 | $1,105 | $1,045 | ||||||||||
| La Yaqui Grande Mine | ||||||||||||||
Open Pit Operations | ||||||||||||||
| Tonnes of ore mined - open pit | 548,157 | 997,286 | 2,248,782 | 3,007,335 | ||||||||||
| Total waste mined - open pit | 3,553,670 | 3,895,690 | 12,017,548 | 12,115,215 | ||||||||||
| Total tonnes mined - open pit | 4,101,827 | 4,892,976 | 14,266,330 | 15,122,550 | ||||||||||
| Waste-to-ore ratio | 6.48 | 3.91 | 5.34 | 4.03 | ||||||||||
Crushing and Heap Leach Operations | ||||||||||||||
| Tonnes of ore stacked | 539,283 | 1,011,191 | 2,346,838 | 3,050,211 | ||||||||||
Average grade of gold processed (4) | 0.94 | 1.48 | 1.17 | 1.25 | ||||||||||
| Contained ounces stacked | 16,307 | 48,037 | 88,312 | 122,927 | ||||||||||
| Average recovery rate | 143 | % | 61 | % | 85 | % | 62 | % | ||||||
| Ore crushed per day (tonnes) | 5,900 | 11,000 | 8,600 | 11,200 | ||||||||||
(1)Cost of sales includes mining and processing costs, inventory net realizable value adjustment, royalties, and amortization expense.
(2)Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this MD&A for a description and calculation of these measures.
(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)Grams per tonne of gold.
Mulatos District Operational Review
The Mulatos District produced 27,600 ounces in the third quarter, a 25% decrease from the prior year period, reflecting lower production at La Yaqui Grande as well as a lower contribution from residual leaching of the Mulatos leach pad. Production was also down slightly from the second quarter reflecting lower grades and stacking rates. The Mulatos District remains on track to meet its revised production guidance of between 120,000 and 135,000 ounces with higher grades and stacking rates expected to contribute to stronger production in the fourth quarter.
La Yaqui Grande produced 23,400 ounces in the third quarter, 20% lower than the prior year period. Stacking rates averaged 5,900 tpd in the third quarter, below guidance, reflecting the impact of the rainy season and limited mining areas at the bottom of the open pit as La Yaqui Grande nears the end of its mine life. With the end of the rainy season, mining and stacking rates are expected to improve in the fourth quarter. Grades stacked averaged 0.94 g/t Au in the third quarter, and are expected to increase in the fourth quarter, consistent with guidance. Recovery rates averaged 143%, driven by recovery of ounces stacked in prior periods.
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La Yaqui Grande is expected to start residual leaching after cessation of open pit mining operations, in the first half of 2027, contributing to ongoing production through 2027. Mulatos has been in the residual leaching phase since December 2023 and produced 4,200 ounces in the third quarter.
Mulatos District Financial Review
Revenues of $121.0 million in the third quarter were 7% lower than the prior year period, reflecting lower ounces sold, partially offset by higher realized gold prices. For the first nine months of the year, revenues of $438.5 million were 35% higher than the prior year period due to higher realized gold prices, slightly offset by lower ounces sold.
Cost of sales of $44.9 million in the third quarter was consistent with the prior year period as lower tonnes mined and stacked were offset by inflation. For the first nine months of the year, cost of sales of $154.5 million was 8% higher than the prior year period driven by the Mulatos leach pad inventory adjustment recorded in the second quarter. As at September 30, 2026, the remaining inventory balance on the Mulatos leach pad was $8.5 million, which the Company expects to recover through residual leaching over the remainder of the year.
Total cash costs of $1,122 per ounce and mine-site AISC of $1,209 per ounce in the third quarter were higher than the prior year period, reflecting increased unit costs from residual leaching at Mulatos, as well as lower stacking rates and grades processed at La Yaqui Grande. For the first nine months of the year, total cash costs of $1,028 per ounce and mine-site AISC of $1,105 per ounce were higher than the prior year period driven by the same factors.
Capital expenditures totaled $27.7 million in the third quarter, including $0.5 million of sustaining capital and $2.4 million of capitalized exploration. Growth capital spending related to PDA of $24.8 million included underground development, as well as structural steel and concrete foundation work for the mill. Spending on PDA is expected to increase in the fourth quarter of the year as construction activities continue to ramp up. Capital expenditures, inclusive of capitalized exploration, totaled $69.7 million for the first nine months of the year.
Construction of the PDA mill remains on track for completion mid-2027, while lower than planned underground development rates are expected to result in lower production from PDA during the second half of 2027. The slower pace of development reflects unexpected ground conditions in some areas, which are requiring additional ground support, as well as contractor performance. The Company expects improved development rates moving forward, but the performance to date is expected to impact the ramp up in mining rates through the second half of 2027. The Company will provide more details on the impact to production and costs with the release of the updated three-year guidance early in 2027.
The Mulatos District generated strong mine-site free cash flow of $38.7 million in the third quarter and $160.7 million for the first nine months, net of significant capital investment related to PDA and a substantial exploration program. This was net of $16.9 million of cash tax payments in the third quarter, and $94.7 million in cash taxes paid in the first nine months of the year. The Company expects cash tax installments in Mexico of between $15 and $20 million in the fourth quarter, related to the 2026 tax year, based on a budgeted gold price of $4,000 per ounce.
Third Quarter 2026 Development Activities
Island Gold District (Ontario, Canada)
Phase 3+ Shaft and IGD Expansion
In 2022, the Company announced the Phase 3+ Shaft Expansion at Island Gold from 1,200 tpd to 2,400 tpd. The expansion includes the construction of a shaft and paste plant, as well as accelerated development to support the higher mining rates.
With the shaft sink completed earlier in the year, the current focus is on completing shaft equipping, and work on the shaft bottom infrastructure. During the excavation of the bins in the ore and waste handling system, a dyke was encountered that will require additional ground support. In addition, the Company is proactively enhancing ground support across the loading pocket and the broader ore and waste handling system. As a result, the commissioning of the shaft has been delayed by approximately one quarter and is now expected to be completed mid-2027.
Underground mining rates are expected to continue increasing above 2,000 tpd in the first half of 2027; however, the ramp up to 2,400 tpd is not expected until the second half of the year. As a result, underground mining rates are expected to be lower than previously guided during the first half of 2027.
Following the completion of the Phase 3+ Shaft Expansion project, the operation will transition from trucking ore and waste up the ramp to skipping ore and waste to surface, driving production higher and costs significantly lower.
On February 3, 2026, the Company announced the IGD Expansion Study outlining a larger, long-life, low-cost mine with an average annual gold production of 534,000 ounces over the initial 10 years (starting in 2028) at average mine-site AISC of $1,025 per ounce. The IGD Expansion growth capital of $542 million will be spent on the expansion of the Magino mill to 20,000 tpd, accelerated underground development, and mobile equipment to support higher underground and open pit mining rates of 3,000 tpd and 17,000 tpd, respectively.
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The Island Gold mill will continue operating and will be dedicated to processing approximately 1,265 tpd of higher grade underground ore until the expected completion of the Magino mill expansion in the first quarter of 2028. The remaining underground ore mined, beyond the Island Gold mill capacity of 1,265 tpd, will be blended at increasing rates with open pit ore and processed within the Magino mill.
During the third quarter of 2026, the Company spent $92.1 million in growth capital at the Island Gold District. Progress during the third quarter is summarized as follows:
•Commissioning of the water handling facility substantially completed
•Continued shaft equipping and work on the ore and waste handling system in advance of shaft commissioning in mid-2027
•Magino mill expansion to 20,000 tpd is progressing with excavation and concrete works advancing for the crushers and fine ore bins, and refinery structural steel and foundation concrete works ongoing
•Advanced construction of the truck shop and truck wash with commissioning expected in the first quarter of 2027
•Paste plant construction substantially complete with commissioning expected to coincide with shaft commissioning
•Continued construction of the new administrative complex with completion expected in the fourth quarter of 2026
•Advanced lateral development in support of the ramp up of underground mining rates through 2026 and into 2027
As of September 30, 2026, approximately $815 million was spent on the Phase 3+ Shaft Expansion. Given inflation over the past year, as well as additional work in the ore and waste handling system, the Company expects total project capital to be approximately 5% higher than the $835 million budgeted.
| Phase 3+ Shaft Expansion Estimate Growth capital ($ millions) | February 20261 | Spent to date1,2 | Committed to date1 | % Spent & Committed | |||||||||||||
| Shaft & Shaft Surface Complex | $324 | $301 | $11 | 96 | % | ||||||||||||
| Accelerated Underground Development, Infrastructure, and Equipment | 255 | 234 | 7 | 95 | % | ||||||||||||
Site Infrastructure, Mill and Other3 | 165 | 184 | 6 | 115 | % | ||||||||||||
| General Indirect Costs | 91 | 96 | 3 | 109 | % | ||||||||||||
| Total Phase 3+ Shaft Expansion Growth Capital | $835 | $815 | $27 | 101 | % | ||||||||||||
As of September 30, 2026, 45% of growth capital related to the IGD Expansion has been spent and committed, with the majority of spending focused on the Magino mill expansion.
| IGD Expansion Estimate Growth capital ($ millions) | February 20261 | Spent to date1,2 | Committed to date1 | % Spent & Committed | |||||||||||||
| Mill Expansion | $199 | $71 | $56 | 64 | % | ||||||||||||
| Accelerated Underground Development | 166 | 24 | — | 14 | % | ||||||||||||
| Mining Equipment | 81 | 16 | 25 | 51 | % | ||||||||||||
| Site Infrastructure and Other | 96 | 27 | 23 | 52 | % | ||||||||||||
| Total IGD Expansion Growth Capital | $542 | $138 | $104 | 45 | % | ||||||||||||
1.Reflects updated capital estimates released in February 2026 as part of the IGD Expansion, based on CAD/USD exchange $0.74:1. Spent to date based on average CAD/USD of $0.73:1 since the start of 2022. Committed to date based on the spot CAD/USD rate as at September 30, 2026 of $0.70:1.
2.Amount spent to date accounted for on an accrual basis, including working capital movements.
3.Includes power upgrade spent to-date on a 100% basis and does not reflect partner’s contributions.
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Island Gold shaft site area - October 2026
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1350L shaft station equipping in progress - October 2026
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Magino mill expansion - October 2026
Lynn Lake (Manitoba, Canada)
On January 13, 2025, the Company announced a positive construction decision on the Lynn Lake project. With the approval of the Closure Plan in January 2025, the required permitting and pre-construction conditions have been met allowing for the start of construction on the project.
In February 2025, an internal economic study and development plan was released on the BT and Linkwood satellite deposits located in proximity to the Lynn Lake project. In February 2026, an updated development plan for the Lynn Lake project was announced incorporating the BT and Linkwood deposits. Given the significantly longer mine life, the Company re-engineered and optimized a number of elements within the broader development plan. This included several scope changes, most notably increasing the mill capacity by 13% to 9,000 tpd, driving higher production and stronger economics. The initial capital for the project is $937 million, of which $871 million remained to be spent as of January 1, 2026.
The updated parameters for the Lynn Lake project, incorporating the revised initial capital, larger Mineral Reserve base including BT and Linkwood, and increased mill throughput, are as follows:
•Average annual production of 186,000 ounces over the initial 10 years
•Low mine-site AISC of $829 per ounce over the initial 10 years ($1,039 per ounce over the life of mine)
•Long mine life of 25 years with total production of three million ounces (based on Mineral Reserves at the end of 2024)
•Attractive economics with significant near-mine and regional exploration upside
Capital spending on the Lynn Lake project in 2026 is expected to be between $140 and $160 million. Construction activities in 2026 include permanent camp construction, bulk earthworks, power infrastructure upgrades, and orders for long lead-time items.
The majority of initial capital will be spent in 2027 and 2028, with first production expected in the first half of 2029. With attractive economics and significant exploration upside, the Lynn Lake project is a key component of the Company’s leading high-return organic growth profile.
During the third quarter of 2026, the Company spent $40.2 million in development capital at the Lynn Lake project, with key activities summarized as follows:
•Commissioned the permanent camp with occupancy permit obtained and 120 dorm rooms opened
•Progressed process plant site preparation and foundations work
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•Commenced commissioning of the water and sewage treatment facilities
•Continued site-wide infrastructure construction, including roads, laydown areas, and settlement pond
•Advanced drill and blasting activities for the starter pit at MacLellan
| Lynn Lake Project Initial Capital ($ millions) | February 20261 | Spent to date1,2 | Committed to date1 | % Spent & Committed | |||||||||||||
| Mine Development and Site Preparation | $146 | $56 | $69 | 86 | % | ||||||||||||
| Process Plant, Utilities and Equipment | 334 | 45 | 65 | 33 | % | ||||||||||||
| Site Infrastructure and Other | 121 | 25 | 22 | 39 | % | ||||||||||||
| General Indirect Costs | 262 | 58 | — | 22 | % | ||||||||||||
| Capitalized Operating Costs | 74 | 1 | — | 1 | % | ||||||||||||
| Total Initial Capital | $937 | $185 | $156 | 36 | % | ||||||||||||
1.Reflects updated capital estimates released in February 2026, based on CAD/USD exchange $0.74:1. Spent to date based on average CAD/USD of $0.72:1 since the start of 2025. Committed to date based on the spot CAD/USD rate as at September 30, 2026 of $0.70:1.
2.Amount spent to date accounted for on an accrual basis, including working capital movements.
Lynn Lake permanent camp - October 2026
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Lynn Lake process plant area - October 2026
PDA (Sonora, Mexico)
On September 4, 2024, the Company reported the results of the development plan for the PDA project located within the Mulatos District. PDA is a higher-grade underground deposit adjacent to the Mulatos open pit and will benefit from the use of existing crushing infrastructure from Cerro Pelon, supporting lower initial capital and project execution risk.
In January 2025, the Company announced it was granted approval of an amendment to its existing environmental impact assessment (Manifestación de Impacto Ambiental) by Mexico’s Secretariat of Environment and Natural Resources, allowing for the start of construction on the PDA project. Total initial capital estimate of $165 million remains unchanged with approximately $72.9 million spent to date. Remaining initial capital will be spent in the fourth quarter of 2026 and 2027.
Construction of the PDA mill remains on track for completion mid-2027, while lower than planned underground development rates are expected to result in lower production from PDA during the second half of 2027. The slower pace of development reflects unexpected ground conditions in some areas, which are requiring additional ground support, as well as contractor performance. The Company expects improved development rates moving forward, but the performance to date is expected to impact the ramp up in mining rates through the second half of 2027. The Company will provide more details on the impact to production and costs with the release of the updated three-year guidance early in 2027.
During the third quarter of 2026, the Company spent $24.8 million in growth capital at the PDA project, with key activities summarized as follows:
•Finalized all major equipment purchase orders with most deliveries expected during the fourth quarter
•Advanced underground mine development with 573 metres (“m”) completed during the third quarter
•Primary crusher and fine crushing construction continued to advance, with electrical conduit installation, power and control cable pulling, conveyor belt vulcanization, and control cabin installation completed
•Completed approximately 75% of mill structural works
•Completed installation of the primary and scavenger flotation cells
•Commenced structural works for the dewatering and water tanks, with receiver and air line installation ongoing
•Advanced distribution power line construction, with excavation completed for 18 of 24 pole pits
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PDA portals - October 2026
PDA crusher and mill area - October 2026
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Third Quarter 2026 Exploration Activities
Island Gold District (Ontario, Canada)
A total of $43 million has been budgeted for exploration at the Island Gold District in 2026, up from $24 million spent in 2025. The exploration program will continue to build on the success from 2025 with high-grade gold mineralization extended across the Island Gold deposit, as well as within multiple structures within the hanging wall and footwall.
In 2025, drilling programs at Island Gold and Magino focused on delineation drilling to convert the large Inferred Mineral Resource base to Mineral Reserves. This program was executed successfully and resulted in a significant increase in Mineral Reserves at both Island Gold and Magino, which was incorporated into the IGD Expansion that was announced on February 3, 2026. With the deposit open laterally and at depth, there is significant potential for further growth in Mineral Reserves and Resources.
A total of 50,000 m of underground exploration drilling is planned in 2026 with a focus on defining new Mineral Reserves and Resources in proximity to existing production horizons and infrastructure. This includes drilling across the strike extent of the main Island Gold deposit (E1E and C-Zones), as well as within a growing number of newly defined hanging-wall and footwall zones.
These potential high-grade Mineral Reserve and Resource additions would be low cost to develop, given their proximity to existing infrastructure, and provide increased operational flexibility as mining rates increase. To support the underground exploration program, 1,090 m of underground exploration drift development is planned to extend drill platforms on multiple levels.
Additionally, 48,000 m of surface exploration drilling has been budgeted targeting the area between the Island Gold and Magino deposits, as well as the down-plunge extension of the Island Gold deposit, below a depth of 1,500 m.
The regional exploration program at the Island Gold District includes 16,000 m of surface drilling. The focus of the regional program will be following up on high-grade mineralization intersected in the 2025 drill program at Cline-Pick located approximately seven km northeast of the Island Gold mine.
During the third quarter of 2026, 12,660 m of underground exploration drilling was completed in 60 holes, and 10,099 m of underground delineation drilling across 44 holes. Additionally, 13,063 m of surface exploration drilling was completed in 20 holes. Year to date, 33,615 m of underground exploration drilling was completed in 133 holes, or 67% of the budgeted metres, and 22,609 m of underground delineation drilling across 95 holes. Additionally, 30,207 m of surface exploration drilling was completed in 30 holes, representing 63% of the budget for the year.
As part of the regional exploration program, 8,463 m of drilling was completed in 16 holes at Cline-Pick in the third quarter. Year to date, 17,110 m of drilling has been completed in 31 holes at Cline-Pick, exceeding the budgeted regional drill program for the year.
As detailed in the June exploration update (see press release dated June 22, 2026), high-grade mineralization was extended across multiple areas which are being targeted as sources of additional higher-grade mill feed within the expanded Magino mill. This includes defining a new zone of high-grade mineralization 250 m west of underground Mineral Reserves and Mineral Resources (Island Gold West Extension), and continuing to extend high-grade mineralization within the Island West up-plunge area, and the past producing Cline-Pick and Edwards mines. These targets represent opportunities for further production growth by increasing the proportion of higher-grade ore to be fed within the expanded Magino mill.
Total exploration expenditures during the third quarter were $9.1 million, of which $7.1 million was capitalized. In the first nine months of the year, the Company incurred exploration expenditures of $22.7 million, of which $17.3 million was capitalized.
Young-Davidson (Ontario, Canada)
A total of $17 million has been budgeted for exploration at Young-Davidson in 2026, up from $13 million spent in 2025. This includes 48,000 m of underground exploration drilling focused on extending mineralization within the Young-Davidson syenite, which hosts the majority of Mineral Reserves and Mineral Resources, and to test and expand on gold mineralization that has been intersected within two areas of focus in the hanging wall. This new style of mineralization is located in close proximity to the existing mid-mine infrastructure.
The regional program includes 10,000 m of drilling focused on evaluating several targets including the Otisse NE target and the Biralger target located approximately 3 km and 17 km northeast of Young-Davidson, respectively. A comprehensive data compilation project commenced in 2025, and will be completed in 2026 for the Wydee and Matachewan projects, both acquired in 2024, and located in proximity to Young-Davidson.
During the third quarter, 17,039 m of underground exploration drilling was completed in 52 holes across multiple levels. Drilling is targeting syenite-hosted mineralization, as well as continuing to test mineralization in the hanging wall sediments and mafic-ultramafic stratigraphy. Year to date, 46,008 m of drilling has been completed in 132 holes. The seismic event that occurred at Young-Davidson in June has not impacted the budgeted exploration program in 2026.
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A total of 4,865 m of regional surface exploration drilling was completed in 16 holes in the first quarter focused on evaluating the Otisse NE and Biralger targets. No regional exploration drilling was undertaken in the third quarter; however, drilling is planned in the fourth quarter.
Total exploration expenditures during the third quarter of 2026 were $3.6 million, of which $2.8 million was capitalized. For the first nine months of the year, exploration expenditures totaled $12.4 million, of which $8.9 million was capitalized.
Mulatos District (Sonora, Mexico)
A total of $21 million has been budgeted at Mulatos for exploration in 2026, consistent with $20 million spent in 2025. The regional drilling program is expected to total 44,500 m and includes 20,000 m of surface exploration drilling at the Cerro Pelon sulphide target, 9,000 m at the recently discovered Halcon target, and an additional 15,500 m planned across several early to advanced stage targets within the Mulatos District. The planned addition of a mill to process higher-grade sulphides has created new opportunities for growth within the Mulatos District, including Cerro Pelon and the Halcon target.
During the third quarter, 4,483 m of surface exploration drilling was completed in 15 holes at Cerro Pelon, and 7,623 m were completed in 15 holes at Halcon. Additionally, 2,310 m were drilled in five regional holes across the district. For the first nine months of the year, 40,334 m have been drilled at Mulatos in 123 drill holes, representing close to 90% of budgeted metres for the year.
Total exploration expenditures during the third quarter were $5.6 million, of which $2.4 million was capitalized. For the first nine months of the year, exploration expenditures totaled $17.2 million, of which $7.7 million was capitalized.
Lynn Lake (Manitoba, Canada)
A total of $6 million has been budgeted for exploration at the Lynn Lake project in 2026. This is up from $3 million spent in 2025. The exploration budget includes 13,500 m to test the potential for underground mining opportunities below the Gordon and MacLellan open pits.
In total, 13,740 m of drilling was completed in 25 holes at the Gordon and MacLellan deposits in the first half of the year. Results have been received, and geological models are being updated to be used for 2027 drill planning purposes.
Exploration spending totaled $0.3 million in the third quarter and $4.8 million for the first nine months of the year, all of which was capitalized.
Qiqavik (Quebec, Canada)
A total of $7 million has been budgeted for exploration at the Qiqavik project in 2026, similar to 2025. Qiqavik is a camp-scale property covering 60,400 ha in the Cape Smith Greenstone Belt in Nunavik, Quebec. The Qiqavik project covers 50 km of strike covering prospective gold hosting environments and several major crustal-scale structures such as the Qiqavik Break and the Bergeron fault. Early-stage exploration completed to date indicates that high-grade gold occurrences are controlled by structural splays off the Qiqavik Break.
The 2026 exploration program will follow up on discoveries made across several target areas during the 2025 drill program, and test the next series of highest priority targets as outlined in a press release dated January 28, 2026. The success of this early-stage greenfield drilling program across multiple target areas continues to support the significant gold endowment potential of the Qiqavik project.
During the third quarter, the Company completed a comprehensive exploration program at the Qiqavik project consisting of diamond drilling, geological mapping, prospecting, till sampling, and drone-based magnetic surveys (5,395 line-km). A total of 7,461 m of drilling was completed in 23 holes across seven target zones, including both follow-up drilling on established mineralized trends and initial testing of newly generated targets, for which assays are pending. Exploration activities successfully refined the geological and structural framework of the property, identified additional gold-bearing occurrences, and advanced the understanding of relationships between gold-bearing boulder trains and their potential bedrock source areas. Information generated through the 2026 program is expected to support the prioritization of follow-up targets and future discovery-focused drilling campaigns.
Exploration spending was $5.6 million in the third quarter and $7.4 million for the first nine months of the year, all of which was expensed.
Key External Performance Drivers
Gold Price
The Company’s financial performance is largely dependent on the price of gold, which directly affects the Company’s profitability and cash flow. The price of gold is subject to volatile price movements and is affected by numerous factors, such as the strength of the US dollar, supply and demand, interest rates, and inflation rates, all of which are beyond the Company’s control. During the third quarter of 2026, the Company realized an average gold price of $4,258 per ounce, a 27% increase compared to $3,359 per ounce in the prior year period. The realized gold price for the third quarter was consistent with the London PM Fix price.
262026 Management’s Discussion and Analysis | ||||||||
In the third quarter, the Company repurchased and eliminated a further 33,000 of the remaining 50,000 ounces of legacy gold hedges from Argonaut. These contracts were scheduled to mature in the first half of 2027 with an average forward sale price of $1,819 per ounce, providing further upside to higher gold prices in 2027. The Company utilized existing cash to eliminate the hedges at a cost of $86.2 million for an effective price of approximately $4,429 per ounce. Subsequent to quarter end, a further 3,000 ounces of forward sale contracts were repurchased and eliminated such that a total of 315,000 ounces, or 96%, of the 329,000 ounces of forward contracts inherited from Argonaut, have been retired prior to maturity. The remaining 14,000 ounces of forward contracts are expected to be eliminated prior to maturity after which there will be no obligation remaining under the legacy Argonaut hedges.
Foreign Exchange Rates
At the Company’s mine sites, a significant portion of operating costs and capital expenditures are denominated in foreign currencies, primarily the Canadian dollar ("CAD") and Mexican peso ("MXN"). Fluctuations in the value of these foreign currencies relative to the US dollar can significantly impact the Company’s costs and cash flow. In the third quarter of 2026, the Canadian dollar averaged approximately $1.40 CAD to $1 USD, compared to $1.38 CAD to $1 USD in the third quarter of 2025. The Mexican peso averaged approximately $17.26 MXN to $1 USD in the third quarter of 2026, compared to $18.62 MXN to $1 USD in the third quarter of 2025.
The Company recorded a foreign exchange gain of $0.9 million in the third quarter. The Canadian dollar to US dollar remained stable during the third quarter, ending at 1.42 CAD to $1 USD on September 30, 2026, while the Mexican peso weakened by 3%, ending at $18.06 MXN to $1 USD.
Additionally, the Company is exposed to currency risk through non-monetary assets and liabilities of subsidiaries whose taxable profit or tax loss is denominated in non-US dollar currencies. Changes in exchange rates give rise to temporary differences, resulting in deferred tax assets and liabilities with the resulting deferred tax charged or credited to income tax expense/recovery. The movement of the CAD and MXN rates generated a non-cash foreign exchange loss of $8.0 million in the third quarter on the revaluation of monetary tax and deferred tax balances, recorded within deferred tax expense.
The Company actively manages its currency exposure through a hedging program, which resulted in a realized foreign exchange gain of $1.0 million during the third quarter. The Company applies hedge accounting; accordingly, the realized gain has been applied against operating and capital costs at the operating mines.
Summarized Financial and Operating Results
| (in millions, except ounces, per share amounts, average realized prices, AISC and total cash costs) | |||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Gold production (ounces) | 119,000 | 141,700 | 373,500 | 403,900 | |||||||||||||
Gold sales (ounces) | 118,361 | 136,473 | 371,118 | 389,083 | |||||||||||||
| Operating revenues | $510.4 | $462.3 | $1,701.2 | $1,233.5 | |||||||||||||
Cost of sales (1) | $214.2 | $194.1 | $651.6 | $590.0 | |||||||||||||
| Earnings from operations | $268.7 | $455.7 | $970.8 | $766.6 | |||||||||||||
| Earnings before income taxes | $259.1 | $371.5 | $984.3 | $578.8 | |||||||||||||
| Net earnings | $165.6 | $276.3 | $627.4 | $450.9 | |||||||||||||
Adjusted net earnings (2) | $184.0 | $155.5 | $663.6 | $359.5 | |||||||||||||
| Earnings per share, basic | $0.40 | $0.66 | $1.50 | $1.07 | |||||||||||||
| Earnings per share, diluted | $0.39 | $0.65 | $1.49 | $1.07 | |||||||||||||
Adjusted earnings per share, basic (2) | $0.44 | $0.37 | $1.58 | $0.86 | |||||||||||||
| Total assets | $6,908.3 | $5,983.4 | |||||||||||||||
| Total non-current liabilities | $1,402.7 | $1,356.1 | |||||||||||||||
| Cash flow provided by operating activities | $216.3 | $265.3 | $690.6 | $544.4 | |||||||||||||
| Dividends per share, declared and paid | $0.04 | $0.025 | $0.12 | $0.075 | |||||||||||||
| Average realized gold price per ounce | $4,258 | $3,359 | $4,532 | $3,144 | |||||||||||||
Cost of sales per ounce of gold sold, including amortization (1) | $1,810 | $1,422 | $1,756 | $1,516 | |||||||||||||
Total cash costs per ounce of gold sold (2) | $1,375 | $973 | $1,302 | $1,065 | |||||||||||||
All-in sustaining costs per ounce of gold sold (2) | $1,956 | $1,375 | $1,845 | $1,499 | |||||||||||||
(1) Cost of sales includes mining and processing costs, inventory net realizable value adjustment, royalties, and amortization expense.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this MD&A for a description and calculation of these measures.
272026 Management’s Discussion and Analysis | ||||||||
Review of Third Quarter Financial Results
Operating Revenues
During the third quarter of 2026, the Company sold 118,361 ounces of gold for operating revenues of $510.4 million, a 10% increase from the prior year period. The increase was due to higher realized gold prices partially offset by lower ounces sold at Young-Davidson and the Mulatos District.
The average realized gold price in the third quarter was $4,258 per ounce, 27% higher than the prior year period, and in line with the average London PM fix for the quarter.
Cost of Sales
Cost of sales was $214.2 million in the third quarter, 10% higher than the prior year period. Key drivers of changes to cost of sales as compared to the prior year period were as follows:
Mining and Processing
Mining and processing costs were $163.8 million, 21% higher than the prior year period. The increase primarily reflects ongoing inflation, and higher underground and open pit tonnes mined at the Island Gold District, partially offset by lower mining rates at Young-Davidson and La Yaqui Grande.
Total cash costs of $1,375 per ounce and AISC of $1,956 per ounce were higher than the prior year period, driven by ongoing inflation, lower grades mined at the Island Gold District, and higher cost per tonne mined at Young-Davidson given the lower mining rates. Lower stacking rates and grades processed at La Yaqui Grande also contributed to the increase, as stacking rates were temporarily impacted by the rainy season. In addition, AISC was impacted by higher sustaining capital reflecting expenditures at the Island Gold District in support of the IGD Expansion to 20,000 tpd, as well as rehabilitation work and enhanced ground support measures at Young-Davidson.
Royalties
Royalty expense was $6.2 million in the third quarter, consistent with the prior year period.
Amortization
Amortization of $44.2 million was 15% lower than the prior year period driven by lower ounces sold. Amortization was $373 per ounce sold, 2% lower than the prior year period, primarily due to an increase in the depletion base resulting from the 2025 year-end Mineral Reserves and Resources update.
Earnings from Operations
The Company recognized earnings from operations of $268.7 million in the third quarter, 41% lower than the prior year period. The prior year period included a one-time impairment reversal of $218.8 million related to the sale of the Turkish Projects.
Net Loss on Commodity Derivatives
In the third quarter, net loss on commodity derivatives was $14.6 million, compared to $80.0 million in the prior year period. The decrease was driven by fewer remaining legacy gold hedges from Argonaut following the retirement of hedges prior to settlement, and a lower mark-to-market adjustment reflecting a smaller change in gold prices during the quarter. During the third quarter, the Company repurchased and eliminated 33,000 of the remaining 50,000 ounces of legacy gold hedges at a cost of $86.2 million for an effective price of approximately $4,429 per ounce. These contracts were scheduled to mature in the first half of 2027 with an average forward sale price of $1,819 per ounce, providing further upside to higher gold prices in 2027.
Net Earnings
The Company reported net earnings of $165.6 million in the third quarter, compared to $276.3 million in the prior year period. On an adjusted basis, earnings were $184.0 million, or $0.44 per share. Adjusted net earnings include an after-tax adjustment for net loss on commodity hedge derivatives of $9.9 million, adjustments for net unrealized foreign exchange losses recorded within deferred taxes and foreign exchange gains totaling $7.1 million, and other adjustments of $1.4 million.
282026 Management’s Discussion and Analysis | ||||||||
Review of Nine Months Financial Results
Operating Revenues
For the first nine months of 2026, the Company sold 371,118 ounces and generated record operating revenues of approximately $1.7 billion, 38% higher than the prior year period, due to higher realized gold prices, partially offset by lower ounces sold.
The average realized gold price in the first nine months of the year was $4,532 per ounce, 44% higher than the prior year period. This was $13 per ounce less than the average London PM Fix price, primarily reflecting the settlements of 12,255 ounces into the gold prepayment facility in the first half of 2026 that was executed in the fourth quarter of 2025 based on the prepay price of $4,166 per ounce. The Company completed settlements of all of the committed ounces during the first half of 2026.
Cost of Sales
Cost of sales for the first nine months of the year was $651.6 million, a 10% increase compared to the prior year period. Key drivers of cost of sales changes as compared to the prior year period were as follows:
Mining and Processing
Mining and processing costs were $483.1 million, 16% higher than the prior year period. The increase primarily reflects ongoing inflation, and higher underground tonnes mined at Island Gold, partially offset by lower mining rates at Young-Davidson and La Yaqui Grande.
Total cash costs of $1,302 per ounce and AISC of $1,845 per ounce for the first nine months of 2026 were both higher than the prior year period, driven by ongoing inflation, lower grades mined at the Island Gold District, and a higher cost per tonne mined at Young-Davidson given the lower mining rates. In addition, AISC was impacted by higher sustaining capital reflecting expenditures at the Island Gold District in support of the IGD Expansion to 20,000 tpd, as well as rehabilitation work and enhanced ground support measures at Young-Davidson which commenced mid-year.
Inventory Net Realizable Value Adjustment
During the second quarter of 2026, the Company recognized a $10.8 million ($7.0 million after tax) reduction in the value of Mulatos leach pad inventory which has been in residual leaching phase since December 2023.
Royalties
Royalty expense of $19.8 million increased slightly from $18.6 million in the prior year period, primarily due to the higher average realized gold price.
Amortization
Amortization of $137.9 million was 12% lower than the prior year period driven by lower ounces sold, and represented a 7% decrease in amortization per ounce sold to $372 per ounce, primarily due to an increase in the depletion base resulting from the 2025 year-end Mineral Reserves and Resources update.
Earnings from Operations
The Company recognized earnings from operations of $970.8 million, a 27% increase from $766.6 million in the prior year period, primarily driven by higher operating revenues.
Net Loss on Commodity Derivatives
For the first nine months of the year, the Company recognized a net loss on commodity derivatives of $4.0 million, compared to $174.2 million in the prior year period. The decrease was driven by fewer remaining legacy gold hedges from Argonaut following the retirement of hedges prior to settlement, and a lower mark‑to‑market adjustment reflecting a smaller change in gold prices during the period. During the first nine months of the year, the Company repurchased and eliminated 83,000 of the remaining 100,000 ounces of legacy gold hedges at a cost of $221.2 million for an effective price of approximately $4,485 per ounce. These contracts were scheduled to mature in the second half of 2026 and the first half of 2027 with an average forward sale price of $1,820 per ounce, providing further upside to higher gold prices.
Net Earnings
The Company reported net earnings of $627.4 million compared to $450.9 million in the prior year period. On an adjusted basis, earnings were $663.6 million, or $1.58 per share. Adjusted net earnings include an after-tax adjustment for net loss on commodity hedge derivatives of $2.7 million, an inventory net realizable value adjustment of $7.0 million, net of tax, adjustments for net unrealized foreign exchange losses recorded within deferred taxes and foreign exchange gains totaling $22.8 million, and other adjustments of $3.7 million.
292026 Management’s Discussion and Analysis | ||||||||
Consolidated Expenses and Other
| (in millions) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Exploration | ($12.3) | ($5.0) | ($27.8) | ($19.0) | ||||||||||
| Corporate and administrative | (10.2) | (9.6) | (32.3) | (29.6) | ||||||||||
| Share-based compensation | (5.0) | (16.7) | (18.7) | (47.1) | ||||||||||
| Reversal of impairment | — | 218.8 | — | 218.8 | ||||||||||
| Net loss on commodity derivatives | (14.6) | (80.0) | (4.0) | (174.2) | ||||||||||
| Finance income | 5.9 | 1.2 | 18.0 | 1.2 | ||||||||||
| Foreign exchange gain (loss) | 0.9 | (1.5) | 4.3 | (7.7) | ||||||||||
| Other loss | (1.8) | (3.9) | (4.8) | (7.1) | ||||||||||
Exploration
Exploration expense primarily relates to expenditures on early-stage exploration projects, regional exploration programs and corporate exploration support. The Company capitalizes near-mine exploration at its operations and development projects. Exploration expense in the third quarter and first nine months of the year increased compared to the prior year periods, primarily reflecting increased spending on expanded regional exploration programs across all sites, including increased spending at regional targets at Island Gold and the Qiqavik project in Quebec.
Corporate and administrative
Corporate and administrative costs include expenses arising from the overall management of the business that are not part of direct mine operating costs. These costs are incurred at the corporate office located in Canada. Corporate and administrative costs in the third quarter and first nine months of the year were higher than the prior year periods, reflecting higher personnel costs resulting from increased headcount to support the expansion plans of the Company.
Share-based compensation
Share-based compensation expense of $5.0 million in the third quarter and $18.7 million for the first nine months of 2026 was lower than the prior year periods, primarily reflecting changes in the Company's share price and the resulting revaluation of the liability associated with outstanding cash-settled long-term incentives.
Reversal of impairment
In the comparative periods, the Company recognized a $218.8 million impairment reversal on the Turkish development projects triggered by the announcement of the definitive sale agreement in the third quarter of 2025.
Net loss on commodity derivatives
In the third quarter and first nine months of the year, net loss on commodity derivatives of $14.6 million and $4.0 million, respectively, were lower compared to the prior year periods. The decrease was driven by fewer remaining legacy gold hedges from Argonaut following the retirement of hedges prior to settlement, and a lower mark‑to‑market adjustment reflecting a smaller change in gold prices. During the first nine months of the year, the Company repurchased and eliminated 83,000 of the remaining 100,000 ounces of legacy gold hedges at a cost of $221.2 million for an effective price of approximately $4,485 per ounce. These contracts were scheduled to mature in the second half of 2026 and the first half of 2027 with an average forward sale price of $1,820 per ounce, providing further upside to higher gold prices.
Finance income
In the third quarter and first nine months of the year, the Company reported finance income of $5.9 million and $18.0 million, respectively, driven by interest earned on cash and cash equivalents and accretion on deferred payment consideration, partially offset by accretion on decommissioning liabilities and standby fees arising on the Company's credit facility. All other interest costs, primarily comprised of interest charges on drawn funds under the Company's credit facility, and interest arising on finance leases, are capitalized to the Phase 3+ Shaft Expansion at Island Gold, PDA in the Mulatos District, and Lynn Lake.
Foreign exchange gain (loss)
The Company recorded foreign exchange gain of $0.9 million in the third quarter and $4.3 million in the first nine months of the year, related to the translation of the Company's net monetary assets and liabilities, resulting from changes in period-end foreign exchange rates.
Other loss
Other loss in the third quarter and first nine months of the year was primarily comprised of losses on disposal of assets and was lower than the prior year periods, as the comparative periods included care and maintenance, arbitration, and transaction costs for the Turkish development projects.
302026 Management’s Discussion and Analysis | ||||||||
Consolidated Income Tax Expense
The Company is subject to tax in various jurisdictions, including Mexico and Canada. There are a number of factors that can significantly impact the Company’s effective tax rate including the geographic distribution of income, varying rates in different jurisdictions, the non-recognition of tax assets, mining allowances, foreign currency exchange rate movements, changes in tax laws, impact of specific transactions, and tax assessments from tax authorities. Due to the number of factors that can potentially impact the effective tax rate and the sensitivity of the tax provision to these factors, it is expected that the Company’s effective tax rate will fluctuate in future periods.
For the three months ended September 30, 2026, the Company recognized a current income tax expense of $44.9 million and a deferred income tax expense of $48.6 million, compared to current income tax expense of $46.5 million and deferred income tax expense of $48.7 million in the prior year period.
For the nine months ended September 30, 2026, the Company recognized a current income tax expense of $200.3 million and a deferred income tax expense of $156.6 million, compared to a current income tax expense of $92.6 million and deferred income tax expense of $35.3 million for the prior year period. The increase in tax expense was driven by significantly higher profitability for the first nine months of the year.
The Company paid cash taxes of $139.8 million in the first nine months of 2026, primarily related to mining tax and income tax in respect of the 2025 fiscal year, and installment payments for the 2026 fiscal year. Cash tax payments are expected to total between $20 and $25 million globally in the fourth quarter, related to 2026 installment payments based on a budgeted gold price of $4,000 per ounce. Mexico will comprise approximately 70% of global cash taxes for the full year. Given the increase in gold prices over the past two years, existing tax pools in Canada are being utilized at a faster pace. Cash tax payments in 2027 are expected to increase significantly compared to 2026 given the ongoing profitability and utilization of tax pools in Canada.
The Company's Mulatos District in Mexico, as well as the Island Gold District and Young-Davidson in Canada, pay income taxes based on their tax functional currency, which is the Mexican peso and Canadian dollar, respectively. The legal entity financial statements for the Mulatos District, Island Gold District and Young-Davidson include foreign exchange and other income items that differ from the US dollar functional currency financial statements. The Company recognized a foreign exchange loss of $8.0 million and $27.1 million for the three and nine months ended September 30, 2026, respectively, due to the movement of the Canadian dollar and Mexican peso during the period.
Financial Condition
| September 30, 2026 | December 31, 2025 | |||||||||||||
| Current assets | $1,115.0 | $1,135.5 | Current assets remained consistent with December 31, 2025 balances. | |||||||||||
| Long-term assets | 5,793.3 | 5,249.1 | Long-term assets increased primarily due to the Company’s ongoing construction activities on its growth projects, including the Phase 3+ Shaft and IGD Expansions, Lynn Lake and PDA, as well as an increase in long-term stockpiles at the Island Gold District. | |||||||||||
| Total assets | $6,908.3 | $6,384.6 | ||||||||||||
| Current liabilities | $553.9 | $567.6 | Current liabilities decreased primarily due to the early elimination of legacy Argonaut hedges scheduled to mature in the second half of 2026 and the first half of 2027, as well as the full settlement of the gold prepayment liability following the settlements of all committed ounces in the first half of 2026. These decreases were partially offset by increases in trade payables and accrued liabilities and income taxes payable. | |||||||||||
| Non-current liabilities | 1,402.7 | 1,371.2 | Non‑current liabilities increased primarily due to an increase in deferred taxes, partially offset by reclassification of the derivative liability related to 2027 legacy Argonaut hedges from non-current liabilities to current liabilities. | |||||||||||
| Total liabilities | 1,956.6 | 1,938.8 | ||||||||||||
| Shareholders’ equity | 4,951.7 | 4,445.8 | The increase in shareholders' equity was primarily due to total comprehensive income generated in the period. | |||||||||||
| Total liabilities and equity | $6,908.3 | $6,384.6 | ||||||||||||
312026 Management’s Discussion and Analysis | ||||||||
Liquidity and Capital Resources
The Company’s strategy is based on achieving positive cash flow from operations to internally fund operating, capital and project development requirements, generate returns for its shareholders, and bolster the balance sheet. Material increases or decreases in the Company’s liquidity and capital resources will be substantially determined by the success or failure of the Company’s operations, exploration, and development programs, the ability to obtain equity or other sources of financing, the price of gold, and currency exchange rates.
As at September 30, 2026, the Company had cash and cash equivalents of $597.4 million and equity securities of $44.2 million, compared to $623.1 million and $58.9 million, respectively, at December 31, 2025.
In the first nine months of 2026, the Company repurchased and eliminated 83,000 of the remaining 100,000 ounces of legacy gold hedges from Argonaut. These contracts were scheduled to mature in the second half of 2026 and the first half of 2027 with an average forward sale price of $1,820 per ounce, providing further upside to higher gold prices. The Company utilized existing cash to eliminate the hedges at a cost of $221.2 million for an effective price of approximately $4,485 per ounce. Subsequent to quarter end, a further 3,000 ounces of forward sale contracts were repurchased and eliminated such that a total of 315,000 ounces, or 96%, of the 329,000 ounces of forward contracts inherited from Argonaut, have been retired prior to maturity. The remaining 14,000 ounces of forward contracts are expected to be eliminated prior to maturity after which there will be no obligation remaining under the legacy Argonaut hedges.
The Company has the ability to access capital through its base shelf prospectus and registration statement, which provides flexibility to issue up to $500.0 million of equity and debt securities, or a combination thereof, in Canada and the United States. The Company maintains this capacity for financial flexibility and has no present intention to undertake an offering of securities.
The Company has access to $750.0 million from its credit facility, of which $200.0 million was drawn as at September 30, 2026, resulting in $550.0 million of available capacity, not including an uncommitted $250.0 million accordion feature. The borrowing costs under the credit facility are Adjusted Term SOFR Rate plus 1.45% to 2.50% based on the Company’s net leverage ratio, as defined in the credit facility agreement. As at September 30, 2026, based on the Company's net leverage ratio, the credit facility bears interest at a rate of Adjusted Term SOFR Rate plus 1.45% on drawn amounts and stand-by fees of 0.29% on undrawn amounts. The credit facility matures on August 30, 2030.
The credit facility contains various covenants customary for a loan facility of this nature, including limits on indebtedness, asset sales and liens. It contains financial covenant tests that include (a) a minimum interest coverage ratio of 3.0:1.0 and (b) a maximum net leverage ratio of 3.5:1.0, both as defined in the agreement. As at September 30, 2026, the Company is in compliance with all covenants.
The Company's liquidity position, comprised of cash and cash equivalents and availability under its credit facility, together with cash flows provided by operating activities, is sufficient to support the Company's normal operating requirements, capital commitments and service debt obligations. With the strong liquidity position and ongoing cash flow generation, the Company remains well positioned to internally fund its organic growth initiatives including the Phase 3+ Shaft and IGD Expansions, PDA and Lynn Lake.
322026 Management’s Discussion and Analysis | ||||||||
Cash Flow
| (in millions) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Cash flow provided by operating activities | $216.3 | $265.3 | $690.6 | $544.4 | ||||||||||
| Cash flow used in investing activities | (229.9) | (133.9) | (600.2) | (357.8) | ||||||||||
| Cash flow used in financing activities | (25.8) | (13.4) | (115.6) | (51.1) | ||||||||||
| Effect of foreign exchange rates on cash and cash equivalents | (0.1) | 0.2 | (0.5) | 0.4 | ||||||||||
| Net (decrease) increase in cash and cash equivalents | (39.5) | 118.2 | (25.7) | 135.9 | ||||||||||
| Cash and cash equivalents, beginning of period | 636.9 | 344.9 | 623.1 | 327.2 | ||||||||||
| Cash and cash equivalents, end of period | $597.4 | $463.1 | $597.4 | $463.1 | ||||||||||
Cash flow provided by operating activities
In the third quarter of 2026, operating activities generated cash flow of $216.3 million compared to $265.3 million in the prior year period, representing an 18% decrease. Cash flow from operations decreased primarily due to the $86.2 million used for early settlement of legacy Argonaut hedges, partially offset by higher operating revenues driven by higher realized gold prices. Cash flow provided by operations before changes in working capital and taxes paid was $234.9 million in the third quarter, compared to $275.3 million in the prior year period.
For the first nine months of 2026, operating activities generated $690.6 million compared to $544.4 million in the prior year period, driven by a higher realized gold price. This was partially offset by $221.2 million used for early settlement of legacy Argonaut hedges and an increase in cash tax payments, with $139.8 million paid year to date. Cash flow provided by operations before changes in working capital and taxes paid was $859.8 million in the first nine months of the year, compared to $639.6 million in the prior year period.
Cash flow used in investing activities
In the third quarter of 2026, capital expenditures increased significantly to $226.9 million, compared to $135.0 million in the prior year period, with $92.1 million of growth capital at the Island Gold District primarily related to the Phase 3+ Shaft and IGD Expansions, $49.9 million related to various sustaining capital expenditures at operating mine sites, and growth capital of $40.2 million at Lynn Lake and $24.8 million at PDA.
For the first nine months of 2026, the Company invested $591.0 million in capital expenditures, compared to $349.6 million in the prior year. Growth capital spending included $245.7 million at the Island Gold District primarily related to the Phase 3+ Shaft and IGD Expansions, $94.8 million at Lynn Lake, and $60.2 million at PDA.
Cash flow used in financing activities
The Company paid a quarterly dividend of $0.04 per share in the third quarter and first nine months of the year, representing a 60% increase from the quarterly dividend in 2025 as announced on February 18, 2026, for total dividend declared of $50.2 million year to date. Of this amount, $48.6 million was paid in cash, and the remainder was issued in shares pursuant to the Company's dividend reinvestment plan.
During the first nine months of 2026, the Company repurchased and cancelled 1,593,044 Common Shares under the Company's Normal Course Issuer Bid at a cost of $55.7 million. In the prior year period, the Company repurchased and cancelled 398,200 Common Shares for $10.0 million.
Outstanding Share Data
October 28, 2026 | |||||
| Common shares | 418,561,210 | ||||
| Stock options | 2,071,726 | ||||
| Deferred share units | 602,159 | ||||
| Performance share units | 593,877 | ||||
| Restricted share units | 1,544,689 | ||||
| 423,373,661 | |||||
332026 Management’s Discussion and Analysis | ||||||||
Related Party Transactions
There were no related party transactions during the periods other than those disclosed in the Company’s condensed interim consolidated financial statements for the three and nine months ended September 30, 2026.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements.
Financial Instruments
The Company seeks to manage its exposure to fluctuations in commodity prices, fuel prices, foreign exchange rates, and gold and silver prices by entering into derivative financial instruments from time to time.
Commodity option and forward contracts
Legacy Argonaut gold forward contracts
As at September 30, 2026, the Company held forward contracts that were acquired as part of the acquisition of Argonaut. During the three and nine months ended September 30, 2026, the Company settled 33,000 ounces and 83,000 ounces, respectively, representing full settlement of the expected delivery in the second half of 2026 and partial settlement of the expected delivery in the first half of 2027. These settlements resulted in a cash payment of $86.2 million and $221.2 million, respectively. The remaining contracts, totaling 17,000 ounces scheduled for delivery in the first half of 2027, have an average forward price of $1,826 per ounce. The fair value of the remaining contracts was a liability of $40.5 million at September 30, 2026 (December 31, 2025 - liability of $257.0 million). Subsequent to September 30, 2026, a further 3,000 ounces were settled.
Silver Option Contracts
As at September 30, 2026, the Company held contracts to protect against the risk of a decrease in the price of silver. These collars, totaling 45,000 ounces, ensure a minimum purchased put option of $85.50 and a maximum average sold call options of $109.50 per ounce, regardless of the movement in silver prices during 2026. As at September 30, 2026, the fair value of these contracts was an asset of $1.1 million (December 31, 2025 - $nil).
Realized loss on commodity derivatives
The Company realized losses of $86.2 million and $221.2 million on commodity derivatives in the three and nine months ended September 30, 2026, respectively (three and nine months ended September 30, 2025 - $nil), primarily from the early settlement of the legacy Argonaut hedges.
Unrealized gain (loss) on commodity derivatives
The Company recorded unrealized gains of $71.6 million and $217.2 million on commodity derivatives in the three and nine months ended September 30, 2026, respectively (three and nine months ended September 30, 2025 - unrealized losses of $80.0 million and $174.2 million). The Company has elected to not apply hedge accounting to these contracts, with changes in fair value recorded in net earnings.
Foreign currency contracts
As at September 30, 2026, the Company held option and forward contracts to protect against the risk of an increase in the value of the CAD and MXN versus the USD. These option and forward contracts are for the purchase of local currencies and the sale of USD, which settle on a monthly basis, and the Company believes this is an appropriate manner of managing currency risk. The open contracts are summarized as at September 30, 2026:
CAD contracts:
| Period covered | Contract type | Contracts (CAD$ millions) | Average minimum rate (USD/CAD) | Average maximum rate (USD/CAD) | |||||||||||||
| 2026 | Forwards | 6.0 | — | 1.41 | |||||||||||||
| 2026 | Collars | 195.0 | 1.34 | 1.40 | |||||||||||||
| 2027 | Collars | 699.0 | 1.35 | 1.41 | |||||||||||||
342026 Management’s Discussion and Analysis | ||||||||
MXN contracts:
| Period covered | Contract type | Contracts (MXN$ millions) | Average minimum rate (USD/MXN) | Average maximum rate (USD/MXN) | |||||||||||||
| 2026 | Collars | 420.0 | 17.72 | 18.53 | |||||||||||||
| 2027 | Collars | 1,050.0 | 17.29 | 18.57 | |||||||||||||
| 2027 | Forwards | 480.0 | — | 18.02 | |||||||||||||
The fair value of these contracts was a liability of $8.2 million as at September 30, 2026 (December 31, 2025 - asset of $2.0 million).
Fuel option contracts
As at September 30, 2026, the Company held contracts to protect against the risk of an increase in the price of fuel. These collars totaling 378,000 gallons, ensure a maximum purchase call option of $2.32 per gallon and a minimum average sold put options of $2.12 per gallon, regardless of the movement in fuel prices during 2026. The fair value of these contracts was an asset of $1.2 million at September 30, 2026 (December 31, 2025 - liability of $0.1 million).
Debt obligations
As at September 30, 2026, $200 million is outstanding on the Company's credit facility with $550 million remaining available under the facility.
Summary of Quarterly Financial and Operating Results
| Q3 2026 | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gold ounces produced | 119,000 | 130,600 | 123,900 | 141,500 | 141,700 | 137,200 | 125,000 | 140,200 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gold ounces sold | 118,361 | 130,834 | 121,924 | 142,147 | 136,473 | 135,027 | 117,583 | 141,258 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating revenues | $510.4 | $594.1 | $596.7 | $575.3 | $462.3 | $438.2 | $333.0 | $375.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings from operations | $268.7 | $357.3 | $344.8 | $330.9 | $455.7 | $216.2 | $94.7 | $158.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net earnings | $165.6 | $270.4 | $191.4 | $434.9 | $276.3 | $159.4 | $15.2 | $87.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings per share, basic | $0.40 | $0.64 | $0.46 | $1.03 | $0.66 | $0.38 | $0.04 | $0.21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings per share, diluted | $0.39 | $0.64 | $0.45 | $1.03 | $0.65 | $0.38 | $0.04 | $0.21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted net earnings (1) | $184.0 | $247.6 | $232.0 | $227.6 | $155.5 | $144.1 | $59.8 | $103.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted earnings per share, basic (1) | $0.44 | $0.59 | $0.55 | $0.54 | $0.37 | $0.34 | $0.14 | $0.25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted earnings before interest, taxes, depreciation and amortization (1) | $312.0 | $423.8 | $383.2 | $384.6 | $283.5 | $260.2 | $145.4 | $207.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash provided by operating activities | $216.3 | $231.8 | $242.5 | $250.9 | $265.3 | $199.5 | $79.6 | $192.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average realized gold price | $4,258 | $4,504 | $4,829 | $3,998 | $3,359 | $3,223 | $2,802 | $2,632 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1)Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this MD&A for a description and calculation of these measures.
The Company continued to generate strong operating revenues and operating cash flow in the third quarter of 2026, driven primarily by higher realized gold prices. Earnings from operations and operating cash flow in prior periods also benefited from higher realized gold prices and margin expansion.
Earnings from operations in the third quarter of 2026 benefited from strong revenues and margins, as well as lower share-based compensation expense compared to the prior year period, reflecting a smaller change in the Company's share price and the corresponding impact on the revaluation of the liability associated with outstanding cash-settled long-term incentives, partially offset by an increase in exploration expense reflecting the expanded regional exploration programs. Earnings from operations in the second quarter of 2026 were impacted by a non-cash net realizable expense on the Mulatos leach pad inventory, which was more than offset by a share-based compensation recovery. Comparative earnings from operations in 2025 benefited from the reversal of an impairment related to the Turkish development projects, partially offset by higher share-based compensation expense resulting from a significant increase in the Company’s share price.
Net earnings for the third quarter of 2026 and comparative periods were primarily impacted by the fair value movement of the legacy Argonaut hedges, with a lower net loss in the third quarter of 2026 due to the early settlement of the hedges which commenced in 2025. Net earnings in the fourth quarter of 2025 also benefited from a $231.0 million gain recognized upon sale of the Turkish development projects.
Operating cash flow for the first quarter of 2025 was impacted by lower ounces sold as well as higher cash taxes paid.
352026 Management’s Discussion and Analysis | ||||||||
Non-GAAP Measures and Additional GAAP Measures
The Company has included certain non-GAAP financial measures to supplement its condensed interim consolidated financial statements for the three and nine months ended September 30, 2026 and 2025, which are presented in accordance with IFRS, including the following:
•adjusted net earnings and adjusted earnings per share;
•cash flow from operating activities before changes in working capital and taxes paid;
•Company-wide free cash flow;
•total mine-site free cash flow;
•mine-site free cash flow;
•total cash costs per ounce of gold sold;
•AISC per ounce of gold sold;
•mine-site AISC per ounce of gold sold;
•sustaining and non-sustaining capital expenditures; and
•adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA").
The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management's determination of the components of non-GAAP and additional measures is evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are duly noted and retrospectively applied as applicable.
Adjusted Net Earnings and Adjusted Earnings per Share
“Adjusted net earnings” and “adjusted earnings per share” are non-GAAP financial measures with no standard meaning under IFRS which exclude the following from net earnings:
•Foreign exchange gains or losses
•Items included in other loss
•Impairment expense/reversal of impairment
•Net gain or loss on commodity derivatives
•Certain non-recurring items
•Foreign exchange gain or loss recorded in deferred tax expense
•The income and mining tax impact of items included in other loss
The Company uses adjusted net earnings for its own internal purposes. Management’s internal budgets and forecasts and public guidance do not reflect the items which have been excluded from the determination of adjusted net earnings. Consequently, the presentation of adjusted net earnings enables shareholders to better understand the underlying operating performance of the core mining business through the eyes of management. Management periodically evaluates the components of adjusted net earnings based on an internal assessment of performance measures that are useful for evaluating the operating performance of the Company's business and a review of the non-GAAP measures used by mining industry analysts and other mining companies.
Adjusted net earnings is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of operating profit or cash flows from operations as determined under IFRS. The following table reconciles this non-GAAP measure to the most directly comparable IFRS measure.
362026 Management’s Discussion and Analysis | ||||||||
| (in millions) | |||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Net earnings | $165.6 | $276.3 | $627.4 | $450.9 | |||||||||||||
| Adjustments: | |||||||||||||||||
| Foreign exchange (gain) loss | (0.9) | 1.5 | (4.3) | 7.7 | |||||||||||||
| Impairment reversal, net of tax | — | (192.9) | — | (192.9) | |||||||||||||
| Inventory net realizable value adjustment, net of tax | — | — | 7.0 | — | |||||||||||||
| Net loss on commodity derivatives, net of tax | 9.9 | 53.8 | 2.7 | 117.2 | |||||||||||||
| Other loss | 1.8 | 3.9 | 4.8 | 7.1 | |||||||||||||
| Unrealized foreign exchange loss (gain) recorded in deferred tax expense | 8.0 | 13.9 | 27.1 | (29.1) | |||||||||||||
| Other income and mining tax adjustments | (0.4) | (1.0) | (1.1) | (1.4) | |||||||||||||
| Adjusted net earnings | $184.0 | $155.5 | $663.6 | $359.5 | |||||||||||||
| Adjusted earnings per share - basic | $0.44 | $0.37 | $1.58 | $0.86 | |||||||||||||
Cash Flow from Operating Activities before Changes in Working Capital and Taxes Paid
“Cash flow from operating activities before changes in working capital and taxes paid” is a non-GAAP performance measure that could provide an indication of the Company’s ability to generate cash flows from operations, and is calculated by adding back the change in working capital and taxes paid to cash flow from operating activities. “Cash flow from operating activities before changes in working capital and taxes paid” is a non-GAAP financial measure with no standard meaning under IFRS. The following table reconciles this non-GAAP measure to the most directly comparable IFRS measure.
| (in millions) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Cash flow from operating activities | $216.3 | $265.3 | $690.6 | $544.4 | ||||||||||
| Add: Changes in working capital and taxes paid | 18.6 | 10.0 | 169.2 | 95.2 | ||||||||||
| Cash flow from operating activities before changes in working capital and taxes paid | $234.9 | $275.3 | $859.8 | $639.6 | ||||||||||
Company-wide Free Cash Flow
“Company-wide free cash flow" is a non-GAAP performance measure calculated from cash flow from operating activities, less mineral property, plant and equipment expenditures and non-recurring costs. The Company believes this to be a useful indicator of its ability to operate without reliance on additional borrowing or usage of existing cash company-wide. Company-wide free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other mining companies. Company-wide free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
| (in millions) | |||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Cash flow from operating activities | $216.3 | $265.3 | $690.6 | $544.4 | |||||||||||||
| Less: mineral property, plant and equipment expenditures | (226.9) | (135.0) | (591.0) | (349.6) | |||||||||||||
Add: early settlement of legacy Argonaut hedges (1) | 86.2 | — | 221.2 | — | |||||||||||||
| Company-wide free cash flow | $75.6 | $130.3 | $320.8 | $194.8 | |||||||||||||
(1)Represents the early settlement of 33,000 ounces and 83,000 ounces, respectively, during the three and nine months ended September 30, 2026, of the remaining legacy Argonaut hedges.
372026 Management’s Discussion and Analysis | ||||||||
Mine-site Free Cash Flow
"Mine-site free cash flow" is a non-GAAP financial performance measure calculated as cash flow from operating mine-sites, less mine-site mineral property, plant and equipment expenditures. The Company believes this to be a useful indicator of its ability to operate without reliance on additional borrowing or usage of existing cash. Mine-site free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other mining companies. Mine-site free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
| Consolidated Mine-Site Free Cash Flow | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions) | ||||||||||||||
| Cash flow from operating activities | $216.3 | $265.3 | $690.6 | $544.4 | ||||||||||
Add: operating cash flow used by non-mine site activity (1) | 109.1 | 62.7 | 356.2 | 194.8 | ||||||||||
| Cash flow from operating mine-sites | $325.4 | $328.0 | $1,046.8 | $739.2 | ||||||||||
| Mineral property, plant and equipment expenditures | $226.9 | $135.0 | $591.0 | $349.6 | ||||||||||
| Less: capital expenditures from development projects and corporate | (42.8) | (15.1) | (104.3) | (43.4) | ||||||||||
| Capital expenditure and capital advances from mine-sites | $184.1 | $119.9 | $486.7 | $306.2 | ||||||||||
| Total mine-site free cash flow | $141.3 | $208.1 | $560.1 | $433.0 | ||||||||||
| Island Gold District Mine-Site Free Cash Flow | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions) | ||||||||||||||
Cash flow from operating activities (1) | $203.7 | $160.9 | $576.1 | $370.5 | ||||||||||
| Mineral property, plant and equipment expenditures | (131.5) | (88.5) | (346.0) | (226.9) | ||||||||||
| Mine-site free cash flow | $72.2 | $72.4 | $230.1 | $143.6 | ||||||||||
| Young-Davidson Mine-Site Free Cash Flow | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions) | ||||||||||||||
Cash flow from operating activities (1) | $55.3 | $82.5 | $240.3 | $220.6 | ||||||||||
| Mineral property, plant and equipment expenditures | (24.9) | (20.2) | (71.0) | (60.4) | ||||||||||
| Mine-site free cash flow | $30.4 | $62.3 | $169.3 | $160.2 | ||||||||||
| Mulatos District Mine-Site Free Cash Flow | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions) | ||||||||||||||
| Cash flow from operating activities | $66.4 | $84.6 | $230.4 | $148.1 | ||||||||||
| Mineral property, plant and equipment expenditures | (27.7) | (11.2) | (69.7) | (18.9) | ||||||||||
| Mine-site free cash flow | $38.7 | $73.4 | $160.7 | $129.2 | ||||||||||
(1)Cash from operating activities for the Canadian operations excludes the impact of the nil ounces and 12,255 ounces settled under the gold prepayment arrangement for the three and nine months ended September 30, 2026, respectively (three and nine months ended September 30, 2025 - 12,346 ounces and 37,038 ounces, respectively). The non-cash adjustment to reflect the settlement of the gold prepayment arrangement is included in Company-wide free cash flow.
Total Cash Costs per ounce
Total cash costs per ounce is a non-GAAP term typically used by gold mining companies to evaluate the costs of producing gold and to assess the ability of a mining company to generate cash flow from operating activities. Total cash costs per ounce includes mining and processing costs plus applicable royalties, and net of costs allocated to by-product and net realizable value adjustments. Total cash costs per ounce is exclusive of exploration costs. As well, the Company excludes mark-to-market adjustments for the revaluation of previously issued share-based compensation, therefore, total cash costs will incorporate the cost of long term incentives associated with the grant date fair value for instruments issued.
Total cash costs per ounce is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of cash flow from operating activities under IFRS or operating costs presented under IFRS.
All-in Sustaining Costs per ounce and Mine-site All-in Sustaining Costs
The Company adopted an “all-in sustaining costs per ounce” non-GAAP performance measure in accordance with the World Gold Council. The Company believes the measure more fully defines the total costs associated with producing gold; however,
382026 Management’s Discussion and Analysis | ||||||||
this performance measure has no standardized meaning. Accordingly, there may be some variation in the method of computation of “all-in sustaining costs per ounce” as determined by the Company compared with other mining companies. In this context, “all-in sustaining costs per ounce” for the consolidated Company reflects total mining and processing costs, corporate and administrative costs, share-based compensation, sustaining exploration costs, sustaining capital, sustaining finance leases and other operating costs. The Company excludes mark-to-market adjustments for the revaluation of previously issued share-based compensation, therefore all-in sustaining costs will incorporate the cost of long term incentives associated with the grant date fair value for instruments issued.
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, as detailed in the reconciliations below.
Sustaining capital expenditures are expenditures that do not increase annual gold ounce production at a mine site and exclude all expenditures at the Company’s development projects as well as certain expenditures at the Company’s operating sites that are deemed expansionary in nature. Non-sustaining capital expenditures or growth capital are expenditures primarily incurred at development projects and costs related to major projects at existing operations, where these projects will materially benefit the mine site. Capitalized exploration expenditures are expenditures that meet the IFRS definition for capitalization and are incurred to further expand the known Mineral Reserves and Resources at existing operations or development projects. For each mine-site reconciliation, corporate and administrative costs, and non-site specific costs are not included in the all-in sustaining cost per ounce calculation.
All-in sustaining costs per gold ounce is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of cash flow from operating activities under IFRS or operating costs presented under IFRS.
Total Cash Costs and All-in Sustaining Costs per Ounce Reconciliation Tables
The following tables reconcile these non-GAAP measures to the most directly comparable IFRS measures on a Company-wide and individual mine-site basis.
| Total Cash Costs and AISC Reconciliation - Company-wide | |||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| (in millions, except ounces and per ounce figures) | |||||||||||||||||
| Mining and processing | $163.8 | $135.9 | $483.1 | $415.3 | |||||||||||||
Share-based compensation mark-to-market allocated to sites (included in mining and processing) (2) | (1.0) | (5.3) | (0.3) | (9.3) | |||||||||||||
| Costs allocated to silver by-product | (6.3) | (4.0) | (19.4) | (10.4) | |||||||||||||
| Royalties | 6.2 | 6.2 | 19.8 | 18.6 | |||||||||||||
| Total cash costs | $162.7 | $132.8 | $483.2 | $414.2 | |||||||||||||
| Gold ounces sold | 118,361 | 136,473 | 371,118 | 389,083 | |||||||||||||
| Total cash costs per ounce | $1,375 | $973 | $1,302 | $1,065 | |||||||||||||
| Total cash costs | $162.7 | $132.8 | $483.2 | $414.2 | |||||||||||||
Corporate and administrative (1) | 10.2 | 9.6 | 32.3 | 29.6 | |||||||||||||
Sustaining capital expenditures (3) | 49.9 | 34.8 | 130.7 | 95.1 | |||||||||||||
| Sustaining finance leases | 3.0 | 4.3 | 10.2 | 12.6 | |||||||||||||
| Interest on sustaining finance leases | 0.3 | 0.4 | 1.1 | 1.7 | |||||||||||||
| Share-based compensation | 5.0 | 16.7 | 18.7 | 47.1 | |||||||||||||
Share-based compensation mark-to-market allocated to corporate (2) | (2.7) | (13.8) | (0.6) | (25.4) | |||||||||||||
| Sustaining exploration | 0.6 | 0.4 | 1.9 | 1.5 | |||||||||||||
| Accretion of decommissioning liabilities | 2.5 | 2.4 | 7.2 | 7.0 | |||||||||||||
| Total all-in sustaining costs | $231.5 | $187.6 | $684.7 | $583.4 | |||||||||||||
| Gold ounces sold | 118,361 | 136,473 | 371,118 | 389,083 | |||||||||||||
| Total all-in sustaining costs per ounce | $1,956 | $1,375 | $1,845 | $1,499 | |||||||||||||
(1)Corporate and administrative expenses exclude expenses incurred at development properties.
(2)Share-based compensation included in total cash costs and AISC excludes the impact of mark-to-market adjustments for changes in the Company’s share price in the periods allocated to sites (included in mining and processing costs) and corporate head office (included in share-based compensation expense). See Note 10 (d) of the condensed interim consolidated financial statements for the three and nine months ended September 30, 2026 and 2025 for further details.
392026 Management’s Discussion and Analysis | ||||||||
(3)Sustaining capital expenditures are defined as those expenditures which do not increase annual gold ounce production at a mine site and exclude all expenditures at growth projects and certain expenditures at operating sites which are deemed expansionary in nature. Total sustaining capital expenditures for the periods are as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| (in millions) | |||||||||||||||||
| Mineral property, plant and equipment expenditures | $226.9 | $135.0 | $591.0 | $349.6 | |||||||||||||
| Less: non-sustaining capital expenditures at: | |||||||||||||||||
| Island Gold District | (99.2) | (64.6) | (263.0) | (167.4) | |||||||||||||
| Young-Davidson | (7.8) | (10.0) | (25.1) | (26.6) | |||||||||||||
| Mulatos District | (27.2) | (10.5) | (67.9) | (17.1) | |||||||||||||
| Corporate and other | (42.8) | (15.1) | (104.3) | (43.4) | |||||||||||||
| Sustaining capital expenditures | $49.9 | $34.8 | $130.7 | $95.1 | |||||||||||||
| Island Gold District Total Cash Costs and Mine-site AISC Reconciliation | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions, except ounces and per ounce figures) | ||||||||||||||
| Mining and processing | $80.9 | $59.2 | $230.1 | $174.7 | ||||||||||
Share-based compensation mark-to-market allocated to sites (included in mining and processing) (1) | (0.3) | (2.0) | (0.1) | (3.5) | ||||||||||
| Costs allocated to silver by-product | (1.0) | (0.2) | (2.4) | (1.1) | ||||||||||
| Royalties | 3.4 | 2.8 | 9.0 | 9.7 | ||||||||||
| Total cash costs | $83.0 | $59.8 | $236.6 | $179.8 | ||||||||||
| Gold ounces sold | 66,837 | 62,011 | 189,672 | 179,357 | ||||||||||
| Mine-site total cash costs per ounce | $1,242 | $964 | $1,247 | $1,002 | ||||||||||
| Total cash costs | $83.0 | $59.8 | $236.6 | $179.8 | ||||||||||
| Sustaining capital expenditures | 32.3 | 23.9 | 83.0 | 59.5 | ||||||||||
| Sustaining finance leases | 3.0 | 4.3 | 10.2 | 12.6 | ||||||||||
| Interest on sustaining finance leases | 0.3 | 0.4 | 1.1 | 1.7 | ||||||||||
| Accretion of decommissioning liabilities | 0.5 | 0.4 | 1.4 | 1.1 | ||||||||||
| Total all-in sustaining costs | $119.1 | $88.8 | $332.3 | $254.7 | ||||||||||
| Gold ounces sold | 66,837 | 62,011 | 189,672 | 179,357 | ||||||||||
| Mine-site all-in sustaining costs per ounce | $1,782 | $1,432 | $1,752 | $1,420 | ||||||||||
| Young-Davidson Total Cash Costs and Mine-site AISC Reconciliation | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions, except ounces and per ounce figures) | ||||||||||||||
| Mining and processing | $49.6 | $45.5 | $149.5 | $138.3 | ||||||||||
Share-based compensation mark-to-market allocated to sites (included in mining and processing) (1) | (0.4) | (1.8) | (0.1) | (3.1) | ||||||||||
| Costs allocated to silver by-product | (2.2) | (0.9) | (5.6) | (2.2) | ||||||||||
| Royalties | 1.6 | 2.1 | 6.4 | 5.6 | ||||||||||
| Total cash costs | $48.6 | $44.9 | $150.2 | $138.6 | ||||||||||
| Gold ounces sold | 23,809 | 37,406 | 87,710 | 111,095 | ||||||||||
| Mine-site total cash costs per ounce | $2,041 | $1,200 | $1,712 | $1,248 | ||||||||||
| Total cash costs | $48.6 | $44.9 | $150.2 | $138.6 | ||||||||||
| Sustaining capital expenditures | 17.1 | 10.2 | 45.9 | 33.8 | ||||||||||
| Accretion of decommissioning liabilities | 0.1 | 0.1 | 0.4 | 0.4 | ||||||||||
| Total all-in sustaining costs | $65.8 | $55.2 | $196.5 | $172.8 | ||||||||||
| Gold ounces sold | 23,809 | 37,406 | 87,710 | 111,095 | ||||||||||
| Mine-site all-in sustaining costs per ounce | $2,764 | $1,476 | $2,240 | $1,555 | ||||||||||
402026 Management’s Discussion and Analysis | ||||||||
| Mulatos District Total Cash Costs and Mine-site AISC Reconciliation | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (in millions, except ounces and per ounce figures) | ||||||||||||||
| Mining and processing | $33.3 | $31.2 | $103.5 | $102.3 | ||||||||||
Share-based compensation mark-to-market allocated to sites (included in mining and processing) (1) | (0.3) | (1.5) | (0.1) | (2.7) | ||||||||||
| Costs allocated to silver by-product | (3.1) | (2.8) | (11.4) | (7.1) | ||||||||||
| Royalties | 1.2 | 1.3 | 4.4 | 3.3 | ||||||||||
| Total cash costs | $31.1 | $28.2 | $96.4 | $95.8 | ||||||||||
| Gold ounces sold | 27,715 | 37,056 | 93,736 | 98,631 | ||||||||||
| Mine-site total cash costs per ounce | $1,122 | $761 | $1,028 | $971 | ||||||||||
| Total cash costs | $31.1 | $28.2 | $96.4 | $95.8 | ||||||||||
| Sustaining capital expenditures | 0.5 | 0.7 | 1.8 | 1.8 | ||||||||||
| Accretion of decommissioning liabilities | 1.9 | 1.9 | 5.4 | 5.5 | ||||||||||
| Total all-in sustaining costs | $33.5 | $30.8 | $103.6 | $103.1 | ||||||||||
| Gold ounces sold | 27,715 | 37,056 | 93,736 | 98,631 | ||||||||||
| Mine-site all-in sustaining costs per ounce | $1,209 | $831 | $1,105 | $1,045 | ||||||||||
(1)Share-based compensation included in mine-site total cash costs and mine-site AISC excludes the impact of mark-to-market adjustments for changes in the Company’s share price in the periods allocated to sites included in mining and processing costs.
Adjusted EBITDA
Adjusted EBITDA represents net earnings before interest, taxes, depreciation, and amortization and removes the effects of certain items that the Company believes are not reflective of the Company's underlying performance for the reporting period. The measure also removes the impact of non-cash items such as impairment loss charges or reversals, and net gain or loss on derivative financial instruments. Adjusted EBITDA is an indicator of the Company’s ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.
Adjusted EBITDA does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The following table reconciles this non-GAAP measure to the most directly comparable IFRS measure.
| (in millions) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net earnings | $165.6 | $276.3 | $627.4 | $450.9 | ||||||||||
| Adjustments: | ||||||||||||||
| Reversal of impairment | — | (218.8) | — | (218.8) | ||||||||||
| Inventory net realizable value adjustment | — | — | 10.8 | — | ||||||||||
| Finance income | (5.9) | (1.2) | (18.0) | (1.2) | ||||||||||
| Amortization | 44.2 | 52.0 | 137.9 | 156.1 | ||||||||||
| Net loss on commodity derivatives | 14.6 | 80.0 | 4.0 | 174.2 | ||||||||||
| Deferred income tax expense | 48.6 | 48.7 | 156.6 | 35.3 | ||||||||||
| Current income tax expense | 44.9 | 46.5 | 200.3 | 92.6 | ||||||||||
| Adjusted EBITDA | $312.0 | $283.5 | $1,119.0 | $689.1 | ||||||||||
Additional GAAP Measures
Additional GAAP measures are presented on the Company’s condensed interim consolidated financial statements and are not meant to be a substitute for other subtotals or totals presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. The following additional GAAP measures are used and are intended to provide an indication of the Company’s mine and operating performance:
•Earnings from operations - represents the amount of earnings before net finance expense/income, foreign exchange loss/gain, other loss, net loss/gain on commodity derivatives and income tax expense
412026 Management’s Discussion and Analysis | ||||||||
Accounting Estimates, Judgements, Policies and Changes
The preparation of the Company's consolidated financial statements in accordance with IFRS requires management to make estimates and judgements that affect the amounts reported in the consolidated financial statements and accompanying notes. The critical estimates and judgements applied in the preparation of the Company's condensed interim consolidated financial statements for the three and nine months ended September 30, 2026 are consistent with those used in the Company's consolidated financial statements for the year ended December 31, 2025.
Accounting Policies and Changes
The accounting policies applied in the condensed interim consolidated financial statements for the three and nine months ended September 30, 2026 are consistent with those used in the Company's consolidated financial statements for the year ended December 31, 2025, except for the policies disclosed in note 2 of the condensed interim consolidated financial statements for the three and nine months ended September 30, 2026.
Changes in Accounting Standards not yet effective
For information on new standards and interpretations not yet adopted, refer to note 2 of the condensed interim consolidated financial statements for the three and nine months ended September 30, 2026.
Internal Control over Financial Reporting
Management is responsible for the design, implementation and operating effectiveness of internal control over financial reporting. Under the supervision of the Chief Executive Officer and Chief Financial Officer, management evaluated the design and effectiveness of the Company’s internal control over financial reporting as of September 30, 2026. In making the assessment, management used the criteria set forth in Internal Control - Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on a review of internal control procedures at the end of the periods covered by this MD&A, management determined internal control over financial reporting was appropriately designed as at September 30, 2026.
Changes in Internal Control over Financial Reporting
There were no material changes in the Company’s internal control over financial reporting that occurred during the three and nine months ended September 30, 2026 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
Disclosure Controls
Management is also responsible for the design and effectiveness of disclosure controls and procedures. The Company’s Chief Executive Officer and Chief Financial Officer have each evaluated the effectiveness of the Company’s disclosure controls and procedures. Based on a review of disclosure controls and procedures at the end of the periods covered by this MD&A, management has concluded that these disclosure controls and procedures were appropriately designed as at September 30, 2026.
Limitations of Controls and Procedures
The Company’s management, including the Chief Executive Officer and Chief Financial Officer, believe that internal controls over financial reporting and disclosure controls and procedures, no matter how well designed and operated, have inherent limitations. Therefore, even those systems determined to be properly designed and effective can provide only reasonable assurance that the objectives of the control system are met.
422026 Management’s Discussion and Analysis | ||||||||
Cautionary Note to United States Investors
Measured, Indicated and Inferred Resources: All resource and reserve estimates included in this MD&A or documents referenced in this MD&A have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended ("CIM Standards"). NI 43-101 is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Mining disclosure in the United States was previously required to comply with SEC Industry Guide 7 (“SEC Industry Guide 7”) under the United States Securities Exchange Act of 1934, as amended. The Securities and Exchange Commission (the “SEC”) has adopted final rules, to replace SEC Industry Guide 7 with new mining disclosure rules under sub-part 1300 of Regulation S-K of the U.S. Securities Act (“Regulation S-K 1300”) which became mandatory for U.S. reporting companies beginning with the first fiscal year commencing on or after January 1, 2021. Under Regulation S-K 1300, the SEC now recognizes estimates of “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources”. In addition, the SEC has amended its definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” to be substantially similar to international standards.
Investors are cautioned that while the above terms are “substantially similar” to CIM Definitions, there are differences in the definitions under Regulation S-K 1300 and the CIM Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the mineral reserve or mineral resource estimates under the standards adopted under Regulation S-K 1300. U.S. investors are also cautioned that while the SEC recognizes “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under Regulation S-K 1300, investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. Mineralization described using these terms has a greater degree of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume that any measured mineral resources, indicated mineral resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable.
International Financial Reporting Standards: The consolidated financial statements of the Company have been prepared by management in accordance with IFRS, as issued by the IASB (note 2 and 3 to the consolidated financial statements for the year ended December 31, 2025). These accounting principles differ in certain material respects from accounting principles generally accepted in the United States of America. The Company’s reporting currency is the United States dollar unless otherwise noted.
432026 Management’s Discussion and Analysis | ||||||||
Cautionary Note Regarding Forward-Looking Statements
This MD&A contains or incorporates by reference “forward-looking statements” and “forward-looking information” as defined under applicable Canadian and U.S. securities legislation. All statements, other than statements of historical fact, which address events, results, outcomes or developments that the Company expects to occur are, or may be deemed, to be, forward-looking statements and are based on expectations, estimates and projections as at the date of this MD&A. Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology such as "expect", “assume”, "believe", "anticipate", "likely", "intend", "objective", "strive", "estimate", "budget", “potential”, "prospective", "opportunity", "forecast", “target”, "goal", "aim", “on track”, "on pace", “outlook”, “continue”, “ongoing”, "onwards", “plan”, "scheduled", or variations of such words and phrases and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved or the negative connotation of such terms.
Such statements in this MD&A may include (without limitation) information, assumptions, expectations and guidance as to strategy, plans, and future financial and operating performance, such as those regarding: free cash flow; mine-site free cash flow; costs (including total cash costs, AISC, mine-site AISC, capital expenditures, growth and sustaining capital, capitalized exploration, exploration spending); budgets; tax rates and the payment of taxes; IRR; NPV; total liquidity; returns to stakeholders; opportunities for share repurchases under the Company's Normal Course Issuer Bid; repurchase of legacy Argonaut hedges; the Company's base shelf prospectus; impacts of inflation and increasing labour and contractor costs; mine plans; mine life; Mineral Reserve life; Mineral Reserves and Resources; gold and other metal price assumptions; foreign exchange rates; sector outlook; size, value and profitability of operations and the Company's balanced approach to capital allocation; expanding margins; project economics; project risks; mining methodologies; underground development rates; mining, stacking, milling and processing rates; total mill feed and throughput rates; recovery rates; anticipated gold production, production rates, timing of production, further production potential and growth; gold grades; exploration potential, budgets, focuses, programs, targets, and projected results; investment in and funding of growth initiatives and projects; operational impacts on the natural environment; the Company's approach to reduction of its environmental footprint, greenhouse gas emissions, and related investments in new initiatives; community relations, engagement activities, and initiatives; corporate governance; plans with respect to health and safety; project milestones and timing and effects of completion of the IGD Expansion and the Phase 3+ Shaft Expansion; Magino mill expansion and intended effects on costs and processing; infrastructure upgrades; power projects; in the Mulatos District, the Puerto Del Aire project, including construction of the PDA mill, Cerro Pelon and the Halcon target, and anticipated timing of commencement of residual leaching at La Yaqui Grande; construction developments at the Lynn Lake project, project milestones and production projections and timing; exploration potential at the Qiqavik Gold project; scheduled final installment of $150m in respect of the sale of the Company's Turkish development projects; and any other statements that express management's expectations or estimates of future performance, operational, geological or financial results.
Alamos cautions that forward-looking statements are necessarily based upon several factors and assumptions that, while considered reasonable by the Company at the time of making such statements, are inherently subject to significant business, economic, technical, legal, political and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information.
Risk factors that may affect Alamos’ ability to achieve the expectations set forth in the forward-looking statements in this document include, but are not limited to: the actual results of current exploration activities; changes to current estimates of Mineral Reserves and Resources; changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing and recovery rate estimates which may be impacted by unscheduled maintenance, weather issues, labour and contractor availability and other operating or technical difficulties in connection with mining or development activities, including geotechnical challenges); conclusions of economic and geological evaluations; the costs and timing of exploration, construction and development of new deposits; changes in project parameters as plans continue to be refined; operations may be exposed to illnesses, diseases, epidemics and pandemics which may impact, among other things, the broader market and the trading price of the Company's shares; the duration of any regulatory responses to any illness, disease, epidemic or pandemic; government and the Company’s attempts to reduce the spread of any illness, disease, epidemic or pandemic which may affect many aspects of the Company's operations including the ability to transport personnel to and from site, contractor and supply availability and the ability to sell or deliver gold doré bars; provincial, state and federal orders or mandates (including with respect to mining operations generally or auxiliary businesses or services required for the Company’s operations) in Canada, Mexico and other jurisdictions in which the Company does or may conduct business; political and economic conditions and developments in the jurisdictions in which the Company operates and in the world generally; fluctuations in the price of gold or certain other commodities such as, diesel fuel, natural gas, and electricity; changes in foreign exchange rates (particularly CAD, MXN and USD); the impact of inflation and any tariffs, trade barriers and/or regulatory costs; changes in the Company's credit rating; any decision to declare a quarterly dividend; employee and community relations; litigation, administrative or regulatory proceedings and any resulting court, administrative, regulatory or arbitral decision(s) or order(s); disruptions affecting operations; power outages; availability of and increased costs associated with mining inputs and labour; delays in implementing growth and improvement initiatives; delays with the Phase 3+ Shaft Expansion or the IGD Expansion; delays in or obstructions to construction of the 115kV powerline for the Island Gold District; delays with the expansion of the Magino mill, paste plant construction project, construction of the Lynn Lake Project, construction of the PDA project, and/or the development or updating
442026 Management’s Discussion and Analysis | ||||||||
of mine plans; changes with respect to the intended method of accessing, mining the deposit, and processing any ore at PDA; delays in receiving or failure to receive the third installment payment in respect of the sale of the Company's Turkish development projects; risks associated with the start-up of new mines; the risk that the Company’s mines may not perform as planned; uncertainty with the Company’s ability to secure additional capital to execute its business plans; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining necessary licenses and permits, including the necessary licenses, permits, authorizations and/or approvals from the appropriate regulatory authorities for the Company’s development stage and operating assets; labour and contractor availability (and being able to secure the same on favourable terms); contests over title to properties; expropriation or nationalization of property; inherent risks and hazards associated with mining and mineral processing including industrial hazards and industrial accidents; environmental hazards including, without limitation, fires, floods, storm-related damage, seismic activity and unusual or unexpected formations, pressures and cave-ins; changes in national and local government legislation, controls or regulations in Canada, Mexico, the United States and other jurisdictions in which the Company does or may carry on business in the future; increased costs and risks related to the potential impact of climate change; failure to comply with environmental and health and safety laws and regulations; disruptions in the maintenance or provision of required infrastructure and information technology systems; risk of loss due to sabotage, protests and other civil disturbances; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows; risks arising from holding derivative instruments; and business opportunities that may be pursued by the Company.
Additional risk factors and details with respect to risk factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this MD&A are set out in the Company's latest 40-F/Annual Information Form and its Management's Discussion and Analysis for the year ended December 31, 2025, each under the heading “Risk Factors”, which is available on the SEDAR+ website at www.sedarplus.ca or on EDGAR at www.sec.gov. The foregoing should be reviewed in conjunction with the information, risk factors and assumptions found in this MD&A.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Qualified Persons
Chris Bostwick, FAusIMM, Alamos’ Senior Vice President, Technical Services, who is a qualified person within the meaning of National Instrument 43-101 ("Qualified Person"), has reviewed and approved the scientific and technical information contained in this MD&A.
45
ALAMOS GOLD INC.Financial Statements
(in United States dollars, unless otherwise stated)
For the Three and Nine Months Ended September 30, 2026 and 2025
 | Q3 2026 FINANCIAL REPORT | |||||||
ALAMOS GOLD INC.
Condensed Interim Consolidated Statements of Financial Position
(Unaudited - stated in millions of United States dollars)
| September 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $597.4 | $623.1 | |||||||||
| Equity securities | 44.2 | 58.9 | |||||||||
Amounts receivable (Note 3) | 59.1 | 45.0 | |||||||||
Inventories (Note 4) | 215.6 | 225.4 | |||||||||
Deferred payment consideration (Note 5) | 162.6 | 157.1 | |||||||||
| Other current assets | 36.1 | 26.0 | |||||||||
| Total Current Assets | 1,115.0 | 1,135.5 | |||||||||
| Non-Current Assets | |||||||||||
Mineral property, plant and equipment (Note 5) | 5,462.8 | 4,957.5 | |||||||||
| Deferred income taxes | 41.1 | 34.0 | |||||||||
Inventories (Note 4) | 130.9 | 84.9 | |||||||||
Deferred payment consideration (Note 5) | 147.1 | 142.0 | |||||||||
| Other non-current assets | 11.4 | 30.7 | |||||||||
| Total Assets | $6,908.3 | $6,384.6 | |||||||||
| LIABILITIES | |||||||||||
| Current Liabilities | |||||||||||
Accounts payable and accrued liabilities (Note 6) | $386.8 | $316.1 | |||||||||
Derivative liabilities (Note 7) | 48.7 | 128.0 | |||||||||
Deferred revenue (Note 8) | — | 50.0 | |||||||||
| Income taxes payable | 95.1 | 53.6 | |||||||||
| Current portion of lease liabilities | 9.3 | 11.8 | |||||||||
| Current portion of decommissioning liabilities | 14.0 | 8.1 | |||||||||
| Total Current Liabilities | 553.9 | 567.6 | |||||||||
| Non-Current Liabilities | |||||||||||
| Deferred income taxes | 1,032.0 | 873.3 | |||||||||
Derivative liabilities (Note 7) | — | 129.1 | |||||||||
Debt (Note 9) | 200.0 | 200.0 | |||||||||
| Lease liabilities | 17.2 | 11.2 | |||||||||
| Decommissioning liabilities | 149.5 | 153.4 | |||||||||
| Other non-current liabilities | 4.0 | 4.2 | |||||||||
| Total Liabilities | 1,956.6 | 1,938.8 | |||||||||
| EQUITY | |||||||||||
Share capital (Note 10) | $4,131.3 | $4,140.6 | |||||||||
| Contributed surplus | 84.5 | 87.7 | |||||||||
| Accumulated other comprehensive (loss) income | (18.8) | 0.3 | |||||||||
| Retained earnings | 754.7 | 217.2 | |||||||||
| Total Equity | 4,951.7 | 4,445.8 | |||||||||
| Total Liabilities and Equity | $6,908.3 | $6,384.6 | |||||||||
Commitments (Note 5), Subsequent events (Note 5,7,10)
The accompanying notes form an integral part of these condensed interim consolidated financial statements.
2 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
ALAMOS GOLD INC.
Condensed Interim Consolidated Statements of Comprehensive Income
For the Three and Nine Months Ended September 30, 2026 and 2025
(Unaudited - stated in millions of United States dollars, except share and per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| OPERATING REVENUES | $510.4 | $462.3 | $1,701.2 | $1,233.5 | |||||||||||||||||||
| COST OF SALES | |||||||||||||||||||||||
| Mining and processing | 163.8 | 135.9 | 483.1 | 415.3 | |||||||||||||||||||
| Inventory net realizable value adjustment (Note 4) | — | — | 10.8 | — | |||||||||||||||||||
| Royalties | 6.2 | 6.2 | 19.8 | 18.6 | |||||||||||||||||||
| Amortization | 44.2 | 52.0 | 137.9 | 156.1 | |||||||||||||||||||
| 214.2 | 194.1 | 651.6 | 590.0 | ||||||||||||||||||||
| EXPENSES | |||||||||||||||||||||||
| Exploration | 12.3 | 5.0 | 27.8 | 19.0 | |||||||||||||||||||
| Corporate and administrative | 10.2 | 9.6 | 32.3 | 29.6 | |||||||||||||||||||
Share-based compensation (Note 10) | 5.0 | 16.7 | 18.7 | 47.1 | |||||||||||||||||||
Reversal of impairment (Note 5) | — | (218.8) | — | (218.8) | |||||||||||||||||||
| 241.7 | 6.6 | 730.4 | 466.9 | ||||||||||||||||||||
| EARNINGS FROM OPERATIONS | 268.7 | 455.7 | 970.8 | 766.6 | |||||||||||||||||||
| OTHER (EXPENSES) INCOME | |||||||||||||||||||||||
Net loss on commodity derivatives (Note 7) | (14.6) | (80.0) | (4.0) | (174.2) | |||||||||||||||||||
Finance income (Note 11) | 5.9 | 1.2 | 18.0 | 1.2 | |||||||||||||||||||
| Foreign exchange gain (loss) | 0.9 | (1.5) | 4.3 | (7.7) | |||||||||||||||||||
Other loss (Note 12) | (1.8) | (3.9) | (4.8) | (7.1) | |||||||||||||||||||
| EARNINGS BEFORE INCOME TAXES | $259.1 | $371.5 | $984.3 | $578.8 | |||||||||||||||||||
| INCOME TAXES | |||||||||||||||||||||||
| Current income tax expense | (44.9) | (46.5) | (200.3) | (92.6) | |||||||||||||||||||
| Deferred income tax expense | (48.6) | (48.7) | (156.6) | (35.3) | |||||||||||||||||||
| NET EARNINGS | $165.6 | $276.3 | $627.4 | $450.9 | |||||||||||||||||||
| Items that may be subsequently reclassified to net earnings: | |||||||||||||||||||||||
| Net change in fair value of currency hedging instruments, net of taxes | (3.8) | (3.3) | (7.6) | 7.1 | |||||||||||||||||||
| Net change in fair value of fuel hedging instruments, net of taxes | 0.3 | — | 0.9 | — | |||||||||||||||||||
| Items that will not be reclassified to net earnings: | |||||||||||||||||||||||
| Unrealized gain (loss) on equity securities, net of taxes | 4.5 | 19.5 | (12.0) | 28.4 | |||||||||||||||||||
| Total other comprehensive income (loss) | $1.0 | $16.2 | ($18.7) | $35.5 | |||||||||||||||||||
| COMPREHENSIVE INCOME | $166.6 | $292.5 | $608.7 | $486.4 | |||||||||||||||||||
EARNINGS PER SHARE (Note 13) | |||||||||||||||||||||||
| – basic | $0.40 | $0.66 | $1.50 | $1.07 | |||||||||||||||||||
| – diluted | $0.39 | $0.65 | $1.49 | $1.07 | |||||||||||||||||||
The accompanying notes form an integral part of these condensed interim consolidated financial statements.
3 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
ALAMOS GOLD INC.
Condensed Interim Consolidated Statements of Changes in Equity
For the Nine Months Ended September 30, 2026 and 2025
(Unaudited - stated in millions of United States dollars)
| September 30, 2026 | September 30, 2025 | ||||||||||
SHARE CAPITAL (Note 10) | |||||||||||
| Balance, beginning of the year | $4,140.6 | $4,138.5 | |||||||||
| Issuance of shares related to share-based compensation | 0.8 | 2.8 | |||||||||
| Issuance of shares for deferred share units ("DSU") settled | 1.2 | — | |||||||||
| Issuance of shares related to dividend reinvestment plan ("DRIP") | 1.6 | 2.2 | |||||||||
| Issuance of shares related to employee share purchase plan ("ESPP") | 0.7 | 5.0 | |||||||||
| Transfer from contributed surplus of share-based compensation and DSU redeemed | 0.4 | 1.0 | |||||||||
| Exercise of Orford warrants and options | 0.1 | 1.1 | |||||||||
| Shares issued for acquisition of property | 1.5 | — | |||||||||
Repurchase and cancellation of common shares (Note 10(a)) | (15.6) | (4.0) | |||||||||
| Balance, end of period | $4,131.3 | $4,146.6 | |||||||||
| CONTRIBUTED SURPLUS | |||||||||||
| Balance, beginning of the year | $87.7 | $89.3 | |||||||||
| Share-based compensation | 0.4 | 2.7 | |||||||||
| Transfer to share capital of share-based compensation and DSU redeemed | (0.4) | (1.0) | |||||||||
| Distribution of share-based compensation | (3.2) | (3.7) | |||||||||
| Exercise of Orford warrants and options | — | (0.3) | |||||||||
| Balance, end of period | $84.5 | $87.0 | |||||||||
| ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |||||||||||
| Balance, beginning of the year on currency hedging instruments | $2.9 | ($5.3) | |||||||||
| Net change in fair value of currency hedging instruments, net of taxes | (7.6) | 7.1 | |||||||||
| ($4.7) | $1.8 | ||||||||||
| Balance, beginning of the year on fuel hedging instruments | ($0.2) | ($0.2) | |||||||||
| Net change in fair value of fuel hedging instruments, net of taxes | 0.9 | — | |||||||||
| $0.7 | ($0.2) | ||||||||||
| Balance, beginning of the year on equity securities | ($2.4) | ($31.9) | |||||||||
| Realized gain on sale of equity securities, reclassified to retained earnings (loss), net of tax | (0.4) | (3.0) | |||||||||
| Net change in unrealized (loss) gain on equity securities, net of taxes | (12.0) | 28.4 | |||||||||
| ($14.8) | ($6.5) | ||||||||||
| Balance, end of period | ($18.8) | ($4.9) | |||||||||
| RETAINED EARNINGS (LOSS) | |||||||||||
| Balance, beginning of the year | $217.2 | ($606.2) | |||||||||
Dividends (Note 10(e)) | (50.2) | (31.6) | |||||||||
Repurchase and cancellation of common shares (Note 10(a)) | (40.1) | (6.0) | |||||||||
| Reclassification of realized gain on disposition of equity securities, net of tax | 0.4 | 3.0 | |||||||||
| Net earnings | 627.4 | 450.9 | |||||||||
| Balance, end of period | $754.7 | ($189.9) | |||||||||
TOTAL EQUITY | $4,951.7 | $4,038.8 | |||||||||
The accompanying notes form an integral part of these condensed interim consolidated financial statements.
4 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
ALAMOS GOLD INC.
Condensed Interim Consolidated Statements of Cash Flows
For the Three and Nine Months Ended September 30, 2026 and 2025
(Unaudited - stated in millions of United States dollars)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| CASH PROVIDED BY (USED IN): | |||||||||||||||||||||||
| OPERATING ACTIVITIES | |||||||||||||||||||||||
| Net earnings | $165.6 | $276.3 | $627.4 | $450.9 | |||||||||||||||||||
| Adjustments for items not involving cash: | |||||||||||||||||||||||
| Amortization | 44.2 | 52.0 | 137.9 | 156.1 | |||||||||||||||||||
Reversal of impairment (Note 5) | — | (218.8) | — | (218.8) | |||||||||||||||||||
| Inventory net realizable value adjustment (Note 4) | — | — | 10.8 | — | |||||||||||||||||||
| Foreign exchange (gain) loss | (0.9) | 1.5 | (4.3) | 7.7 | |||||||||||||||||||
| Current income tax expense | 44.9 | 46.5 | 200.3 | 92.6 | |||||||||||||||||||
| Deferred income tax expense | 48.6 | 48.7 | 156.6 | 35.3 | |||||||||||||||||||
Share-based compensation (Note 10) | 7.0 | 22.5 | 20.9 | 58.0 | |||||||||||||||||||
| Finance income (Note 11) | (5.9) | (1.2) | (18.0) | (1.2) | |||||||||||||||||||
| Net loss on commodity derivatives | 14.6 | 80.0 | 4.0 | 174.2 | |||||||||||||||||||
Deferred revenue recognized (Note 8) | — | (31.2) | (51.0) | (93.5) | |||||||||||||||||||
Settlement of legacy Argonaut gold hedges (Note 7) | (86.2) | — | (221.2) | — | |||||||||||||||||||
Other items (Note 14) | 3.0 | (1.0) | (3.6) | (21.7) | |||||||||||||||||||
Changes in working capital and taxes paid (Note 14) | (18.6) | (10.0) | (169.2) | (95.2) | |||||||||||||||||||
| 216.3 | 265.3 | 690.6 | 544.4 | ||||||||||||||||||||
| INVESTING ACTIVITIES | |||||||||||||||||||||||
| Mineral property, plant and equipment | (226.9) | (135.0) | (591.0) | (349.6) | |||||||||||||||||||
Interest capitalized to mineral property, plant and equipment (Note 5) | (3.0) | (4.3) | (9.2) | (13.2) | |||||||||||||||||||
| Repurchase of royalty on Young-Davidson | — | — | — | (2.0) | |||||||||||||||||||
| Proceeds from disposition of equity securities | — | 5.6 | 0.6 | 7.4 | |||||||||||||||||||
| Investment in equity securities | — | — | (0.6) | (0.2) | |||||||||||||||||||
| Transaction costs arising on asset dispositions and acquisitions | — | (0.2) | — | (0.2) | |||||||||||||||||||
| (229.9) | (133.9) | (600.2) | (357.8) | ||||||||||||||||||||
| FINANCING ACTIVITIES | |||||||||||||||||||||||
Dividends paid (Note 10e) | (16.2) | (10.1) | (48.6) | (29.4) | |||||||||||||||||||
Repurchase and cancellation of common shares (Note 10a) | (5.7) | — | (55.7) | (10.0) | |||||||||||||||||||
| Credit facility transaction costs, standby fees and interest | (1.1) | (0.3) | (1.9) | (2.2) | |||||||||||||||||||
| Proceeds from the exercise of options and warrants | 0.2 | 1.3 | 0.8 | 3.1 | |||||||||||||||||||
| Lease payments | (3.0) | (4.3) | (10.2) | (12.6) | |||||||||||||||||||
| (25.8) | (13.4) | (115.6) | (51.1) | ||||||||||||||||||||
| Effect of exchange rates on cash and cash equivalents | (0.1) | 0.2 | (0.5) | 0.4 | |||||||||||||||||||
| Net (decrease) increase in cash and cash equivalents | (39.5) | 118.2 | (25.7) | 135.9 | |||||||||||||||||||
| Cash and cash equivalents - beginning of period | 636.9 | 344.9 | 623.1 | 327.2 | |||||||||||||||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $597.4 | $463.1 | $597.4 | $463.1 | |||||||||||||||||||
The accompanying notes form an integral part of these condensed interim consolidated financial statements.
5 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
ALAMOS GOLD INC.
Notes to Condensed Interim Consolidated Financial Statements
September 30, 2026 and 2025
(Unaudited - in United States dollars, unless otherwise indicated, tables stated in millions of United States dollars)
| 1 | DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS | ||||
Alamos Gold Inc. ("Alamos"), a company incorporated under the Business Corporation Act (Ontario), and its wholly-owned subsidiaries (collectively the “Company”) is a publicly traded company with common shares listed on the Toronto Stock Exchange (TSX:AGI) and the New York Stock Exchange (NYSE: AGI). The Company's new registered office is located at 141 Bay Street, Suite 4800, Toronto, Ontario, M5J 0G3.
Alamos is a Canadian-based intermediate gold producer with diversified production from three operations in North America. This includes the Island Gold District (comprising the Island Gold and Magino mines) and Young-Davidson mine in Northern Ontario, Canada and the Mulatos District (comprising the Mulatos and La Yaqui Grande mines) in Sonora State, Mexico. Additionally, the Company has a strong portfolio of growth projects, including the Phase 3+ Shaft Expansion and the Island Gold District Expansion in the Island Gold District, the Lynn Lake project in Manitoba, Canada and the Puerto Del Aire project in the Mulatos District.
| 2 | BASIS OF PREPARATION | ||||
Statement of Compliance
These condensed interim consolidated financial statements are prepared in accordance with IAS 34, Interim Financial Reporting (“IAS 34”) as issued by the International Accounting Standards Board (“IASB”). These statements were prepared using the same accounting policies and methods of computation as the Company’s consolidated financial statements for the year ended December 31, 2025 except as described below for new accounting standards adopted effective January 1, 2026.
The Company's interim results are not necessarily indicative of its results for a full year. All amounts are expressed in US dollars, unless otherwise noted. References to CAD $ represent Canadian dollars.
These condensed interim consolidated financial statements do not include all disclosures required by International Financial Reporting Standards (“IFRS”) for annual consolidated financial statements and accordingly should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2025, prepared in accordance with IFRS as issued by the IASB.
The condensed interim consolidated financial statements were authorized for issue by the Board of Directors on October 28, 2026.
Recently Adopted Accounting Standards
Effective January 1, 2026, the Company adopted certain amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. There were no impacts to the Company's condensed interim consolidated financial statements resulting from the adoption of the amendments.
Changes in Accounting Standards not yet effective
In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements ("IFRS 18"), which replaces IAS 1 Presentation of Financial Statements. IFRS 18 introduces new presentation and disclosure requirements intended to improve the consistency and comparability of financial information, with a primary focus on the statement of profit or loss.
The adoption of IFRS 18 requires all income and expenses to be classified into one of five categories: operating, investing, financing, income taxes and discontinued operations, and introduces two new mandatory subtotals: operating profit and profit before financing and income taxes. The standard also enhances guidance on the aggregation and disaggregation of information in the financial statements and introduces new disclosure requirements for management‑defined performance measures (“MPMs”). From a cash flow statement perspective, IFRS 18 introduces changes to the starting point used to determine cash flows from operating activities, which will be based on operating profit rather than net income. IAS 7 Statement of Cash Flows has not been substantively amended, and any changes to the classification of cash flows would be made solely to align with the presentation adopted in the statement of profit or loss.
The Company is currently assessing the impact of IFRS 18 on its consolidated financial statements. Based on a preliminary assessment, the following potential material impacts have been identified; however, the assessment is ongoing and additional impacts may be identified as the implementation process progresses.
•Operating revenues, cost of sales, exploration expense, corporate and administrative expense, share-based compensation expense, gain or loss on commodity derivatives, gain or loss on disposal of assets, deferred payment
6 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
accretion income, and revision to reclamation for closed sites will be classified in the operating category within the statements of comprehensive income
•Interest income from cash and cash equivalents will be classified in the investing category within the statements of comprehensive income
•Other interest expense will be classified in the financing category within the statements of comprehensive income
•Foreign exchange differences will be classified in the same category as the related income or expenses arising from the items giving rise to the foreign exchange differences
•New disclosure will be added for MPMs. The Company has performed an initial assessment of the performance measures that it currently uses in its communications outside of the financial statements and believes that adjusted net earnings and adjusted EBITDA will meet the MPM definition
The Company does not expect the adoption of IFRS 18 to have an impact on net earnings. The Company will adopt IFRS 18 effective January 1, 2027, commencing with its condensed interim consolidated financial statements for the three months ended March 31, 2027, and prior period comparatives will be restated in accordance with the new standard.
| 3 | AMOUNTS RECEIVABLE | ||||
| September 30, 2026 | December 31, 2025 | |||||||
| Sales tax receivables | ||||||||
| Canada | $25.0 | $26.4 | ||||||
| Mexico | 22.6 | 13.2 | ||||||
| Other receivables | 11.5 | 5.4 | ||||||
| $59.1 | $45.0 | |||||||
| 4 | INVENTORIES | ||||
| September 30, 2026 | December 31, 2025 | |||||||
| In-process precious metals | $103.5 | $100.4 | ||||||
| Ore in stockpiles | 143.8 | 100.8 | ||||||
| Dore, and refined precious metals | 12.8 | 27.3 | ||||||
| Parts and supplies | 86.4 | 81.8 | ||||||
| $346.5 | $310.3 | |||||||
| Less: Long-term stockpiled ore inventory | (130.9) | (84.9) | ||||||
| $215.6 | $225.4 | |||||||
Long term inventory consists of long-term stockpiles which are expected to be recovered after one year. As at September 30, 2026, long term stockpiles are comprised of low-grade stockpiles at the Magino mine.
The Company assesses the net realizable value of inventory at each reporting period. For the nine months ended September 30, 2026, given the higher processing costs associated with the residual leaching process at the Mulatos operation, the Company recorded a $10.8 million reduction in the carrying value of the heap leach inventory at Mulatos. The remaining carrying value of the heap leach inventory at Mulatos was $8.5 million as at September 30, 2026 (December 31, 2025 - $52.4 million).
7 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
| 5 | MINERAL PROPERTY, PLANT AND EQUIPMENT | ||||
Plant and equipment (iii, iv) | Mineral Property | Exploration and evaluation | Total | ||||||||||||||
| Cost | |||||||||||||||||
| At December 31, 2024 | $2,597.5 | $4,100.3 | $181.4 | $6,879.2 | |||||||||||||
Additions1 | 145.2 | 429.0 | (0.7) | 573.5 | |||||||||||||
Transfer of Puerto del Aire assets 2 | — | 19.4 | (19.4) | — | |||||||||||||
Disposal of Turkish projects and Quartz Mountain (i) | (1.9) | (142.4) | (85.4) | (229.7) | |||||||||||||
| Revisions to decommissioning liabilities | — | 10.6 | — | 10.6 | |||||||||||||
| Disposals | (21.6) | — | — | (21.6) | |||||||||||||
| At December 31, 2025 | $2,719.2 | $4,416.9 | $75.9 | $7,212.0 | |||||||||||||
| Additions | 87.0 | 571.3 | 1.8 | 660.1 | |||||||||||||
| Revision to decommissioning liabilities | — | 6.5 | — | 6.5 | |||||||||||||
| Disposals | (18.5) | — | — | (18.5) | |||||||||||||
| At September 30, 2026 | $2,787.7 | $4,994.7 | $77.7 | $7,860.1 | |||||||||||||
Accumulated amortization and impairment | |||||||||||||||||
| At December 31, 2024 | $968.0 | $1,208.3 | $84.9 | $2,261.2 | |||||||||||||
| Amortization | 140.6 | 89.2 | — | 229.8 | |||||||||||||
Reversal of impairment (i) | (0.3) | (142.4) | (76.1) | (218.8) | |||||||||||||
| Disposals | (17.7) | — | — | (17.7) | |||||||||||||
| At December 31, 2025 | $1,090.6 | $1,155.1 | $8.8 | $2,254.5 | |||||||||||||
| Amortization | 99.6 | 57.8 | — | 157.4 | |||||||||||||
| Disposals | (14.6) | — | — | (14.6) | |||||||||||||
| At September 30, 2026 | $1,175.6 | $1,212.9 | $8.8 | $2,397.3 | |||||||||||||
| Net carrying value | |||||||||||||||||
| At December 31, 2025 | $1,628.6 | $3,261.8 | $67.1 | $4,957.5 | |||||||||||||
| At September 30, 2026 | $1,612.1 | $3,781.8 | $68.9 | $5,462.8 | |||||||||||||
1. Included in additions is the repurchase of a royalty on the Young-Davidson mine of $2.0 million.
2. Puerto del Aire ("PDA") was determined to have achieved technical feasibility and commercial viability as of January 31, 2025, and was reclassified from an exploration and evaluation asset to a development stage asset following a mandatory impairment test.
The net carrying values and capital additions by segment (Note 15) are as follows:
| September 30, 2026 | December 31, 2025 | ||||||||||||||||
| Mineral Property, Plant and Equipment | Capital additions for the nine months ended1 | Mineral Property, Plant and Equipment | Capital additions for the year ended1 | ||||||||||||||
| Young-Davidson | $1,610.4 | $72.0 | $1,581.9 | $94.8 | |||||||||||||
| Island Gold District | 3,176.5 | 377.0 | 2,881.3 | 397.3 | |||||||||||||
Mulatos District2 | 247.4 | 56.2 | 221.2 | 28.2 | |||||||||||||
Corporate and other3 | 428.5 | 154.9 | 273.1 | 53.2 | |||||||||||||
| $5,462.8 | $660.1 | $4,957.5 | $573.5 | ||||||||||||||
1.Segment capital additions are presented on an accrual basis. Mineral property, plant and equipment in the consolidated statements of cash flows are presented on a cash expenditure basis.
2.Mulatos District includes the PDA project.
3.Corporate and other consists of corporate expenditures, capitalized exploration and evaluation and the Lynn Lake project.
8 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
(i) Disposition of the Turkish Projects and Quartz Mountain
(a) Sale of the Turkish Projects
On October 27, 2025, the Company completed the sale of its Turkish Projects to Tümad Madencilik Sanayi ve Ticaret A.Ş (“Tümad”) for total cash consideration of $470.0 million. On the date of closing, the Company received $157.3 million in cash, net of transaction costs of $2.7 million. The remaining purchase price is payable by Tümad to Alamos as follows:
•$160.0 million payable on the one-year anniversary of the closing of the transaction; and
•$150.0 million payable on the two-year anniversary of the closing of the transaction.
The anniversary payments are secured by bank guarantees provided by international financial institutions with investment grade ratings, which were also received on closing.
As at September 30, 2026, a current deferred payment consideration of $159.5 million and a non-current deferred payment consideration of $142.9 million have been recorded in the condensed interim consolidated statement of financial position, reflecting the fair value and timing of the future payments. The transaction also resulted in a reversal of a previously recognized impairment of $218.8 million for the year ended December 31, 2025. On October 9, 2026, the first anniversary payment of $160.0 million was received.
(b) Sale of Quartz Mountain Gold Project ("Quartz Mountain")
On October 22, 2025, the Company completed the sale of its option to earn a 100% interest in Quartz Mountain to Q-Gold Resources Ltd. ("Q-Gold") for consideration of up to $21.0 million and a 9.9% equity interest in Q-Gold. On the date of closing the Company received $2.8 million in cash, net of transaction costs of $0.1 million and 13,924,702 common shares of Q-Gold recorded at a fair value of $2.9 million. The remaining consideration of up to $18.2 million will be payable in cash or common shares of Q-Gold, at Alamos’ election, and is comprised of $8.2 million of guaranteed payments to be paid over three years, and $10.0 million of milestone payments. On October 27, 2026, the first anniversary payment of 22,859,861 Q-Gold shares, valued at
$3.2 million, was received.
As at September 30, 2026, a current deferred payment consideration of $3.1 million and a non-current deferred payment consideration of $4.2 million have been recorded in the condensed interim consolidated statement of financial position, reflecting the fair value and timing of the future payments.
(ii) Royalties
The Company is obliged to make certain royalty payments on its mineral properties. The following table includes the significant royalties payable by the Company:
| Location | Royalties payable | ||||
| Mulatos | 1.0% Extraordinary Mining Duty due to the Mexican government | ||||
| Young-Davidson | 1.5% net smelter royalty | ||||
| Magino | 3% net smelter royalty | ||||
| Island Gold | 2-3% net smelter royalties, dependent on claim | ||||
(iii) Right-of-use assets ("ROU assets")
Amortization during the nine months ended September 30, 2026 includes depreciation for ROU assets of $8.2 million. The net book value of property, plant and equipment includes ROU assets with an aggregate net book value of $33.8 million as at September 30, 2026.
(iv) Capitalized interest
During the nine months ended September 30, 2026, the Company capitalized interest of $10.4 million related to qualifying capital expenditures at the Phase 3+ Shaft Expansion project, Island Gold District Expansion, Lynn Lake and PDA development assets (September 30, 2025 - $19.8 million), which had a weighted average borrowing rate of 5.65% (September 30, 2025 - 6.40%).
(v) Capital Commitments and Other
The carrying value of construction in progress at September 30, 2026 was $930.9 million (December 31, 2025 - $657.8 million). As of September 30, 2026, the Company has $335.1 million in committed capital purchases (December 31, 2025 - $260.8 million).
9 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
| 6 | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ||||
| September 30, 2026 | December 31, 2025 | |||||||
| Trade accounts payable and accrued liabilities | $321.4 | $246.9 | ||||||
| Royalties payable | 6.2 | 8.4 | ||||||
| Share-based compensation liability | 58.6 | 60.2 | ||||||
| Other | 0.6 | 0.6 | ||||||
| $386.8 | $316.1 | |||||||
| 7 | FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | ||||
Fair value measurements of financial instruments measured at fair value
The following table sets forth the Company’s financial assets and liabilities that are measured at fair value on a recurring basis by level within the fair value hierarchy. The Company does not have any non-recurring fair value measurements as at September 30, 2026. Levels 1 to 3 of the fair value hierarchy are defined based on the degree to which fair value inputs are observable or unobservable, as follows:
•Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
•Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the net asset or liability, either directly or indirectly; and
•Level 3 inputs are unobservable (supported by little or no market activity)1.
| September 30, 2026 | December 31, 2025 | |||||||||||||||||||
| Level 1 | Level 2 | Level 1 | Level 2 | |||||||||||||||||
Financial assets (liabilities)3 | ||||||||||||||||||||
| Fair value through profit or loss | ||||||||||||||||||||
Commodity options not designated as hedging instruments | — | 1.1 | — | — | ||||||||||||||||
Gold forwards acquired from Argonaut not designated as hedging instruments 2 | — | (40.5) | — | (257.0) | ||||||||||||||||
| Fair value through OCI | ||||||||||||||||||||
| Equity securities | 44.2 | — | 58.9 | — | ||||||||||||||||
| Currency derivatives designated as hedging instruments | — | (8.2) | — | 2.0 | ||||||||||||||||
| Fuel options designated as hedging instruments | — | 1.2 | — | (0.1) | ||||||||||||||||
| $44.2 | ($46.4) | $58.9 | ($255.1) | |||||||||||||||||
1The Company did not hold any financial instruments classified as Level 3 as at September 30, 2026 and December 31, 2025.
2 The outstanding balance of the Argonaut gold forwards of $40.5 million is recognized as a current liability as at September 30, 2026 on the condensed interim consolidated statements of financial position (December 31, 2025 - $127.9 million recognized as a current liability; $129.1 million recognized as a non-current liability).
3On a gross basis, total derivatives recognized as at September 30, 2026 consist of total assets of $2.3 million included in other current assets and total liabilities of $48.7 million included in current liabilities on the condensed interim consolidated statements of financial position.
Fair Value Methodology
The methods of measuring financial assets and liabilities are the same as described in the December 31, 2025 consolidated financial statements.
The fair value of option and forward contracts is determined using a market approach with reference to observable market prices for identical assets traded in an active market. These are classified within Level 2 of the fair value hierarchy. The use of reasonably possible alternative assumptions would not significantly affect the Company’s results.
10 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
Derivative Instruments designated as cash flow hedges
Currency option and forward contracts and fuel option contracts
The Company enters into option and forward contracts to hedge against the risk of an increase in the value of the Canadian dollar and Mexican peso versus the US dollar. These option and forward contracts are for the purchase of local currencies and the sale of US dollars, which settle on a monthly basis, and the Company believes this is an appropriate manner of managing currency risk.
The effective portion of the changes in fair value of the hedging instrument for the three and nine months ended September 30, 2026 recorded in accumulated other comprehensive (loss) income is:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Balance, beginning of the period | ($0.9) | $5.1 | $2.9 | ($5.3) | ||||||||||
| Change in value on currency instruments | (3.9) | (3.0) | (8.5) | 10.4 | ||||||||||
| Less: realized loss (gain) on CAD currency instruments | 0.2 | (0.2) | 0.5 | 0.9 | ||||||||||
| Less: realized gain on MXN currency instruments | (1.2) | (1.1) | (2.2) | (1.8) | ||||||||||
| Deferred income tax related to hedging instruments | 1.1 | 1.0 | 2.6 | (2.4) | ||||||||||
| ($4.7) | $1.8 | ($4.7) | $1.8 | |||||||||||
For the three and nine months ended September 30, 2026, the Company did not recognize any ineffectiveness on the hedging instruments.
The open contracts are summarized as at September 30, 2026:
Canadian Dollar contracts
| Period covered | Contract type | Contracts (CAD$ millions) | Average minimum rate (USD/CAD) | Average maximum rate (USD/CAD) | ||||||||||
| 2026 | Forwards | 6.0 | — | 1.41 | ||||||||||
| 2026 | Collars1 | 195.0 | 1.34 | 1.40 | ||||||||||
| 2027 | Collars2 | 699.0 | 1.35 | 1.41 | ||||||||||
Mexican Peso contracts
| Period covered | Contract type | Contracts (MXN$ millions) | Average minimum rate (USD/MXN) | Average maximum rate (USD/MXN) | |||||||||||||
| 2026 | Collars3 | 420.0 | 17.72 | 18.53 | |||||||||||||
| 2027 | Collars4 | 1,050.0 | 17.29 | 18.57 | |||||||||||||
| 2027 | Forwards | 480.0 | — | 18.02 | |||||||||||||
1 48% of the 2026 collars have barriers which average to USD/CAD 1.42 to allow further participation in the scenario of weakening Canadian dollar. If the barriers get triggered, the maximum average rate for those collars will be at 1.39.
2 45% of the 2027 collars have barriers which average to USD/CAD 1.43 to allow further participation in the scenario of weakening Canadian dollar. If the barriers get triggered, the maximum average rate for those collars will be at 1.40.
3 100% of the collars have barriers which average to USD/MXN 20.42 to allow further participation in the scenario of weakening Mexican peso. If the barriers get triggered, the maximum average rate for those collars will be at 18.53.
4 54% of the collars have barriers which average to USD/MXN 19.74 to allow further participation in the scenario of weakening Mexican peso. If the barriers get triggered, the maximum average rate for those collars will be at 18.44.
The fair value of these contracts was a liability of $8.2 million as at September 30, 2026 (December 31, 2025 - asset of $2.0 million).
11 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
The effective portion of the changes in fair value of the fuel contracts for the three and nine months ended September 30, 2026 recorded in accumulated other comprehensive income (loss) is:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Balance, beginning of the period | $0.4 | ($0.2) | ($0.2) | ($0.2) | ||||||||||
| Change in value on fuel contracts | 1.2 | — | 2.9 | — | ||||||||||
| Less: realized gain (loss) on fuel contracts | (0.8) | 0.1 | (1.6) | 0.1 | ||||||||||
| Deferred income tax related to fuel contracts | (0.1) | — | (0.4) | — | ||||||||||
| $0.7 | ($0.1) | $0.7 | ($0.1) | |||||||||||
As at September 30, 2026, the Company held contracts to protect against the risk of an increase in the price of fuel. These collars totaling 378,000 gallons, ensure a maximum purchase call option of $2.32 per gallon and a minimum average sold put options of $2.12 per gallon, regardless of the movement in fuel prices during 2026. As at September 30, 2026, the fair value of these contracts was an asset of $1.2 million (December 31, 2025 - liability of $0.1 million).
Derivative Instruments not designated as cash flow hedges
Legacy Argonaut gold forward contracts
As at September 30, 2026, the Company held forward contracts that were acquired as part of the acquisition of Argonaut. During the three and nine months ended September 30, 2026, the Company settled 33,000 ounces and 83,000 ounces, respectively, representing full settlement of the ounces expected for delivery in the second half of 2026 and partial settlement of the expected delivery in the first half of 2027. These settlements resulted in a cash payment of $86.2 million and $221.2 million, respectively. The remaining contracts, totaling 17,000 ounces scheduled for delivery in the first half of 2027, have an average forward price of $1,826 per ounce. The fair value of the remaining contracts was a current liability of $40.5 million at September 30, 2026 (December 31, 2025 - liability of $257.0 million). Subsequent to September 30, 2026, a further 3,000 ounces were settled.
Silver Option Contracts
As at September 30, 2026, the Company held contracts to protect against the risk of a decrease in the price of silver. These collars, totaling 45,000 ounces, ensure a minimum purchased put option of $85.50 and a maximum average sold call options of $109.50 per ounce, regardless of the movement in silver prices during 2026. As at September 30, 2026, the fair value of these contracts was a current asset of $1.1 million (December 31, 2025 - $nil).
Realized loss on commodity derivatives
The Company realized losses of $86.2 million and $221.2 million on commodity derivatives in the three and nine months ended September 30, 2026, respectively (three and nine months ended September 30, 2025 - $nil), primarily from the early settlement of the legacy Argonaut hedges.
Unrealized gain (loss) on commodity derivatives
The Company recorded unrealized gains of $71.6 million and $217.2 million for the three and nine months ended September 30, 2026, respectively, (three and nine months ended September 30, 2025 - unrealized losses of $80.0 million and $174.2 million). The Company has elected to not apply hedge accounting to these contracts, with changes in fair value recorded in net earnings.
12 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
| 8 | DEFERRED REVENUE | ||||
| Deferred Revenue | |||||
| At December 31, 2024 | $116.6 | ||||
| Deferred revenue recognized | (124.6) | ||||
| Accretion expense | 8.0 | ||||
| Advanced consideration from gold sale prepayment agreement | 50.0 | ||||
| At December 31, 2025 | $50.0 | ||||
| Deferred revenue recognized | (51.0) | ||||
| Accretion expense | 1.0 | ||||
At September 30, 2026 | $— | ||||
In December 2025, the Company entered into a gold sale prepayment agreement. Under the terms of the gold prepayment, the Company received advanced consideration of $50.0 million in exchange for the delivery of 12,255 ounces in the first half of 2026, settled monthly, based on the average forward curve price of $4,166 per ounce.
During the first half of 2026, 12,255 ounces were physically delivered to settle the gold sale prepayment agreement.
For the nine months ended September 30, 2026, accretion expense of $1.0 million was capitalized (nine months ended September 30, 2025 - $6.9 million) (Note 5).
| 9 | DEBT | ||||
| September 30, 2026 | ||||||||||||||
| Nominal Amount | Carrying Amount | Fair Value | ||||||||||||
Revolving Credit Facility (i) | $200.0 | $200.0 | $200.0 | |||||||||||
(i) Revolving credit facility ("Facility")
During 2024, the Company drew down $250.0 million from the Facility. In the fourth quarter of 2025, the Company repaid $50.0 million of the facility with $200.0 million outstanding as at September 30, 2026.
The Facility bears interest at a rate of Adjusted Term SOFR Rate plus 1.45% on drawn amounts and stand-by fees of 0.29% on undrawn amounts. The Company has $550.0 million available under the Facility which remains undrawn as at September 30, 2026. In August 2026, the Company extended the term of the revolving credit facility to August 2030.
The Facility contains various covenants customary for a loan facility of this nature, including limits on indebtedness, asset sales and liens. It contains financial covenant tests that include (a) a minimum interest coverage ratio of 3.0:1.0 and (b) a maximum net leverage ratio of 3.5:1.0, both as defined in the agreement. As at September 30, 2026, the Company is in compliance with all covenants.
13 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
| 10 | SHARE CAPITAL | ||||
a) Authorized share capital of the Company consists of an unlimited number of fully paid Common Shares without par value.
| Number of Shares | Amount | |||||||
| Outstanding at December 31, 2024 | 420,365,051 | $4,138.5 | ||||||
| Shares issued through: | ||||||||
| Share-based compensation plans | 411,984 | 4.5 | ||||||
DRIP (ii) | 90,767 | 2.6 | ||||||
ESPP (iii) | 252,730 | 6.6 | ||||||
| Exercise of Orford replacement stock options | 67,141 | 1.5 | ||||||
Shares repurchased and cancelled (i) | (1,326,929) | (13.1) | ||||||
| Outstanding at December 31, 2025 | 419,860,744 | $4,140.6 | ||||||
| Shares issued through: | ||||||||
| Share-based compensation plans | 89,345 | 1.0 | ||||||
| Issuance of shares for DSU settled | 72,218 | 1.4 | ||||||
DRIP (ii) | 52,552 | 1.6 | ||||||
ESPP (iii) | 13,553 | 0.7 | ||||||
| Exercise of Orford replacement stock options | 7,784 | 0.1 | ||||||
| Shares issued for acquisition of property | 58,058 | 1.5 | ||||||
Shares repurchased and cancelled (i) | (1,593,044) | (15.6) | ||||||
| Outstanding at September 30, 2026 | 418,561,210 | $4,131.3 | ||||||
(i) Normal Course Issuer Bid
In December 2025, the Company renewed its NCIB permitting the purchase for cancellation of up to 18,580,120 common shares, representing 5% of the Company’s public float. The Company may purchase Common Shares under the NCIB up to December 23, 2026. For the nine months ended September 30, 2026, the Company repurchased and canceled 1,593,044 Common Shares at a cost of $55.7 million or $34.98 per share (nine months ended September 30, 2025, 398,200 Common Shares at a cost of $10.0 million or $25.11 per share). The Company recognized a $15.6 million reduction in share capital and $40.1 million was recognized as a reduction to retained earnings (nine months ended September 30, 2025 - $4.0 million reduction in share capital and $6.0 million was recognized as a decrease to retained earnings). In connection with the NCIB, the Company has an Automatic Share Purchase Plan ("ASPP") in place with its designated broker as at September 30, 2026. The ASPP allows for the purchase of common shares under the NCIB during regulatory blackout periods, which are subject to a maximum share cap and price limit. Subsequent to September 30, 2026, 549,757 Common Shares were repurchased and cancelled at a cost of $16.6 million or $30.25 per share under the terms of the ASPP.
(ii) DRIP
The Company allows existing shareholders to participate in a DRIP. This provides shareholders the option of increasing their investment in the Company by electing to receive common shares in place of cash dividends. The Company has the discretion to elect to issue such common shares at up to a 5% discount to the prevailing market price from treasury, or purchase the common shares on the open market. For the nine months ended September 30, 2026, the Company issued 52,552 shares pursuant to the DRIP, valued at $1.6 million (nine months ended September 30, 2025, issued 79,627 Common Shares, valued at $2.2 million).
(iii) ESPP
The Company has an ESPP which enables employees to purchase Class A common shares through payroll deductions. At the option of the Company, the common shares can be issued from treasury based on the volume weighted average closing price of the last five days prior to the end of the month, or the shares may be purchased for plan participants in the open market. During the nine months ended September 30, 2026, the Company issued 13,553 shares from treasury pursuant to the ESPP, valued at $0.7 million (nine months ended September 30, 2025 - 204,025 shares valued at $5.0 million). Beginning in February 2026, the Company elected to purchase shares from the open market to settle ESPP obligations.
14 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
(b) Stock options
The following is a continuity of the changes in the number of stock options outstanding:
| Number | Weighted average exercise price (CAD$) | |||||||
| Outstanding at December 31, 2024 | 2,231,405 | $11.37 | ||||||
| Granted | 275,485 | 33.59 | ||||||
| Exercised | (411,984) | 10.75 | ||||||
| Forfeited | (55,072) | 14.27 | ||||||
| Outstanding at December 31, 2025 | 2,039,834 | $14.43 | ||||||
| Granted | 142,377 | 69.82 | ||||||
| Exercised | (89,345) | 11.55 | ||||||
| Forfeited | (21,140) | 37.41 | ||||||
| Outstanding at September 30, 2026 | 2,071,726 | $18.13 | ||||||
During the nine months ended September 30, 2026, the weighted average share price at the date of exercise for stock options exercised was CAD $62.71 (for the nine months ended September 30, 2025, the weighted average share price at the date of exercise for stock options exercised was CAD $38.11)
Stock options granted
During the nine months ended September 30, 2026, the Company granted 142,377 stock options (for the nine months ended September 30, 2025 - 275,485). The following table presents the weighted average fair value assumptions used in the Black-Scholes valuation:
| For options granted for the nine months ended: | September 30, 2026 | September 30, 2025 | ||||||
| Weighted average share price at grant date (CAD$) | 69.82 | 33.59 | ||||||
| Average risk-free rate | 2.56 | % | 2.46 | % | ||||
| Average expected dividend yield | 0.30 | % | 0.43 | % | ||||
| Average expected stock price volatility (based on historical volatility) | 38 | % | 37 | % | ||||
| Average expected life of option (months) | 42 | 42 | ||||||
| Weighted average per share fair value of stock options granted (CAD$) | 21.83 | 9.5 | ||||||
Stock options outstanding and exercisable as at September 30, 2026:
| Outstanding | Exercisable | ||||||||||||||||||||||
| Range of exercise prices (CAD$) | Number of options | Weighted average exercise price (CAD$) | Weighted average remaining contractual life (years) | Number of options | Weighted average exercise price (CAD$) | ||||||||||||||||||
| $7.01 - $8.00 | 268,202 | 7.63 | 0.3 | 268,202 | 7.63 | ||||||||||||||||||
| $8.01 - $11.00 | 739,118 | 9.46 | 1.8 | 739,118 | 9.46 | ||||||||||||||||||
| $11.01 - $15.00 | 281,722 | 14.05 | 3.4 | 281,722 | 14.05 | ||||||||||||||||||
| $15.01 - $23.83 | 381,926 | 16.09 | 4.4 | 240,869 | 16.09 | ||||||||||||||||||
| $23.84 - $36.72 | 264,224 | 33.61 | 5.4 | 88,081 | 33.61 | ||||||||||||||||||
| $36.73 - $70.70 | 136,534 | 69.79 | 6.4 | — | — | ||||||||||||||||||
| 2,071,726 | $18.13 | 3.1 | 1,617,992 | $12.26 | |||||||||||||||||||
15 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
(c) Other employee long-term incentives
The following is a continuity of the changes in the number of other long-term incentives ("LTI"):
| Restricted share units ("RSU") | Deferred share units ("DSU") | Performance share units ("PSU") | ||||||||||||
| Outstanding units, December 31, 2024 | 1,911,592 | 1,106,780 | 1,031,795 | |||||||||||
| Granted | 397,329 | 56,947 | 194,945 | |||||||||||
| Forfeited | (151,915) | — | — | |||||||||||
| Settled | (641,670) | (436,264) | (399,966) | |||||||||||
| Outstanding units, December 31, 2025 | 1,515,336 | 727,463 | 826,774 | |||||||||||
| Granted | 208,518 | 30,105 | 102,991 | |||||||||||
| Forfeited/expired | (54,677) | — | (11,319) | |||||||||||
| Settled | (28,826) | (155,409) | (324,569) | |||||||||||
| Outstanding units, September 30, 2026 | 1,640,351 | 602,159 | 593,877 | |||||||||||
The settlement of LTI is either in cash or equity depending on the feature of the specific LTI plan. The settlement of DSUs are in cash, PSUs are equity or cash settled at the Company's discretion, and certain RSUs are cash settled with the remaining settled in cash or equity at the Company's discretion, depending on the year of grant.
PSUs and RSUs granted to non-executives vest on the third anniversary from the date of grant. RSUs granted to executives vest in three equal tranches commencing on the first anniversary of the grant date. Mandatory or elective DSUs vest immediately and the Board of Directors determines the vesting schedule for discretionary DSUs at the time of grant.
The weighted average fair value of the RSUs, DSUs and PSUs granted during the nine months ended September 30, 2026 was $69.11, $68.05 and $69.68 per unit, respectively (nine months ended September 30, 2025 - $33.58, $34.00 and $33.59, per unit, respectively).
(d) Share-based compensation expense
For the three and nine months ended September 30, 2026, total share-based compensation expense recognized in the Condensed Interim Consolidated Statements of Comprehensive Income relating to the Company's long-term incentive plans was $7.0 million and $20.9 million, respectively (three and nine months ended September 30, 2025 - $22.5 million and $58.0 million, respectively), of which $2.0 million and $2.2 million was recognized in cost of sales (three and nine months ended September 30, 2025 - $5.8 million and $10.9 million). For the three and nine months ended September 30, 2026, $0.5 million and $0.6 million of share-based compensation expense was capitalized to mineral property, plant and equipment (three and nine months ended September 30, 2025 - $0.9 million and $2.1 million).
The impact of mark-to-market adjustments on the share-based compensation expense recognized in the Condensed Interim Consolidated Statements of Comprehensive Income arising from the change in the Company's share price for the three and nine months ended September 30, 2026 and 2025 was as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
Increase in share-based compensation expense due to mark-to-market adjustments (1) | $3.7 | $19.1 | $0.9 | $34.7 | ||||||||||
(1) Of the total increase in share-based compensation expense due to mark-to-market adjustments, an expense of $1.0 million and $0.3 million was included in cost of sales for the three and nine months ended September 30, 2026 (three and nine months ended September 30, 2025 - $5.3 million and $9.3 million).
e) Dividends
During the nine months ended September 30, 2026, the Company declared dividends totaling $50.2 million (nine months ended September 30, 2025 - $31.6 million), of which $48.6 million were paid in cash (nine months ended September 30, 2025 - $29.4 million in cash). The remaining $1.6 million were issued in the form of common shares pursuant to the Company's DRIP (nine months ended September 30, 2025 - $2.2 million in shares).
16 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
| 11 | FINANCE INCOME | ||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Interest expense (i) | ($0.4) | ($0.2) | ($1.9) | ($1.4) | ||||||||||
| Accretion on reclamation provision | (2.5) | (2.4) | (7.2) | (7.0) | ||||||||||
Deferred payment accretion (Note 5) | 3.6 | — | 10.6 | — | ||||||||||
| Interest income | 5.4 | 3.9 | 16.8 | 9.8 | ||||||||||
| Other | (0.2) | (0.1) | (0.3) | (0.2) | ||||||||||
| $5.9 | $1.2 | $18.0 | $1.2 | |||||||||||
(i) During the nine months ended September 30, 2026, $10.4 million of interest was capitalized in mineral property, plant and equipment (nine months ended September 30, 2025 - $19.8 million). Capitalized interest is inclusive of non-cash accretion on deferred revenue (Note 8). Total interest paid, including interest capitalized, during the nine months ended September 30, 2026 was $10.4 million (nine months ended September 30, 2025- $14.1 million).
| 12 | OTHER LOSS | ||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Loss on disposal of assets | ($1.9) | ($1.8) | ($3.9) | ($2.9) | ||||||||||
| Turkish Projects care and maintenance and arbitration costs | — | (0.2) | — | (2.7) | ||||||||||
| Transaction costs arising on sale of Turkish Projects | — | (0.9) | — | (0.9) | ||||||||||
| Other | 0.1 | (1.0) | (0.9) | (0.6) | ||||||||||
| ($1.8) | ($3.9) | ($4.8) | ($7.1) | |||||||||||
17 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
| 13 | EARNINGS PER SHARE | ||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net earnings | $165.6 | $276.3 | $627.4 | $450.9 | ||||||||||
| Weighted average number of common shares outstanding (in thousands) | 418,572 | 420,500 | 419,383 | 420,463 | ||||||||||
| Basic earnings per share | $0.40 | $0.66 | $1.50 | $1.07 | ||||||||||
| Dilutive effect of potential common share equivalents (in thousands) | 1,695 | 2,280 | 1,783 | 2,214 | ||||||||||
| Diluted weighted average number of common shares outstanding (in thousands) | 420,267 | 422,780 | 421,166 | 422,677 | ||||||||||
| Diluted earnings per share | $0.39 | $0.65 | $1.49 | $1.07 | ||||||||||
The following table lists the share units excluded from the computation of diluted earnings per share. The instruments were excluded as they have an anti-dilutive effect on diluted earnings per share. The exercise price relating to the particular security exceeded the average market price of the Company's common shares of CAD $46.27 and CAD $54.09 for the three and nine months ended September 30, 2026 (CAD $39.32 and CAD $36.20 for the three and nine months ended September 30, 2025) or the inclusion of the equity securities had an anti-dilutive effect on net earnings.
| Share units excluded from calculation of diluted earnings per share: | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| (thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Stock options | 137 | — | 137 | 12 | ||||||||||
| 14 | SUPPLEMENTAL CASH FLOW INFORMATION | ||||
| Changes in working capital and income taxes paid: | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Amounts receivable | ($4.6) | $7.8 | ($13.9) | $15.0 | ||||||||||
| Inventory | (10.0) | (13.3) | (33.6) | (27.5) | ||||||||||
| Prepaid expenses | 0.4 | 6.4 | 4.5 | 4.7 | ||||||||||
| Accounts payable and accrued liabilities | 19.5 | 7.5 | 13.6 | 3.5 | ||||||||||
| Cash taxes paid | (23.9) | (18.4) | (139.8) | (90.9) | ||||||||||
| ($18.6) | ($10.0) | ($169.2) | ($95.2) | |||||||||||
| Other items: | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Reclamation activities | ($0.5) | ($3.3) | ($2.9) | ($11.0) | |||||||||||||||||||
| Employee share purchase plan contributions | — | 1.5 | 0.4 | 3.7 | |||||||||||||||||||
| Distribution of share-based compensation | (3.8) | (4.9) | (21.9) | (25.9) | |||||||||||||||||||
| Interest received | 5.4 | 3.9 | 16.8 | 9.8 | |||||||||||||||||||
| Loss on disposal of assets | 1.9 | 1.8 | 3.9 | 2.9 | |||||||||||||||||||
| Reduction of obligation to renounce flow-through exploration expenditures | — | — | — | (1.4) | |||||||||||||||||||
| Other | — | — | 0.1 | 0.2 | |||||||||||||||||||
| $3.0 | ($1.0) | ($3.6) | ($21.7) | ||||||||||||||||||||
18 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
| 15 | SEGMENTED INFORMATION | ||||
Operating results of operating segments are reviewed by the Company’s chief operating decision maker, being the Company’s Chief Executive Officer, to make decisions about resources to be allocated to the segments and to assess their performance. The Company considers its reportable operating segments to be its operating mines and significant development projects. During the third quarter of 2025, the Island Gold and Magino operating segments were combined to form a single operating segment following the publication of a new combined life of mine plan and continued consolidation of the Island Gold District's operations and reporting which integrated their milling operations and unified their revenue streams. Comparative information has been updated to reflect this combination. The Company operates in two principal geographical areas - Canada, and Mexico. The Young-Davidson, Island Gold and Magino mines operate in Canada, and the Mulatos and La Yaqui Grande mines operate in Sonora, Mexico.
Significant information relating to the Company's reporting operating segments is as follows:
| For the Three Months Ended September 30, 2026 | ||||||||||||||||||||
| Young-Davidson | Island Gold District | Mulatos District1 | Corporate/other2 | Total | ||||||||||||||||
| Operating revenues | $104.3 | $285.1 | $121.0 | $— | $510.4 | |||||||||||||||
| Cost of sales | ||||||||||||||||||||
| Mining and processing | 49.6 | 80.9 | 33.3 | — | 163.8 | |||||||||||||||
| Royalties | 1.6 | 3.4 | 1.2 | — | 6.2 | |||||||||||||||
| Amortization | 11.1 | 22.2 | 10.4 | 0.5 | 44.2 | |||||||||||||||
| 62.3 | 106.5 | 44.9 | 0.5 | 214.2 | ||||||||||||||||
| Expenses | ||||||||||||||||||||
| Exploration | 0.8 | 2.0 | 3.2 | 6.3 | 12.3 | |||||||||||||||
| Corporate and administrative | — | — | — | 10.2 | 10.2 | |||||||||||||||
| Share-based compensation | — | — | — | 5.0 | 5.0 | |||||||||||||||
| Earnings (loss) from operations | $41.2 | $176.6 | $72.9 | ($22.0) | $268.7 | |||||||||||||||
| Net loss on commodity derivatives | (14.6) | |||||||||||||||||||
| Finance income | 5.9 | |||||||||||||||||||
| Foreign exchange gain | 0.9 | |||||||||||||||||||
| Other loss | (1.8) | |||||||||||||||||||
| Earnings before income taxes | $259.1 | |||||||||||||||||||
19 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
| For the Nine Months Ended September 30, 2026 | ||||||||||||||||||||
| Young-Davidson | Island Gold District | Mulatos District1 | Corporate/other2,3 | Total | ||||||||||||||||
| Operating revenues | $408.0 | $861.2 | $438.5 | ($6.5) | $1,701.2 | |||||||||||||||
| Cost of sales | ||||||||||||||||||||
| Mining and processing | 149.5 | 230.1 | 103.5 | — | 483.1 | |||||||||||||||
| Inventory net realizable value adjustment (Note 4) | — | — | 10.8 | — | 10.8 | |||||||||||||||
| Royalties | 6.4 | 9.0 | 4.4 | — | 19.8 | |||||||||||||||
| Amortization | 39.4 | 61.9 | 35.8 | 0.8 | 137.9 | |||||||||||||||
| 195.3 | 301.0 | 154.5 | 0.8 | 651.6 | ||||||||||||||||
| Expenses | ||||||||||||||||||||
| Exploration | 3.5 | 5.4 | 9.5 | 9.4 | 27.8 | |||||||||||||||
| Corporate and administrative | — | — | — | 32.3 | 32.3 | |||||||||||||||
| Share-based compensation | — | — | — | 18.7 | 18.7 | |||||||||||||||
| Earnings (loss) from operations | $209.2 | $554.8 | $274.5 | ($67.7) | $970.8 | |||||||||||||||
| Net loss on commodity derivatives | (4.0) | |||||||||||||||||||
| Finance income | 18.0 | |||||||||||||||||||
| Foreign exchange gain | 4.3 | |||||||||||||||||||
| Other loss | (4.8) | |||||||||||||||||||
| Earnings before income taxes | $984.3 | |||||||||||||||||||
20 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
| For the Three Months Ended September 30, 2025 | ||||||||||||||||||||
| Young-Davidson | Island Gold District | Mulatos District1 | Corporate/other2 | Total | ||||||||||||||||
| Operating revenues | $130.0 | $213.0 | $130.8 | ($11.5) | $462.3 | |||||||||||||||
| Cost of sales | ||||||||||||||||||||
| Mining and processing | 45.5 | 59.2 | 31.2 | — | 135.9 | |||||||||||||||
| Royalties | 2.1 | 2.8 | 1.3 | — | 6.2 | |||||||||||||||
| Amortization | 17.6 | 21.4 | 13.0 | — | 52.0 | |||||||||||||||
| 65.2 | 83.4 | 45.5 | — | 194.1 | ||||||||||||||||
| Expenses | ||||||||||||||||||||
| Exploration | 0.2 | 1.0 | — | 3.8 | 5.0 | |||||||||||||||
| Corporate and administrative | — | — | — | 9.6 | 9.6 | |||||||||||||||
| Share-based compensation | — | — | — | 16.7 | 16.7 | |||||||||||||||
| Reversal of impairment (note 5) | — | — | — | (218.8) | (218.8) | |||||||||||||||
| Earnings (loss) from operations | 64.6 | 128.6 | 85.3 | 177.2 | 455.7 | |||||||||||||||
| Net loss commodity derivatives | (80.0) | |||||||||||||||||||
| Finance income | 1.2 | |||||||||||||||||||
| Foreign exchange loss | (1.5) | |||||||||||||||||||
| Other loss | (3.9) | |||||||||||||||||||
| Earnings before income taxes | $371.5 | |||||||||||||||||||
| For the Nine Months Ended September 30, 2025 | ||||||||||||||||||||
| Young-Davidson | Island Gold District | Mulatos District1 | Corporate/other2 | Total | ||||||||||||||||
| Operating revenues | $357.3 | $575.8 | $325.4 | ($25.0) | $1,233.5 | |||||||||||||||
| Cost of sales | — | |||||||||||||||||||
| Mining and processing | 138.3 | 174.7 | 102.3 | — | 415.3 | |||||||||||||||
| Royalties | 5.6 | 9.7 | 3.3 | 18.6 | ||||||||||||||||
| Amortization | 51.6 | 66.8 | 37.7 | — | 156.1 | |||||||||||||||
| 195.5 | 251.2 | 143.3 | — | 590.0 | ||||||||||||||||
| Expenses | ||||||||||||||||||||
| Exploration | 2.1 | 3.8 | 6.5 | 6.6 | 19.0 | |||||||||||||||
| Corporate and administrative | — | — | — | 29.6 | 29.6 | |||||||||||||||
| Share-based compensation | — | — | — | 47.1 | 47.1 | |||||||||||||||
| Reversal of impairment (note 5) | (218.8) | (218.8) | ||||||||||||||||||
| Earnings (loss) from operations | 159.7 | 320.8 | 175.6 | 110.5 | 766.6 | |||||||||||||||
| Net loss on commodity derivatives | (174.2) | |||||||||||||||||||
| Finance income | 1.2 | |||||||||||||||||||
| Foreign exchange loss | (7.7) | |||||||||||||||||||
| Other loss | (7.1) | |||||||||||||||||||
| Earnings before income taxes | $578.8 | |||||||||||||||||||
1 Mulatos District includes the PDA project.
2 Corporate and other consists of corporate balances, exploration and development projects, and mines in reclamation.
3 Includes the impact on revenues of delivering ounces into the Company's gold sale prepayment arrangement (Note 8).
21 | Alamos Gold Inc. | ||||
| Q3 2026 FINANCIAL REPORT | |||||||
(b) Segment assets and liabilities
The following table presents assets and liabilities by segment:
| Total Assets | Total Liabilities | |||||||||||||
| September 30, 2026 | December 31, 2025 | September 30, 2026 | December 31, 2025 | |||||||||||
| Young-Davidson | $1,776.7 | $1,838.4 | $790.1 | $584.0 | ||||||||||
| Island Gold District | 3,494.3 | 3,179.3 | 626.6 | 607.9 | ||||||||||
Mulatos District1 | 818.1 | 697.2 | 175.8 | 164.6 | ||||||||||
Corporate/other2 | 819.2 | 669.7 | 364.1 | 582.3 | ||||||||||
| Total assets and liabilities | $6,908.3 | $6,384.6 | $1,956.6 | $1,938.8 | ||||||||||
1 Mulatos District includes the PDA project.
2 Corporate and other primarily consists of corporate balances, exploration, the Lynn Lake project, and mines in reclamation.
22 | Alamos Gold Inc. | ||||
FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS
FULL CERTIFICATE
I, John A. McCluskey, the certifying officer and Chief Executive Officer of Alamos Gold Inc., certify the following:
1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of
Alamos Gold Inc. (the “issuer”) for the interim period ended September 30, 2026.
2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4. Responsibility: The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer and I have, as at the end of the period covered by the interim
a.designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
i.material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
ii.information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
b. designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
5.1 Control framework: The control framework the issuer’s other certifying officer and I used to design the issuer’s ICFR is COSO (Committee of Sponsoring Organizations of the Treadway Commission) framework.
5.2 ICFR – material weakness relating to design: N/A
5.3 Limitation on scope of design: N/A
6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on July 1, 2026 and ended on September 30, 2026 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
Date: October 28, 2026
/s/ John A. McCluskey_
John A. McCluskey
Chief Executive Officer
FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS
FULL CERTIFICATE
I, Gregory Fisher, the certifying officer and Chief Financial Officer of Alamos Gold Inc., certify the following:
1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Alamos Gold Inc. (the “issuer”) for the interim period ended September 30, 2026.
2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4. Responsibility: The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer and I have, as at the end of the period covered by the interim filings
adesigned DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
i.material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
ii.information required to be be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
b. designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
5.1 Control framework: The control framework the issuer’s other certifying officer and I used to design the issuer’s ICFR is COSO (Committee of Sponsoring Organizations of the Treadway Commission) framework.
5.2 ICFR – material weakness relating to design: N/A
5.3 Limitation on scope of design: N/A
6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on July 1, 2026 and ended on September 30, 2026, that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR
Date: October 28, 2026
/s/ Gregory Fisher
Gregory Fisher
Chief Financial Officer