Perion Network shares rise 4% on Q3 earnings beat, strong CTV growth
Introduction & Market Context
Alamos Gold Inc. (NYSE:AGI) presented its third quarter 2025 results on October 30, 2025, highlighting record financial performance despite operational challenges that led to a downward revision in production guidance. The gold producer’s stock fell 3.26% to $29.89 in premarket trading following the announcement, as earnings slightly missed analyst expectations with EPS of $0.37 versus the forecasted $0.38.
The company reported record quarterly revenue of $462 million, which still fell short of the expected $493.37 million, reflecting the impact of production challenges at several of its mines. However, Alamos emphasized its strong cash flow generation and progress on expansion projects that support its long-term growth strategy.
Quarterly Performance Highlights
Alamos Gold achieved record financial results in Q3 2025, driven by higher gold prices and improved operational efficiency. The company reported gold production of 141,700 ounces, up 3% quarter-over-quarter but down 7% year-over-year. All-in sustaining costs (AISC) decreased 7% from the previous quarter to $1,375 per ounce.
As shown in the following comprehensive performance overview, the company generated record free cash flow of $130 million, a 49% increase from Q3 2024, while continuing to invest in high-return growth projects:
The company’s financial performance was bolstered by a significantly higher realized gold price of $3,359 per ounce, compared to $2,458 per ounce in the same period last year. This contributed to record revenue and substantial growth in adjusted net earnings, which increased to $0.37 per share from $0.19 in Q3 2024.
The following chart illustrates the company’s strong financial performance across key metrics:
Despite these financial achievements, Alamos revised its 2025 production guidance downward by 6% to 560,000-580,000 ounces, citing several operational challenges including unplanned downtime at the Magino mill, a seismic event at Island Gold, and lower mining rates at Young-Davidson. However, the company expects substantial improvement in Q4, with an anticipated 18% increase in production and a 5% decrease in costs quarter-over-quarter.
Operational Updates
The Island Gold District, comprising both Island Gold and Magino mines, delivered production of 66,800 ounces in Q3, up 4% from the previous quarter. The district generated record mine-site free cash flow of $72 million while continuing to fund the Phase 3+ Expansion and exploration activities.
The following chart details the Island Gold District’s operational performance:
A key development was the restart of the Island Gold mill in late September, which provides an additional 1,200 tonnes per day of milling capacity and operational flexibility. This restart followed downtime at the Magino mill and is expected to support higher production in Q4.
The Magino mill experienced unplanned downtime in late September, but milling rates have since improved and are approaching 10,000 tonnes per day on average in October. Prior to the downtime, the mill was averaging approximately 9,200 tonnes per day in Q3.
The Young-Davidson mine maintained similar production levels quarter-over-quarter, with a 12% increase in milling rates offset by lower processed grades. Mining rates were impacted by a planned shutdown of the Northgate shaft in July but increased to average approximately 8,000 tonnes per day in September and October. The mine generated record mine-site free cash flow of $62 million in Q3.
The Mulatos District showed improved performance with production up 9% quarter-over-quarter and costs lower than the previous quarter. The district generated record mine-site free cash flow of $73 million, with stronger performance expected in Q4 as the operation benefits from the recovery of higher-grade ore stacked earlier in the year.
Growth Projects & Strategic Initiatives
Alamos continues to advance its growth projects, with significant progress on the Island Gold Phase 3+ Expansion. The company reported that shaft sinking has advanced to a depth of 1,350 meters, approximately 98% of the planned depth, and work has commenced on the 1350 level shaft station.
The expansion project is on track for completion in the second half of 2026, with 84% of the total growth capital already spent or committed. The following image shows the current state of the expansion project:
Additionally, Alamos is progressing with the Magino mill expansion to 12,400 tonnes per day, with foundation work for the new mill building advancing. The company noted that the footprint is configured to allow for potential further expansion up to 20,000 tonnes per day, with a detailed engineering study expected in Q1 2026.
The company’s long-term production outlook remains strong, with a target of approximately 1 million ounces, representing about 76% growth from 2024 levels. This growth is expected to be accompanied by an 8% decrease in AISC by 2027 compared to 2024, driven by low-cost growth from the Island Gold District.
The following chart illustrates the company’s production outlook and cost profile:
Financial Position & Strategic Initiatives
Alamos significantly strengthened its financial position during the quarter, with cash increasing 34% quarter-over-quarter to $463 million. Following the sale of Turkish assets for $470 million, the company’s cash position now exceeds $600 million.
The company plans to utilize its growing cash position to reduce debt, evaluate opportunities to buy back shares, and eliminate a portion of legacy Argonaut Gold hedges. This strong financial position provides flexibility to fund growth initiatives while potentially returning value to shareholders.
In October, Alamos completed two strategic transactions: the sale of the non-core Quartz Mountain Gold project for total consideration of up to $21 million and a 9.99% equity interest in Q-Gold Resources, and the sale of Turkish Development Projects for cash consideration of $470 million, with $160 million paid on closing and the remainder payable over the next two years.
Forward-Looking Statements
Despite the downward revision in 2025 production guidance, Alamos maintains a positive long-term outlook with several catalysts on the horizon. The company expects to make a construction decision on Lynn Lake in January 2026, release an Island Gold District Expansion Study in Q1 2026, and continue exploration updates across its assets.
The company’s value creation strategy focuses on growing as a diversified, intermediate gold producer with expanding margins and profitability, while maintaining a conservative, low-risk approach and a sustainable business model that supports growing returns over the long term.
As gold prices remain elevated, Alamos appears well-positioned to capitalize on its operational improvements and expansion projects to deliver strong financial performance, despite the near-term production challenges that have impacted investor sentiment.
Full presentation:
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