Alamos Gold, Inc. (NYSE:AGI) Q2 2023 Earnings Conference Call July 27, 2023 10:00 AM ET

Company Participants

Scott Parsons - Senior Vice President, Investor Relations

John McCluskey - President, Chief Executive Officer & Director

Greg Fisher - Chief Financial Officer

Luc Guimond - Chief Operating Officer

Scott R.G. Parsons - Vice President, Exploration

Conference Call Participants

Cosmos Chiu - CIBC

Ovais Habib - Scotiabank

Fahad Tariq - Credit Suisse

Michael Parkin - National Bank

Kerry Smith - Haywood Securities

Operator

Good morning. I will now turn the call over to Scott Parsons, Alamos' Senior Vice President of Investor Relations. Please go ahead.

Scott Parsons

Thank you, operator, and thanks to everybody for attending Alamos' Second Quarter 2023 Conference Call. In addition to myself, we have on the line today John McCluskey, President and Chief Executive Officer; Greg Fisher, Chief Financial Officer; Luc Guimond, Chief Operating Officer; and Scott R.G. Parsons, our Vice President of Exploration.

We will be referring to a presentation during the conference call that is available through the webcast and on our website. I would also like to remind everybody that our presentation will be followed by a Q&A session. As we will be making forward-looking statements during the call, please refer to the cautionary notes included in the presentation, news release and MD&A as well as the risk factors set out in our annual information form.

Technical information in this presentation has been reviewed and approved by Chris Bostwick, our Senior Vice President, Technical Services and a qualified person. Also, please bear in mind that all the dollar amounts mentioned in this conference call are in U.S. dollars unless otherwise noted.

Now John will provide you with an overview.

John McCluskey

Thank you, Scott. Starting with Slide 3. We delivered an outstanding performance in the second quarter, achieving a number of operational and financial records. Production increased to a record 136,000 ounces, exceeding our guidance for the quarter while all-in sustaining costs decreased below our annual guidance. This was driven by another exceptional performance from La Yaqui Grande, which contributed to the strongest quarter from Mulatos district in more than a decade. With production totaling 264,000 ounces through the first half of the year and costs well within guidance, we may not remain on track to achieve full-year production and cost guidance.

Financially, we broke a number of records, including revenue and cash flow from operations, which increased for the fifth consecutive quarter to $138 million. We also generated a record $62 million of free cash flow, marking the fifth consecutive quarter of positive free cash flow as we continue to fully fund our growth projects and build our financial capacity.