Higher Production, Lower Costs Drive Strong FCF for Alamos Gold (AGI)

Alamos Gold Inc. (NYSE:AGI) is one of the 13 Most Promising Gold Stocks According to Wall Street Analysts. On July 30, Alamos Gold Inc. (NYSE:AGI) shared results for the second quarter of 2025. The company reported stronger production, 10% higher than in the first quarter, and lower costs. This helped Alamos Gold Inc. (NYSE:AGI) generate record cash flow from operations and strong free cash flow.

The company generated $84.6 million in free cash flow, which is a significant increase from the negative free cash flow of $20.1 million in the first quarter of 2025. Alamos Gold Inc. (NYSE:AGI) continues to reinvest in high-return growth projects like the Phase 3+ Expansion, Lynn Lake, and PDA.

Higher Production, Lower Costs Drive Strong FCF for Alamos Gold (AGI)

Aerial view of a gold mine with equipment mining the earth for resources.

Additionally, in the second quarter, Alamos Gold Inc. (NYSE:AGI) returned $21 million to shareholders. This included buying back 0.4 million shares for $10 million and payment of the $10.6 million quarterly dividend, which was $0.025 per share.

The company expects to continue generating strong free cash flow at current gold prices through the rest of 2025. Growth is expected to increase significantly in 2026 due to higher production and lower costs.

Alamos Gold Inc. (NYSE:AGI) is a Canadian-based gold producer with operations in North America.

While we acknowledge the potential of AGI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AGI and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Performing AI Stocks So Far in 2025 and 14 Best Aggressive Growth Stocks to Buy According to Analysts.

Disclosure: None. This article is originally published at Insider Monkey.