Alamos Gold Inc. (AGI) Cash Flow Statement

The ratio of operating cash flow to net income has frequently exceeded 1.0x, suggesting reported profits are not inflated by accruals in most quarters. Ratios above 2.0x in 2024 and early 2025 likely reflect depressed reported earnings or favorable working capital timing rather than structurally superior cash generation. Investors should monitor whether the ratio normalizes toward 1.0x as gold price tailwinds fade, since the 0.57x reading in 2025Q4 shows conversion can swing materially within a single quarter.

The swing from strong positive free cash flow to a small deficit in the latest quarter reflects a capex base that has grown relative to operating inflows. Quarterly operating cash flow has held in a relatively stable band near $200M to $260M, so the deterioration appears driven primarily by investment outlays rather than operating weakness. Whether the deficit proves temporary depends on how much of the 2026 spending is development-stage capital that should yield future production.

Capex consumed a far larger share of revenue in the latest quarter than in any period shown in the prior year, with the 2026Q3 outlay of $222.7M exceeding D&A of $45.9M by roughly fivefold. This gap suggests a predominantly growth-oriented investment cycle rather than maintenance replacement of depreciating assets. The analytical question is whether these projects will lift future production enough to justify the current cash drain, a conclusion that cannot be verified from the cash flow data alone.

Large working capital movements in both directions indicate that receivable, inventory, or payable timing exerts meaningful influence on quarterly operating cash flow. The $66.5M inflow in 2024Q4 likely flattered that period's cash generation, which argues against extrapolating that quarter's conversion ratio. Investors may wish to examine whether recent outflows reflect a sustained build in inventory or timing effects that will reverse.

Dividend outlays are small relative to operating cash flow, suggesting cash generation has historically exceeded the amount returned through regular payouts. The large but irregular buyback in 2026Q2 and the acquisition outflow of $36.9M in 2024Q2 indicate management has deployed capital opportunistically rather than on a fixed schedule. Whether capital is recycled into growth or retained depends on the ongoing capex program, which currently absorbs most operating cash inflows.