Alamos Gold Lowers Annual Production Guidance on Young-Davidson Issues
The gold producer reported second quarter operating revenues of $594.1 million, up from $438.2 million in the prior year.
Alamos Gold Inc. (AGI), a Canadian-based intermediate gold producer, revised its full-year consolidated production and cost guidance downward following operational challenges at its Young-Davidson mine. The company lowered its total gold production forecast to between 510,000 and 560,000 ounces, down from a previous range of 570,000 to 650,000 ounces.
Management attributed the guidance reduction primarily to lower mining rates expected at Young-Davidson during the second half of 2026. The mine was impacted by a seismic event in June, which contributed to lower than expected production for the second quarter. Consequently, the company now expects a temporary reduction in production and an increase in costs at that site.
In contrast, the Island Gold District delivered record quarterly production of 67,500 ounces. The district achieved record underground mining rates, averaging 1,550 tonnes per day, and record Magino milling rates, which averaged nearly 8,900 tonnes per day for the quarter. These results offset the production shortfalls at Young-Davidson and the Mulatos District.
Financial results for the three months ended June 30, 2026, showed a rise in net earnings to $270.4 million from $159.4 million in the same period last year. Basic earnings per share rose to $0.64 a share from $0.38 a share. The company reported an average realized gold price of $4,504 per ounce for the quarter, compared to $3,223 per ounce in the second quarter of 2025.
Costs also trended upward. All-in sustaining costs per ounce of gold sold rose to $1,728 in the second quarter from $1,481 in the prior year. Total cash costs per ounce sold increased to $1,303 from $1,075.
Cash provided by operating activities for the second quarter was $231.8 million. The company utilized $180.6 million for mineral property, plant, and equipment during the period. As of June 30, 2026, the company held $636.9 million in cash and cash equivalents.
Looking forward, the company expects stronger production and lower costs in 2027. This outlook is based on anticipated improved results from Young-Davidson and low-cost growth from the Island Gold District. Work continues on the shaft and mill expansion at the Island Gold District, which the company expects will drive production growth and cost declines over the next several years.