Alamos Gold Cuts 2026 Production Forecast After Seismic Events, Power Outages

Event summary

  • Alamos Gold revises Q2 2026 production guidance down by 12% due to seismic events and power outages at Young-Davidson mine.
  • Young-Davidson mining rates reduced to 5,000 tonnes per day for the remainder of 2026.
  • Island Gold District operations remain on track, with underground mining rates hitting a new record of 1,500 tpd.
  • Company eliminates remaining 35,000 ounces of legacy Argonaut gold hedges at a cost of $92.3 million.
  • Alamos repurchased $30 million of shares under its Normal Course Issuer Bid in May 2026.

The big picture

Alamos Gold's operational setbacks at Young-Davidson highlight the inherent risks in underground mining, particularly seismic activity and infrastructure vulnerabilities. While the company's Island Gold District continues to perform well, the production shortfall raises questions about Alamos' ability to meet full-year targets. The elimination of legacy gold hedges and share repurchases signal confidence in the company's long-term outlook, but investors will be watching closely for signs of sustained operational improvement.

What we're watching

Operational Recovery
Whether Alamos can stabilize Young-Davidson mining rates and restore production levels in H2 2026.
Cost Management
The impact of higher costs on Alamos' margins as it implements additional ground support measures.
Growth Trajectory
The pace at which Island Gold District can drive production growth and lower all-in sustaining costs.