Toronto, June 19, 2026, 13:09 (EDT)
- Shares of Alamos Gold slid 18.0% to C$42.13 on the TSX by midday, following a production warning at its Young-Davidson mine.
- Alamos Gold trimmed its output outlook for the second quarter, now seeing 130,000 to 135,000 ounces, and expects full-year production to miss its earlier range.
- The NYSE was closed for Juneteenth, so Alamos shares traded only in Toronto, where the news was priced first.
Alamos Gold Inc. shares dropped in Toronto on Friday. The company said seismic events and power losses at the Young-Davidson mine will leave second-quarter output short of plan and increase costs.
The stock dropped 18.0% to C$42.13 at 12:51 p.m. EDT after hitting a low of C$41.12. Shares lagged other gold miners, with Barrick Mining down 1.8%, OceanaGold losing 2.9%, and IAMGOLD off 2.3%, Google Finance data showed.
Alamos is flagging deeper trouble as its warning now covers more than just a one-quarter miss. The company said it sees consolidated 2026 production coming in under the low end of its old guidance, and costs topping the plan. Alamos will issue new full-year guidance with Q2 results, expected in late July.
Alamos Gold said its Young-Davidson mine in northern Ontario was hit by two seismic events last week, including one at an active face. There were no injuries. Infrastructure damage blocked access to two of the higher-grade stopes. The company also pointed to late-May storm damage on a regional power line, which forced an unplanned three-day shutdown.
Alamos CEO John A. McCluskey called the operational challenges “disappointing” and said, “the first half has been challenging.” He said Island Gold should lift second-half results. GlobeNewswire
The remaining bull case is here. Island Gold underground mining has averaged over 1,500 tonnes a day through the second quarter, with a year-end target of 2,000 tonnes per day. Magino mill averaged almost 9,800 tonnes a day in June and Alamos Gold expects that to hit 10,000 tonnes per day by the third quarter.
Alamos said it cleared out the last of its 2026 legacy Argonaut Gold hedges. These contracts set a fixed selling price for gold. By dropping them, Alamos is now more exposed to gold prices. The company spent $92.3 million in cash to retire 35,000 ounces under those contracts.
BMO Capital lowered its price target on Alamos to C$73 from C$79 but stuck with its Outperform rating, according to Investing.com. BMO pointed to reduced mining rates at Young-Davidson. Alamos is now targeting roughly 5,000 tonnes per day through the rest of 2026, down from its previous 8,000 tonnes daily guidance.
Gold slipped Friday, on track for a third weekly loss with the dollar stronger and the Fed sounding more hawkish. Spot gold dropped 0.9% to $4,169.44 an ounce by 1306 GMT. Nikos Tzabouras, senior market analyst at Tradu.com, said the “higher-for-longer Fed expectations” were “toxic for non-yielding assets,” his term for assets like gold that do not pay interest. Reuters
Young-Davidson could take more time to settle than management hopes, which may mean another guidance cut in July and put more weight on Island Gold to pick up the slack. Gold dropping further would pile on pressure, but a better ramp at Island Gold and firmer gold prices could cushion the blow. U.S. traders are coming back from the Juneteenth holiday, but in Toronto, shares have already begun to reprice.
