Canada's Alamos Gold lowers 2026 production outlook

Alamos Gold

29/07/2026 22:13

Overview
Canada gold miner's Q2 revenue rose 36% yr/yr, slightly beating analyst expectations
Produced 130,600 oz gold in Q2, up 5% from Q1, led by Island Gold District
Company lowered 2026 production and raised cost guidance after Young-Davidson seismic event

Outlook
Alamos Gold lowers 2026 production guidance to 510,000-560,000 ounces from 570,000-650,000 ounces
Company raises 2026 total cash cost guidance to $1,175-$1,275 per ounce, AISC to $1,775-$1,875
Alamos Gold expects production to reach about 1 mln ounces annually by 2030

Result Drivers
ISLAND GOLD PERFORMANCE - Record underground mining and milling rates at Island Gold District drove higher production, offsetting lower output elsewhere
YOUNG-DAVIDSON IMPACT - Lower production and higher costs at Young-Davidson due to a seismic event and related rehabilitation work
COST PRESSURES - Increased labour inflation and contractor costs in Canada contributed to higher company-wide costs

Company press release: ID:nGNX9xWY3C

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$594.1 mln
$593.76 mln (3 Analysts)
Q2 Adjusted Net Income
Beat
$247.6 mln
$225.44 mln (2 Analysts)
Q2 Net Income
 
$270.4 mln
 
Q2 Basic EPS
 
$0.64
 
Q2 Free Cash Flow
 
$143.5 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the gold peer group is "buy"
Wall Street's median 12-month price target for Alamos Gold Inc is C$73.25, about 80% above its July 28 closing price of C$40.70
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 15 three months ago

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July 27 - Gold Fields files Tarkwa gold lease proposal with Ghana government 
July 29 - Allied Gold's $4 billion sale to China's Zijin collapses, lands $295 million investment

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)