Alamos Gold Inc. shares experienced their sharpest decline since 2020 after the Canadian gold producer reduced its second-quarter production guidance due to earthquakes that damaged a key mine. The company, among Canada's larger gold producers with annual output of nearly 550,000 ounces last year, saw its shares sink as much as 20 per cent on Friday in Toronto.
Production Forecast Cut
The Toronto-based company trimmed its quarterly gold production forecast to between 130,000 ounces and 135,000 ounces, representing a 12 per cent decrease from previous guidance based on the midpoint of the range. Output for the year is also expected to fall below previously issued guidance, while costs are seen rising. Alamos will provide revised annual output and cost figures in late July.
Earthquake Damage at Young-Davidson Mine
Two seismic events last week damaged underground infrastructure at its Young-Davidson operations in Ontario, preventing access to high-grade ore that was due to be mined in the second quarter, the company said. Alamos plans to implement additional ground support to Young-Davidson — its second-largest producing mine — throughout the second half of this year.
Company Outlook
Alamos has outlined plans to increase production to one million ounces by 2030. The company's annual output reached nearly 550,000 ounces last year, positioning it among Canada's larger gold producers. The revised guidance and cost increases come as a setback to these expansion plans.
