Alamos Gold Reports Second Quarter 2026 Results

Alamos Gold Inc. (AGI) reported second-quarter 2026 net earnings of $270.4 million, or $0.64 per share, alongside free cash flow of $143.5 million and adjusted EBITDA of $423.8 million. The company achieved a record realized gold price of $4,504 per ounce on sales of 130,834 ounces. Production reached 130,600 ounces, a 5% increase from the first quarter, aligning with revised guidance of 130,000 to 135,000 ounces issued on June 18.

The Island Gold District delivered a record quarter, producing 67,500 ounces at an underground throughput of 1,550 tonnes per day and a Magino mill throughput of 8,900 tonnes per day, which helped offset operational weaknesses elsewhere. However, Alamos significantly downgraded its full-year 2026 guidance. Production is now expected to be between 510,000 and 560,000 ounces, down from the previous range of 570,000 to 650,000 ounces. Cash costs are projected to rise to $1,175–$1,275 per ounce from $1,020–$1,120, while all-in sustaining costs (AISC) are expected to increase to $1,775–$1,875 per ounce from $1,500–$1,600.

The downgrade was driven by a seismic event at Young-Davidson that damaged infrastructure and restricted access to high-grade stopes, as well as slower-than-expected recoveries at La Yaqui Grande. Additionally, the company eliminated all remaining 2026 legacy Argonaut hedges totaling 35,000 ounces at a cost of $92.3 million. Alamos returned $67 million to shareholders in the second quarter, comprising $50 million in buybacks and $17 million in dividends.

Alamos Gold Inc. (AGI) released its second-quarter results, formalizing a significant guidance reduction previously announced on June 18. The company reported production approximately 12% below the prior guidance midpoint, while all-in sustaining costs (AISC) increased by 18–20%.

The release highlights structural challenges at the Young-Davidson mine, where a seismic event has reduced access to high-grade stopes for the remainder of 2026. There is no timeline for full recovery beyond optimizations planned for the second half of 2026. While the Island Gold District achieved record production, this growth was insufficient to fully offset the decline in contribution from the flagship Young-Davidson asset.

Management eliminated hedges at an effective price of $4,458 per ounce, a move that reduced cash reserves by $92.3 million. The company confirmed a revised 2026 plan that reflects ongoing geological risks at Young-Davidson and persistent cost pressures expected to continue through year-end.

Alamos Gold Inc. (AGI) is a Canadian intermediate gold producer operating three districts. The Island Gold District in Ontario, Canada, features underground and open pit operations and serves as the company’s flagship growth engine, with plans to expand the mill capacity to 20,000 tpd by Q1 2028. The Young-Davidson District in Ontario, Canada, is an underground operation that has historically been a consistent free cash flow generator. The Mulatos District in Sonora, Mexico, utilizes heap leach and open pit methods, with a PDA underground project currently under construction for a mid-2027 startup. Additionally, the company is developing the Lynn Lake underground project in Manitoba, which is now expected to reach first production in H1 2029. All assets are located in mining-friendly, low-risk jurisdictions.