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AGI Cuts Q2 Production Outlook on Young-Davidson Operational Hurdles
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Key Takeaways
AGI expects Q2 production of 130,000-135,000 ounces, about 12% below the midpoint of its prior guidance.
AGI cited seismic events, power-loss downtime and lower grades at Young-Davidson for the cut.
AGI has retired 85% of inherited forward contracts and seeks to eliminate the final 50,000 ounces.
Alamos Gold Inc. (AGI - Free Report) announced that production at its Young-Davidson Mine was impacted due to two seismic events that resulted in unplanned downtime for power loss in May and lower grades mined in the second quarter of 2026. Due to these headwinds, Alamos Gold lowered its production expectation at Young-Davidson to be in line with the first quarter.
AGI Lowers Q2 Production Outlook
The company expects the second-quarter production between 130,000 and 135,000 ounces, indicating a 12% dip from previous guidance at mid-point. The downside is due to lower production at Young-Davidson, as well as the timing of the recovery of ounces at La Yaqui Grande.
AGI expects mining rates to average 5,000 tons per day for the remainder of the year. Given the lower mining rates from the Young-Davidson Mine through the second half of the year, AGI expects full-year production to be below the low end of its guidance, with costs above the full-year guidance. The company previously expected 2026 production to be 570,000-650,000 ounces, with all-in sustaining costs of $1,500-1,600 per ounce.
However, the company’s Island Gold District operations are expected to partially offset the headwinds. With a solid ongoing performance, the Island Gold District is well-positioned to achieve its full-year guidance of 290,000-330,000 ounces. Backed by this, AGI expects stronger production in the second half of 2026.
Alamos Gold’s Other Updates
AGI repurchased and eliminated all remaining forward sale contracts due in the second half of 2026, totaling 35,000 ounces at an average price of $1,821 per ounce. Following a repurchase and elimination of 15,000 ounces in the first quarter, the company has already retired 279,000 ounces. This represents 85% of 329,000 ounces of forward contracts inherited from Argonaut Gold in July 2024.
The company is now actively looking for opportunities to retire the final 50,000 ounces scheduled to mature in the first half of 2027.
AGI’s Price Performance
Shares of Alamos Gold have appreciated 37.9% in a year compared with the industry’s 53.8% growth.
Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 186% so far this year.
The Zacks Consensus Estimate for L.B. Foster’s current-year earnings is pegged at $1.74 per share, indicating a 152% year-over-year upsurge. FSTR has an average trailing four-quarter earnings surprise of 3.6%. L.B. Foster’s shares have gained 4.9% in a year.
Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares have soared 90.5% in a year.
View the Zacks #1 Rank List
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AGI Cuts Q2 Production Outlook on Young-Davidson Operational Hurdles
Key Takeaways
Alamos Gold Inc. (AGI - Free Report) announced that production at its Young-Davidson Mine was impacted due to two seismic events that resulted in unplanned downtime for power loss in May and lower grades mined in the second quarter of 2026. Due to these headwinds, Alamos Gold lowered its production expectation at Young-Davidson to be in line with the first quarter.
AGI Lowers Q2 Production Outlook
The company expects the second-quarter production between 130,000 and 135,000 ounces, indicating a 12% dip from previous guidance at mid-point. The downside is due to lower production at Young-Davidson, as well as the timing of the recovery of ounces at La Yaqui Grande.
AGI expects mining rates to average 5,000 tons per day for the remainder of the year. Given the lower mining rates from the Young-Davidson Mine through the second half of the year, AGI expects full-year production to be below the low end of its guidance, with costs above the full-year guidance. The company previously expected 2026 production to be 570,000-650,000 ounces, with all-in sustaining costs of $1,500-1,600 per ounce.
However, the company’s Island Gold District operations are expected to partially offset the headwinds. With a solid ongoing performance, the Island Gold District is well-positioned to achieve its full-year guidance of 290,000-330,000 ounces. Backed by this, AGI expects stronger production in the second half of 2026.
Alamos Gold’s Other Updates
AGI repurchased and eliminated all remaining forward sale contracts due in the second half of 2026, totaling 35,000 ounces at an average price of $1,821 per ounce. Following a repurchase and elimination of 15,000 ounces in the first quarter, the company has already retired 279,000 ounces. This represents 85% of 329,000 ounces of forward contracts inherited from Argonaut Gold in July 2024.
The company is now actively looking for opportunities to retire the final 50,000 ounces scheduled to mature in the first half of 2027.
AGI’s Price Performance
Shares of Alamos Gold have appreciated 37.9% in a year compared with the industry’s 53.8% growth.
Alamos Gold’s Zacks Rank & Stock to Consider
AGI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Albemarle Corporation (ALB - Free Report) , L.B. Foster Company (FSTR - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) . ALB and FTSE flaunt a Zacks Rank #1 (Strong Buy) at present, and ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 186% so far this year.
The Zacks Consensus Estimate for L.B. Foster’s current-year earnings is pegged at $1.74 per share, indicating a 152% year-over-year upsurge. FSTR has an average trailing four-quarter earnings surprise of 3.6%. L.B. Foster’s shares have gained 4.9% in a year.
Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares have soared 90.5% in a year.