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Will Young-Davidson Setbacks Weigh on Alamos Gold's Performance?
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Key Takeaways
Alamos Gold's Young-Davidson production fell 15% in H1 after seismic events caused disruptions.
Alamos Gold cut 2026 production guidance to 510,000-560,000 ounces from 570,000-650,000 ounces.
Alamos Gold raised AISC guidance to 1,775-1,875 per ounce due to lower output and rehabilitation costs.
Alamos Gold Inc.'s (AGI - Free Report) production at its Young-Davidson mine was impacted in the second quarter of 2026 due to two seismic events that resulted in unplanned downtime from power loss in June and lower grades mined.
This resulted in gold production of 63,000 ounces in the first half of 2026, down 15% year over year. AGI’s consolidated production also fell 3% year over year to 254,500 ounces in the first six months of 2026. The company expects a better second-half performance, driven by strong Island Gold District operations.
Alamos Gold expects mining rates to average 5,000 tons per day for the remainder of the year at Young-Davidson. Given the lower mining rates from the Young-Davidson mine through the second half of the year, AGI reduced its full-year production expectation, while increasing the cost guidance. The company expects higher mining rates at the mine beyond 2026 due to optimization of the mining sequence and the implementation of enhanced ground support.
The company expects gold production of 510,000-560,000 ounces from the prior mentioned 570,000-650,000 ounces. The company expects all-in sustaining costs within $1,775 and $1,875 per ounce, up from the prior stated $1,500-1,600. The rise in costs will be due to lower production and higher costs at Young-Davidson to complete rehabilitation work.
Located in Ontario, Young-Davidson is a low-cost, long-life operation with a large Mineral Reserve base. It is one of Canada’s largest underground gold mines that is expected to be Alamos’ foundation for growth in the upcoming years. AGI expects stronger production and significantly lower costs in 2027, driven by improved results from Young-Davidson.
Other Miners With Operations in Canada
Agnico Eagle Mines Limited’s (AEM - Free Report) LaRonde mine in Quebec is one of Canada’s largest operating gold mines by gold reserves and has provided the company’s foundation for domestic and international expansion. Agnico Eagle Mines generated revenues of $3.8 billion in the second quarter of 2026, up 35% year over year.
Agnico Eagle Mines’ payable gold production was 855,816 ounces in the reported quarter, down 1.2% from 866,029 ounces in the prior-year quarter. For 2026, Agnico Eagle expects gold production near the lower end of its guidance of 3.3-3.5 million ounces.
Newmont Corporation’s (NEM - Free Report) North America segment has operations in Mexico, Canada, and the United States’ Colorado and Nevada. Newmont has recently received key regulatory approvals from the Province of British Columbia for its Red Chris Block Cave Project, reaching a milestone in the planned transformation of the Red Chris Mine from an open-pit operation to a large-scale underground block-cave mine.
The newly approved block-cave development will enable access to deeper ore bodies that cannot be economically mined through surface operations. The transition is expected to extend the mine's life into the mid-2040s. The mine expansion could boost Canada's annual copper production by 15%.
Newmont’s revenues for the second quarter were $6.12 billion, up 15.1% from the prior-year quarter. Newmont reported roughly 13% year-over-year and 1% sequential declines in attributable gold production to 1.29 million ounces. Newmont remains on track to achieve its previously announced 2026 guidance. The company expects attributable gold production of 5.26 million ounces.
AGI’s Price Performance, Valuations & Estimates
Alamos Gold’s stock has gained 2.3% in a year compared with the Zacks Mining – Gold industry’s 26.1% growth. During this time, the Basic Materials sector has risen 19.7% and the S&P 500 has returned 17.4%.
Image Source: Zacks Investment Research
AGI is currently trading at a forward 12-month earnings multiple of 13.52X, at a premium to the industry average of 13.08X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Alamos Gold’s 2026 sales is $2.43 billion, indicating 34.5% year-over-year growth. The consensus mark for the year’s earnings is $2.12 per share, indicating year-over-year growth of 51.4%.
The Zacks Consensus Estimate for 2027 sales implies 21% year-over-year growth. The same for earnings indicates year-over-year growth of 25%.
EPS estimates for 2026 and 2027 have been trending south over the past 60 days, as seen in the chart below.Image Source: Zacks Investment Research
View the Zacks #1 Rank List
Image: Bigstock
Will Young-Davidson Setbacks Weigh on Alamos Gold's Performance?
Key Takeaways
Alamos Gold Inc.'s (AGI - Free Report) production at its Young-Davidson mine was impacted in the second quarter of 2026 due to two seismic events that resulted in unplanned downtime from power loss in June and lower grades mined.
This resulted in gold production of 63,000 ounces in the first half of 2026, down 15% year over year. AGI’s consolidated production also fell 3% year over year to 254,500 ounces in the first six months of 2026. The company expects a better second-half performance, driven by strong Island Gold District operations.
Alamos Gold expects mining rates to average 5,000 tons per day for the remainder of the year at Young-Davidson. Given the lower mining rates from the Young-Davidson mine through the second half of the year, AGI reduced its full-year production expectation, while increasing the cost guidance. The company expects higher mining rates at the mine beyond 2026 due to optimization of the mining sequence and the implementation of enhanced ground support.
The company expects gold production of 510,000-560,000 ounces from the prior mentioned 570,000-650,000 ounces. The company expects all-in sustaining costs within $1,775 and $1,875 per ounce, up from the prior stated $1,500-1,600. The rise in costs will be due to lower production and higher costs at Young-Davidson to complete rehabilitation work.
Located in Ontario, Young-Davidson is a low-cost, long-life operation with a large Mineral Reserve base. It is one of Canada’s largest underground gold mines that is expected to be Alamos’ foundation for growth in the upcoming years. AGI expects stronger production and significantly lower costs in 2027, driven by improved results from Young-Davidson.
Other Miners With Operations in Canada
Agnico Eagle Mines Limited’s (AEM - Free Report) LaRonde mine in Quebec is one of Canada’s largest operating gold mines by gold reserves and has provided the company’s foundation for domestic and international expansion. Agnico Eagle Mines generated revenues of $3.8 billion in the second quarter of 2026, up 35% year over year.
Agnico Eagle Mines’ payable gold production was 855,816 ounces in the reported quarter, down 1.2% from 866,029 ounces in the prior-year quarter. For 2026, Agnico Eagle expects gold production near the lower end of its guidance of 3.3-3.5 million ounces.
Newmont Corporation’s (NEM - Free Report) North America segment has operations in Mexico, Canada, and the United States’ Colorado and Nevada. Newmont has recently received key regulatory approvals from the Province of British Columbia for its Red Chris Block Cave Project, reaching a milestone in the planned transformation of the Red Chris Mine from an open-pit operation to a large-scale underground block-cave mine.
The newly approved block-cave development will enable access to deeper ore bodies that cannot be economically mined through surface operations. The transition is expected to extend the mine's life into the mid-2040s. The mine expansion could boost Canada's annual copper production by 15%.
Newmont’s revenues for the second quarter were $6.12 billion, up 15.1% from the prior-year quarter. Newmont reported roughly 13% year-over-year and 1% sequential declines in attributable gold production to 1.29 million ounces. Newmont remains on track to achieve its previously announced 2026 guidance. The company expects attributable gold production of 5.26 million ounces.
AGI’s Price Performance, Valuations & Estimates
Alamos Gold’s stock has gained 2.3% in a year compared with the Zacks Mining – Gold industry’s 26.1% growth. During this time, the Basic Materials sector has risen 19.7% and the S&P 500 has returned 17.4%.
AGI is currently trading at a forward 12-month earnings multiple of 13.52X, at a premium to the industry average of 13.08X.
The Zacks Consensus Estimate for Alamos Gold’s 2026 sales is $2.43 billion, indicating 34.5% year-over-year growth. The consensus mark for the year’s earnings is $2.12 per share, indicating year-over-year growth of 51.4%.
The Zacks Consensus Estimate for 2027 sales implies 21% year-over-year growth. The same for earnings indicates year-over-year growth of 25%.
EPS estimates for 2026 and 2027 have been trending south over the past 60 days, as seen in the chart below.
Image Source: Zacks Investment Research
AGI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.