Alamos Gold (AGI) shares plummeted 12.80% in pre-market trading on Thursday following the release of disappointing first-quarter 2025 financial results. The significant drop reflects investor concerns about the company's lower-than-expected earnings, production levels, and higher costs.

The gold mining company reported adjusted earnings per share of $0.14 for Q1 2025, missing analyst expectations of $0.19 by 26.32%. Revenue also fell short, coming in at $333 million compared to the estimated $378.45 million. Gold production for the quarter totaled 125,000 ounces, consistent with the low end of quarterly guidance but down from 135,700 ounces in the same period last year.

Investors were particularly concerned about the increase in costs, with total cash costs rising to $1,193 per ounce and all-in sustaining costs (AISC) increasing to $1,805 per ounce, both above the company's guidance for the first half of 2025. Despite management's optimism about achieving full-year production guidance and expectations of decreased costs in coming quarters, the market's reaction suggests that investors are taking a cautious stance until they see concrete evidence of improvements in production and cost management.