By Robb M. Stewart

Alamos Gold's shares advanced after exploration results from one of its Canadian gold mines showed potential upside for sources of high-grade feed for its mill.

In Monday morning trading, the stock was 6% higher at C$44. That retraced some of Friday's sharp drop following news of quakes at another Canadian mine. The stock is now down 17% so far this year.

In New York, the shares were 15% lower at $31.03, after U.S. markets were closed last Friday.

Alamos said fresh underground and surface drilling at its Island mine in northern Ontario has defined high-grade mineralization across multiple areas that are being targeted as sources of additional feed for its expanded Magino mill. The company has plans to develop the Island gold district into one of the largest and lowest cost gold operations in Canada.

"Given our ongoing exploration success within the main Island gold structure, and across multiple near mine targets, we expect there is further production growth to come," President and Chief Executive John McCluskey said.

He said the multiple higher-grade targets were being defined near to the Magino mill.

Alamos's shares sank 18% in Toronto on Friday after the Canadian miner scaled back its production target following two recent seismic events and a power outage following a late-May storm at its Young-Davidson gold operation in Ontario.

The company now expects production across its three operations, which includes activities in Mexico, will be between 130,000 and 135,000 troy ounces in the second quarter. That is down from prior guidance of 145,000 to 155,000 ounces, though still up from 123,900 in the first quarter.

For the year, Alamos said production will be below the low end of 2026 guidance for 570,000 to 650,000 ounces.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

June 22, 2026 11:52 ET (15:52 GMT)

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