Shares of Alamos Gold (AGI) tumbled 5.86% on Wednesday following the release of the company's first-quarter 2025 financial results, which fell short of analyst expectations. The gold miner reported lower production and higher costs compared to the previous year, prompting investor concerns about its near-term performance.

Alamos Gold announced adjusted earnings per share of $0.14 for Q1 2025, missing the analyst consensus estimate of $0.19 by 26.32%. While this represents a 7.69% increase from $0.13 per share in the same period last year, it failed to meet market expectations. Revenue for the quarter came in at $333 million, also below the analyst estimate of $378.45 million by 12.01%.

The company's production for the quarter totaled 125,000 ounces of gold, down from 135,700 ounces in the first quarter of 2024. Despite the lower output, Alamos Gold maintained its full-year production guidance, stating that stronger production is expected in the second quarter and the remainder of the year. Total cash costs rose to $1,193 per ounce, and all-in sustaining costs (AISC) increased to $1,805 per ounce, both above the company's guidance for the first half of 2025. The higher costs were attributed to lower grades processed at some operations and increased share-based compensation expenses.

While the quarterly results disappointed investors, Alamos Gold's management remained optimistic about the company's outlook. They emphasized that the company is still on track to achieve its full-year production guidance and expects costs to decrease significantly in the coming quarters. The market's reaction, however, suggests that investors are taking a cautious stance until they see concrete evidence of the promised improvements in production and cost management.