Shares of Alamos Gold (AGI) tumbled 5.86% in Wednesday's trading session following the release of the company's first-quarter 2025 financial results, which fell short of analyst expectations.

The gold miner reported adjusted earnings per share of $0.14, missing the consensus estimate of $0.19 by 26.32%. Revenue for the quarter came in at $333 million, significantly below the projected $378.45 million. The company attributed the underperformance to production levels at the low end of guidance and higher-than-expected costs.

Alamos Gold produced 125,000 ounces of gold in Q1, consistent with the low end of its quarterly guidance. However, total cash costs of $1,193 per ounce and all-in sustaining costs (AISC) of $1,805 per ounce were above the top end of guidance. The company cited higher share-based compensation costs and increased expenses at its Young-Davidson and Magino operations as key factors driving up costs.

Despite the disappointing results, Alamos Gold maintained its full-year production guidance and expressed confidence in stronger performance for the remainder of 2025. The company expects production to increase and costs to decrease significantly in the coming quarters, particularly in the second half of the year.

Investors reacted negatively to the earnings miss and cost pressures, leading to the sharp decline in Alamos Gold's stock price. The market's response reflects concerns about the company's ability to meet its full-year targets and potential impacts on profitability if cost challenges persist.