By Kelly Cloonan
Alamos Gold slashed its production guidance for the year, citing recent disruptions at one mine as well as power outages from storm-related damage.
The Canada-based gold producer said Thursday its Young-Davidson mine experienced two "seismic events" last week, damaging infrastructure and limiting access to stopes that had been set for mining in the second quarter.
The mine was also hit with power outages due to storm-related damage to the regional power line in late May. Young-Davidson had three days of unplanned downtime, hurting mining rates and production for the quarter, due to a longer response time from the utility company, Alamos Gold said, citing the remote location of the power line connected to the site.
Alamos Gold trimmed its second-quarter production forecast by about 12% at the midpoint a result, guiding for between 130,000 and 135,000 ounces, down from 145,000 and 155,000 ounces previously.
The updated forecast reflects the shortfall at Young-Davidson, as well as the timing of recovery of ounces at La Yaqui Grande. Island Gold production for the second quarter is expected to be in line with plan for the quarter, the company said.
Second-quarter costs are also expected to be higher than previously guided, reflecting the lower production at Young-Davidson, the company said.
For the full year, the company now projects consolidated production will be below the low end of its prior 2026 guidance, and costs above its full-year guidance, given lower first-half production and lower mining rates expected from Young-Davidson through the second half of the year.
The company previously guided for full-year production of 570,000 to 650,000 ounces
The company said it would provide revised 2026 consolidated production and cost guidance with the release of its second-quarter financial results in late July.
"We are disappointed with the operational challenges at Young-Davidson, and are working diligently to review and optimize the mining sequence to support higher mining rates going forward," Chief Executive John McCluskey said.
"The first half has been challenging, but we expect stronger production into the second half of this year," McCluskey said, pointing to the performance of the company's Island Gold District operations.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
June 18, 2026 18:00 ET (22:00 GMT)
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