Alamos Gold shares plunge on output cut after earthquake at mine

Alamos Gold Inc. shares fell the most since 2020 after the Canadian company cut second-quarter production guidance following earthquakes that damaged a key mine.

Shares of Alamos sank as much as 20% on Friday in Toronto, a day after the company trimmed its quarterly gold production forecast to between 130,000 ounces and 135,000 ounces — a 12% decrease from previous guidance based on the midpoint of the range.

Output for the year is also expected to fall below previously issued guidance, while costs are seen rising, the Toronto-based company said in a Thursday statement. Alamos will provide revised annual output and cost figures in late July.

Two seismic events last week damaged underground infrastructure at its Young-Davidson operations in Ontario, preventing access to high-grade ore that was due to be mined in the second quarter, the company said. Alamos plans to implement additional ground support to Young-Davidson — its second-largest producing mine — throughout the second half of this year, it added.

Alamos is among Canada’s larger gold producers, with annual output hitting nearly 550,000 ounces last year. The company has outlined plans to increase production to one million ounces by 2030.

(By Sybilla Gross)