Alamos Gold Q3 2026: Surging Costs Swamp a Record Gold Price

Alamos Gold reported adjusted earnings of $0.44 per share, missing expectations even as gold averaged a record price during the quarter. The cause was cost, not demand weakness.

All-in sustaining costs surged to $1,956 per ounce from a year earlier, consuming much of the benefit from higher gold prices. Lower Island Gold grades, a roughly 40% production drop at Young-Davidson after a June seismic event, and higher sustaining capital all contributed.

The Island Gold District provided a partial offset with a quarterly production record on record underground mining and Magino milling rates. But the Young-Davidson constraint was too large to overcome, and Mulatos District output fell 25% as La Yaqui Grande nears the end of its mine life.

Commissioning of the Phase 3+ shaft at Island Gold has slipped roughly one quarter to mid-2027 while the ore and waste handling system is completed. CEO John McCluskey said the delay has no impact on the longer-term outlook, and the company still targets approximately one million ounces of annual production by 2030 at substantially lower costs.

For the fourth quarter, Alamos guided production of 140,000 to 160,000 ounces at meaningfully lower costs as Island Gold grades improve. Full-year production and cost guidance remain intact. The question is whether Q4 delivers the promised cost reset.