Alamos Gold reports record Q3 production at key Ontario mine
Alamos Gold Inc. [AGI-TSX, NYSE] said third quarter 2026 production at its Island Gold District (IGD) operation in northern Ontario increased by 2% from the year ago quarter to a record 68,700 ounces, supported by higher underground mining and milling rates. However, the production increase at IGD was partially offset by weaker production at its Young-Davidson mine, also located in Ontario, of 22,700 ounces. That marked a 31% decrease from the year ago quarter due to lower mining rates and grades. The company’s Mulatos mine in Mexico produced 27,600 ounces during the quarter, an 8.0% decrease from Q3, 2025.
Alamos Gold shares eased 8.3% or $3.66 to $40.63 on Thursday. The shares trade in a 52-week range of $75.78 and $38.03.
The company’s total production of 119,000 ounces in the quarter was below the consensus estimate of 126,000 ounces and brought the company’s year-to-date production to 373,500 ounces. That marked just over 70% of the midpoint of the July revised guidance for 2026, with management maintaining guidance and expecting a strong fourth quarter production, supported by higher mining rates and grades at IGD.
IGD consists of the high-grade, low-cost underground Island gold mine and open pit Magino mines which are adjacent to each other. The property covers 59,900 hectares. In February 2026, a larger expansion of the Island Gold District to 20,000 tonnes per day was announced, supporting increased processing rates of 3,000 tonnes per day of high grade underground ore and 17,000 tonnes per day from the open pit. The expansion is expected to be completed in 2028, driving annual production higher to an average of 534,000 ounces over the first 10 years at mine site all-in-sustaining costs of US$1,025 per ounce. This represents a 113% increase from 2025 production at 30% lower cost with expansion expected to create one of the largest, longest life and most profitable operations in Canada.
Alamos reported third quarter 2026 adjusted earnings per share of $0.44, which was in line with consensus estimates of $0.45 cents. The all-in-sustaining cost figure of US$1,956 an ounce was better than consensus of US$2,064 an ounce.
The Island Gold District achieved a number of records in the quarter, including record production, underground mining rates and milling rates. “We expect a further increase in underground mining rates as well as higher grades from the Island Gold District to drive a significant increase in consolidated production in the fourth quarter, at lower costs, and remain on track to achieve our revised annual production and cost guidance,’’ the company said in a press release. Alamos recently announced a development plan for its Puerto Del Aire (PDA) project in Sonora, Mexico.
PDA is a higher-grade underground deposit adjacent to the main pit at the company’s Mulatos mine, and consists of five zones, including PDA1, PDA2, Gap, Victor and Estrella.