The price of gold may be inching higher today, but you couldn't tell based on the downward movement in Alamos Gold (AGI -0.11%) stock. Oftentimes, the prices of gold stocks move with changes in the price of gold; however, Alamos Gold downwardly revised its second-quarter forecast, prompting investors to click the sell button today.
As of 10:27 a.m. ET, shares of Alamos Gold are down 14.6%.
Image source: Getty Images.
The second quarter -- and 2026 -- won't be as lustrous as previously thought
After Alamos Gold provided an update regarding operational challenges at its Young-Davidson mine in Ontario last week, Bank of America reduced its price target on Alamos Gold stock today to $50 from $57.
Last Thursday, Alamos Gold announced that recent seismic activity affected infrastructure at the Young-Davidson mine in Ontario, resulting in a reduction in operations. As a result, the company is downwardly revising its Q2 2026 gold production guidance to 130,000-135,000 ounces, representing a 12% decrease from the midpoint of its previous guidance.
NYSE: AGI
Key Data Points
With respect to the full year, Alamos Gold now expects consolidated production to be below the low end of 2026 guidance and costs above full-year guidance. At the end of the first quarter, Alamos Gold has forecast 2026 gold production of 570,000 ounces to 650,000 ounces and total cash costs per ounce of $1,020 to $1,120.
Is Alamos Gold stock a buy on the dip?
Alamos Gold's lower price tag may tempt gold bugs to pick up shares, but it's important to recognize that shares aren't exactly sitting in the bargain bin. Trading at 12.5 times operating cash flow, Alamos Gold stock is priced at a premium to its five-year cash flow multiple of 10.6. At this point, investors would be wise to consider other gold stocks rather than paying a premium for Alamos Gold -- especially with the company's less-lustrous expectations for gold production this year.
