Alamos delays Island Gold shaft as costs rise

AI desk brief

Alamos Gold pushed back commissioning of its Island Gold shaft expansion to mid-2027 from Q1 and now expects the project to cost about 5% more, or roughly C$877 million versus a C$835 million budget. The delay, together with setbacks at Puerto Del Aire and Young-Davidson, points to weaker 2027 production and higher costs, with Q3 group output down 16% y/y to 119,000 oz and AISC up 42% to $1,956/oz.

Management still sees Q4 production rising to 140,000-160,000 oz and kept full-year guidance at 510,000-560,000 oz at AISC of $1,775-$1,875/oz. Longer term, the company is targeting average output of 534,000 oz/yr from the expanded Island Gold District starting in 2028 at site AISC of $1,025/oz, but analysts flagged the execution slippage as a near-term negative for shares and 2027 guidance.