Young-Davidson Drives Lower Production Outlook; Island Gold On Track

Research evidence excerpt

Young-Davidson Drives Lower Production Outlook; Island Gold On Track

Canada | Metals & Mining

Alamos Gold EquityJuneResearch18, 2026

TARGET | ESTIMATE CHANGEYoung-Davidson Drives Lower Production

RATING BUYOutlook; Island Gold On Track

PRICE $36.34^

Following the issues reported in the previous quarters, AGI is now dealing with

seismic events and power outages that have lowered prod'n and increased PRICE TARGET | % TO PT $50.00 ($56.00) | +38%

costs at Young-Davidson. While we view the latest issues as temporary, 52W HIGH-LOW $55.41 - $23.92

three consecutive quarters of underperformance increase the urgency to FLOAT (%) | ADV MM (USD) 99.2% | 129.93

restore operational consistency at the mine. With YD now tracking below plan, MARKET CAP $15.3B

successful execution at Island Gold becomes increasingly important to AGI's TICKER AGI ^Prior trading day's closing price unless otherwise

growth outlook. noted.

Young Davidson's 2Q and 2026 consolidated guidance reset. AGI lowered 2Q production guidance FY (Dec) CHANGE TO JEFe JEF vs CONS

to 130-135 koz (155-175 koz prior) at Young Davidson (YD), reflecting the impact of seismic events, 2025 2026 2025 2026

power outages, and lower grades. The company now expects YD's production to be roughly in REV NA NA NA NA

line with 1Q levels, while 2Q costs are expected to come in above prior guidance. Recall AGI had

EPS NA -15% -1% -5%

previously guided for 2Q AISC to decline ~5% q/q, implying AISC of ~$1,770/oz in 2Q. Looking

ahead, management indicated that lower mining rates at YD are likely to persist through the balance

2025 ($) Q1A Q2A Q3A Q4A FY

of the year, which is expected to drive consolidated 2026 production below the low end of guidance

EPS 0.14 0.34 0.37 0.54 1.39

and costs above prior expectations.

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