The company reported that its Young-Davidson mine in northern Ontario suffered two distinct seismic events last week. The tremors damaged essential infrastructure and restricted access to key mining zones slated for extraction during the current quarter. Compounding these technical challenges, a severe storm triggered a three-day regional power outage, with the mine's remote location significantly hampering repair efforts.
In section Market Quotes
Alamos Gold Shares Slide as Seismic Events Hit Ontario Output
Shares of Alamos Gold dropped 18% Friday morning to 41.92 Canadian dollars, following an announcement that a series of seismic events and regional power failures have forced the company to lower its production outlook for both the second quarter and the full fiscal year.
Management responded by trimming its second-quarter production forecast to a range of 130,000 to 135,000 ounces, down from the original target of 145,000 to 155,000 ounces. While the miner anticipates both higher costs and a shortfall against its previous full-year guidance of 570,000 to 650,000 ounces, definitive revised annual figures are not expected until the company releases its second-quarter results this July.
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