Gold Miners Crushed as Rates Rise and Mine Problems Mount
Gold mining stocks Alamos Gold and Equinox Gold have taken a hit in July, losing nearly a quarter of their value. This is unlike gold itself, which only fell around 24% from its 2026 high of $5,318.40 to $4,046 an ounce on July 23.
The discrepancy lies in the fact that mining equities carry additional exposure beyond just the gold price. They include operating costs, production guidance, mine access, financing decisions, and investor mood, making them more volatile than bullion alone.
Alamos Gold's troubles were compounded by a mine problem at its Young-Davidson site in Ontario. On June 18, the company announced that two seismic events damaged infrastructure and limited access to higher-grade stopes, leading to a cut in second-quarter production guidance by 12%.
Equinox Gold's July issue was tied to its proposed business combination with Orla Mining, which is expected to close on July 31. Shareholders approved the deal, but investors are wary of dilution and timing risks.