- Write by:
-
Friday, December 13, 2019 - 11:54:20 AM
-
695 Visit
-
Print
Mining News Pro - Canadian-based diversified gold miner Alamos Gold has provided its production and operating guidance for the upcoming year.
According to Mining News Pro - The company remains on track to meet its 2019 production and cost guidance, driven by strong performance from its Canadian operations including the Young-Davidson mine in Ontario over the past months.
In 2020, total production across Alamos’ operations is expected to be at the lower range of 425,000-465,000 oz at all-in sustaining costs of $1,020-$1,060/oz, owing to the impact of completing the tie-in of the upper and lower mines at Young-Davidson during the first half of 2020.
Construction of the lower mine expansion at Young-Davidson is in progress, and the tie-in will take place between March and June.
During this time, ore will be trucked to surface from the upper mine at a rate of about 2,500 t/d. Given the lower production rate and a full work force to support the mine expansion during this period, cash costs and all-in sustaining costs are expected to increase significantly in the first half of the year, the company cautioned.
Once the transition is complete, underground mining rates at Young-Davidson are expected to increase from about 6,500 t/d to 7,500 t/d by the end of 2020. The higher mining rates would drive production up to 500,000 oz/y in 2021. For the upcoming year, the mine is forecast to produce between 145,000-160,000 oz.
At Island Gold — Alamos’ other producing mine in Ontario — production is expected to reach 130,000-145,000 oz, while Mulatos, located in Mexico, is slated to produce 150,000-160,000 oz.
Based on a ‘strong outlook’ for 2020, the company has decided to increase its dividend by 50% to a yearly rate of C$0.06 a share starting in the first quarter of the new year.
Total capital budget for 2020 stands at C$180-C$205 million and will be largely focused on growth projects at the company’s operations. Its exploration budget is pegged at C$36 million, a slight increase over the C$33 million allocated for this year.
Alamos also expects to transition to positive free cash flow in the second half of 2020 once the Young-Davidson expansion is completed.
Short Link:
https://www.miningnews.ir/En/News/457452
Newmont Corp beat Wall Street estimates for first-quarter profit on Thursday, as the world’s largest gold miner ...
China’s Zhaojin Mining Industry said on Wednesday that its A$733 million ($477.8 million) offer to buy Australia’s ...
Toronto-listed miner OceanaGold Corp said on Wednesday it will raise 6.08 billion pesos ($106 million) through an ...
Ghana Mine Workers Union is demanding the termination of the mining lease of Future Global Resources Ltd. because the ...
Gold’s record-setting rally this year has puzzled market watchers as bullion has roared higher despite headwinds that ...
AbraSilver Resource said on Monday it has received investments from both Kinross Gold and Central Puerto, Argentina’s ...
Gold took a tumble as haven demand waned after geopolitical tensions eased in the Middle East.
The four largest indigenous communities in Chile’s Atacama salt flat suspended dialogue with state-run copper giant ...
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
No comments have been posted yet ...