- Write by:
-
Thursday, October 28, 2021 - 13:55:20
-
482 Visit
-
Print
Mining News Pro - Intermediate gold producer Alamos Gold has reduced its guidance for 2021, given a weaker quarter at its Mulatos mine, in Mexico.
The Canadian company reduced the guidance for its founding operation by 15 000 oz, resulting in a lower consolidated guidance of 445 000 oz to 495 000 oz for the year.
Mulatos is now expected to produce 135 000 oz to 145 000 oz. The guidance for the Young Davidson and Island Gold mines, in Canada, remained unchanged at 190 000 oz to 205 000 oz, and 130 000 oz to 145 000 oz, respectively.
Alamos produced 104 700 oz of gold in the third quarter, an 11% year-on-year decrease. The Mulatos mine produced 26 700 oz, which was “well below” expectations, owing to an above average rainy season, which impacted stacking rates and led to a longer-than-anticipated leach cycle for stockpiled ore stacked in the quarter.
CEO John McCluskey said that the challenges at Mulatos had offset the strong performances at the Canadian operations. However, he said the challenges were associated with the operation transitioning to low-cost production from La Yaqui Grande in 2022, and that the issues were only temporary.
Alamos also increased its consolidated cost guidance for the year given the stronger-than-budgeted Canadian dollar and higher than planned costs at Mulatos. The total cash cost guidance increased to between $790/oz and $810/oz and the all-in sustaining cost guidance increased to between $1 120/oz and $1 140/oz.
Alamos realised adjusted net earnings of $37.6-million, or $0.10 a share, which includes adjustments for unrealised foreign exchange loss of $12.8-million recorded within deferred taxes and foreign exchange, and other gains of $0.3-million. This compares with adjusted net earnings of $56.9-million in the September 2020 quarter.
Net earnings were $25.1-million, or $0.06 a share, compared with $56.9-million a year earlier.
Free cash flow was negative in the quarter, driven by higher capital spending mainly related to La Yaqui Grande and the Phase III expansion at Island Gold.
Short Link:
https://www.miningnews.ir/En/News/616932
Australian Strategic Materials ASM.AX said on Friday it has received a non-binding letter of interest for a debt funding ...
China’s Tianqi Lithium said on Thursday it has formally requested that a proposed joint venture between lithium company ...
Newmont Corp beat Wall Street estimates for first-quarter profit on Thursday, as the world’s largest gold miner ...
Zimbabwe’s President Emmerson Mnangagwa has re-appointed Winston Chitando as the southern African nation’s mines ...
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 ...
A new report by IDTechEx states that investing in e-haul trucks could result in major savings for miners due to the ...
Nigeria has revoked 924 dormant mining titles immediately and invites investors to freely apply for the affected ...
Ghana Mine Workers Union is demanding the termination of the mining lease of Future Global Resources Ltd. because the ...
No comments have been posted yet ...