Gold and Silver

Alamos lifts FY18 output by 18% y/y

Alamos lifts FY18 output by 18% y/y
Mining News Pro - Alamos Gold produced 505 000 oz of gold in 2018, meeting its guidance and marking an 18% year-on-year increase.
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According to Mining News Pro - “This was driven by strong performances from Mulatos [,in Mexico] and Island Gold [,in Canada], the latter setting a new record for production and continuing to demonstrate strong potential for growth in mineral reserves and resources,” Alamos president and CEO John McCluskey said in a statement on Tuesday.

The company expects a similar rate of production this year, with lower costs driving stronger margins, he added.

“Lower costs are expected to result from improvements at Young-Davidson and low-cost production growth at Island Gold.”

The company’s production guidance for this year is between 480 000 oz and 520 000 oz of gold.

The company estimated a consolidated total cash cost guidance of $710/oz to $750/oz for this year, down 10% from the revised 2018 guidance of $810/oz.

In December, the company had received a Schedule 2 amendment from the federal government, securing tailings capacity for all existing mineral reserves and resources at Young-Davidson, in Canada.

It had also, during the fourth quarter of 2018, received the environmental-impact assessment and change of land use approval for the high-return Cerro Pelon project, in Mexico, with full scale construction of the project now under way.

The company expects to fund the expansion of its existing operations through cash flow from operations, with the development of the Kirazlı mine, in Turkey, to be funded from the balance sheet.

“Looking forward to the second half of 2020, we expect Alamos to transition from reinvesting in growth to generating strong free cash flow. With long-life production from our existing operations at declining costs, a leading portfolio of high-return growth projects, and a strong, debt-free balance sheet, Alamos is well positioned to deliver on this growth,” said McCluskey.

From 2021, combined yearly gold production is expected to increase to over 600 000 oz.


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