Gold and Silver

Alamos writes down Turkey assets

Alamos writes down Turkey assets
Mining News Pro - Canadian miner Alamos Gold has reported a second-quarter net loss of $172.5-million, or $0.44 a share, compared with a profit of $11.7-million in the corresponding period, after writing down the entire carrying value of its Turkish assets.

Alamos reported an impairment charge of $213.8-million in the second quarter. The miner earlier filed a $1-billion investment treaty claim against Turkey for expropriation and unfair treatment.

Overall, Alamos had a solid first half performance, led by a strong quarter at Young-Davidson, in Ontario, and remained well positioned to achieve its full-year guidance, said president and CEO John McCluskey this week.

Production of 114 200 oz was a 46% increase from the second quarter of 2020, primarily reflecting temporary downtime related to Covid-19 during the prior-year period. All-in sustaining costs were $1 136/oz.

Young-Davidson produced 45 100 oz and generated mine-site free cash flow of $18.7-million. Island Gold produced 33 200 oz of gold and generated mine-site free cash flow of $13.7-million, net of growth capital expenditures and capitalised exploration totalling $28.5-million.

“Young-Davidson continues to meet or exceed expectations operating from the new lower mine infrastructure. We expect mining rates at Young-Davidson to increase to design capacity in the third quarter driving our consolidated production and free cash flow higher in the second half of the year,” McCluskey said.

The company sold 107 581 oz of gold at an average realised price of $1 814/oz for revenues of $195.1-million, a 55% increase compared with the second quarter of 2020. Ounces sold were lower than production owing to the timing of shipments, with deferred ounces being sold in July.

Adjusted net earnings were $38.7-million, or $0.10 a share.

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