GOLD: Young-Davidson expansion to come online in 2020: Alamos Gold

TORONTO – Alamos Gold has released 2020 production guidance for its three operating mines in Ontario and Mexico. Next year, total production […]
Alamos Gold’s Young-Davidson mine in northern Ontario Credit: Alamos Gold
[caption id="attachment_1003732440" align="aligncenter" width="450"]Alamos Gold’s Young-Davidson mine in northern Ontario Credit: Alamos Gold Alamos Gold’s Young-Davidson mine in northern Ontario Credit: Alamos Gold[/caption] TORONTO – Alamos Gold has released 2020 production guidance for its three operating mines in Ontario and Mexico. Next year, total production is forecast at 425,000 oz. to 465,000 oz. at all in sustaining costs of US$1,020 to US$1,060 per oz. This is a slight production decrease at higher unit costs compared to the 480,000 oz. to 520,000 oz. expected this year at AISCs of US$920 to US$960 per oz. The discrepancy is largely due to the impact of the transition to lower mine infrastructure at Young-Davidson which is scheduled for completion in June of next year. At Young-Davidson, downtime is scheduled for the Northgate shaft in the first half of the year as production transitions to the expanded lower mine infrastructure between March and June. Ore will be trucked to surface with lower mining rates in the first half of 2020. Once the transition is complete, underground mining rates are expected to increase and drive costs down. The mine is forecast to reach the 200,000 oz. annual production level in 2021. At the underground Island Gold operation, Alamos expects slightly lower head grades next year albeit with slightly higher throughputs. In the second half of 2020, a study is anticipated to evaluate an expansion beyond the current throughput levels. At Mulatos in Mexico, a construction decision on the permitted La Yaqui Grande project is expected in the first half of next year. On a company-wide basis, the 2020 total capital budget stands at US$180 to US$205 million and will be largely focused on growth projects at the company’s operations. The 2020 exploration budget stands at US$36 million, a slight increase over the US$33 million allocated for this year. Alamos currently expects to transition to positive free cash flow generation in the second half of next year, once the lower mine expansion at Young-Davidson is completed. The company also announced an increase of 50% to its dividend starting in the first quarter of next year. A total of 47,550 oz. are hedged in the first half of 2020 at an average minimum gold price of US$1,404 per oz. with participation up to an average gold price of US$1,633 per oz. For more information, visit www.AlamosGold.com.

Comments

Your email address will not be published. Required fields are marked *

Mar 27 2024 - Mar 28 2024
Apr 08 2024 - Apr 09 2024
Apr 15 2024 - Apr 16 2024
Apr 16 2024 - Apr 16 2024