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Friday, December 13, 2019 - 11:54:20 AM
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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.
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https://www.miningnews.ir/En/News/457452
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