The second-quarter of 2020 will be remembered as the “most challenging”, but dual-listed miner Alamos Gold CEO John McCluskey says the miner has adapted well and that its mines are back in operation.

Operations at Island Gold, in Ontario, and Mulatos, in Mexico, were temporary suspended, but by June, both had returned to normal operating levels, he said, announcing the miner’s second-quarter results.

Alamos produced 78 400 oz, impacted by downtime at the Northgate shaft at Young-Davidson, Ontario, as well as the suspension of operations at Island Gold and Mulatos. Its all-in sustaining cost (AISC) for the quarter was $1 276/oz.

Mulatos produced 35 900 oz of gold and generated mine-site free cash flow of $19.3-million, with the operation benefiting from the ongoing recovery of gold from the leach pad during the temporary suspension.

Island Gold produced 19 400 oz of gold and generated mine-site free cash flow of $9.2-million.

Alamos sold 74 406 oz of gold at an average price of $1 692/oz, generating revenues of $126.2-million. The miner realised net earnings of $9.8-million, or $0.03 a share.

Subsequent to the quarter, the miner announced the Phase 3 expansion study conducted on Island Gold, which is expected to drive a 72% increase in average production to 236 000 oz/y and a 30% decrease in mine-site AISC to $534/oz at the operation, as well as announcing a construction decision on the high-return La Yaqui Grande project, which generates a 58% after-tax internal rate of return and is expected to reduce the Mulatos district AISC starting in 2022.

These two developments, coupled with the completion of the lower mine expansion at the Young-Davidson mine earlier in July, have greatly enhanced the long-term outlook for each of Alamos’ mines, said McCluskey.

“We look forward to creating additional value for our stakeholders in the second half of 2020 with higher production and lower costs expected to drive strong free cash flow growth.”