TSX- and NYSE-listed Alamos Gold has had a solid start to 2019, with strong performances at its four North America mines, including a record quarter at the Island Gold mine, in northern Ontario.

The company produced 125 300 oz of gold at a cash cost of $732/oz in the three months ended March. This compares with 128 900 oz at a total cash cost of $789/oz in the same quarter a year earlier.

The Island Gold mine produced 35 600 oz and yielded record quarterly free cash flow of $16.6-million.

Besides the record performance at Island Gold, Alamos also achieved budgeted mining rates of 6 500 t/d at Young-Davidson, in Ontario, producied its two-millionth ounce of gold at Mulatos, Mexico, and reduced consolidated cash costs by 7% compared with a year ago, president and CEO John McCluskey highlighted in a statement on Wednesday.

“With the strong first quarter performance, we remain on track to achieve full-year production and cost guidance,” said McCluskey.

Alamos sold 119 705 oz of gold at an average price of $1 304/oz, generating revenue of $156.1-million, compared with $173.1-million a year earlier. Adjusted net earnings fell to $10.3-million, or $0.03 a share, from $12.3-million in the first quarter of 2018.

Commenting on various growth initiatives, McCluskey reiterated that Alamos remained on schedule with the lower mine expansion at Young-Davidson and development of the Cerro Pelon project.

At Young-Davidson, mining rates would ramp up to 7 500 t/d in the second half of next year, driving production to more than 200 000 oz/y in 2021. The production increase should result in strong free cash flow growth from the mine in the second half of next year.

The Cerro Pelon project, in the Mulatos district, was advancing on schedule and should achieve initial production in 2022.

In terms of expansion plans at Island Gold, where the Phase 1 mill expansion to 1 200 t/d was completed last year, Alamos is in the process of permitting expansion to match the capacity. The operation is currently permitted to operate at an average of 1 100 t/d. The expansion permitting should be completed by the end of the year.

In parallel, Alamos is considering a Phase 3 expansion beyond 1 200 t/d.

Further, with an operating permit in hand for Kirazlı, in Turkey, construction activities will be ramping up in that country, with the aim of producing first gold from the mine by the end of 2020.

"These projects will be drivers of strong free cash flow growth starting in the second half of 2020 which will in turn support growing returns to our shareholders,” McCluskey added.