The Island Gold mine, in Canada
Canada-based intermediate gold miner Alamos is on pace for a record year, both operationally and financially, CEO John McCluskey said on Wednesday, announcing that the company is increasing its full-year production guidance by 5%.
The TSX- and NYSE-listed miner is now forecasting production of 515 000 oz to 530 000 oz.
“With total cash costs and all-in sustaining costs below the mid-point of guidance in the quarter and year-to-date, we are also on track to achieve full-year cost guidance,” he said.
This follows a record quarterly performance of 135 400 oz in the third quarter, on the back of strong results from the Mulatos District, in Mexico, and Island Gold, in Canada.
The Mulatos District produced 53 900 oz in the third quarter and 164 700 oz year-to-date, nearly double the prior year period. Island Gold produced 36 400 oz, a 19% increase compared with the second quarter, reflecting higher grades and throughput.
McCluskey said that the Phase 3+ expansion at Island Gold was progressing well. The headframe is up and the shaft sinking will begin later this year.
During the third quarter of 2023, the company sold 132 633 oz of gold for operating revenues of $256.2-million. This represented a 20% increase from the prior year period owing to an 8% increase in ounces sold.
Alamos reported net earnings of $39.4-million in the quarter, compared to a net loss of $1.4-million in the prior year period. Adjusted earnings for the third quarter were $54.5-million, or $0.14 a share, which included adjustments for an unrealized foreign exchange loss recorded within deferred taxes, and foreign exchange gains on net monetary assets and liabilities, resulting from the weakening of the Canadian dollar and Mexican peso