Alamos Gold’s output sails past half-million mark

11th January 2024 By: Creamer Media Reporter

Alamos Gold’s output sails past half-million mark

The Mulatos mine, in Mexico.

Canadian miner Alamos Gold has achieved the top-end of its increased guidance with record production of 529 300 oz in 2023.

This represents a 15% increase from its 2022 production of 460 400 oz.

The higher product was achieved at a lower cost, helping to drive a record financial performance and strong free cash flow, said president and CEO John McCluskey, noting that the group continued to invest in high-return, low-cost growth.

Alamos sold 129 005 oz of gold in the fourth quarter at an average realised price of $1 973/oz for revenues of $255-million. Full-year sales totalled 526 257 oz at an average price of $1 944/oz for record revenue of $1-billion.

The miner, which remains debt-free, ended the year with about $225-million of cash and cash equivalents, up from $130-million at the end of 2022.

“We expect this strong performance to continue with growing production and declining costs over the next several years,” said McCluskey.

He reported that the Mulatos mine, in Mexico, continued to outperform, supporting an increase in the company’s 2024 production guidance.

The Phase 3+ Expansion at Island Gold, Ontario, remains on track to deliver further production growth, decreasing costs, and substantial free cash flow growth into 2026 and beyond.

Alamos is also advancing other growth initiatives with the development plan for PDA expected to be completed later this quarter, outlining additional production upside as early as 2026, and with Lynn Lake to provide further low-cost production growth as early as 2027, said McCluskey.

“We have also increased our exploration budget to the highest level in our history reflecting the ongoing success and significant upside we see across our asset base,” he added.