Alamos Gold Inc
Alamos Gold Inc
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Lower gold production and higher costs have seen Alamos Gold post a $US50M swing to a Mar 2020 qtr (Q1 20) net loss of $12.3M from Q4 19’s net earnings of $38M on revenues slipping to $176.9M from $186M.
The result was on gold production down to 110,800oz from Q4 19’s 122,100oz, cash costs up to $759oz from $722oz and AISC to $1,010oz from $972oz.
Mulatos and Island Gold shine, despite Alamos’ Q1 20 production slide and turnaround from profit to $12.3M loss
It appears bandits in Mexico are cashing in on disrupted routines due to the COVID-19 pandemic, after five armed men subdued security guards and seized gold and silver dore bars being loaded aboard a chartered aircraft on the airstrip at the remote Mulatos mine in Sonora state.
The gang escaped within 10 minutes in a small plane that landed at the airstrip. The mine, which produced 142,000oz gold in 2019, is owned by Canadian miner Alamos Gold’s subsidiary Minas de Oro Nacional.
Alamos Gold is suspending operations at its Mulatos Gold Mine in Mexico until Apr 30, 2020, and extending the suspension at Island Gold, N Ontario, Canada, for an additional 2-weeks due to COVID-19 crisis govt decrees.
Given these shutdowns, the company has withdrawn its FY2020 production expectations of 425,000oz-465,000oz at cash costs of $US770oz-$810oz and AISC $1,020-$1,060oz. It said on Mar 24 it remained on track to produce 105,000oz-110,000oz in the Mar 2020 qtr (Q1 20).
Alamos Gold is suspending operations at its Island Gold Mine for an initial 14-days to prevent the spread of COVID-19 through its fly-in, fly-out location SE of Dubreuilville town and 83KM NE of Wawa, N Ontario, Canada.
In a $US169M turnaround, Alamos Gold has posted Dec 2019 year (FY/CY19) net earnings of $96.1M from the previous year’s $72.6 loss, despite gold production easing to 494,500oz from 505,000oz and expected to fall to 425,000oz-465,000oz in the current FY/CY2020.
In the wake of a $96M profit for FY19, Alamos Gold has confirmed a production decline to continue through FY20
Lower 1st half 2020 (H1 20) gold production from the Young-Davidson mine in Canada is expected to see Alamos Gold’s FY/CY20 output fall to 425,000oz-465,000oz from FY/CY19 expectations of 480,000oz-520,000oz.
The fall is expected to be accompanied by total cash costs from its Young-Davidson, Mulatos, Mexico, and Island Gold, Canada, operations up to $US770oz-$810oz from $710oz-$750oz and AISC to $1,020oz-$1,060oz from $920oz-$960oz.
Despite record gold production/sales and cash-flow from its 4 operations, Alamos Gold’s Dec 2018 year (FY/CY18) has resulted in a net loss of $US72.6M from FY/CY17’s $26.6M profit, with adjusted net earnings down to $19.6M from $38.9M.
Alamos Gold has had a good FY18, with record gold production and more in the wings, but with higher costs and one-off items generating a near $100m turnaround to $72.6M loss