Alamos Gold reports Q2 results: guidance revised
Despite lower production figures in the second quarter of 2020, Alamos Gold remains optimistic in the company’s future production outlook.
Results from the second quarter showed net earnings of $11.7 million, or $0.03 per share, and cash flow from operating activities of $49.6 million.
The company’s production suffered from reduced activity as a result of of COVID-19.
“The second quarter of 2020 will be remembered as one of the most challenging times in our history given the COVID-19 pandemic. We started the quarter with two of our operations being temporarily suspended, but we adapted well and by June both Island Gold and Mulatos had safely returned to normal operating levels,” said John A. McCluskey, President and CEO in the report.
In the three months ending June 30, gold production totaled 78,400 ounces, down from 125,200 ounces during the same period of the previous year.
Alamos Gold has responded to the COVID-19 pandemic with several safety precautions, including medical screening for all personnel prior to entry to site for symptoms of COVID-19, testing of personnel at Mulatos and Island Gold prior to starting their rotation at the camp, and required 14-day quarantine for any employees returning from out of country travel.
“The Company responded rapidly and proactively to COVID-19 and has implemented several initiatives to help protect the health and safety of our employees, their families and the communities in which we operate,” management said in their second quarter report.
The company revised down their total gold production for 2020 from 425,000 to 465,000 ounces to 405,000 to 435,000 ounces.
Alamos Gold also expects all-in sustaining costs to increase slightly from the previous guidance; expectations are now $1,030 - $1,070 an ounce for gold production, up from $1,007 - $1,047 an ounce.