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Canadian mines helped Alamos Gold to beat Q1 production guidance

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(Kitco News) - Alamos Gold (TSX:AGI; NYSE:AGI) today reported a strong start to the year with production of 125,800 ounces in the first quarter, exceeding quarterly guidance, and marking a 14% increase from the first quarter of 2020.

The company said that strong performance was driven by another record quarter of production at Island Gold, and record underground mining rates at Young-Davidson for the second consecutive quarter. Total cash costs and all-in sustaining costs in the quarter were both in line with annual guidance despite the stronger than budgeted Canadian dollar in the quarter.

Young-Davidson mine produced 48,000 ounces of gold in the first quarter of 2021, a significant increase from the prior period due to the shutdown of the Northgate shaft starting in February 2020 to complete the lower mine tie-in.

Island Gold mine achieved another record in the first quarter, producing 42,200 ounces. This represents a 9% increase from the comparative period in 2020, reflecting higher grades mined and processed.

Mulatos mine produced 35,600 ounces in the first quarter, 16% lower than in the prior year quarter, reflecting lower tonnes and grades stacked on the leach pad.

“We had a strong start to 2021 with gold production exceeding guidance for the quarter. Our Canadian operations performed particularly well, with Young-Davidson ramping up to record mining rates and yet another quarterly production record at Island Gold,” said president and CEO John A. McCluskey.

Alamos added that its gold production in the second quarter of 2021 is expected to be between 115,000 and 120,000 ounces, a slight decrease from the first quarter, reflecting lower planned grades at Island Gold.

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