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Alamos Gold increases production in Q2, posts net loss on impairment of Turkish projects

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(Kitco News) - Alamos Gold (TSX:AGI; NYSE:AGI) announced yesterday that in Q2 2021, the company produced 114,200 ounces of gold, a 46% increase from the second quarter of 2020, primarily reflecting temporary downtime related to COVID-19 during the prior year period. The company said it remains well positioned to achieve full year guidance.

The Young-Davidson mine in Canada produced 45,100 ounces of gold in the second quarter of 2021, a significant increase from the prior year period (23,100 ounces) due to the shutdown of the Northgate shaft to complete the lower mine expansion in the second quarter of 2020.

The Island Gold mine in Canada produced 33,200 ounces in the second quarter of 2021, a 71% increase from the comparative period, with operations temporarily shutdown during the second quarter of 2020 due to COVID-19.

The Mulatos mine in Mexico produced 35,900 ounces in the second quarter, in line with the prior year quarter, reflecting higher tonnes stacked on the leach pad, offset by lower grades mined and stacked.

The company said that it generated cash flow from operating activities of $86.7 million ($97.2 million, or $0.25 per share, before changes in working capital), a 75% increase from the prior year period, while free cash flow was neutral in the quarter.

Alamos added that the company recorded a net loss of $172.5 million, or $0.44 per share, inclusive of the after-tax impairment charge of the Turkish projects of $213.8 million.

Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America. This includes the Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos mine in Sonora State, Mexico. Additionally, the company has a significant portfolio of development stage projects in Canada, Mexico, Turkey, and the United States.

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