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Alamos Gold posts net earnings of $37M in 2022 as production was in line with guidance

Kitco News

(Kitco News) - Alamos Gold (TSX: AGI; NYSE: AGI) reported today that the company produced 460,400 ounces of gold in 2022 (2021 – 457,200 ounces), achieving the mid-point of annual guidance.

In a press release, the company said that all three operations "performed well", meeting their respective production guidance.

Alamos added that 2022 total cash costs of $884 per ounce (2021 - $794 per ounce), AISC of $1,204 per ounce (2021 - $1,135 per ounce), and cost of sales of $1,334 per ounce (2021 - $1,167 per ounce) were in line with annual guidance.

The company also reported realized adjusted net earnings for the year of $107.9 million (2021 – adjusted net earnings of $162.1 million), while net earnings were $37.1 million (2021 – net loss of $66.7 million).

Production is expected to increase 9% in 2023 at declining costs, with a 17% decrease in AISC expected by 2025. This is expected to drive strong free cash flow over the next three years while continuing to fund the Phase 3+ Expansion, it said.

Alamos reported year-end 2022 Mineral Reserves of 10.5 million ounces of gold, a 2% increase from the end of 2021 having more than replaced mining depletion for the fourth consecutive year. Mineral Reserve grades also increased 3% driven by higher grade additions at Island Gold and Mulatos.

Additionally, the company said that Measured and Indicated Mineral Resources increased 14% to 3.9 million ounces and Inferred Mineral Resources increased 2% to 7.1 million ounces.

“We met our full year production and cost guidance, with the latter coming in below the mid-point of guidance, a solid result given industry-wide cost pressures. This reflects not only the strong ongoing operational performance of all three mines, but the quality of our assets,” stated President and CEO John A. McCluskey.

“We continue to benefit from our investment in low-cost growth with La Yaqui Grande performing extremely well and a key driver of our near-term improving performance. We are also making significant progress on the Phase 3+ Expansion at Island Gold which will be the driver of a further increase in production and lower costs once completed in 2026,” he added.

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 portfolio of growth projects, including the Phase 3+ Expansion at Island Gold, and the Lynn Lake project in Manitoba, Canada.

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