(Kitco News) - Alamos Gold (TSX: AGI) announced Thursday that the company achieved record quarterly production of 134,200 ounces of gold in Q4 2022, up 9% from the third quarter.
The company said that this increase was driven by solid performances from all three operations, including a substantial increase at Mulatos with the ramp up of La Yaqui Grande.
Alamos added that thanks to strong fourth quarter performance, the company’s full year 2022 production of 460,400 ounces of gold was in line with annual guidance and consistent with 2021 (457,200 ounces).
Importantly, the company said that total cash costs and all-in sustaining costs (AISC) for 2022 have not been finalized but are expected to decrease in Q4 2022 to the lowest levels of the year, adding that full year 2022 costs are expected to be in line with guidance for total cash costs of between $875 and $925 per ounce and AISC of between $1,190 and $1,240 per ounce.
The company also reported that it sold 133,164 ounces of gold in the fourth quarter at an average realized price of $1,741 per ounce for record revenues of $232 million. Full year sales totaled 456,574 ounces of gold at an average realized price of $1,799 per ounce for revenues of $821 million.
Alamos noted that the company ended the year with approximately $130 million of cash and cash equivalents, up from $117 million as of September 30, 2022, adding that the company remains debt-free.
The company’s gold production in 2023 is expected to increase approximately 9% over 2022 (based on the mid-point of the 480 – 520 koz guidance range) driven by higher production from the Mulatos District, with La Yaqui Grande contributing a full year of production.
Gold production is expected to remain at similar levels in 2024 and 2025 at 470 – 510 koz guidance range, with increasing production from Island Gold offsetting a decrease in production at Mulatos.
In 2023, total cash costs and AISC are expected to decrease 6% and 5%, respectively, from 2022 (based on the mid-point of guidance). Total cash costs and AISC are expected to improve significantly in 2024, decreasing 15% and 11%, respectively, from 2023. In 2025, total cash costs and AISC are expected to decrease 22% and 18%, respectively, from 2022.
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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