 | Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here! |
(Kitco News) - Alamos Gold (TSX: AGI) (NYSE:AGI) announced on Wednesday that the company produced 128,400 ounces of gold in Q1 2023, exceeding quarterly guidance and marking a 30% increase from Q1 2022, driven by a significant increase in production from the Mulatos District.
The company said that Q1 2023 total cash costs of $821 per ounce, and all-in sustaining costs (AISC) of $1,176 per ounce were 17% and 14% lower than the first quarter of 2022, respectively, reflecting low-cost production growth from La Yaqui Grande.
Alamos noted that total cash costs were slightly below annual guidance, while AISC were at the top end of annual guidance, reflecting higher stock based compensation charges resulting from the increase in the company's share price in the period.
The company also reported net earnings of $48.4 million in Q1 2023 (Q1 2022: net loss of $8.5 million), adding that cash and cash equivalents increased to $133.8 million, and equity securities increased to $25.8 million. Alamos said it remains debt free.
"Following up on a strong performance in 2022, we had an excellent start to the year operationally and financially. Production exceeded our first quarter guidance and costs were once again in line with guidance. All three operations continue to perform well, including another standout performance from La Yaqui Grande, the key driver of our expected production growth and decrease in costs this year," stated President and CEO John A. McCluskey.
"Financially, we generated record quarterly revenues and our operating cash flow increased 16% from the fourth quarter, marking the fourth consecutive quarterly increase. With declining costs and expanding margins over the next several years, this is a trend we expect to continue, supporting strong free cash flow generation while completing the Phase 3+ Expansion at Island Gold," he added.
The company also said it expects higher production at significantly lower costs over the next three years. Production is expected to increase to between 480,000 and 520,000 ounces in 2023, a 9% increase from 2022, and remain at similar levels in 2024 and 2025. Company-wide AISC is expected to decrease 4% in 2023 and 17% by 2025 to between $950 and $1,050 per ounce.
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 strong portfolio of growth projects, including the Phase 3+ Expansion at Island Gold, and the Lynn Lake project in Manitoba, Canada.
|
| Newmont reports gold production of 1.27 Moz in Q1, says delivered on expectations |
