(Kitco News) – Alamos Gold (TSX:AGI) reported today that the company’s production of 457,200 ounces of gold in 2021 was in line with revised production guidance and represented a 7% increase from 2020.
The company said that this result was driven by strong performances through the year from both Young-Davidson and Island Gold, with the former achieving record mining rates and free cash flow. This offset a challenging year at Mulatos as Alamos works through a transitional phase with higher costs until La Yaqui Grande comes online in the second half of 2022.
The company added that total cash costs and all-in sustaining costs for 2021 have not been finalized but are expected to be consistent with revised full year guidance of $790 to $810 per ounce and $1,120 to $1,140 per ounce, respectively.
Alamos also announced record revenues with full year 2021 sales totaled 457,517 ounces of gold at an average realized price of $1,800 per ounce for record revenues of $824 million.
Importantly, in its inaugural three-year guidance, Alamos noted it expects a stable production in 2022 with 4% growth expected in 2023: production is expected to be between 440,000 and 480,000 ounces in 2022, consistent with 2021, and increase approximately 4% (based on the mid-point of guidance) to between 460,000 and 500,000 ounces in 2023 and 2024.
The company’s all-in sustaining costs guidance is $1,190 to $1,240 per ounce in 2022, improving to $950 to $1,050 per ounce in 2024: AISC are expected to decrease approximately 18% from 2022 to 2024 (based on the mid-point of guidance), reflecting lower costs at Mulatos and Island Gold. AISC are expected to decrease further in 2025 with the completion of the Phase III expansion at Island Gold.
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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