Alamos Gold Inc (AGI)

[NYBob]

Alamos Gold forecasts 2019 gold production
Northern Miner Staff | about an hour ago |


Young-Davidson (Image from Alamos Gold)


Alamos Gold (TSX: AGI; NYSE: AGI) produced 505,000 ounces of gold
from its four mines in North America last year and expects a
“similar rate of production” this year.

The company anticipates production of between 480,000 and 520,000 ounces
of gold in 2019 at total cash costs of between US$710 and
US$750 per oz., down 10% from its revised 2018 guidance of
US$810 per oz., and all-in sustaining costs of between
US$920 and US$960 per oz., down 5% from revised 2018 guidance of
US$990 per oz. (Total cash costs and AISCs for 2018 have not been
finalized yet.)

The gold miner has penciled-in a 2019 capital budget of
US$290 to US$315 million, reflecting the construction of
two new mines in Turkey (Kirazli) and Mexico (Cerro Pelon), and
a global exploration budget of US$33 million,
including US$19 million budgeted for its Island Gold mine.

Alamos Gold was debt-free at the end of last year and had about
US$206 million in cash.

The intermediate gold producer has two operating mines in Canada
(Young-Davidson and Island Gold in northern Ontario), and
two mines in Mexico (Mulatos and El Chanate, both in Sonora state).

At presstime in Toronto Alamos Gold was trading at $5.41 per share.

Macquarie Research has trimmed its target price on the company
from C$10 to C$9.25 per share following its 2019 guidance and
Investor Day. Haywood Securities has lowered its
target price from C$10 to C$9.00 per share.

Laurentian Bank Securities’ price target of C$9.00 per share and
BMO Capital Markets’ target of C$10.00 per share remain unchanged.

This story first appeared on The Northern Miner.