Alamos Gold shared first quarter results. The company has been granted all the major permits from the Turkish Department of Energy and Natural Resources in the first quarter of 2019. With the receipt of the Operating Permit, the company expects to ramp up major construction and earthworks activities, putting initial production from Kirazlı on track by the end of 2020.
The Company stated that it finalized several key contracts in the first quarter, including the mining services and earthworks contract, which will provide for open pit mining services through the life-of-mine. According to the update, the Contractor is currently mobilizing to site and expects to start commence stripping the open pit within the next month. In addition, the Company finalized agreements with the construction management contractor, as well as contracts related to the water treatment plant, and other equipment purchases.
Spending $2.9 million in the first quarter of 2019, The company expects spending to ramp up significantly starting in the second quarter with increased development activities.
As mentioned in the 2017 Feasibility Study, Kirazlı is expected to produce over 100,000 ounces of gold during its first full year of production.
Alamos President and Chief Executive Officer, John A. McCluskey commented about first quarter results; “Alamos had a solid start to 2019, with strong performances at each operation. This included another record quarter of production from Island Gold, achieving budgeted mining rates at Young-Davidson, producing our two millionth ounce of gold at Mulatos and reducing consolidated cash costs by seven percent compared to a year ago. With the strong first quarter performance, we remain on track to achieve full year production and cost guidance,”
“Our various growth initiatives remain on schedule with the lower mine expansion at Young-Davidson and development of the Cerro Pelon project progressing well in the quarter. In addition, construction activities at Kirazlı will be ramping up through the year having received the Operating Permit during the quarter. These projects will be drivers of strong free cash flow growth starting in the second half of 2020 which will in turn support growing returns to our shareholders,”
