Alamos Gold Predicts Strong Free Cash Flow in 2020

SEATTLE (Scrap Monster): Canada-based gold miner Alamos Gold announced production and operating guidance for 2020. The company is well on track to meet its production as well as cost guidance in 2019. Furthermore, it expects strong free cash flow in the upcoming year as well.

The company expects that the full year 2019 gold production is on track to be within the range of 480,000 to 520,000 ounces, as guided before. The total cash costs are also expected to be consistent with earlier guidance.

John A. McCluskey, President and Chief Executive Officer stated that both of its Canadian operations delivered outstanding performance during the current year. Young-Davidson has made significant progress on the construction works related to the lower mine expansion. Island Gold, which has reported record annual production, is set to see further increase in both mineral reserves and resources, he added.

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In 2020, the company expects the gold production to range between 425,000 ounces and 465,000 ounces. Alamos Gold announced total cash cost guidance of $770 to $810 per ounce for the upcoming year. The total capital budget for the year has been cut down to $180 million-$205 million. The exploration budget has been expanded to $36 million. The company expects positive free cash flow from operations during the second half of 2020.

Alamos Gold foresees increased production, declining costs and strong cash flow growth in 2021 as well.