Alamos Gold Inc. (
TSX:AGI;
NYSE:AGI) (“Alamos” or the “Company”) today announced that
it will be suspending operations at its Mulatos mine until April
30, 2020 and extending the suspension of operations at Island Gold
for an additional two-week period.
The temporary suspension of operations at Mulatos follows a
mandate by the Mexican Government to suspend all non-essential
businesses until April 30, 2020 in response to the COVID-19 crisis.
The Company will be scaling down mining and other activities over
the next few days. Essential employees will remain on site to
continue processing and other critical site activities (including
water management, environmental protection and security).
The Company is also extending the temporary suspension of
operations at Island Gold that was announced on March 24,
2020. The suspension has been extended by 14 days with the
operation to remain on care and maintenance until April 22,
2020.
“The health and safety of our employees, their families, and the
communities in which we operate remain our top priority. To date,
we have not had any confirmed cases of COVID-19 among any of our
employees or contractors. We will continue to monitor the situation
and take further action to prevent the potential spread of the
virus based on the best available information and the
recommendations of relevant government authorities,” said John A.
McCluskey, President and Chief Executive Officer.
2020 Outlook
Over the past three weeks, the Company has instituted a number
of measures and strict protocols to help prevent the spread of
COVID-19 and protect the health and well-being of its employees and
contractors, their families, and the local communities.
To date, operating activities at the Young-Davidson mine have
not been impacted with the lower mine expansion on track to be
completed in June 2020. Given the downtime at both Island Gold and
Mulatos, and the potential for further voluntary or
government-mandated business interruptions, the Company is
withdrawing its 2020 production, cost and capital guidance.
Strong Balance Sheet
The Company’s balance sheet remains solid with approximately
$215 million of cash and cash equivalents as of March 31, 2020.
This reflects the repurchase of the Island Gold royalty in March
for $54 million and the drawdown of $100 million on the Company’s
$500 million revolving credit facility. The drawdown on the
revolving facility was out of an abundance of caution. The Company
has stress tested its balance sheet under a range of scenarios and
does not expect to need or have any plans to use the funds drawn on
the revolving facility. The Company has no debt other than the $100
million drawn on the revolving facility.
About Alamos
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. Alamos employs more than 1,700 people and is
committed to the highest standards of sustainable development. The
Company’s shares are traded on the TSX and NYSE under the symbol
“AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons |
|
Vice President, Investor Relations |
|
(416)
368-9932 x 5439 |
|
All amounts are in United States dollars, unless otherwise
stated.
The TSX and NYSE have not reviewed and do not accept
responsibility for the adequacy or accuracy of this release.
Cautionary Note
This news release includes certain statements
that constitute forward-looking information within the meaning of
applicable Canadian and U.S. securities laws ("forward-looking
statements"). All statements, other than statements of historical
fact, are, or may be deemed to be, forward-looking statements and
are generally, but not always, identified by the use of
forward-looking terminology such as “expect”, “continue”, “on
track”, “potential”, “plans” or variations of such words and
phrases and similar expressions or statements that certain actions,
events or results “may", “could”, “would”, "might" or "will" be
taken, occur or be achieved or the negative connotation of such
terms.
This news release contains forward-looking
statements, including specifically with respect to measures the
Company has instituted to prevent the spread of COVID-19 at or near
its mine sites, the impact of the COVID-19 pandemic and government
action, particularly in Mexico, on the Company’s business and
operations as well as operating activities at the Young-Davidson
mine site. Forward-looking statements are necessarily based upon a
number of factors and assumptions that, while considered reasonable
by management at the time of making such statements, are inherently
subject to significant business, economic, technical, legal,
political and competitive uncertainties and contingencies. Known
and unknown factors could cause actual results to differ materially
from those projected in the forward-looking statements, and undue
reliance should not be placed on such statements and
information.
Such factors and assumptions underlying the
forward-looking statements in this news release, but are not
limited to: operations may be exposed to widespread pandemic; the
impact of the COVID-19 pandemic on the broader market; provincial
and federal orders or mandates (including with respect to mining
operations generally or auxiliary businesses or services required
for our operations) in Canada, Mexico, the United States and
Turkey; the duration of regulatory responses to the COVID-19
pandemic; changes in national and local government legislation,
controls or regulations, failure to comply with environmental and
health and safety laws and regulations; labour and contractor
availability and other operating or technical difficulties, and
disruptions in the maintenance or provision of required
infrastructure and information technology systems. In addition,
fluctuations in the price of gold or certain other commodities such
as, diesel fuel, natural gas, and electricity; operating or
technical difficulties in connection with mining or development
activities, including geotechnical challenges and changes to
production estimates (which assume accuracy of projected ore grade,
mining rates, recovery timing and recovery rate estimates and may
be impacted by unscheduled maintenance; changes in foreign exchange
rates (particularly the Canadian dollar, U.S. dollar, Mexican peso
and Turkish Lira); the impact of inflation; any decision to declare
a dividend; employee and community relations; labour and contractor
availability (and being able to secure the same on favourable
terms); litigation and administrative proceedings; disruptions
affecting operations; availability of and increased costs
associated with mining inputs and labour; inherent risks and
hazards associated with mining and mineral processing including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures and cave-ins; the risk that
the Company’s mines may not perform as planned; uncertainty
with the Company's ability to secure additional capital to execute
its business plans; the speculative nature of mineral exploration
and development, risks in obtaining and maintaining necessary
licenses, permits and authorizations, contests over title to
properties; expropriation or nationalization of property; political
or economic developments in Canada, Mexico, the United States,
Turkey and other jurisdictions in which the Company may carry on
business in the future; increased costs and risks related to the
potential impact of climate change; the costs and timing of
construction and development of new deposits; risk of loss due to
sabotage, protests and other civil disturbances; the impact of
global liquidity and credit availability and the values of assets
and liabilities based on projected future cash flows; risks arising
from holding derivative instruments; and business opportunities
that may be pursued by the Company.
For a more detailed discussion of such risks and
other factors that may affect the Company's ability to achieve the
expectations set forth in the forward-looking statements contained
in this news release, see the Company’s latest 40-F/Annual
Information Form and Management’s Discussion and Analysis, each
under the heading “Risk Factors” available on the SEDAR website at
www.sedar.com or on EDGAR at www.sec.gov. The foregoing should be
reviewed in conjunction with the information found in this news
release.
The Company disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise,
except as required by applicable law.
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