{"id":1155309,"date":"2019-12-12T16:34:01","date_gmt":"2019-12-12T22:34:01","guid":{"rendered":"https:\/\/www.mining.com\/?p=1009144"},"modified":"2019-12-12T16:34:01","modified_gmt":"2019-12-12T22:34:01","slug":"alamos-gold-to-hike-dividend-by-50-on-strong-2020-outlook","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1155309","title":{"rendered":"Alamos Gold to hike dividend by 50% on \u2018strong\u2019 2020 outlook"},"content":{"rendered":"<p>Canadian-based diversified gold miner Alamos Gold (TSX: AGI) has provided its <a aria-label=\"2020 production and operating guidance (opens in a new tab)\" href=\"https:\/\/www.alamosgold.com\/news-and-media\/news-releases\/news-releases-details\/2019\/Alamos-Gold-Provides-2020-Production-and-Operating-Guidance\/default.aspx\"  rel=\"noreferrer noopener\">production and operating guidance<\/a> for the upcoming year. <\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>The company remains on track to meet its 2019 production and cost guidance, driven by strong performance from its Canadian operations including the Young-Davidson mine in Ontario over the past months.<\/p>\n<p>In 2020, total production across Alamos&#8217; operations is expected to be at the lower range of 425,000-465,000 oz at all-in sustaining costs of $1,020-$1,060\/oz, owing to the impact of completing the tie-in of the upper and lower mines at Young-Davidson during the first half of 2020.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Alamos expects to transition to positive free cash flow in the second half of 2020 once the Young-Davidson expansion is completed<\/p>\n<\/blockquote>\n<\/figure>\n<p>Construction of the lower mine expansion at Young-Davidson is in progress, and the tie-in will take place between March and June. <\/p>\n<p>During this time, ore will be trucked to surface from the upper mine at a rate of about 2,500 t\/d. Given the lower production rate and a full work force to support the mine expansion during this period, cash costs and all-in sustaining costs are expected to increase significantly in the first half of the year, the company cautioned.<\/p>\n<p>Once the transition is complete, underground mining rates at Young-Davidson are expected to increase from about 6,500 t\/d to 7,500 t\/d by the end of 2020. The higher mining rates would drive production up to 500,000 oz\/y in 2021. For the upcoming year, the mine is forecast to produce between 145,000-160,000 oz. <\/p>\n<p>At Island Gold &#8212; Alamos&#8217; other producing mine in Ontario &#8212; production is expected to reach 130,000-145,000 oz, while Mulatos, located in Mexico, is slated to produce 150,000-160,000 oz.<\/p>\n<p>Based on a &#8216;strong outlook&#8217; for 2020, the company has decided to increase its dividend by 50% to a yearly rate of C$0.06 a share starting in the first quarter of the new year.<\/p>\n<p>Total capital budget for 2020 stands at C$180-C$205 million and will be largely focused on growth projects at the company\u2019s operations. Its exploration budget is pegged at C$36 million, a slight increase over the C$33 million allocated for this year.<\/p>\n<p>Alamos also expects to transition to positive free cash flow in the second half of 2020 once the Young-Davidson expansion is completed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Expansion of the company&#8217;s Young-Davidson mine will be completed in June 2020.<\/p>\n","protected":false},"author":88,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[369,4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1155309"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/88"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1155309"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1155309\/revisions"}],"predecessor-version":[{"id":1155310,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1155309\/revisions\/1155310"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1155309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1155309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1155309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}