Alamos Gold Provides Update on Mulatos and Island Gold Operations
TORONTO, April 02, 2020 (GLOBE NEWSWIRE) — 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 OutlookOver 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 SheetThe 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 AlamosAlamos 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: