Post by
crazytimes on Dec 20, 2023 1:20pm
Dear AR Gold! ALAMOS KEPT THEIR MEXICAN MINE!! WHY DON'T WE?
Mexican assets are not worthless! Many companies operating heavily in Mexico have greater market caps than ours! The Mexican Assets are throwing off approx. 35 million in free cash flow this year at lower gold prices! If we hedged their production for the next one or two years today at $2035, kept them and could squeeze another year or two out of them before they needed any real investment they would likely produce $40 mill of free cash flow per year or more. It would also offset our Magino hedges. Then in one or two years with Magino and Florida Canyon running at full tilt, we would easily have the funds to invest and optimize Mexico. I only suggest this because there is talk of not realizing any real cash from them for several years after the sale. If that is the case why not keep them. Even our neighbor Alamos founding mine was in Mexico and still going strong and very profitable! WHY NOT BE LIKE ALAMOS AND HAVE IT ALL!!!! Just my opinion. Sometimes you don't know what you have till it's gone!!!!
Comment by
crazytimes on Dec 20, 2023 1:30pm
The Mulatos mine is Alamos Gold’s founding operation. It was acquired for $10 million and has produced over two million ounces of gold and generated ~$350 million in free cash flow since 2005. Mulatos remains a consistent gold producer, and significant cash flow generator, with strong exploration potential. 2023 guidance 175 -185 thousand ozs AISC of $950 -$1000