Minera Alamos eyes return to cash generation in Q4
Minera Alamos Inc. [MAI-TSXV] said it is pleased with progress made since implementing the new operating plan for its Santana heap leach gold mine in Sonora, Mexico, in June. The update is contained in the company’s second quarter, 2024, financial statements.
In a February, 2024 news release the company said approximately 20,000 ounces of gold at an average grade of 0.63 g/t and an approximate strip ratio of 1.6:1 was defined for mining and loading over a 12-month schedule, utilizing the current leach pad installed capacity. It said the plan included an additional 4,500 ounces of higher-grade mineralized material.
“Mining and stacking rates are now approaching levels last achieved in 2022 and as the lagging gold leaching recoveries naturally expand, we are looking forward to forecasted return to cash generation at Minera in the fourth quarter of this year,’’ said Minera Alamos CEO Darren Koningen in a press release, Friday.
“We remain committed to the development of our next mine, Cerro de Oro [oxide gold project in northern Zacatecas], which continues to work its way through the permitting process and has been met by constructive dialogue with relevant government agencies and local stakeholders,’’ he said. In August, 2024, the company made the final payment as part of its Cerro de Oro gold acquisition. With the US$1.0 million cash payment and 500,000 share issuance having been made, the company is now the 100% owner of the royalty-free Cerro de Oro gold project, which is currently being permitted for construction.
Minera Alamos has described Cerro de Oro as the company’s second industry-leading low capital intensity build with an initial planned production profile of 60,000 ounces per year for eight years for under $30 million of initial capital
Meanwhile, at the Santana gold mine, where gold shipments recommenced in the [current] third quarter and where the new operations only began in June, 2024, mining rates continue to rise as the Nicho Main zone pit is opened up, allowing full mining fleet utilization.
In the second quarter, the company reported income from mine operations of $169,633 on sales of 505 ounces of gold. That compares to a loss of $411,8232 on sales of 1,071 ounces of gold in the corresponding quarter in 2023.
The company posted a net loss of $7.03 million, which includes a non-cash unrealized foreign exchange loss of $4.69 million for the quarter or $0.015 per share, compared to net income of $2.73 million in the corresponding quarter in 2023. The net loss for the quarter includes a significant non-realized foreign exchange loss, which is primarily due to the weakening of the Mexican pesos during the quarter as compared to the Canadian dollar.
The company reported a cash and cash equivalent position of $8.6 million, down from $11.8 million as of March 31, 2024.
On Friday, Minera Alamos shares eased 2.00% or $0.005 to 24.5 cents. The shares currently trade in a 52-week range of 44 cents and 24 cents.