“While Alamos’ smallest asset, the Mulatos extension leverages a significant amount of infrastructure in place and adds eight years of production with strong economics and with additional exploration potential,” BMO Capital Markets analyst Brian Quast wrote in a note to clients Thursday.
The project is set to deliver strong returns and significant upside through ongoing exploration, despite slightly lower capital and operating costs than analysts initially projected, Quast wrote.
Alamos’s expansion at PDA and Cerro Pelon coincides with rising global demand for gold driven by economic uncertainty. With high-grade discoveries and an extended mine life at Mulatos, the company is set to surpass its 2024 guidance of 160,000-170,000 ounces. This growth enables Alamos to take advantage of elevated gold prices and contribute to the increasing demand for safe-haven assets.
Its initial costs are to be spent over two years starting…
