Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Canadian miner Alamos Gold (TSX: AGI) has begun production at its La Yaqui Grande mine in Mexico, following the completion of construction this month, slightly ahead of schedule.
A total of 991 ounces of gold were produced from the initial pour, the company said, adding La Yaqui Grande, its second mine in Mexico, is expected to churn out roughly 3,000 ounces of gold in June.
The figure has already been factored into second quarter consolidated production guidance of between 100,000 and 110,000 ounces of gold, Alamos said.
La Yaqui Grande was designed to extend production from the Mulatos open pit operation by five years to 2027 and is expected to deliver average gold production of 123,000 ounces per year.
“Given its higher grades and recoveries, La Yaqui Grande underpins a strong outlook for Mulatos with higher production and lower costs driving growing free cash flow in the second half of this year and beyond,” CEO John A McCluskey said in the statement.
Stacking rates at La Yaqui Grande are expected to ramp up through the second half of the year, driving production higher and costs lower at Mulatos, and company-wide, starting in the third quarter of 2022.
