Gold holds decline after Powell flags pause in Fed easing cycle
Bullion traded near $2,760 an ounce, within about $30 of its all-time high.
Alamos Gold (TSX: AGI; NYSE: AGI) has received environmental approval from Mexico’s Secretariat of Environment and Natural Resources to commence construction on the Puerto Del Aire (PDA) project in the Mulatos district.
The project is expected to significantly extend the district’s mine life with a high-grade underground deposit, offering substantial exploration potential, the company said.
With initial capital spending planned between $37 million and $40 million for 2025, production is projected to begin by mid-2027, targeting an average annual gold output of 127,000 ounces during the first four years.
PDA has an estimated after-tax net present value (at a 5% discount rate) of $269 million and an internal rate of return (IRR) of 46%, based on a base case gold price of $1,950 per ounce and an MXN/USD exchange rate of 18:1.
At a higher gold price of $2,500 per ounce, the after-tax NPV (discounted at 5%) increases to $492 million, with an IRR of 73%.
Alamos’ portfolio also includes the Island Gold District and Young-Davidson mine in northern Ontario, as well as the Lynn Lake project in Manitoba, Canada.
Shares of Alamos Gold inched 0.5% higher as of 11:10 a.m. in New York. The Canadian gold miner has a market capitalization of $8.6 billion.
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