During the early days of gold discoveries, many rushed into the hills with primitive equipment seeking their share of the precious metal. Since the early days, the value of gold has drawn global attention and brought thousands of hopeful miners to search for fortune. Over time, gold mining has evolved from pickaxes and panning to large-scale excavating processes that require digging up metric tons of dirt each day. While the processes have changed, the lure and excitement of gold still exist.
Gone are the days of panning and stumbling upon ounces of gold in the river. However, the excitement of finding gold still exists within the operations of modern mines. Today, Alamos Gold is involved in a multinational operation to explore, mine, and extract gold and other precious metals. Utilizing three mines across Canada and Mexico, the Alamos Gold company is seeking to bring the earth’s precious metals to light with sustainable practices, social responsibility, and environmental stewardship. Let’s take a look at the history of Alamos Gold.
Founding
Alamos Gold was created in 2003 from the merger of Alamos Minerals and National Gold companies. This merger led to the acquisition of the Mulatos deposit. The Mulatos mine became the founding asset of the company. Construction of the open-pit mine began in 2004 in the city Hermosillo. The company was able to pour its first gold in the summer of 2005.
In 2010, Alamos continued expanding as it acquired advanced-stage development projects in the country of Turkey. By 2012 the company and its CEO, John A. McCluskey was recognized for expanding to over 500 employees and demonstrating a strong commitment to environmental management and social responsibility. The company also produced its one-millionth ounce of gold in 2012.
Growth
After finding success with sustainable mining practices and growing operations early on, just ten years after the company was created, Alamos Gold began a period of even greater expansion and success. In 2013, the company completed additional acquisitions with assets in Mexico and early-stage assets in Oregon. The same year, Alamos also began publishing its annual Sustainability Report and contributed to the Global Reporting Initiative.
By 2015, the company merged with AuRica Gold in a transaction that brought together two solid operations in the gold mining industry. The combined operations produced close to 240,00 ounces of gold. Both operations worked to do business with the highest environmental and safety standards with a commitment to social responsibility.
Additionally, in 2015, Alamos acquired Carlisle Goldfields Limited and its asset in Lynn Lake Manitoba. In 2017 Alamos expanded again to acquire Richmont Mines Inc. to add the Island Gold mine asset in Ontario, Canada. The Island Gold mine project added 500,000 ounces of gold to Alamos’ operations. By 2018 the company had increased capacity and upgraded its mining fleet.
While promoting sustainable operations and being recognized for consecutive years as a “Socially Responsible Mining Company,” Alamos experienced unprecedented growth and success. From 2013 to 2018 the company increased mining operations and output substantially. By 2019 the company had grown to a multinational gold producer with operations in several countries.
Aside from financial growth, Alamos also continued to promote and use best social practices. The company joined an elite group of mining companies on the S&P/TSX Composite Index with at least 30% of its board represented by women. The company was also the recipient of the “Best Corporate Social Responsibility Practice 2019” award for the voluntary relocation program of residents from Mulatos to Matarachi in Mexico.
Present
Currently, Alamos owns and operates three mines, including the Young-Davidson Mine and the Island Gold Mine in Canada, and the Mulatos Mine in Mexico. The company is also involved in several other developmental projects. In 2020, the company reported an increase of Mineral Reserves and Resources at the Island Gold mine of 921,000 ounces, net of mining depletion. The company also reported a 50% increase to the quarterly dividend to $.015 per common share and created a dividend reinvestment and share purchase plan.
After a brief shutdown due to the Covid-19 Pandemic in 2020, the company announced the completion of a mine expansion and an expansion study to increase exploration and production. Alamos also announced the construction of the La Yaqui Grande mine in Mexico. At the end of the year, the company acquired Trillium Mining Corporation.
As a mining operation, Alamos Gold has become a worldwide leader in exploration and processing. Since 2003 the company has seen successful growth and expansion and is listed on both the Toronto and New York stock exchanges. Along with their growth and operating performance, Alamos has continued to lead the effort to create more sustainable and environmentally friendly mining practices. They are champions for initiatives that implement long-lasting benefits beyond the life of the mines.
