We at Alamos have a mission: to create value – enduring, sustainable value – for all of our stakeholders, from our shareholders to our employees to the people in the communities where we operate. After 13 years, we are justifiably proud of our track record.
2015 was a year of growth and transformation. In July, the merger with AuRico Gold transformed us into a multi-national, multi-mine company with a strong growth pipeline. Within the new Alamos, our commitment to sustainability is stronger than ever. In fact, we raised the profile of sustainability through the creation of a new senior executive role, VP Sustainability and External Affairs. Early in 2016, we welcomed Colin Webster to this position.
Our two new mines – the Young-Davidson mine in northern Ontario and the El Chanate mine in Sonora Mexico – have already proven to be strong contributors. Young-Davidson, which produced over 160,000 ounces of gold in 2015, is our new cornerstone mine. El Chanate, which produced over 79,000 ounces, is a solid and reliable performer. Both mines were designed and constructed to the highest environmental and safety standards and were operated with a strong commitment to social responsibility. In 2015 alone, El Chanate was named a Socially Responsible Mining Company by CEMEFI, the Mexican Center for Philanthropy, and was given their Best Practices in Social Responsibility award. In addition they were awarded the Ethics and Values award by the Confederation of Industrial Commerce.
The Home Safe Every Day leadership program that existed at our two new mines is so effective that we have chosen to adopt this program throughout Alamos. In 2016 and beyond we will be rolling it out company-wide to groom our next generation of managers.
The Mulatos mine, our first mine, reached its tenth year of production in 2015, producing over 140,000 ounces of gold. Its safety performance continues to break company records, with over 3 million hours worked without a single lost time accident. For the seventh consecutive year, the Mulatos mine was recognized as a Socially Responsible Mining Company by CEMEFI. Since 2011, Mulatos has been certified as an Industria Limpia (clean industry), in recognition of its excellence in environmental management.
When we first arrived in the Mulatos area we found an area in need. The nearest health facilities were hours away. In 2015, our medical clinic served over 7,000 medical visits and provided health care and medicine to 80% of the population of Mulatos and Matarachi.
In Turkey, where our Environmental Impact Assessments have been approved, we are, again, applying principles of stewardship that exceed local requirements. We have designed a fresh water reservoir that, when built, will be the first source of clean, healthy drinking and utility water that the community has ever experienced.
In 2015, while development was on hold while we awaited permit approval (two permits still remain to be approved) we have been an active presence in the area. We have made needed repairs and built infrastructure and local amenities, always in collaboration with neighbourhood leaders, to ensure that our contributions are needed, welcomed and culturally appropriate.
As we look to the future, we at Alamos believe that we can only thrive when we act with responsibility, transparency and accountability toward our local communities. To create sustainable, enduring value, we must devote ourselves to protecting the health, welfare and socio-economic development of our people and their communities. We must continually remediate and reclaim the lands that we have disturbed. Overall, we must ensure that we leave local ecosystems – and local economies – better off than they were when we arrived.
Sincerely,
John A. McCluskey
President and Chief Executive Officer