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Pretty sure none of us own this for the divi, but raising it it is always welcome.
Alamos Gold to hike dividend by 50% on strong cash flow outlook
Dec. 12, 2019 8:07 AM ET|About: Alamos Gold Inc. (AGI)|By: Carl Surran, SA News Editor
Alamos Gold (NYSE:AGI) says it is on track to meet FY 2019 gold production guidance of 480K-520K oz., with total cash costs and all-in sustaining costs expected to be consistent with guidance.
For FY 2020, AGI forecasts gold production of 425K-465K oz., an 11% Y/Y decline at the midpoint, reflecting previously guided lower output from Young-Davidson during H1 2020 while completing the tie-in of the upper and lower mines, as well as the end of production from El Chanate.
AGI sees 2020 total cash cost guidance of $770-$810/oz. and all-in sustaining cost guidance of $1,020-$1,060/oz.
The miner expects a 2020 capital budget of $180M-$205M, down from 2019 guidance of $240M-$265M.
At the current gold price, AGI expects to transition to positive free cash flow in H2 2020 with the completion of the lower mine expansion at Young-Davidson; as a result of the free cash flow outlook, AGI will raise its quarterly dividend by 50% to $0.06/share, starting in Q1.
Alamos Reports Third Quarter 2019 Results
T.AGI |
Further margin expansion drives record cash flow from operations of $80 million
TORONTO, Oct. 30, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported its financial results for the quarter ended September 30, 2019.
“Our third quarter results were solid, driven by strong performances from Young-Davidson and Island Gold. Total cash costs were down 11% from a year ago and combined with the higher gold price, we generated record operating cash flow, before changes in working capital. With the strong year-to-date performance we remain well positioned to meet our full year production and cost guidance,“ said John A. McCluskey, President and Chief Executive Officer.
“We are disappointed by the delay in the renewal of our mining concessions for Kirazl but are confident we will see a positive resolution. Our other internal growth initiatives at Mulatos and Young-Davidson are progressing well. Construction of Cerro Pelon is tracking ahead of schedule and we expect first production by the end of this year. At Young-Davidson, the lower mine expansion remains on schedule for completion in the first half of 2020 and will be a significant driver of free cash flow growth from the operation starting in the second half of 2020,” Mr. McCluskey added.
Third Quarter 2019
Produced 121,900 ounces of gold, bringing year-to-date production to 372,400 ounces. The Company remains well positioned to meet full year guidance of 480,000 to 520,000 ounces
Strong gold production of 36,700 ounces at Island Gold, driving record mine-site free cash flow1 of $26.8 million. Through the first nine months of 2019, Island Gold produced 111,800 ounces and generated mine-site free cash flow1 of $55.1 million, both new records for the operation
Produced 50,000 ounces of gold at Young-Davidson and exceeded budgeted underground mining rates of 6,500 tonnes per day ("tpd") for the third consecutive quarter while advancing construction of the lower mine expansion. The completion of the lower mine expansion and tie-in of the upper and lower mines remains on track for completion in the first half of 2020
Cash flow from operating activities of $67.9 million (a record $79.8 million, or $0.20 per share, before changes in working capital1), reflecting higher gold prices and operating margins
Consolidated total cash costs1 of $730 per ounce were in line with annual guidance and 11% lower than the third quarter of 2018, driven by low cost production growth at Island Gold and improved costs at Young-Davidson
All-in sustaining costs ("AISC")1 decreased 9% from the third quarter of 2018 to $950 per ounce. Year-to-date AISC of $944 per ounce remain within the annual guidance range
Cost of sales of $1,066 per ounce were slightly below annual guidance and down 7% from the third quarter of 2018
Sold 119,392 ounces of gold at an average realized price of $1,448 per ounce for revenues of $172.9 million
Reported adjusted net earnings1 of $23.4 million, or $0.06 per share1, includes adjustments for unrealized foreign exchange losses recorded within deferred taxes of $6.5 million, partially offset by other one-time gains totaling $0.8 million
Realized net earnings of $17.7 million or $0.05 per share
Cash and cash equivalents increased to $185.6 million, driven by positive free cash flow1 in the quarter. The Company remains debt free
Continued to demonstrate exploration success at Island Gold with results from surface exploration drilling further extending high-grade gold mineralization between the Eastern and Main extensions. Based on exploration success to date in 2019, the Company anticipates further growth in high-grade Mineral Resources
Received the "Best Corporate Social Responsibility Practice 2019" award in the category of Connecting with the Community from the Mexican Center for Philanthropy, the Alliance for Corporate Social Responsibility in Mexico, and Forum Empresa for the Company's voluntary relocation program of residents from Mulatos to Matarachi
Subsequent to quarter-end
Announced the suspension of construction activities at the Kirazl project in Turkey pending the renewal of the Company's mining concessions which expired on October 13, 2019
Completed commissioning of the Cerro Pelon crusher and conveyor system, and commenced stacking ore from the deposit
(1) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
Highlight Summary
Read more at https://stockhouse.com/companies/bullboard?symbol=t.agi&postid=30292061#VpVgbdo26XDS2O8a.99
Alamos Reports Third Quarter 2019 Results
T.AGI
Further margin expansion drives record cash flow from operations of $80 million
TORONTO, Oct. 30, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today
reported its financial results for the quarter ended September 30, 2019.
“Our third quarter results were solid, driven by strong performances
from Young-Davidson and Island Gold.
Total cash costs were down 11% from a year ago and combined with the
higher gold price, we generated record operating cash flow, before
changes in working capital.
With the strong year-to-date performance we remain well positioned to
meet our full year production and cost guidance,“ said John A.
McCluskey, President and Chief Executive Officer.
“We are disappointed by the delay in the renewal of our mining
concessions for Kirazli but are confident we will see a positive
resolution.
Our other internal growth initiatives at Mulatos and Young-Davidson are
progressing well.
Construction of Cerro Pelon is tracking ahead of schedule and we expect
first production by the end of this year.
At Young-Davidson, the lower mine expansion remains on schedule for
completion in the first half of 2020 and will be a significant driver
of free cash flow growth from the operation starting in the second half
of 2020,” Mr. McCluskey added.
Third Quarter 2019
Produced 121,900 ounces of gold, bringing year-to-date production to
372,400 ounces.
The Company remains well positioned to meet full year guidance of
480,000 to 520,000 ounces
Strong gold production of 36,700 ounces at Island Gold, driving record
mine-site free cash flow1 of $26.8 million.
Through the first nine months of 2019, Island Gold produced 111,800
ounces and generated mine-site free cash flow1 of $55.1 million, both
new records for the operation
Produced 50,000 ounces of gold at Young-Davidson and exceeded budgeted
underground mining rates of 6,500 tonnes per day ("tpd") for the third
consecutive quarter while advancing construction of the lower mine
expansion.
The completion of the lower mine expansion and tie-in of the upper and
lower mines remains on track for completion in the first half of 2020
Cash flow from operating activities of $67.9 million (a record $79.8
million, or $0.20 per share, before changes in working capital1),
reflecting higher gold prices and operating margins
Consolidated total cash costs1 of $730 per ounce were in line with
annual guidance and 11% lower than the third quarter of 2018, driven by
low cost production growth at Island Gold and
improved costs at Young-Davidson
All-in sustaining costs ("AISC")1 decreased 9% from the third quarter
of 2018 to $950 per ounce.
Year-to-date AISC of $944 per ounce remain within the annual guidance
range
Cost of sales of $1,066 per ounce were slightly below annual guidance
and down 7% from the third quarter of 2018
Sold 119,392 ounces of gold at an average realized price of
$1,448 per ounce for revenues of $172.9 million
Reported adjusted net earnings1 of $23.4 million, or $0.06 per share1,
includes adjustments for unrealized foreign exchange losses recorded
within deferred taxes of $6.5 million, partially offset by other one-
time gains totaling $0.8 million
Realized net earnings of $17.7 million or $0.05 per share
Cash and cash equivalents increased to $185.6 million, driven by
positive free cash flow1 in the quarter.
The Company remains debt free
Continued to demonstrate exploration success at Island Gold with
results from surface exploration drilling further extending high-grade
gold mineralization between the Eastern and Main extensions.
Based on exploration success to date in 2019, the Company anticipates
further growth in high-grade Mineral Resources
Received the "Best Corporate Social Responsibility Practice 2019" award
in the category of Connecting with the Community from the Mexican
Center for Philanthropy, the Alliance for Corporate Social
Responsibility in Mexico, and Forum Empresa for the Company's voluntary
relocation program of residents from Mulatos to Matarachi
Subsequent to quarter-end
Announced the suspension of construction activities at the Kirazli
project in Turkey pending the renewal of the Company's mining
concessions which expired on October 13, 2019
Completed commissioning of the Cerro Pelon crusher and conveyor system,
and commenced stacking ore from the deposit
(1) Refer to the “Non-GAAP Measures and Additional GAAP Measures”
disclosure at the end of this press release and associated MD&A for a
description and calculation of these measures.
Highlight Summary
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
Financial Results (in millions)
Operating revenues $172.9 $146.7 $497.1 $488.7
Cost of sales (1) $127.3 $137.6 $385.4 $432.3
Earnings from operations $37.5 $0.6 $84.4 $28.7
Net earnings (loss) $17.7 $7.2 $58.1 ($1.1 )
Adjusted net earnings (2) $23.4 ($1.9 ) $51.4 $15.3
Earnings before interest, depreciation and amortization (2) $78.4 $41.7 $208.0 $152.2
Cash provided by operations before working capital and cash taxes(2) $79.8 $41.6 $211.2 $158.9
Cash provided by operating activities $67.9 $45.2 $182.6 $166.5
Capital expenditures (sustaining) (2) $17.8 $19.6 $53.5 $42.4
Capital expenditures (growth) (2) $44.2 $30.5 $125.5 $102.8
Capital expenditures (capitalized exploration) (3) $4.3 $5.0 $11.7 $14.8
Operating Results
Gold production (ounces) 121,900 124,000 372,400 379,400
Gold sales (ounces) 119,392 119,401 367,554 378,718
Per Ounce Data
Average realized gold price $1,448 $1,229 $1,352 $1,290
Average spot gold price (London PM Fix) $1,472 $1,213 $1,362 $1,282
Cost of sales per ounce of gold sold (includes amortization) (1) $1,066 $1,152 $1,049 $1,141
Total cash costs per ounce of gold sold (2) $730 $817 $720 $813
All-in sustaining costs per ounce of gold sold (2) $950 $1,048 $944 $992
Share Data
Earnings per share, basic $0.05 $0.02 $0.15 $0.00
Adjusted earnings per share, basic(2) $0.06 $0.00 $0.13 $0.04
Weighted average common shares outstanding (basic) (000’s) 390,593 389,854 389,852 389,572
Financial Position (in millions)
Cash and cash equivalents (4) $185.6 $206.0
(1) Cost of sales includes mining and processing costs, royalties, and amortization expense.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
(3) Includes capitalized exploration at Mulatos and Island Gold.
(4) Comparative cash and cash equivalents balance as at December 31, 2018.
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
Gold production (ounces)
Young-Davidson 50,000 49,000 140,000 129,100
Mulatos 32,700 43,300 107,900 139,900
Island Gold 36,700 22,000 111,800 76,800
El Chanate (1) 2,500 9,700 12,700 33,600
Gold sales (ounces)
Young-Davidson 48,430 46,853 137,091 133,649
Mulatos 31,164 42,300 107,369 136,285
Island Gold 37,209 20,561 110,094 75,321
El Chanate (1) 2,589 9,687 13,000 33,463
Cost of sales (in millions)(2)
Young-Davidson $57.7 $59.8 $171.7 $173.5
Mulatos $33.5 $41.9 $103.1 $134.7
Island Gold $32.0 $22.3 $93.0 $77.8
El Chanate $4.1 $13.6 $17.6 $46.3
Cost of sales per ounce of gold sold (includes amortization)
Young-Davidson $1,191 $1,276 $1,252 $1,298
Mulatos $1,075 $991 $960 $988
Island Gold $860 $1,085 $845 $1,033
El Chanate $1,584 $1,404 $1,354 $1,384
Total cash costs per ounce of gold sold (3)
Young-Davidson $781 $824 $813 $845
Mulatos $866 $771 $772 $784
Island Gold $503 $671 $490 $597
El Chanate $1,429 $1,301 $1,254 $1,285
Mine-site all-in sustaining costs per ounce of gold sold (3),(4)
Young-Davidson $960 $1,029 $1,033 $1,034
Mulatos $979 $846 $861 $847
Island Gold $693 $1,051 $658 $759
El Chanate $1,506 $1,332 $1,277 $1,312
Capital expenditures (sustaining, growth and capitalized exploration) (in millions)(3)
Young-Davidson $23.9 $22.1 $72.9 $63.5
Mulatos(5) $12.9 $6.8 $44.7 $23.5
Island Gold (6) $13.8 $17.8 $44.2 $49.3
El Chanate $— $0.2 $— $0.5
Other $15.7 $8.2 $28.9 $23.2
(1) El Chanate ceased mining activities in October 2018 and transitioned to residual leaching.
(2) Cost of sales includes mining and processing costs, royalties and amortization.
(3) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
(4) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative and share based compensation expenses.
(5) Includes capitalized exploration at Mulatos of $nil for the three and nine months ended September 30, 2019 ($0.3 million and $2.3 million for the three and nine months ended September 30, 2018).
(6) Includes capitalized exploration at Island Gold of $4.3 million and $11.7 million for the three and nine months ended September 30, 2019 ($4.7 million and $12.5 million for the three and nine months ended September 30, 2018)
Outlook and Strategy
2019 Guidance
Young-Davidson Mulatos Island
Gold El Chanate Turkey Other (2) Total
Gold production (000’s ounces) 180-190 150-160 135-145 15-25 480-520
Cost of sales, including
amortization (in millions)(4) $226 $165 $120 $26 — — $537
Cost of sales, including
amortization ($ per ounce)(4) $1,220 $1,065 $855 $1,300 — — $1,075
Total cash costs ($ per ounce)(1) $750-790 $820-860 $460-500 $1,200 — — $710-750
All-in sustaining costs
($ per ounce)(1) — — $920-960
Mine-site all-in sustaining costs
($ per ounce)(1),(3) $940-980 $860-900 $730-770 $1,200 — — —
Amortization costs
($ per ounce)(1) $450 $225 $375(6) $100 — — $345
Capital expenditures (in millions)
Sustaining capital(1) $35-40 $5 $35-40 — — — $75-85
Growth capital(1) $45-50 $45-50 (5) $15-20 — $25 (7) $35 (2) $165-180
Total capital expenditures(1) $80-90 $50-55 $50-60 — $25 (7) $35 $240-265 (7)
(1) Refer to the "Non-GAAP Measures and Additional GAAP" disclosure at the end of this press release and associated MD&A for a description of these measures.
(2) Includes capitalized exploration at all operating sites and development projects (excluding Turkey which is separately disclosed).
(3) For the purposes of calculating mine-site all-in sustaining costs at individual mine sites, the Company does not include an allocation of corporate and administrative and share based compensation expenses to the mine sites.
(4) Cost of sales includes mining and processing costs, royalties, and amortization expense, and is calculated based on the mid-point of guidance.
(5) Includes capital spending at Cerro Pelon and La Yaqui Grande of approximately $33 million.
(6) Amortization per ounce was updated for Island Gold from guidance provided in January, 2019, reflecting the 2018 Mineral Reserves and Resource Statement released in February 2019.
(7) Capital guidance at Kirazli has been reduced to $25 million from the original budget of $75 million, thereby reducing overall capital guidance to $240 to $265 million.
In the third quarter of 2019, the Company continued to deliver on its objective of expanding margins and profitability from its existing operations. The Company produced 121,900 ounces with total cash costs of $730 per ounce down 11% from the third quarter of 2018. The decrease in total cash costs was driven by low cost production growth at Island Gold and stronger operational performance at Young-Davidson.
Fourth quarter production and costs are expected to be in a similar range as the third quarter. Combined with year-to-date production of 372,400 ounces at total cash costs of $720 per ounce, the Company is well positioned to meet its full year production and cost guidance.
The near-term focus at Young-Davidson remains on maximizing efficiency from the upper mine infrastructure while completing development and construction of the lower mine. Gold production in the third quarter of 50,000 ounces was consistent with guidance, while underground mining rates of 6,600 tpd were above guidance for the third consecutive quarter. With production of 140,000 ounces through the first nine months of 2019, Young-Davidson is on track to meet full year production guidance of 180,000 to 190,000 ounces.
Significant progress has been made on the construction of the lower mine, with the tie-in of the upper and lower mines on schedule for completion in the first half of 2020. Construction of the lower mine has been significantly de-risked with the rock work now complete and construction of the new crusher, conveying system and loading pocket well underway. The downtime of the Northgate shaft and the tie-in of the lower mine is expected to begin in March 2020 and be completed in June 2020.
Gold production from Young-Davidson is expected to decrease to approximately 150,000 ounces in 2020, as a result of the previously guided temporary downtime of the Northgate shaft in the first half of the year. Following completion of the tie-in in the first half of 2020, underground mining rates are expected to ramp up to 7,500 tpd by the end of 2020. This is expected to drive annual gold production above 200,000 ounces per year in 2021 and beyond. This production increase, combined with declining costs and capital spending, is expected to result in strong free cash flow growth from Young-Davidson starting in the second half of 2020.
Island Gold had another solid quarter producing 36,700 ounces, bringing year-to-date production to a record 111,800 ounces. The operation remains on track to meet or exceed full year production guidance of 135,000 to 145,000 ounces. Additionally, Island Gold generated a record $26.8 million of mine-site free cash flow in the third quarter, bringing the year-to-date total to $55.1 million, net of all capital and $12.5 million of exploration spending. Island Gold's capital spending year-to-date has been below budget and is expected to increase in the fourth quarter, focused on surface infrastructure designed to support the expanding operation and mine life. As a result, Island Gold's mine-site AISC is expected to increase in the fourth quarter of 2019 and into 2020.
During the second quarter, the Company was granted amendments to its existing operating permits allowing for an increase in throughput rates from 1,100 tpd to 1,200 tpd. Underground mining rates have increased 15% year-to-date, and are expected to ramp up to 1,200 tpd in 2020. In parallel, the Company is continuing with a large ongoing exploration program at Island Gold which has been successful in driving significant growth in Mineral Reserves and Resources. This growth and ongoing exploration success is being incorporated into a Phase III expansion study of the operation beyond 1,200 tpd, which is expected to be released in the first half of 2020.
Exploration remains a key focus at Island Gold. The exploration program continues to target three main areas within the deposit which extends over two-kilometres along strike. Results from surface exploration drilling have extended high-grade gold mineralization between the Eastern and Main extensions and the Company expects to add further high-grade Mineral Resources with the 2019 year end update.
Production from the Mulatos District totaled 32,700 ounces in the third quarter, bringing the year-to-date total to 107,900 ounces. Mining and stacking rates were impacted by abnormally high rainfall in September over a short period of time which temporarily restricted mining activities in the main Mulatos pit. While mining rates are expected to increase in the fourth quarter, gold production is expected to be similar to the third quarter. Total cash costs and mine-site AISC in the first nine months of the year have outperformed annual guidance, benefiting from higher grades mined and low-cost concentrate sales.
Construction of the higher grade, high return Cerro Pelon project is advancing on schedule, with ore stacking commencing in October. Development activities during the third quarter were focused on stripping of the open pit, and commissioning of the crushing and overland conveyor. Production from Cerro Pelon is expected toward the end of 2019, ahead of schedule.
In Turkey, the Company suspended all construction activities on the Kirazli project, pending the renewal of its mining concessions which expired on October 13, 2019. Although the mining concessions have not been revoked and can be renewed following this expiration date, no further construction activities can be completed until the concessions have been renewed. The Company is working with the Turkish Department of Energy and Natural Resources on securing the renewal of the mining concessions which will allow for a resumption of construction activities. The renewal is required from the same government department that granted the Operating Permit for Kirazli in March 2019.
Given the uncertainty around the timing of the concession renewal, initial production from Kirazli has been delayed from previous guidance of late 2020. The Company will provide updated guidance on the construction schedule and budget for Kirazli following the receipt of the concession renewal and resumption of construction activities.
The Company’s long-term strategic objective is to generate increasing free cash flow through low-cost production growth from its existing operations and portfolio of development projects. With $186 million of cash and cash equivalents, no debt, and growing cash flow from its operations, the Company is well positioned to fund its internal growth initiatives.
Third Quarter 2019 Results
Young-Davidson Financial and Operational Review
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
Gold production (ounces) 50,000 49,000 140,000 129,100
Gold sales (ounces) 48,430 46,853 137,091 133,649
Financial Review (in millions)
Operating Revenues $70.2 $57.3 $186.2 $171.9
Cost of sales (1) $57.7 $59.8 $171.7 $173.5
Earnings (loss) from operations $12.5 ($2.5 ) $14.5 ($1.6 )
Cash provided by operating activities $27.3 $24.0 $73.8 $73.9
Capital expenditures (sustaining) (2) $8.6 $9.5 $29.8 $25.0
Capital expenditures (growth) (2) $15.3 $12.6 $43.1 $38.5
Mine-site free cash flow (2) $3.4 $1.9 $0.9 $10.4
Cost of sales, including amortization per ounce of gold sold (1) $1,191 $1,276 $1,252 $1,298
Total cash costs per ounce of gold sold (2) $781 $824 $813 $845
Mine-site all-in sustaining costs per ounce of gold sold (2),(3) $960 $1,029 $1,033 $1,034
Underground Operations
Tonnes of ore mined 607,766 552,500 1,808,613 1,691,443
Tonnes of ore mined per day ("tpd") 6,606 6,005 6,625 6,196
Average grade of gold (4) 2.62 2.59 2.53 2.44
Metres developed 2,817 2,811 8,594 9,034
Mill Operations
Tonnes of ore processed 655,443 670,912 1,949,316 1,938,395
Tonnes of ore processed per day 7,124 7,293 7,140 7,100
Average grade of gold (4) 2.48 2.43 2.40 2.28
Contained ounces milled 52,233 52,517 150,409 140,509
Average recovery rate 92 % 93 % 91 % 92 %
(1) Cost of sales includes mining and processing costs, royalties and amortization.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative and share based compensation expenses.
(4) Grams per tonne of gold ("g/t Au").
Young-Davidson produced 50,000 ounces of gold in the third quarter of 2019, consistent with the same period in 2018 and an 11% increase from the second quarter of 2019, reflecting higher grades mined. With the strong third quarter, and year-to-date production of 140,000 ounces, the operation remains on track to achieve full year production guidance.
Underground mining rates of 6,606 tpd were above 2019 guidance and a 10% improvement from the third quarter of 2018. Mining rates have exceeded full year guidance of 6,500 tpd in every quarter this year, averaging 6,625 tpd year-to-date, a 7% increase from the same period in 2018. Underground grades mined of 2.62 g/t Au were in line with annual guidance and an improvement from the first half of the year. Grades mined are expected to remain at similar levels in the fourth quarter.
Mill throughput of 7,124 tpd was consistent with the third quarter of 2018 as milling rates continued to benefit from low-grade surface stockpiles which supplemented underground ore. Mill throughput in the fourth quarter is expected to decrease to match underground tonnes mined as the low-grade surface stockpiles have effectively been depleted. Mill recoveries of 92% in the quarter were in line with the prior year quarter and guidance.
Lower Mine Construction and Tie-In
The Company continued to make significant progress on construction of the lower mine during the third quarter which included the following highlights:
Ore passes from the upper mine feeding the coarse ore bin at the crusher are over 60% complete, with completion expected by the end of the fourth quarter
The crusher room excavation is complete, with chutes, steel, and the crane installed
Installation of the vibratory feeder is under way, and the physical installation of the crusher unit is expected in December
Shaft bottom steel, ore and waste bins at the Northgate shaft, and the loading pocket have been completed
Installation of the hangers and trays for the main conveyor from the crusher loadout level to the top of the shaft bins has commenced.
As the lower mine expansion nears completion, approximately three months of downtime of the Northgate shaft will be required to facilitate the tie-in of the upper and lower mines. With the excavation work complete and mechanical installations underway, the Company remains on schedule to shut down the Northgate shaft in March 2020, with the tie-in completed in June 2020.
Lower mine loading pocket
https://www.globenewswire.com/NewsRoom/AttachmentNg/e98cbd2d-16ad-4f6f-bbaf-1e15ae68666b
Lower mine crusher
https://www.globenewswire.com/NewsRoom/AttachmentNg/9beb2f71-6262-4fa9-a8fc-4180d31260e4
Financial Review
Third quarter revenues of $70.2 million were 23% above the prior year quarter, reflecting higher realized gold prices. For the first nine months of 2019, revenues of $186.2 million were $14.3 million higher than the prior year period, attributable to both more ounces sold and higher realized prices.
Cost of sales (which includes mining and processing costs, royalties, and amortization expense) of $57.7 million were consistent with the comparative quarter of 2018, as were underground mining costs of CAD$51 per tonne. Cost of sales for the first nine months of 2019 were $171.7 million, consistent with the prior year period.
Total cash costs of $781 per ounce in the third quarter were 5% below the comparative period and in line with annual guidance. Total cash costs improved significantly in the third quarter compared to the first half of the year, resulting from higher grades mined, and lower mining and milling costs. For the first nine months of 2019, total cash costs of $813 per ounce were 4% lower than the prior year period. Total cash costs in the fourth quarter are expected to be in line with the third quarter reflecting similar mining rates and grades.
Mine-site AISC of $960 per ounce in the third quarter were lower than the comparative quarter of 2018 and in line with annual guidance, reflecting the timing of sustaining capital expenditures. Mine-site AISC for the nine month period were $1,033 per ounce, consistent with the prior year.
Capital expenditures were $23.9 million in the third quarter. This included $8.6 million of sustaining capital and $15.3 million of growth capital. Growth capital spending was focused on construction of the new TIA1 tailings facility and continued lower mine construction. For the nine month period, capital expenditures of $72.9 million were focused on lower mine construction, lateral development in the upper and lower mines, and construction of the new TIA1 tailings facility.
Young-Davidson generated $3.4 million of mine-site free cash flow in the third quarter, higher than the same period of 2018 due to more ounces sold, a higher gold price, improved operating costs and lower capital spending. On a year-to-date basis, mine-site free cash flow was $0.9 million. Since 2016, Young-Davidson has generated sufficient cash flow from operations to finance all of its capital spending, including the lower mine expansion.
Island Gold Financial and Operational Review
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
Gold production (ounces) 36,700 22,000 111,800 76,800
Gold sales (ounces) 37,209 20,561 110,094 75,321
Financial Review (in millions)
Operating Revenues $54.0 $25.3 $149.1 $97.6
Cost of sales (1) $32.0 $22.3 $93.0 $77.8
Earnings from operations $21.6 $2.7 $55.3 $19.4
Cash provided by operating activities $40.6 $13.9 $99.3 $59.6
Capital expenditures (sustaining) (2) $7.1 $7.8 $18.4 $12.2
Capital expenditures (growth) (2) $2.4 $5.3 $14.1 $24.6
Capital expenditures (capitalized exploration) (2) $4.3 $4.7 $11.7 $12.5
Mine-site free cash flow (2) $26.8 ($3.9 ) $55.1 $10.3
Cost of sales, including amortization per ounce of gold sold (1) $860 $1,085 $845 $1,033
Total cash costs per ounce of gold sold (2) $503 $671 $490 $597
Mine-site all-in sustaining costs per ounce of gold sold (2),(3) $693 $1,051 $658 $759
Underground Operations
Tonnes of ore mined 89,959 74,892 277,614 241,644
Tonnes of ore mined per day ("tpd") 978 814 1,017 885
Average grade of gold (4) 10.81 8.96 12.22 9.12
Metres developed 1,211 1,591 4,200 4,917
Mill Operations
Tonnes of ore processed 102,564 93,454 307,364 264,335
Tonnes of ore processed per day 1,115 1,016 1,126 968
Average grade of gold (4) 11.12 8.22 11.49 9.27
Contained ounces milled 36,675 24,708 113,560 78,793
Average recovery rate 97 % 96 % 97 % 97 %
(1) Cost of sales includes mining and processing costs, royalties and amortization.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative and share based compensation expenses.
(4) Grams per tonne of gold ("g/t Au").
Island Gold produced 36,700 ounces in the third quarter, marking a 67% increase from the third quarter of 2018 driven by higher mining and milling rates, as well as higher grades mined. For the first nine months of 2019, Island Gold produced a record 111,800 ounces, positioning the operation to meet the high end of annual guidance of 135,000 to 145,000 ounces. The operation generated record mine-site free cash flow of $26.8 million in the quarter, bringing the year-to-date total to $55.1 million.
Underground mining rates were 978 tpd in the third quarter, a 20% improvement from the third quarter of 2018, but lower than annual guidance. Underground mining rates in the quarter were impacted by a transition to a new underground development contractor, which temporarily impacted mining rates. Underground grades mined averaged 10.81 g/t Au in the third quarter, in line with annual guidance and 20% higher than the third quarter of 2018. Year-to-date grades mined of 12.22 g/t Au are above guided levels due to a combination of positive grade reconciliations and mine sequencing.
Mill throughput increased to 1,115 tpd in the third quarter, a 10% increase compared to the prior year quarter, reflecting the completion of the Phase I expansion of the mill in 2018. Milling rates exceeded mining rates, as tonnes mined in the quarter were supplemented with existing high-grade surface stockpiles. Mill recoveries were 97% in the third quarter, in line with the prior year quarter and guidance.
Financial Review
Island Gold generated record revenues of $54.0 million in the third quarter, an increase of 113% compared to the prior year period, reflecting significantly more ounces sold and a higher realized gold price. For the first nine months of 2019, revenues of $149.1 million were $51.5 million higher than the prior year period, primarily attributable to more ounces sold.
Cost of sales (includes mining and processing costs, royalties, and amortization expense) of $32.0 million in the third quarter were 43% higher than the comparative period, reflecting more ounces sold and higher unit mining costs. Cost of sales decreased 21% on a per ounce basis, driven by higher grades mined and lower amortization. Cost of sales for the first nine months of 2019 of $93.0 million increased 20% from the prior year period due to higher gold sales.
Total cash costs were $503 per ounce in the third quarter, a 25% improvement from the comparative quarter, driven by higher grades mined partially offset by higher mining costs. Unit mining costs increased to CAD$171 per tonne in the quarter due to higher contractor and maintenance costs. Total cash costs were consistent with guidance in the quarter. For the first nine months of 2019, total cash costs of $490 per ounce were 18% lower than the prior year period due to higher grades mined.
Mine-site AISC of $693 per ounce in the third quarter were below the full year guidance range of $730 to $770 per ounce, reflecting lower sustaining capital spending. Mine-site AISC for the first nine months of 2019 of $658 per ounce were 13% lower than the prior year period and below guidance as $18.4 million of sustaining capital, or only 50% of the full year budget, had been incurred through the first nine months of the year. As a result, Island Gold's mine-site AISC is expected to increase in the fourth quarter of 2019 and into 2020.
Total capital expenditures were $13.8 million in the third quarter, with spending focused on lateral development, mining equipment, and capitalized exploration. This included $7.1 million of sustaining capital and $6.7 million of growth capital (inclusive of $4.3 million of capitalized exploration). For the nine month period, total capital expenditures and capitalized exploration was $44.2 million, consistent with the prior year period. Capital spending is expected to be at the highest level of the year in the fourth quarter.
Island Gold generated record mine-site free cash flow of $26.8 million during the third quarter driven by strong gold production, high operating margins, and lower capital spending. Through the first nine months of 2019, Island Gold has generated $55.1 million of mine-site free cash flow, net of all capital and ongoing investment in exploration.
Mulatos Financial and Operational Review
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
Gold production (ounces) 32,700 43,300 107,900 139,900
Gold sales (ounces) 31,164 42,300 107,369 136,285
Financial Review (in millions)
Operating Revenues $45.1 $51.5 $144.7 $175.2
Cost of sales (1) $33.5 $41.9 $103.1 $134.7
Earnings from operations $10.6 $8.0 $38.9 $33.9
Cash provided by operating activities $7.2 $16.1 $31.0 $56.3
Capital expenditures (sustaining) (2) $2.1 $2.1 $5.3 $4.7
Capital expenditures (growth) (2) $10.8 $4.4 $39.4 $16.5
Capital expenditures (capitalized exploration) (2) $— $0.3 $— $2.3
Mine-site free cash flow, before changes in working capital ($5.7 ) $9.3 ($13.7 ) $32.8
Cost of sales, including amortization per ounce of gold sold (1) $1,075 $991 $960 $988
Total cash costs per ounce of gold sold (2) $866 $771 $772 $784
Mine site all-in sustaining costs per ounce of gold sold (2),(3) $979 $846 $861 $847
Open Pit & Underground Operations
Tonnes of ore mined - open pit (4) 1,664,898 1,904,534 5,608,221 6,360,911
Total waste mined - open pit 1,361,660 1,108,953 5,036,918 4,958,609
Total tonnes mined - open pit 3,026,558 3,490,021 10,645,139 13,000,643
Waste-to-ore ratio (operating) 0.63 0.58 0.66 0.78
Tonnes of ore mined - underground — 9,280 — 45,258
Crushing and Heap Leach Operations
Tonnes of ore stacked 1,628,401 1,465,876 5,466,393 5,018,456
Average grade of gold processed (5) 0.81 0.96 0.92 0.89
Contained ounces stacked 42,667 45,043 161,450 143,310
Mill Operations
Tonnes of high-grade ore milled — 29,806 — 91,680
Average grade of gold processed (5) — 6.07 — 6.70
Contained ounces milled — 5,815 — 19,744
Total contained ounces stacked and milled 42,667 50,858 161,450 163,054
Average recovery rate 77 % 85 % 67 % 86 %
Ore crushed per day (tonnes) - combined 17,700 16,300 20,000 18,700
(1) Cost of sales includes mining and processing costs, royalties and amortization.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative and share based compensation expenses.
(4) Includes ore stockpiled during the quarter.
(5) Grams per tonne of gold ("g/t Au").
Mulatos produced 32,700 ounces in the third quarter of 2019, bringing year-to-date production to 107,900 ounces. Third quarter production decreased compared to the prior year period as a result of lower contained ounces stacked in the period, as well as the cessation of mining from the San Carlos underground deposit in the third quarter of 2018.
The Company is currently mining from the Mulatos, Victor, and San Carlos open pits, and recently completed mining of La Yaqui Phase I. Mining and stacking rates were impacted by abnormally high rainfall in September over a short period of time which temporarily restricted mining activities in the main Mulatos pit, as well as the wind-down of mining activities at La Yaqui Phase I.
Total crusher throughput averaged 17,700 tpd for a total of 1,628,401 tonnes stacked in the third quarter at a grade of 0.81 g/t Au. Fourth quarter production at Mulatos is expected to be similar to the third quarter, as lower contained ounces stacked in the third quarter and the completion of mining at La Yaqui Phase I are expected to be partially offset by stacking of ore from Cerro Pelon.
During the third quarter, the Company completed mining activities at the La Yaqui Phase I project. Over a two-year period starting in the third quarter of 2017, La Yaqui Phase I gold production totaled approximately 60,000 ounces and the project generated over $35 million of free cash flow (net of construction capital of $12.5 million). The project was constructed on time and on budget, demonstrating the strength of the Company’s mine-building team at Mulatos, as well as the high-return potential of the satellite projects that exist at Mulatos, including Cerro Pelon and La Yaqui Grande.
Financial Review
Third quarter revenues of $45.1 million were $6.4 million lower than the prior year quarter, primarily due to lower grades mined and no contribution from the San Carlos underground in 2019. For the first nine months of 2019, revenues of $144.7 million were $30.5 million lower than the prior year period.
Cost of sales (includes mining and processing costs, royalties, and amortization expense) were $33.5 million in the third quarter, lower than the prior year period due to a lower number of tonnes mined and ounces sold. Amortization expense of $209 per ounce was below the prior year period but in line with annual guidance. Cost of sales for the first nine months of 2019 were $103.1 million, 23% lower due to lower tonnes mined and the completion of underground operations in the prior year period.
Total cash costs of $866 per ounce in the third quarter were higher than the prior year quarter, due to lower grades mined and higher mining and processing costs. For the first nine months of 2019, total cash costs of $772 per ounce were consistent with the prior year period, and below annual guidance, as the Company benefited from higher grades mined than planned. The Company expects total cash costs in the fourth quarter to be consistent with the third quarter.
Mine-site AISC of $979 per ounce in the third quarter were higher than the prior year quarter, as a result of higher total cash costs. Mine-site AISC for the first nine months of 2019 of $861 per ounce were in line with the prior year period. The Company expects full year 2019 mine-site AISC to be consistent with guidance.
Capital spending in the third quarter was focused on expansion projects at Mulatos, including development of the Cerro Pelon open pit and commissioning of the crusher, as well as completion of a leach pad expansion. Total capital spending for the quarter was $12.9 million, of which $2.1 million was sustaining capital. For the nine month period, capital expenditures of $44.7 million were $21.2 million higher than the prior year period as the Company has invested $17.7 million in 2019 constructing the Cerro Pelon mine.
Mulatos reported negative mine-site free cash-flow of $5.7 million in the third quarter due to significant investment in growth projects. Mine-site free-cash flow is expected to be neutral for the remainder of the year as construction of Cerro Pelon is completed.
El Chanate Financial and Operational Review
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
Gold production (ounces) 2,500 9,700 12,700 33,600
Gold sales (ounces) 2,589 9,687 13,000 33,463
Financial Review (in millions)
Operating Revenues $3.6 $12.6 $17.1 $44.0
Cost of sales (1) $4.1 $13.6 $17.6 $46.3
Loss from operations ($0.5 ) ($1.0 ) ($0.5 ) ($2.3 )
Cash (used in) provided by operating activities ($1.0 ) ($2.6 ) $1.2 ($1.8 )
Capital expenditures $— $0.2 $— $0.5
Mine-site free cash flow (2) ($1.0 ) ($2.8 ) $1.2 ($2.3 )
Cost of sales, including amortization per ounce of gold sold (1) $1,584 $1,404 $1,354 $1,384
Total cash costs per ounce of gold sold (2) $1,429 $1,301 $1,254 $1,285
Mine site all-in sustaining costs per ounce of gold sold (2),(3) $1,506 $1,332 $1,277 $1,312
(1) Cost of sales includes mining and processing costs, royalties and amortization.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative and share based compensation expenses.
El Chanate produced 2,500 ounces of gold in the third quarter, in line with budget. The Company expects full year production to be approximately 15,000 ounces, in line with the low end of annual guidance. Effective October 1, 2019, the operation ceased residual leaching and is transitioning to reclamation activities with rinsing of the leach pad. The Company expects to recover up to 4,000 ounces over the next year through rinsing of the leach pad for reclamation purposes.
Financial Review
Third quarter revenues of $3.6 million were lower than the prior year quarter due to fewer ounces sold, as mining activities and stacking of ore to the leach pad ceased in 2018. Total cash costs and mine-site AISC in the third quarter were $1,429 and $1,506 per ounce, respectively, increasing from the prior year period due to higher fixed costs.
El Chanate generated negative mine-site free cash flow of $1.0 million in the quarter and positive mine-site free cash flow of $1.2 million year to date. The Company has transitioned to reclamation activities and expects to partially offset the cost of reclamation through ounces recovered from rinsing of the leach pad.
Third Quarter 2019 Development Activities
Kirazli (Çanakkale, Turkey)
On October 14, 2019, the Company suspended all construction activities on its Kirazli project pending the renewal of its Turkish mining concessions which expired on October 13, 2019. Although the mining concessions have not been revoked and can be renewed following this expiration date, no further construction activities can be completed until the concessions have been renewed.
There has been false information about the project circulated through social media, which resulted in project opposition and related protests. The Company continues to share correct information about the project and dispel this misinformation.
The Company has met all the regulatory requirements and conditions for the concessions to be renewed and reasonably expected the renewal by the expiration date. The communities local to the Kirazli project remain supportive. As such, the Company is working with the Turkish Department of Energy and Natural Resources on securing the renewal of the mining concessions which will allow for a resumption of construction activities. The renewal is required from the same government department that granted the Operating Permit for Kirazli in March 2019.
Given the uncertainty around the timing of the concession renewal, initial production from Kirazli has been delayed from previous guidance of late 2020. The Company will provide updated guidance on the construction schedule and budget for Kirazli following the receipt of the concession renewal and resumption of construction activities.
During the third quarter of 2019, the Company spent $12.8 million at Kirazli, bringing year-to-date spending to $19.1 million. Of the spending for the year, approximately $15.0 million was directly related to construction activities, with the rest related to administrative expenses and working capital adjustments.
As outlined in the 2017 Feasibility Study, Kirazli has an expected 44% after-tax internal rate of return and is expected to produce over 100,000 ounces of gold during its first full year of production at mine-site all-in sustaining costs of less than $400 per ounce.
Mulatos District (Sonora, Mexico)
Cerro Pelon
During the third quarter, construction activities were substantially completed, with the Cerro Pelon crushing circuit and conveyor commissioned in October. Major activities in the quarter included:
Installation and testing of the crushing circuit
Construction of the overland conveyor and agglomerators
Construction of the grasshopper conveying system
Pre-stripping of the open pit
The Company spent $6.7 million at Cerro Pelon in the third quarter, bringing year-to-date spending to $17.7 million. The Company expects to commence stacking ore from the Cerro Pelon pit in the fourth quarter of this year, with production expected late in 2019.
Cerro Pelon pit
https://www.globenewswire.com/NewsRoom/AttachmentNg/c5186b21-596c-4d9d-a472-4fc10220838f
Cerro Pelon pit
https://www.globenewswire.com/NewsRoom/AttachmentNg/e18f93de-8aec-442c-8a4e-33bf3e0f45dc
La Yaqui Grande
The Company received approval of the environmental impact assessment ("MIA") for La Yaqui Grande during the second quarter and the Change in Land Use permit in July 2019. The Company has completed detailed engineering to support the project design and economics. The Company plans to finalize the project economics and announce a construction decision in early 2020. During the third quarter the Company invested $2.3 million on La Yaqui Grande, bringing year-to-date spending to $4.2 million.
Lynn Lake (Manitoba, Canada)
The Company released a positive Feasibility Study on the Lynn Lake project in December 2017 outlining average annual production of 143,000 ounces over a 10 year mine life at average mine-site all-in sustaining costs of $745 per ounce.
The project economics were detailed in the 2017 Feasibility Study (12.5% IRR at a $1,250 per ounce gold price; 18% IRR at a $1,400 per ounce gold price). Since the release of the 2017 Feasibility Study, the Company has undertaken several initiatives designed to improve the project economics. These include a detailed review of construction capital, the evaluation of various production scenarios and the inclusion of the results of more detailed engineering.
Development spending in the third quarter of $1.1 million and year-to-date of $2.5 million was related to project optimization activities. Ongoing development spending will be focused on baseline work in support of the Environmental Impact Study (“EIS”) for the project that will be submitted to satisfy Federal and Provincial environmental assessment requirements. The permitting process is expected to take approximately two years followed by two years of construction.
Third Quarter 2019 Exploration Activities
Island Gold (Ontario, Canada)
The 2019 exploration program continues to target three main areas within the Island Gold Deposit which extends over two kilometres along strike. During the first nine months of 2019, the surface and underground exploration drilling programs focused on expanding the down-plunge and lateral extensions of the deposit with the objective of adding new near-mine Mineral Resources. Drill holes in the Main, Western, and Eastern Extension areas were testing high-grade, east-plunging shoots outside of existing Mineral Reserves and Resources.
The 2019 exploration budget includes 48,000 metres ("m") of surface directional exploration drilling, 30,000 m of underground exploration drilling and 900 m of exploration drift development.
Surface exploration drilling
A total of 11 holes (12,312 m) were completed in the third quarter as part of the directional exploration drilling program. Directional drilling targeted areas peripheral to the Inferred Mineral Resource blocks below the 1,000 m level, with drill hole spacing ranging from 75 m to 100 m. The area that was targeted by the surface directional drill program extends approximately 2,000 m in strike length between the 1,000 m and 1,500 m elevation below surface.
The Company released highlights from the surface drilling program in a press release on September 11, 2019, which included the following intercepts:
34.28 g/t Au (24.95 g/t cut) over 8.36 m;
12.30 g/t Au (12.30 g/t cut) over 6.67 m;
6.31 g/t Au (6.31 g/t cut) over 8.10 m;
16.61 g/t Au (14.48 g/t cut) over 7.27 m;
5.98 g/t Au (5.98 g/t cut) over 5.24 m;
3.21 g/t Au (3.21 g/t cut) over 4.83 m; and
2.36 g/t Au (2.36 g/t cut) over 9.41 m
Underground exploration drilling
During the third quarter of 2019, a total of 11,903 m of underground exploration drilling was completed in 46 holes from the 340, 620 and 840 levels. The objective of the underground drilling is to identify new Mineral Resources close to existing Mineral Resource or Reserve blocks. A total of 142m of underground exploration drift development was completed on the 620 and 840 levels during the third quarter of 2019.
The Company released highlights from the underground exploration drilling program in a press release on September 11, 2019, which included the following intercepts:
63.94 g/t Au (22.24 g/t cut) over 12.33 m;
27.82 g/t Au (20.71 g/t cut) over 7.60 m;
8.47 g/t Au (8.47 g/t cut) over 3.95 m;
9.58 g/t Au (9.58 g/t cut) over 4.30 m;
13.48 g/t Au (13.48 g/t cut) over 2.09 m;
11.12 g/t Au (11.12 g/t cut) over 2.19 m;
11.78 g/t Au (11.78 g/t cut) over 2.38 m; and
5.24 g/t Au (5.24 g/t cut) over 6.21 m
Total exploration expenditures during the third quarter of 2019 were $4.7 million, of which $4.3 million was capitalized. Year-to-date, $12.5 million was spent, of which $11.7 million was capitalized.
Mulatos District (Sonora, Mexico)
The Company has a large exploration package covering 28,972 hectares with the majority of past exploration efforts focused around the Mulatos mine. Over the last three years, exploration has moved beyond the main Mulatos pit area and is focused on earlier stage prospects throughout the wider district.
In the third quarter of 2019, the Company invested $1.0 million in exploration activities within the Mulatos District, and has invested $2.7 million year-to-date. Spending in the quarter primarily related to mapping and re-logging, and administrative costs.
Lynn Lake (Manitoba, Canada)
Regional exploration continued in the third quarter of 2019 including mapping, prospecting, till sampling, and soil sampling programs focused on a series of prospective targets across the Lynn Lake Greenstone Belt.
Spending in the third quarter totaled $1.4 million, bringing the year-to-date spend to $3.7 million. A total of $6.0 million is budgeted for the Lynn Lake project in 2019.
Review of Third Quarter Financial Results
During the third quarter of 2019, the Company sold 119,392 ounces of gold for total revenue of $172.9 million, an 18% increase from the prior year period due to an increase in realized gold prices. The average realized gold price in the quarter was $1,448 per ounce compared to $1,229 per ounce in the prior year.
Cost of sales were $127.3 million in the third quarter of 2019, a 7% decrease compared to the prior year period, driven by lower mining and processing costs, and lower royalties.
Mining and processing costs were $83.0 million compared to $92.8 million in the prior year period. This decline was attributable to lower operating costs at Island Gold and Young-Davidson, and the completion of mining activities at El Chanate in the fourth quarter of 2018.
Consolidated total cash costs for the quarter were $730 per ounce compared to $817 per ounce in the prior year period. Low cost production growth at Island Gold, combined with higher mining rates and higher grades mined at Young-Davidson, contributed to an 11% decrease in total cash costs compared to the prior year period.
AISC were $950 per ounce in the quarter, a 9% decrease from the prior year period, primarily driven by lower total cash costs.
Royalty expense was $4.2 million in the quarter, lower than the prior year period of $4.8 million, as the 5% Mulatos royalty commitment ceased in the first quarter of 2019, partially offset by a higher number of ounces sold at Island Gold and a higher gold price.
Amortization of $40.1 million in the quarter was consistent with the prior year period expense of $40.0 million. On a per ounce basis, amortization of $336 per ounce was consistent with both the prior year period and guidance.
The Company recognized earnings from operations of $37.5 million in the quarter, higher than the prior year period due to higher realized gold prices combined with lower mining and processing and royalty expense, driving stronger margins.
The Company reported net earnings of $17.7 million in the quarter, compared to net earnings of $7.2 million in the same period of 2018, driven by improved gross margins, partially offset by the impact of foreign exchange on tax expense. On an adjusted basis, earnings of $23.4 million or $0.06 per share increased compared to the prior year driven by higher gross margins. Adjusted earnings reflect adjustments for other gains and losses, as well as foreign exchange movements related to the Canadian dollar and Mexican Peso, which generated foreign exchange losses of $6.5 million recorded within both foreign exchange and deferred income taxes.
Associated Documents
This press release should be read in conjunction with the Company’s interim consolidated financial statements for the three-month period ended September 30, 2019 and associated Management’s Discussion and Analysis (“MD&A”), which are available from the Company's website, www.alamosgold.com, in the "Investors" section under "Reports and Financials", and on SEDAR (www.sedar.com) and EDGAR (www.sec.gov).
Reminder of Third Quarter 2019 Results Conference Call
The Company's senior management will host a conference call on Thursday, October 31, 2019 at 11:00 am ET to discuss the third quarter 2019 results.
Participants may join the conference call by dialling (416) 340-2216 or (800) 273-9672 for calls within Canada and the United States, or via webcast at www.alamosgold.com.
A playback will be available until December 1, 2019 by dialling (905) 694-9451 or (800) 408-3053 within Canada and the United States. The pass code is 5853944#. The webcast will be archived at www.alamosgold.com.
Qualified Persons
Chris Bostwick, FAusIMM, Alamos’ Vice President, Technical Services, who is a qualified person within the meaning of National Instrument 43-101 ("Qualified Person"), has reviewed and approved the scientific and technical information contained in this press release.
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from four operating mines in North America. This includes the Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos and El Chanate mines in Sonora State, Mexico. Additionally, the Company has a significant portfolio of development stage projects in Canada, Mexico, Turkey, and the United States. Alamos employs more than 1,700 people and is committed to the highest standards of sustainable development. The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons
Vice-President, Investor Relations
(416) 368-9932 x 5439
The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note
Certain statements contained in this press release are, or may deemed to be, “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws. All statements in this press release, other than statements of historical fact, which address events, results, outcomes or developments that the Company expects to occur are, or may be deemed, to be forward-looking statements. Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology such as "expect", "believe", "anticipate”, “intend", "estimate", "forecast", "budget", “target”, “outlook”, “continue”, “plan” or variations of such words and phrases and similar expressions or statements that certain actions, events or results “may", "could", "would", "might" or "will" be taken, occur or be achieved.
Such statements include information as to strategy, plans or future financial or operating performance, such as the Company’s expansion plans, project timelines, production plans and expected sustainable productivity increases, expected increases in mining activities and corresponding cost efficiencies, expected drilling targets, expected sustaining costs, expected improvements in cash flows and margins, expectations of changes in capital expenditures, forecasted cash shortfalls and the Company’s ability to fund them, cost estimates, projected exploration results, reserve and resource estimates, expected production rates and use of the stockpile inventory, expected recoveries, sufficiency of working capital for future commitments and other statements that express management’s expectations or estimates of future performance.
Alamos cautions that forward-looking statements are necessarily based upon several factors and assumptions that, while considered reasonable by the Company at the time of making such statements, are inherently subject to significant business, economic, legal, political and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements.
Such factors and assumptions underlying the forward-looking statements in this press release include, but are not limited to: changes to current estimates of mineral reserves and resources; changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing and recovery rate estimates and may be impacted by unscheduled maintenance, labour and contractor availability and other operating or technical difficulties); fluctuations in the price of gold; changes in foreign exchange rates (particularly the Canadian dollar, Mexican peso, Turkish Lira and U.S. dollar); the impact of inflation; employee and community relations (including maintaining social license to operate in Turkey); litigation and administrative proceedings; disruptions affecting operations; availability of and increased costs associated with mining inputs and labour; development delays at the Kirazli project or Young-Davidson mine; inherent risks associated with mining and mineral processing; the risk that the Company’s mines may not perform as planned; uncertainty with the Company’s ability to secure additional capital to execute its business plans; the speculative nature of mineral exploration and development, the renewal of the Company’s mining concessions in Turkey; timely resumption of construction and development at the Kirazli project; the risks of obtaining and maintaining necessary licenses, permits and authorizations for the Company’s development and operating assets; labour and contractor availability (and being able to secure the same on favourable terms); contests over title to properties; expropriation or nationalization of property; inherent risks and hazards associated with mining including environmental hazards, industrial accidents, unusual or unexpected formations, pressures and cave-ins; changes in national and local government legislation (including tax legislation), controls or regulations in Canada, Mexico, Turkey, the United States and other jurisdictions in which the Company does or may carry on business in the future; risk of loss due to sabotage, protests and other civil disturbances; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows; risks arising from holding derivative instruments; and business opportunities that may be pursued by the Company.
For a more detailed discussion of such risks and other factors that may affect the Company's ability to achieve the expectations set forth in the forward-looking statements contained in this press release, see the Company’s latest 40-F/Annual Information Form and MD&A, each under the heading “Risk Factors”, available on the SEDAR website at www.sedar.com or on EDGAR at www.sec.gov. The foregoing should be reviewed in conjunction with the information found in this press release.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Cautionary Note to U.S. Investors Concerning Measured, Indicated and Inferred Resources
The Company is required to prepare its resource estimates in accordance with standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian National Instrument 43-101. These standards are materially different from the standards generally permitted in reports filed with the United States Securities and Exchange Commission (“SEC”). When describing resources, we use the terms "measured", "indicated" or "inferred” resources which are not recognized by the SEC. The estimation of measured resources and indicated resources involve greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that any part of measured or indicated resources will ever be converted into economically or legally mineable proven or probable reserves. The estimation of inferred resources may not form the basis of a feasibility or other economic studies and involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources.
Non-GAAP Measures and Additional GAAP Measures
The Company has included certain non-GAAP financial measures to supplement its Consolidated Financial Statements, which are presented in accordance with IFRS, including the following:
adjusted net earnings and adjusted earnings per share;
cash flow from operating activities before changes in working capital and taxes received;
Company-wide free cash flow;
total mine-site free cash flow;
mine-site free cash flow;
total cash cost per ounce of gold sold;
all-in sustaining cost ("AISC") per ounce of gold sold;
mine-site all-in sustaining cost ("Mine-site AISC") per ounce of gold sold;
sustaining and non-sustaining capital expenditures; and
earnings before interest, taxes, depreciation, and amortization
The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management's determination of the components of non-GAAP and additional measures are evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes in to the measures are dully noted and retrospectively applied as applicable.
Adjusted Net Earnings and Adjusted Earnings per Share
“Adjusted net earnings” and “adjusted earnings per share” are non-GAAP financial measures with no standard meaning under IFRS which exclude the following from net earnings:
Foreign exchange gain (loss)
Items included in other gain (loss)
Certain non-reoccurring items
Foreign exchange gain (loss) recorded in deferred tax expense
Net earnings have been adjusted, including the associated tax impact, for the group of costs in “Other loss” on the consolidated statement of comprehensive income. Transactions within this grouping are: the fair value changes on non-hedged derivatives; the renunciation of flow-through exploration expenditures; and loss on disposal of assets. The adjusted entries are also impacted for tax to the extent that the underlying entries are impacted for tax in the unadjusted net earnings.
The Company uses adjusted net earnings for its own internal purposes. Management’s internal budgets and forecasts and public guidance do not reflect the items which have been excluded from the determination of adjusted net earnings. Consequently, the presentation of adjusted net earnings enables shareholders to better understand the underlying operating performance of the core mining business through the eyes of management. Management periodically evaluates the components of adjusted net earnings based on an internal assessment of performance measures that are useful for evaluating the operating performance of our business and a review of the non-GAAP measures used by mining industry analysts and other mining companies.
Adjusted net earnings is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of operating profit or cash flows from operations as determined under IFRS. The following table reconciles this non-GAAP measure to the most directly comparable IFRS measure.
(in millions)
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
Net earnings (loss) $17.7 $7.2 $58.1 ($1.1 )
Adjustments:
Foreign exchange (gain) loss — (0.7 ) (0.3 ) 2.7
Other gain (0.8 ) (0.4 ) (2.5 ) (1.7 )
Unrealized foreign exchange loss (gain) recorded in deferred tax expense 6.5 (8.0 ) (4.6 ) 14.7
Other income and mining tax adjustments — — 0.7 0.7
Adjusted net earnings $23.4 ($1.9 ) $51.4 $15.3
Adjusted earnings per share - basic and diluted $0.06 $— $0.13 $0.04
Cash Flow from Operating Activities before Changes in Working Capital and Cash Taxes
“Cash flow from operating activities before changes in working capital and cash taxes” is a non-GAAP performance measure that could provide an indication of the Company’s ability to generate cash flows from operations, and is calculated by adding back the change in working capital and taxes received to “Cash provided by (used in) operating activities” as presented on the Company’s consolidated statements of cash flows. “Cash flow from operating activities before changes in working capital” is a non-GAAP financial measure with no standard meaning under IFRS.
The following table reconciles the non-GAAP measure to the consolidated statements of cash flows.
(in millions)
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
Cash flow from operating activities $67.9 $45.2 $182.6 $166.5
Add back: Changes in working capital and cash taxes 11.9 (3.6 ) 28.6 (7.6 )
Cash flow from operating activities before changes in working capital and cash taxes $79.8 $41.6 $211.2 $158.9
Company-wide Free Cash Flow
“Company-wide free cash flow" is a non-GAAP performance measure calculated from the consolidated operating cash flow, less consolidated mineral property, plant and equipment expenditures. The Company believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash company-wide. Company-wide free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other mining companies. Company-wide free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
(in millions)
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
Cash flow from operating activities $67.9 $45.2 $182.6 $166.5
Less: mineral property, plant and equipment expenditures (66.3 ) (55.1 ) (190.7 ) (160.0 )
Company-wide free cash flow $1.6 ($9.9 ) ($8.1 ) $6.5
Mine-site Free Cash Flow
"Mine-site free cash flow" is a non-GAAP financial performance measure calculated as cash flow from mine-site operating activities, less mineral property, plant and equipment expenditures. The Company believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash. Mine-site free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other mining companies. Mine-site free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Total Mine-Site Free Cash Flow
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
(in millions)
Cash flow from operating activities $67.9 $45.2 $182.6 $166.5
Less: operating cash flow used by non-mine site activity (6.2 ) (6.2 ) (22.7 ) (21.5 )
Cash flow from operating mine-sites $74.1 $51.4 $205.3 $188.0
Mineral property, plant and equipment expenditure $66.3 $55.1 $190.7 $160.0
Less: capital expenditures from development projects, and corporate (15.7 ) (8.2 ) (28.9 ) (23.2 )
Capital expenditure from mine-sites $50.6 $46.9 $161.8 $136.8
Total mine-site free cash flow $23.5 $4.5 $43.5 $51.2
Young-Davidson Mine-Site Free Cash Flow
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
(in millions)
Cash flow from operating activities $27.3 $24.0 $73.8 $73.9
Mineral property, plant and equipment expenditure (23.9 ) (22.1 ) (72.9 ) (63.5 )
Mine-site free cash flow $3.4 $1.9 $0.9 $10.4
Mulatos Mine-Site Free Cash Flow
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
(in millions)
Cash flow from operating activities $7.2 $16.1 $31.0 $56.3
Mineral property, plant and equipment expenditure (12.9 ) (6.8 ) (44.7 ) (23.5 )
Mine-site free cash flow ($5.7 ) $9.3 ($13.7 ) $32.8
Island Gold Mine-Site Free Cash Flow
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
(in millions)
Cash flow from operating activities $40.6 $13.9 $99.3 $59.6
Mineral property, plant and equipment expenditure (13.8 ) (17.8 ) (44.2 ) (49.3 )
Mine-site free cash flow $26.8 ($3.9 ) $55.1 $10.3
El Chanate Mine-Site Free Cash Flow
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
(in millions)
Cash flow from operating activities ($1.0 ) ($2.6 ) $1.2 ($1.8 )
Mineral property, plant and equipment expenditure — (0.2 ) — (0.5 )
Mine-site free cash flow ($1.0 ) ($2.8 ) $1.2 ($2.3 )
Total Cash Costs per ounce
Total cash costs per ounce is a non-GAAP term typically used by gold mining companies to assess the level of gross margin available to the Company by subtracting these costs from the unit price realized during the period. This non-GAAP term is also used to assess the ability of a mining company to generate cash flow from operations. Total cash costs per ounce includes mining and processing costs plus applicable royalties, and net of by-product revenue and net realizable value adjustments. Total cash costs per ounce is exclusive of exploration costs.
Total cash costs per ounce is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.
All-in Sustaining Costs per ounce and Mine-site All-in Sustaining Costs
The Company adopted an “all-in sustaining costs per ounce” non-GAAP performance measure in accordance with the World Gold Council published in June 2013. The Company believes the measure more fully defines the total costs associated with producing gold; however, this performance measure has no standardized meaning. Accordingly, there may be some variation in the method of computation of “all-in sustaining costs per ounce” as determined by the Company compared with other mining companies. In this context, “all-in sustaining costs per ounce” for the consolidated Company reflects total mining and processing costs, corporate and administrative costs, share-based compensation, exploration costs, sustaining capital, and other operating costs.
For the purposes of calculating "mine-site all-in sustaining costs" at the individual mine-sites, the Company does not include an allocation of corporate and administrative costs and share-based compensation, as detailed in the reconciliations below.
Sustaining capital expenditures are expenditures that do not increase annual gold ounce production at a mine site and excludes all expenditures at the Company’s development projects as well as certain expenditures at the Company’s operating sites that are deemed expansionary in nature. For each mine-site reconciliation, corporate and administrative costs, and non-site specific costs are not included in the all-in sustaining cost per ounce calculation.
All-in sustaining costs per gold ounce is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.
Total Cash Costs and All-in Sustaining Costs per Ounce Reconciliation Tables
The following tables reconciles these non-GAAP measures to the most directly comparable IFRS measures on a Company-wide and individual mine-site basis.
Total Cash Costs and AISC Reconciliation - Company-wide
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
(in millions, except ounces and per ounce figures)
Mining and processing $83.0 $92.8 $251.6 $291.0
Royalties 4.2 4.8 13.0 16.8
Total cash costs $87.2 $97.6 $264.6 $307.8
Gold ounces sold 119,392 119,401 367,554 378,718
Total cash costs per ounce $730 $817 $720 $813
Total cash costs $87.2 $97.6 $264.6 $307.8
Corporate and administrative(1) 4.5 4.9 14.6 13.9
Sustaining capital expenditures(2) 17.8 19.6 53.5 42.4
Share-based compensation 1.7 1.2 7.7 5.3
Sustaining exploration 1.4 1.1 4.2 3.9
Accretion of decommissioning liabilities 0.8 0.7 2.2 2.2
Total all-in sustaining costs $113.4 $125.1 $346.8 $375.5
Gold ounces sold 119,392 119,401 367,554 378,718
All-in sustaining costs per ounce $950 $1,048 $944 $992
(1) Corporate and administrative expenses exclude expenses incurred at development properties.
(2) Sustaining capital expenditures are defined as those expenditures which do not increase annual gold ounce production at a mine site and exclude all expenditures at growth projects and certain expenditures at operating sites which are deemed expansionary in nature. Total sustaining capital for the period is as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
(in millions)
Capital expenditures per cash flow statement $66.3 $55.1 $190.7 $160.0
Less: non-sustaining capital expenditures at:
Young-Davidson (15.3 ) (12.6 ) (43.1 ) (38.5 )
Mulatos (10.8 ) (4.7 ) (39.4 ) (18.8 )
Island Gold (6.7 ) (10.0 ) (25.8 ) (37.1 )
Corporate and other (15.7 ) (8.2 ) (28.9 ) (23.2 )
Sustaining capital expenditures $17.8 $19.6 $53.5 $42.4
Young-Davidson Total Cash Costs and Mine-site AISC Reconciliation
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
(in millions, except ounces and per ounce figures)
Mining and processing $36.6 $37.8 $108.5 $110.3
Royalties 1.2 0.8 2.9 2.6
Total cash costs $37.8 $38.6 $111.4 $112.9
Gold ounces sold 48,430 46,853 137,091 133,649
Total cash costs per ounce $781 $824 $813 $845
Total cash costs $37.8 $38.6 $111.4 $112.9
Sustaining capital expenditures 8.6 9.5 29.8 25.0
Exploration 0.1 0.0 0.3 0.1
Accretion of decommissioning liabilities — 0.1 0.1 0.2
Total all-in sustaining costs $46.5 $48.2 $141.6 $138.2
Gold ounces sold 48,430 46,853 137,091 133,649
Mine-site all-in sustaining costs per ounce $960 $1,029 $1,033 $1,034
Mulatos Total Cash Costs and Mine-site AISC Reconciliation
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
(in millions, except ounces and per ounce figures)
Mining and processing $26.7 $29.9 $80.0 $97.2
Royalties 0.3 2.7 2.9 9.7
Total cash costs $27.0 $32.6 $82.9 $106.9
Gold ounces sold 31,164 42,300 107,369 136,285
Total cash costs per ounce $866 $771 $772 $784
Total cash costs $27.0 $32.6 $82.9 $106.9
Sustaining capital expenditures 2.1 2.1 5.3 4.7
Exploration 0.8 0.6 2.4 2.3
Accretion of decommissioning liabilities 0.6 0.5 1.8 1.6
Total all-in sustaining costs $30.5 $35.8 $92.4 $115.5
Gold ounces sold 31,164 42,300 107,369 136,285
Mine-site all-in sustaining costs per ounce $979 $846 $861 $847
Island Gold Total Cash Costs and Mine-site AISC Reconciliation
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
(in millions, except ounces and per ounce figures)
Mining and processing $16.0 $12.5 $46.8 $40.5
Royalties 2.7 1.3 7.2 4.5
Total cash costs $18.7 $13.8 $54.0 $45.0
Gold ounces sold 37,209 20,561 110,094 75,321
Total cash costs per ounce $503 $671 $490 $597
Total cash costs $18.7 $13.8 $54.0 $45.0
Sustaining capital expenditures 7.1 7.8 18.4 12.2
Total all-in sustaining costs $25.8 $21.6 $72.4 $57.2
Gold ounces sold 37,209 20,561 110,094 75,321
Mine-site all-in sustaining costs per ounce $693 $1,051 $658 $759
El Chanate Total Cash Costs and Mine-site AISC Reconciliation
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
(in millions, except ounces and per ounce figures)
Mining and processing $3.7 $12.6 $16.3 $43.0
Total cash costs $3.7 $12.6 $16.3 $43.0
Gold ounces sold 2,589 9,687 13,000 33,463
Total cash costs per ounce $1,429 $1,301 $1,254 $1,285
Total cash costs $3.7 $12.6 $16.3 $43.0
Sustaining capital expenditures — 0.2 — 0.5
Accretion of decommissioning liabilities 0.2 0.1 0.3 0.4
Total all-in sustaining costs $3.9 $12.9 $16.6 $43.9
Gold ounces sold 2,589 9,687 13,000 33,463
Mine-site all-in sustaining costs per ounce $1,506 $1,332 $1,277 $1,312
Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”)
EBITDA represents net earnings before interest, taxes, depreciation, and amortization. EBITDA is an indicator of the Company’s ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.
EBITDA does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
The following is a reconciliation of EBITDA to the consolidated financial statements:
(in millions)
Three Months Ended September 30, Nine Months Ended September 30,
2019 2018 2019 2018
Net earnings (loss) $17.7 $7.2 $58.1 ($1.1 )
Add back:
Finance expense 0.9 1.0 2.1 2.8
Amortization 40.1 40.0 120.8 124.5
Deferred income tax expense (recovery) 15.9 (10.7 ) 8.5 8.1
Current income tax expense 3.8 4.2 18.5 17.9
EBITDA $78.4 $41.7 $208.0 $152.2
Additional GAAP Measures
Additional GAAP measures are presented on the face of the Company’s consolidated statements of comprehensive income (loss) and are not meant to be a substitute for other subtotals or totals presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. The following additional GAAP measures are used and are intended to provide an indication of the Company’s mine and operating performance:
Earnings from operations - represents the amount of earnings before net finance income/expense, foreign exchange gain/loss, other income/loss, loss on redemption of senior secured notes and income tax expense
Unaudited Consolidated Statements of Financial Position, Comprehensive
Income, and Cash Flow
ALAMOS GOLD INC.
Condensed Interim Consolidated Statements of Financial Position
(Unaudited - stated in millions of United States dollars)
September 30,
2019
December 31,
2018
A S S E T S
Current Assets
Cash and cash equivalents $185.6 $206.0
Equity securities 16.9 7.8
Amounts receivable 35.4 40.5
Inventory 123.8 110.2
Other current assets 15.8 15.5
Total Current Assets 377.5 380.0
Non-Current Assets
Long-term inventory 29.8 30.0
Mineral property, plant and equipment 2,880.9 2,813.3
Other non-current assets 42.9 41.9
Total Assets $3,331.1 $3,265.2
L I A B I L I T I E S
Current Liabilities
Accounts payable and accrued liabilities $107.1 $118.7
Income taxes payable 16.5 6.2
Total Current Liabilities 123.6 124.9
Non-Current Liabilities
Deferred income taxes 501.4 491.5
Decommissioning liabilities 45.6 44.9
Other non-current liabilities 3.1 1.6
Total Liabilities 673.7 662.9
E Q U I T Y
Share capital $3,694.5 $3,705.2
Contributed surplus 92.2 87.3
Warrants — 3.9
Accumulated other comprehensive loss (5.5 ) (9.2 )
Deficit (1,123.8 ) (1,184.9 )
Total Equity 2,657.4 2,602.3
Total Liabilities and Equity $3,331.1 $3,265.2
ALAMOS GOLD INC.
Condensed Interim Consolidated Statements of Comprehensive Income (Loss)
(Unaudited - stated in millions of United States dollars, except share and per share amounts)
For three months ended For nine months ended
September 30,
September 30,
September 30,
September 30,
2019 2018 2019 2018
OPERATING REVENUES $172.9 $146.7 $497.1 $488.7
COST OF SALES
Mining and processing 83.0 92.8 251.6 291.0
Royalties 4.2 4.8 13.0 16.8
Amortization 40.1 40.0 120.8 124.5
127.3 137.6 385.4 432.3
EXPENSES
Exploration 1.9 2.4 5.0 8.5
Corporate and administrative 4.5 4.9 14.6 13.9
Share-based compensation 1.7 1.2 7.7 5.3
135.4 146.1 412.7 460.0
EARNINGS FROM OPERATIONS 37.5 0.6 84.4 28.7
OTHER EXPENSES
Finance expense (0.9 ) (1.0 ) (2.1 ) (2.8 )
Foreign exchange gain (loss) — 0.7 0.3 (2.7 )
Other gain 0.8 0.4 2.5 1.7
EARNINGS BEFORE INCOME TAXES $37.4 $0.7 $85.1 $24.9
INCOME TAXES
Current income tax expense (3.8 ) (4.2 ) (18.5 ) (17.9 )
Deferred income tax (expense) recovery (15.9 ) 10.7 (8.5 ) (8.1 )
NET EARNINGS (LOSS) $17.7 $7.2 $58.1 ($ 1.1 )
Items that may be subsequently reclassified to net earnings:
Unrealized (loss) gain on currency hedging instruments, net of taxes (0.8 ) 2.5 4.2 (2.9 )
Unrealized gain on fuel hedging instruments, net of taxes — — 0.5 —
Items that will not be reclassified to net earnings:
Unrealized gain (loss) on equity securities, net of taxes 0.3 (3.5 ) (1.0 ) (5.0 )
Total other comprehensive (loss) income ($0.5 ) ($1.0 ) $3.7 ($7.9 )
COMPREHENSIVE INCOME (LOSS) $17.2 $6.2 $61.8 ($9.0 )
EARNINGS PER SHARE
– basic $0.05 $0.02 $0.15 $0.00
– diluted $0.04 $0.02 $0.15 $0.00
Weighted average number of common shares outstanding (000's)
– basic 390,593 389,854 389,852 389,572
– diluted 394,355 394,546 393,183 389,572
ALAMOS GOLD INC.
Condensed Interim Consolidated Statements of Cash Flows
(Unaudited - stated in millions of United States dollars)
For three months ended For nine months ended
September 30, September 30,
September 30, September 30,
2019 2018 2019 2018
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net earnings (loss) for the period $17.7 $7.2 $58.1 ($1.1 )
Adjustments for items not involving cash:
Amortization 40.1 40.0 120.8 124.5
Foreign exchange (gain) loss — (0.7 ) (0.3 ) 2.7
Current income tax expense 3.8 4.2 18.5 17.9
Deferred income tax expense (recovery) 15.9 (10.7 ) 8.5 8.1
Share-based compensation 1.7 1.2 7.7 5.3
Finance expense 0.9 1.0 2.1 2.8
Other items (0.3 ) (0.6 ) (4.2 ) (1.3 )
Changes in working capital and cash taxes (11.9 ) 3.6 (28.6 ) 7.6
67.9 45.2 182.6 166.5
INVESTING ACTIVITIES
Mineral property, plant and equipment (66.3 ) (55.1 ) (190.7 ) (160.0 )
Proceeds from sale of equity securities — — — 24.9
Other (0.5 ) — (1.6 ) —
(66.8 ) (55.1 ) (192.3 ) (135.1 )
FINANCING ACTIVITIES
Repayment of equipment financing obligations (0.8 ) (1.0 ) (2.6 ) (3.2 )
Revolving credit facility transaction fees — (0.8 ) — (0.8 )
Repurchase and cancellation of common shares — — (11.4 ) —
Proceeds from the exercise of options and warrants 6.4 0.6 7.0 1.7
Dividends paid (3.9 ) — (11.7 ) (3.9 )
Proceeds from issuance of flow-through shares — — 7.5 —
1.7 (1.2 ) (11.2 ) (6.2 )
Effect of exchange rates on cash and cash equivalents (0.4 ) 0.8 0.5 (1.2 )
Net increase (decrease) in cash and cash equivalents 2.4 (10.3 ) (20.4 ) 24.0
Cash and cash equivalents - beginning of period 183.2 235.1 206.0 200.8
CASH AND CASH EQUIVALENTS - END OF PERIOD $185.6 $224.8 $185.6 $224.8
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Primary Logo
Lower mine loading pocket
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Lower mine loading pocket
Lower mine crusher
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Lower mine crusher
Cerro Pelon pit
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Cerro Pelon pit
Cerro Pelon crushing circuit
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Cerro Pelon crushing circuit
GlobeNewswire
October 30, 2019 - 2:00 PM PDT
Tags: INDUSTRIAL METALS & MINERALS
Read more at https://stockhouse.com/news/press-releases/2019/10/30/alamos-reports-third-quarter-2019-results#e3W7EKv2MDEXrDlM.99
News: $AGI Alamos Gold Provides Notice of Third Quarter 2019 Results and Conference Call
TORONTO, Oct. 04, 2019 (GLOBE NEWSWIRE) -- Alamos Gold Inc. ( TSX:AGI; NYSE:AGI ) (“Alamos” or the “Company”) plans to release its third quarter 2019 financial results after market close on Wednesday, October 30, 2019. Senior management will host a conference c...
In case you are interested AGI - Alamos Gold Provides Notice of Third Quarter 2019 Results and Conference Call
I've been adding a little here and there. I don't trade it much.
Alamos Gold (AGI) Moves to Strong Buy: Rationale Behind the Upgrade
CONTRIBUTOR
Zacks Equity Research Zacks
PUBLISHED
OCT 1, 2019 9:00AM EDT
Alamos Gold (AGI) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Alamos Gold is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Alamos Gold, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
In GOD We Trust -
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http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Ps.
opinion appreciated
TIA
Can Alamos Gold Stock Price Go Higher?
•Published on 7 Aug 2019
justmining Stocks
blackcat thank you, Alamos Gold Inc. AGI has been struggling lately, but the selling pressure may be coming to an end soon.
That is because AGI recently saw a Hammer Chart Pattern which
can signal that the stock is nearing a bottom.
What is a Hammer Chart Pattern?
A hammer chart pattern is a popular technical indicator
that is used in candlestick charting.
The hammer appears when a stock tumbles during the day,
but then finds strength at some point in the session to
close near or above its opening price.
This forms a candlestick that resembles a hammer, and it
can suggest that the market has found a low point in
the stock, and that better days are ahead.
Other Factors
Plus, earnings estimates have been rising for this company,
even despite the sluggish trading lately.
In just the past 60 days alone 4 estimates have gone higher,
compared to none lower, while the consensus estimate
has also moved in the right direction.
Estimates have actually risen so much that the stock now has
ex. a Zacks Rank #1 (Strong Buy) suggesting this relatively
unloved stock could be due for a breakout soon.
This will be especially true if AGI stock can build momentum
from here and find a way to continue higher of off this encouraging
trading development.
You can see the complete list of today’s Zacks #1 Rank
(Strong Buy) stocks here....
ex....
Stock Set to Double -
Zacks experts released their pick to gain +100% or more in 2020.
Ex.
Alamos Gold wins sustainability award
Michael McCrae Michael McCrae
Monday September 16, 2019 15:17
Kitco NewsShare this article:
Editor's Note: We are proud to unveil our new mining page, an entire
space dedicated to up-to-the-minute news, with exclusive industry
interviews and all the relevant information you need, rounded in up
in one spot.
Who is merging? Who is Buying? Who is Digging? We got you covered!
Image courtesy of Alamos Gold
Responsibility Practice 2019 by the Mexican Center for Philanthropy
(Cemefi), the Alliance for Corporate Social Responsibility in Mexico
(AliaRSE), and Forum Empresa.
The award highlighted Alamos Gold's voluntary relocation of residents
from Mulatos to Matarachi.
The Mexican miner also built 21 new homes, a new school, church and
medical clinic.
"We are honored to be receiving this Award for our commitment and
leadership in corporate social responsibility in Mexico.
As a company, sustainability and corporate social responsibility are
core values which are incorporated into activities at all our
operations," said John A. McCluskey, President and CEO.
Alamos Gold is a Canadian-based intermediate gold producer.
By Michael McCrae
For Kitco News
Contact mmccrae@kitco.com
www.kitco.com
The award highlighted Alamos Gold's voluntary relocation of residents from Mulatos to Matarachi.
https://www.kitco.com/news/2019-09-16/Alamos-Gold-wins-sustainability-award.html
https://www.alamosgold.com/s/Home.asp
https://www.alamosgold.com/home/default.aspx#newsSection
https://www.alamosgold.com/news-and-media/gallery/default.aspx
In GOD We Trust -
https://www.kitco.com/images/live/silver.gif?0.8344882022363285
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Nice to read that!
Alamos Gold wins sustainability award
Michael McCrae Michael McCrae
Monday September 16, 2019 15:17
Kitco NewsShare this article:
Editor's Note: We are proud to unveil our new mining page, an entire
space dedicated to up-to-the-minute news, with exclusive industry
interviews and all the relevant information you need, rounded in up
in one spot.
Who is merging? Who is Buying? Who is Digging? We got you covered!
Image courtesy of Alamos Gold
Responsibility Practice 2019 by the Mexican Center for Philanthropy
(Cemefi), the Alliance for Corporate Social Responsibility in Mexico
(AliaRSE), and Forum Empresa.
The award highlighted Alamos Gold's voluntary relocation of residents
from Mulatos to Matarachi.
The Mexican miner also built 21 new homes, a new school, church and
medical clinic.
"We are honored to be receiving this Award for our commitment and
leadership in corporate social responsibility in Mexico.
As a company, sustainability and corporate social responsibility are
core values which are incorporated into activities at all our
operations," said John A. McCluskey, President and CEO.
Alamos Gold is a Canadian-based intermediate gold producer.
By Michael McCrae
For Kitco News
Contact mmccrae@kitco.com
www.kitco.com
https://www.kitco.com/news/2019-09-16/Alamos-Gold-wins-sustainability-award.html
In GOD We Trust -
https://www.kitco.com/images/live/silver.gif?0.8344882022363285
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Alamos Gold Declares Quarterly Dividend
Alamos Gold (NYSE:AGI)
https://ih.advfn.com/stock-market/NYSE/alamos-gold-AGI/stock-news/80630174/alamos-gold-declares-quarterly-dividend
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today
announced that the Company’s Board of Directors has declared a
quarterly dividend of US$0.01 per common share.
This represents the Company’s 10th consecutive year of paying a
dividend during which time the Company has returned $152 million to
shareholders through dividends and share buybacks.
The dividend is payable on September 30, 2019 to shareholders of
record as of the close of business on September 16, 2019.
This dividend qualifies as an “eligible dividend”
for Canadian income tax purposes.
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified
production from four operating mines in North America.
This includes the Young-Davidson and Island Gold mines in northern
Ontario, Canada and the Mulatos and El Chanate mines in Sonora State,
Mexico.
Additionally, the Company has a significant portfolio of development
stage projects in Canada, Mexico, Turkey, and the United States.
Alamos employs more than 1,700 people and is committed to the highest
standards of sustainable development.
The Company’s shares are traded on the TSX and NYSE under the symbol
“AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons
Vice President, Investor Relations
(416) 368-9932 x 5439
All amounts are in United States dollars, unless otherwise stated.
The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
In GOD We Trust -
https://www.kitco.com/images/live/silver.gif?0.8344882022363285
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Ps.
opinion appreciated
TIA
How weird is that? And why on earth would anyone do it? Makes no sense.
Alamos Gold Inc. Canadian Comp. MAIN Exchange: Mother Board TSX Exchange Deleted on ihub! | Aug 6, 2019, 11:57 PM EDT logo
AGI $ 9.69 real time data Change Up Change:
+ $0.32 (3.42%)
Volume: 1,735,748 Real-time price
Day Low 9.59 Day High 10.03
52 Week Low 3.88 52 Week High 10.03
EARNINGS ALERT: 07/31/19 ADD TO PORTFOLIO TRADE AGI NOW
All messages since 10yrs back all gone!?
Well;, stockhouse might have some -
to bad that investors research NOT wanted ! -
All they do are to delete, delete all they been told to do? -
https://stockhouse.com/companies/quote?symbol=t.agi
the bankster evils will lose their fake fiat slave currency -
sooner or later but the damage the evils do to the country -
only more and more severe and make it more easy for China,
Russia, India to take it all!
God Bless
Alamos Gold Inc. Class A Exchange: New York Stock Exchange | Aug 2, 2019, 10:39 AM EDT
AGI:US $7.145 Change Up Change: $0.035 (0.49%) Volume: 838,085
Day Low 7.01 Day High 7.155
52 Week Low 2.90 52 Week High 7.12
It's a long hike back UP ^ will it FLY ^^^^ * ^^^^
very undervalued and oversold ^^^^ it's overdue to FLY ^^*^^
Alamos Gold Inc.
Exchange: TSX Exchange | Aug 2, 2019, 10:44 AM EDT logo
AGI $9.51 real time data
Change Up Change: $0.14 (1.49%) Volume: 365,590 Real-time price
Day Low 9.30 Day High 9.52
52 Week Low 3.88 52 Week High 9.42
Alamos Reports Second Quarter 2019 Results
T.AGI
Strong Margin Expansion Drives Record Cash Flow From Operations of $72 Million
TORONTO, July 31, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported its financial results for the quarter ended June 30, 2019.
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Reports-Second-Quarter-2019-Results/default.aspx
https://stockhouse.com/news/press-releases/2019/07/31/alamos-reports-second-quarter-2019-results
“Our operations performed well across the board in the second quarter.
Gold production was in line with guidance while total cash costs were down 16% year- over-year, driving stronger margins and record cash flow from operations.
This was highlighted by another record quarter of production from Island Gold where we continue to see excellent exploration results.
With solid first half performance, we are well positioned to meet full year production and cost guidance,” said John A. McCluskey, President and Chief Executive Officer.
“The lower mine expansion at Young-Davidson is progressing well and construction activities at our Cerro Pelon and Kirazli projects continue.
Each remain on track and we are now less than a year away from starting to see the benefit from these projects through strong free cash flow growth,”
Mr. McCluskey added.
Second Quarter 2019
Produced 125,200 ounces of gold, in-line with guidance and the second quarter of 2018
Record gold production of 39,500 ounces at Island Gold.
This marks the third consecutive quarter of record production, driving mine-site free cash flow of $11.7 million at Island Gold.
Through the first half of 2019, Island Gold produced 75,100 ounces and generated $28.3 million of mine-site free cash flow1
Achieved underground mining rates of 6,700 tonnes per day ("tpd") at Young-Davidson, and produced 45,000 ounces of gold, consistent with annual guidance
Record cash flow from operating activities of $72.3 million ($69.7 million, or $0.18 per share, before changes in working capital1), reflecting higher operating margins driven by lower costs, and higher gold sales
Consolidated total cash costs1 of $699 per ounce were below the low end of guidance, and $133 per ounce, or 16% lower than the second quarter of 2018, driven by low cost production at Island Gold and lower than budgeted costs at Mulatos
All-in sustaining costs ("AISC")1 of $926 per ounce, and cost of sales of $1,021 per ounce were both at the low end of annual guidance, and down 7% and 12%, respectively, from the second quarter of 2018
Sold 128,457 ounces of gold at an average realized price of $1,309 per ounce, in-line with the average London PM Fix, for revenues of $168.1 million
Reported adjusted net earnings1 of $17.7 million, or $0.05 per share1, which includes adjustments for unrealized foreign exchange gains recorded within both deferred taxes and foreign exchange of $7.1 million, partially offset by other one-time losses totaling $1.2 million
Realized net earnings of $23.6 million, or $0.06 per share
Ended the quarter with cash and cash equivalents of $183.2 million and no debt
Repurchased 0.2 million shares in the quarter, for a total of 2.7 million shares repurchased and canceled during the first half of 2019 at a cost of $11.4 million,
or $4.17 per share.
Received permit approval for the Phase II expansion of Island Gold to 1,200 tpd
Advanced construction activities at both the Kirazli project in
Turkey and the Cerro Pelon project in Mexico
Received approval of the environmental impact assessment for
La Yaqui Grande project in Mexico during the second quarter and
the Change in Land Use permit in July 2019
Continued to demonstrate exploration success at Island Gold with results
from surface exploration drilling further extending high-grade
gold mineralization between the Eastern and Main extensions
(1) Refer to the “Non-GAAP Measures and Additional GAAP Measures”
disclosure at the end of this press release and associated MD&A for a
description and calculation of these measures.
Highlight Summary
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Reports-Second-Quarter-2019-Results/default.aspx
https://stockhouse.com/news/press-releases/2019/07/31/alamos-reports-second-quarter-2019-results
In GOD We Trust -
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Ps.
opinion appreciated
TIA
What Alamos Gold is still trading ?.....
Why I thought they got taken on over or something.....
Must be be thinking of somebody else - Perhaps Atltantic
Anyways good company by the looks of your link
Not to mention by the looks of their chart
Earnings released yesterday ?.......hmmmmmm
Okay.........Now what ?
PS : Hey have U seen palladium ? Talk about nuts ! Why, that stuff fell 1000 bucks in 2 days. Weird.
Very nice report!
Alamos Reports Second Quarter 2019 Results
T.AGI
Strong Margin Expansion Drives Record Cash Flow From Operations of $72 Million
TORONTO, July 31, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported its financial results for the quarter ended June 30, 2019.
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Reports-Second-Quarter-2019-Results/default.aspx
https://stockhouse.com/news/press-releases/2019/07/31/alamos-reports-second-quarter-2019-results
“Our operations performed well across the board in the second quarter.
Gold production was in line with guidance while total cash costs were down 16% year- over-year, driving stronger margins and record cash flow from operations.
This was highlighted by another record quarter of production from Island Gold where we continue to see excellent exploration results.
With solid first half performance, we are well positioned to meet full year production and cost guidance,” said John A. McCluskey, President and Chief Executive Officer.
“The lower mine expansion at Young-Davidson is progressing well and construction activities at our Cerro Pelon and Kirazli projects continue.
Each remain on track and we are now less than a year away from starting to see the benefit from these projects through strong free cash flow growth,”
Mr. McCluskey added.
Second Quarter 2019
Produced 125,200 ounces of gold, in-line with guidance and the second quarter of 2018
Record gold production of 39,500 ounces at Island Gold.
This marks the third consecutive quarter of record production, driving mine-site free cash flow of $11.7 million at Island Gold.
Through the first half of 2019, Island Gold produced 75,100 ounces and generated $28.3 million of mine-site free cash flow1
Achieved underground mining rates of 6,700 tonnes per day ("tpd") at Young-Davidson, and produced 45,000 ounces of gold, consistent with annual guidance
Record cash flow from operating activities of $72.3 million ($69.7 million, or $0.18 per share, before changes in working capital1), reflecting higher operating margins driven by lower costs, and higher gold sales
Consolidated total cash costs1 of $699 per ounce were below the low end of guidance, and $133 per ounce, or 16% lower than the second quarter of 2018, driven by low cost production at Island Gold and lower than budgeted costs at Mulatos
All-in sustaining costs ("AISC")1 of $926 per ounce, and cost of sales of $1,021 per ounce were both at the low end of annual guidance, and down 7% and 12%, respectively, from the second quarter of 2018
Sold 128,457 ounces of gold at an average realized price of $1,309 per ounce, in-line with the average London PM Fix, for revenues of $168.1 million
Reported adjusted net earnings1 of $17.7 million, or $0.05 per share1, which includes adjustments for unrealized foreign exchange gains recorded within both deferred taxes and foreign exchange of $7.1 million, partially offset by other one-time losses totaling $1.2 million
Realized net earnings of $23.6 million, or $0.06 per share
Ended the quarter with cash and cash equivalents of $183.2 million and no debt
Repurchased 0.2 million shares in the quarter, for a total of 2.7 million shares repurchased and canceled during the first half of 2019 at a cost of $11.4 million,
or $4.17 per share.
Received permit approval for the Phase II expansion of Island Gold to 1,200 tpd
Advanced construction activities at both the Kirazli project in
Turkey and the Cerro Pelon project in Mexico
Received approval of the environmental impact assessment for
La Yaqui Grande project in Mexico during the second quarter and
the Change in Land Use permit in July 2019
Continued to demonstrate exploration success at Island Gold with results
from surface exploration drilling further extending high-grade
gold mineralization between the Eastern and Main extensions
(1) Refer to the “Non-GAAP Measures and Additional GAAP Measures”
disclosure at the end of this press release and associated MD&A for a
description and calculation of these measures.
Highlight Summary
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Reports-Second-Quarter-2019-Results/default.aspx
https://stockhouse.com/news/press-releases/2019/07/31/alamos-reports-second-quarter-2019-results
In GOD We Trust -
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Ps.
opinion appreciated
TIA
blackcat good for you, Gold $87,000 per ounce at Least -
Bill Holter & Jim Sinclair –
2,628 views
Greg Hunter
Published on Jul 9, 2019
Good stock for me. I just hold my position- add a little every once in awhile when it has a big down day.
Alamos Gold (AGI) Is An Incredible Growth Stock: 3 Reasons Why
By Zacks Investment ResearchStock Markets
2 hours ago (Jul 09, 2019 08:45AM ET)
https://www.investing.com/analysis/alamos-gold-agi-is-an-incredible-growth-stock-3-reasons-why-200437995
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.
Alamos Gold (AGI) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this gold mining company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings Growth
Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Alamos Gold is 11.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 152% this year, crushing the industry average, which calls for EPS growth of 34.6%.
Cash Flow Growth
Cash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Alamos Gold is 14.4%, which is higher than many of its peers. In fact, the rate compares to the industry average of -7.6%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 11.8% over the past 3-5 years versus the industry average of 9.1%.
Promising Earnings Estimate Revisions
Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Alamos Gold. The Zacks Consensus Estimate for the current year has surged 2.2% over the past month.
Bottom Line
Alamos Gold has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Alamos Gold well for outperformance, so growth investors may want to bet on it.
Alamos Gold Inc. (AGI): Free Stock Analysis Report
Original post
Zacks Investment Research
Alamos Gold
In GOD We Trust -
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Ps.
opinion appreciated
TIA
Alamos Gold Provides Notice of Second Quarter 2019 Results and Conference Call
TORONTO, July 03, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) plans to release its second quarter 2019 financial results after market close on Wednesday, July 31, 2019. Senior management will host a conference call on Thursday, August 1, 2019 at 11:00 am ET to discuss the results.
Participants may join the conference call by dialling (416) 340-2216 or (800) 273-9672 for calls within Canada and the United States, or via webcast at www.alamosgold.com.
A playback will be available until September 1, 2019 by dialling (905) 694-9451 or (800) 408-3053 within Canada and the United States. The pass code is 2634152#. The webcast will be archived at www.alamosgold.com.
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from four operating mines in North America. This includes the Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos and El Chanate mines in Sonora State, Mexico. Additionally, the Company has a significant portfolio of development stage projects in Canada, Mexico, Turkey, and the United States. Alamos employs more than 1,700 people and is committed to the highest standards of sustainable development. The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons
Vice President, Investor Relations
(416) 368-9932 x 5439
All amounts are in United States dollars, unless otherwise stated.
The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
High grades continue at Alamos Island Gold mine
Canadian Mining Journal Staff | June 11, 2019 | 3:31 pm
Alamos Gold of Toronto continues to cut high grades in a new area of
focus between the Eastern and Main extensions at Island Gold.
The gap between the two extensions is located within a 500 metre area
between inferred resource blocks and is only 1,000 metres from surface.
Near the Eastern extension, highlights include
102.74 g/t gold
(58.62 g/t cut) over 3.9 metres, and
31.66 g/t (31.66 g/t cut) over 3.0 metres.
The recently drilled high grades near the Main extension are
90 metres east of the previously reported intersection.
Some highlights:
24.08 g/t gold (14.21 g/t cut) over 6.3 metres, and
6.01 g/t (6.01 g/t cut) over 10.0 metres.
Alamos says the focus of its 2019 exploration drill program at
Island Gold has been to expand the down plunge and
lateral extensions of the deposit.
Successful results put the company closer to its goal of adding
new near-mine resources across the 2-km-long Main zone.
A total of 17,973 metres of surface drilling has been
completed so far this year.
The total program includes 48,000 metres of surface directional
drilling,
30,000 metres of underground drilling,
35,000 metres of delineation drilling, and
917 metres of drift development.
Alamos received the necessary permits to go forward with a
phase two expansion to 1,200 t/d at Island Gold in May.
(This article originally appeared in the Canadian Mining Journal)
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https://www.mining.com/high-grades-continue-at-alamos-island-gold-mine/
God Bless
Alamos Gold Continues to Intersect High-Grade Mineralization in New Area of Focus Between Eastern and Main Extensions at Island Gold
TORONTO, June 10, 2019 (GLOBE NEWSWIRE) --
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Gold-Continues-to-Intersect-High-Grade-Mineralization-in-New-Area-of-Focus-Between-Eastern-and-Main-Extensions-at-Island-Gold/default.aspx
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported new results from surface exploration drilling at the Island Gold Mine, further extending high-grade gold mineralization. All reported drill widths are true width of the mineralized zones, unless otherwise stated.
Eastern Extension: additional high-grade mineralization intersected in the previously untested area between the Eastern and Main Extensions. All five intersections drilled to date in this recently discovered area have intersected ore grade gold mineralization. This area is located within a 500 metre (“m”) gap between Inferred Mineral Resource blocks, and is only 1,000 m from surface and relatively close to existing infrastructure. New highlights include:
102.74 g/t Au (58.62 g/t cut) over 3.94 m (MH18-05); and
31.66 g/t Au (31.66 g/t cut) over 2.95 m (MH18-04);
Main Extension: high-grade mineralization extended 90 m east from the nearest previously reported intersection (MH17-01). High-grade mineralization has been extended over 1,000 m east of current mine workings and remains open along strike to the east and both up and down-plunge. New highlights include:
24.08 g/t Au (14.21 g/t cut) over 6.27 m (MH17-06); and
6.01 g/t Au (6.01 g/t cut) over 9.97 m (MH13-6).
Note: Drillhole composite intervals reported as “cut” may include higher grade samples which have been cut to 225 g/t Au for Main and Extension 1 areas, and 160 g/t Au for Extension 2 Area.
“Island Gold continues to be a tremendous success story on all fronts. We just received the Phase II expansion permit this past month and ongoing exploration success continues to support strong potential for additional growth in mineral reserves and resources and a Phase III expansion of the operation. We’re extending high-grade mineralization across all three areas of focus and see excellent potential within the recently discovered area between the Main and Eastern Extensions where we are continuing to close the gap between high-grade resources,” said John A. McCluskey, President and Chief Executive Officer.
2019 Drilling Program – Island Gold Mine
The focus of the 2019 exploration drilling program is to continue to expand the down-plunge and lateral extensions of the Island Gold deposit with the objective of adding new near mine Mineral Resources across the two-kilometre long Island Gold Main Zone (Figure 1).
The ongoing exploration program at Island Gold has been successful in extending high grade gold mineralization across each of the Main, Western, and Eastern Extensions. This has translated into significant growth in Mineral Reserves and Resources since the November 2017 acquisition of Island Gold.
A total of 17,873 m of surface directional exploration drilling has been completed to date in 2019. New highlight intercepts can be found in Figures 1 and 2 and Table 1 at the end of this news release.
The 2019 drill program includes 48,000 m of surface directional exploration drilling, 30,000 m of underground exploration drilling, 35,000 m of delineation drilling, and 917 m of exploration drift development.
Surface Exploration Drilling
Eastern Extension
Surface directional drilling within the Eastern Extension is focused on testing the new area of high-grade gold mineralization within the E1E Zone that was discovered in May 2019. This area is located down-plunge from known Inferred Resource blocks, between the 850 m and 1,150 m vertical depths, and previously reported high-grade intersections approximately 350 m further to the east (Figure 2). New highlights from the surface drilling program include (E1E-Zone) (Table 1):
102.74 g/t Au (58.62 g/t cut) over 3.94 m (MH18-05); and
31.66 g/t Au (31.66 g/t cut) over 2.95 m (MH18-04).
To date, five drill holes have been completed in this area with all intersecting ore-grade gold mineralization. This includes new drill holes MH18-05, which intersected 102.74 g/t Au (58.62 g/t cut) over 3.94 m and MH18-04 intersecting 31.66 g/t Au (31.66 g/t cut) over 2.95 m. These new intersections are located 120 m and 50 m west, respectively from previously reported drill hole MH18-03 which intersected 46.11 g/t Au (25.81 g/t cut) over 4.67m (see Press Release dated May 9, 2019).
These drill hole intersections are approximately 200 m down-plunge from the closest Inferred Mineral Resources in the Eastern Extension, and 300 m vertically above Inferred Mineral Resources defined in the eastern down-plunge extent of the Main Extension. Testing the potential continuity of high-grade mineralization between the Eastern and Main Extensions will be an ongoing focus in 2019 with this area having seen limited drilling to date. Two surface directional diamond drill rigs are active in this area, and will continue with 75 to 100 m spaced step-out drilling.
Main Extension
Surface directional drilling to date in 2019 has been successful in continuing to extend gold mineralization with drill hole spacing ranging from 50 to 100 m (Figure 2).
New highlights from the surface drilling program include (E1E-Zone) (Table 1):
24.08 g/t Au (14.21 g/t cut) over 6.27 m (MH17-06); and
6.01 g/t Au (6.01 g/t cut) over 9.97 m (MH13-6).
New drillhole MH17-06 (24.08 g/t Au (14.21 g/t cut) over 6.27 m) has extended high-grade gold mineralization 90 m east from the nearest previously reported drill hole intersection from MH17-01 (56.60 g/t Au (50.87 g/t cut) over 5.66 m). Gold mineralization has been extended one kilometre to the east of existing mine workings. This east plunging high-grade ore shoot remains open laterally, up and down-plunge.
The 2019 exploration program will continue to focus on further extending high-grade mineralization with the objective of defining additional Mineral Resources in this area. Three surface directional diamond drill rigs remain active in the Main Extension target area.
Qualified Persons
Chris Bostwick, FAusIMM, Alamos Gold’s Vice President, Technical Services, has reviewed and approved the scientific and technical information contained in this news release. Chris Bostwick is a Qualified Person within the meaning of Canadian Securities Administrator’s National Instrument 43-101 (“NI 43-101”).
Exploration programs at the Island Gold Mine are directed by Raynald Vincent, P.Eng., M.G.P., Chief Geologist at the Island Gold Mine and a Qualified Person within the meaning of NI 43-101.
Quality Control
Assays for the surface exploration drilling program were completed at LabExpert in Rouyn-Noranda, Quebec. The Corporation inserts at regular intervals quality control (QC) samples (blanks and reference materials) to monitor laboratory performance. Cross check assays are done on a regular basis in a second accredited laboratory. The Quality Assurance / Quality Control procedures are more completely described in the Technical Report filed on SEDAR by Richmont Mines, July 13, 2017.
Upcoming Catalysts and News Flow
Q2 2019 – Young-Davidson and Island Gold Site Tours
Mid-2019 – Lynn Lake Optimization Study
H2 2019 – Island Gold Exploration Update
H2 2019 – La Yaqui Grande EIA Approval
H2 2019 – Cerro Pelon Construction Update
H2 2019 – Kirazli Construction Update
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from four operating mines in North America. This includes the Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos and El Chanate mines in Sonora State, Mexico. Additionally, the Company has a significant portfolio of development stage projects in Canada, Mexico, Turkey, and the United States. Alamos employs more than 1,700 people and is committed to the highest standards of sustainable development. The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons
Vice President, Investor Relations
(416) 368-9932 x 5439
The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note
This news release includes certain statements that constitute forward-looking information within the meaning of applicable Canadian and U.S. securities laws ("forward-looking statements"). All statements in this news release, other than statements of historical fact, which address events, results, outcomes or developments that Alamos expects to occur are forward-looking statements. Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology such as "expects", “believe", "anticipate", "plan", “forecast”, "estimate", "intend", “budget” or “potential” or variations of such words and phrases and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved or the negative connotation of such terms. Forward-looking statements in this news release include the statements with respect to planned exploration programs, costs and expenditures, changes in Mineral Resources and conversion of Mineral Resources to Proven and Probable Mineral Reserves, and other information that is based on forecasts and projections of future operational, geological or financial results, estimates of amounts not yet determinable and assumptions of management.
Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classed as a category of Mineral Resource. A Mineral Resource that is classified as "Inferred" or "Indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "Indicated Mineral Resource" or "Inferred Mineral Resource" will ever be upgraded to a higher category of Mineral Resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into Proven and Probable Mineral Reserves.
Alamos cautions readers not to place undue reliance on the forward-looking statements which are not guarantees of future events as a number of factors could cause results, conditions, actions or events to differ materially from the targets, outlooks, expectations, goals, estimates or intentions expressed in the forward-looking statements. These factors include, but are not limited to: risks related to obtaining and maintaining necessary permits, licenses and authorizations required to carry out planned exploration or development work, the actual results of current exploration activities, conclusions of economic and geological evaluations, changes in project parameters as plans continue to be refined, employee and community relations,the speculative nature of mineral exploration and development, contests over title to properties, changes in national and local government legislation, control and regulations and and fluctuations of the price of gold and foreign exchange rates as well as those factors discussed in the section entitled "Risk Factors" in Alamos' latest Annual Information Form and MD&A, each under the heading “Risk Factors”, available on the SEDAR website at www.sedar.com or on EDGAR at www.sec.gov. The foregoing should be reviewed in conjunction with the information found in this news release. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether written or oral, or whether as a result of new information, future events or otherwise, except as required by applicable law.
All amounts are in United States dollars, unless otherwise stated.
All of the forward-looking statements made in this news release are qualified by these cautionary statements.
Cautionary Note to U.S. Investors – Mineral Reserve and Resource Estimates
All Mineral Resource and Reserve estimates included in this news release or documents referenced in this news release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards"). NI 43-101 is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. The terms "Mineral Reserve", "Proven Mineral Reserve" and "Probable Mineral Reserve" are Canadian mining terms as defined in accordance with NI 43-101 and the CIM Standards. These definitions differ materially from the definitions in the Securities Exchange Commission (the “SEC”) Industry Guide 7 ("SEC Industry Guide 7") under the United States Securities Act of 1933, as amended, and the Exchange Act. Under SEC Industry Guide 7 standards, a "final" or "bankable" feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.
In addition, the terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" are defined in and required to be disclosed by NI 43-101 and the CIM Standards; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the U.S. SEC. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into Mineral Reserves. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in very limited circumstances. Investors are cautioned not to assume that all or any part of an Inferred Mineral Resource exists or is economically or legally mineable. Disclosure of "contained ounces" in a Mineral Resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures.
Table 1: Island Gold – Previously Unreleased Select Composite Intervals from Surface Exploration Drilling
Composite intervals greater than 3 g/t Au weighted average, capping values:
Main Island and Extension 1 areas @ 225 g/t Au; Extension 2 Area @ 160 g/t Au.
Hole ID Zone Target Area From (m) To (m) Core Length (m) True Width (m) Au Uncut (g/t) Au Cut (g/t) Vertical Depth (m)
MH18-04 E1E Eastern Ext 1153.00 1157.20 4.20 2.95 31.66 31.66 1031
MH18-05 E1E Eastern Ext 1137.30 1142.20 4.90 3.94 102.74 58.62 1036
MH13-6 E1E Main Ext 1526.80 1537.60 10.80 9.97 6.01 6.01 1268
MH17-06 E1E Main Ext 1499.00 1505.40 6.40 6.27 24.08 14.21 1214
Table 2: Surface exploration drill holes; azimuth, dip, drilled length, and collar location at surface (UTM NAD83).
Hole ID Azimuth (°) Dip (°) Drilled Length (m) UTM Easting UTM Northing UTM Elevation (m) Comments
MH13-6 336 -72 688 692074 5351046 389 Cut from MH13-5 at 1116m
MH17-06 334 -73 982 692320 5351076 395 Cut from MH17-01 at 766m
MH18-04 339 -75 1046 691886 5351456 400 Cut from MH18-01 at 412m
MH18-05 339 -75 840 691886 5351456 400 Cut from MH18-01 at 407m
MH16-06 337 -73 789 691002 5350845 387 Cut from MH16-01 at 681m
Note: UTM mine surface elevation 382 m
Two photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/ddec0976-dc0f-41dd-9c60-e012bf25ef94
https://www.globenewswire.com/NewsRoom/AttachmentNg/67cb99f2-3c81-4f41-b734-9060f69d8eb1
Primary Logo
Alamos Gold Receives Phase II Expansion Permit for Island Gold
T.AGI | 2 days ago
TORONTO, May 28, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today
reported it has been granted amendments to its existing operational
permits from the Ministry of the Environment, Conservation and Parks,
Ontario, allowing for the
Phase II expansion of the Island Gold Mine to 1,200 tonnes per day (“tpd”).
These amendments were received ahead of schedule and will allow underground mining and mill throughput rates to increase from the previously permitted rate of 1,100 tpd. Underground mining rates are expected to increase to 1,200 tpd in 2020. The Company will look for opportunities to ramp up mining rates to 1,200 tpd before the end of 2019; however, 2019 guidance for production and costs is unchanged. With a mine and mill that can both support throughput rates of 1,200 tpd, no additional capital will be required for the Phase II expansion.
In parallel, the Company is continuing with a large ongoing exploration program at Island Gold which has been successful in driving significant growth in Mineral Reserves and Resources the last several years. This growth and ongoing exploration success is being incorporated into a Phase III expansion study beyond 1,200 tpd. The study is expected to be completed over the next year.
Qualified Persons
Chris Bostwick, FAusIMM, Alamos Gold’s Vice President, Technical Services, has reviewed and approved the scientific and technical information contained in this news release. Chris Bostwick is a Qualified Person within the meaning of Canadian Securities Administrator’s National Instrument 43-101.
Upcoming Catalysts and News Flow
Q2 2019 – Young-Davidson and Island Gold Site Tours
Mid-2019 – Lynn Lake Optimization Study
H2 2019 – La Yaqui Grande EIA Approval
H2 2019 – Cerro Pelon Construction Update
H2 2019 – Kirazli Construction Update
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from four operating mines in North America. This includes the Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos and El Chanate mines in Sonora State, Mexico. Additionally, the Company has a significant portfolio of development stage projects in Canada, Mexico, Turkey, and the United States. Alamos employs more than 1,700 people and is committed to the highest standards of sustainable development. The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons
Vice President, Investor Relations
(416) 368-9932 x 5439
All amounts are in United States dollars, unless otherwise stated.
The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note
This news release contains statements which are, or may deemed to be, forward-looking information within the meaning of applicable Canadian and U.S. securities laws (“forward-looking statement(s)”). All statements in this news release, other than statements of historical fact, which address events, results, outcomes or developments that Alamos expects to occur are, or may be deemed to be, forward-looking statements. Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology such as "expect", "believe", "anticipate", "will", "intend", "estimate", "forecast", "budget" or variations of such words and phrases and similar expressions or statements that certain actions, events or results ”may", "could", "would", "might" or "will" be taken, occur or be achieved or the negative connotation of such terms. Forward-looking statements in this news release include the statements with respect to underground mining and mill throughput rates, planned exploration programs, costs and expenditures, changes in Mineral Resources and Mineral Reserves, planned study results and other information that is based on forecasts and projections of future operational, geological or financial results, estimates of amounts not yet determinable and assumptions of management.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management at the time of making such statements, are inherently subject to significant business, economic, legal, political and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements.
Alamos cautions readers not to place undue reliance on the forward-looking statements which are not guarantees of future events as a number of factors could cause results, conditions, actions or events to differ materially from the targets, outlooks, expectations, goals, estimates or intentions expressed in the forward-looking statements. These factors include, but are not limited to: the speculative nature of mineral exploration and development, the risks of obtaining and maintaining necessary licenses, permits and authorizations for the Company’s planned exploration work as well as development stage and operating assets, the actual results of current exploration activities, conclusions of economic and geological evaluations, changes in project parameters as plans continue to be refined,; changes to current estimates of Mineral Reserves and Resources; changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing and recovery rate estimates and may be impacted by unscheduled maintenance; labour and contractor availability and other operating or technical difficulties); fluctuations in the price of gold; changes in foreign exchange rates (particularly the U.S. dollar and Canadian dollar); the impact of inflation; any decision to declare a dividend; employee and community relations; litigation and administrative proceedings; disruptions affecting the Company’s Canadian operations; expropriation or nationalization of property; inherent risks and hazards associated with mining including environmental hazards, industrial accidents, unusual or unexpected formations, pressures and cave-ins; availability of and increased costs associated with mining inputs and labour; contests over title to properties; changes in national and local government legislation (including tax legislation), controls or regulations; risk of loss due to sabotage and civil disturbances and the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows.
Additional risk factors affecting the Company are set out in the Company’s latest Form 40-F/ Annual Information Form and MD&A, each under the heading “Risk Factors”, available on the SEDAR website at www.sedar.com or on EDGAR at www.sec.gov., and should be reviewed in conjunction with this news release. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
image: https://www.globenewswire.com/newsroom/ti?nf=NzYyNzYyNSMyOTU1NzIyIzIwMDkyMjI=
image: https://ml.globenewswire.com/media/b6c84d4b-0c81-42e6-9d33-e92b12eacb59/small/alamos-logo-png.png
Primary Logo
GlobeNewswire
May 28, 2019 - 3:30 AM PDT
Tags:
INDUSTRIAL METALS & MINERALS
Read more at
https://stockhouse.com/news/press-releases/2019/05/28/alamos-gold-receives-phase-ii-expansion-permit-for-island-gold#zmgTXL8XjA3ZYBsr.99
God Bless
Has AGI gone to quarterly dividends? The last several years I see Apr/Oct payouts only.
TORONTO, May 28, 2019 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (AGI) (“Alamos” or the “Company”) today announced that the Company’s Board of Directors has declared a quarterly dividend of US$0.01 per common share. This represents the Company’s 10th consecutive year of paying a dividend during which time the Company has returned $147 million to shareholders through dividends and share buybacks.
The dividend is payable on June 28, 2019 to shareholders of record as of the close of business on June 14, 2019. This dividend qualifies as an “eligible dividend” for Canadian income tax purposes.
Alamos Gold Looks Interesting After Pullback
Apr. 4, 2019 1:36 PM ET|
About: Alamos Gold Inc. (AGI)
https://seekingalpha.com/article/4252819-alamos-gold-looks-interesting-pullback
God Bless
Great discussion on gold and monetary expansion
I really liked the last line.
King World News note: The last chart says it all in terms of the gold price.
Gold is now at one of the most undervalued points in history. The same
could be said of the mining shares.
This well worth a review.
https://kingworldnews.com/european-analyst-warns-day-of-reckoning-approaching-for-central-banks-as-gold-price-set-to-surge/
God Bless
ALAMOS GOLD RECEIVES OPERATING PERMIT FOR KIRAZLI PROJECT
03/01/2019
Download this Press Release (PDF 220 KB)
TORONTO, March 01, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported it has been granted the Operating Permit from the Turkish Department of Energy and Natural Resources allowing for the start of earthworks on the open pit area of the Kirazli project.
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Gold-Receives-Operating-Permit-for-Kirazl-Project/default.aspx
As disclosed in January 2019, the Company expects to spend $75 million in 2019 on completing work on the water reservoir and ramping up major construction activities and earthworks. The remaining $60 million of Kirazli’s total initial capital budget of $152 million will be spent in 2020 with initial production expected by the end of 2020.
As outlined in the 2017 feasibility study, Kirazli has a 44% after-tax internal rate of return and is expected to produce over 100,000 ounces of gold during its first full year of production at mine-site all-in sustaining costs of less than $400 per ounce. This is expected to bring consolidated production to over 600,000 ounces per year, while significantly lowering the Company’s cost profile.
Qualified Persons
Chris Bostwick, FAusIMM, Alamos Gold’s Vice President, Technical Services, has reviewed and approved the scientific and technical information contained in this news release. Chris Bostwick is a Qualified Person within the meaning of Canadian Securities Administrator’s National Instrument 43-101. For further information pertaining to the 2017 feasibility study, please see press release titled “Alamos Gold Announces Positive Feasibility Study for Kirazli Project”, dated February 15, 2017, and the corresponding technical report, both available under the Company's profile on SEDAR at www.sedar.com and on the Alamos website at
http://www.alamosgold.com
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from four operating mines in North America. This includes the Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos and El Chanate mines in Sonora State, Mexico. Additionally, the Company has a significant portfolio of development stage projects in Canada, Mexico, Turkey, and the United States. Alamos employs more than 1,700 people and is committed to the highest standards of sustainable development. The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons
Vice President, Investor Relations
(416) 368-9932 x 5439
All amounts are in United States dollars, unless otherwise stated.
The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note
This news release contains statements which are, or may deemed to be, forward-looking information within the meaning of applicable Canadian and U.S. securities laws (“forward-looking statement(s)”). All statements in this news release, other than statements of historical fact, which address events, results, outcomes or developments that Alamos expects to occur are, or may be deemed to be, forward-looking statements. Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology such as "expects", “is expected” "believes", "anticipates", "will", "intends", "estimates", "forecast", "budget" or variations of such words and phrases and similar expressions or statements that certain actions, events or results ”may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management at the time of making such statements, are inherently subject to significant business, economic, legal, political and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements.
Such factors and assumptions underlying the forward-looking statements in this news release include, but are not limited to: development delays at the Kirazli project, the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining necessary licenses, permits and authorizations for the Company’s development stage and operating assets; changes to current estimates of mineral reserves and resources; changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing and recovery rate estimates and may be impacted by unscheduled maintenance; labour and contractor availability and other operating or technical difficulties); fluctuations in the price of gold; changes in foreign exchange rates (particularly the Canadian dollar, Turkish Lira and U.S. dollar); the impact of inflation; any decision to declare a dividend; employee and community relations; litigation and administrative proceedings; disruptions affecting our Turkish operations; expropriation or nationalization of property; inherent risks and hazards associated with mining including environmental hazards, industrial accidents, unusual or unexpected formations, pressures and cave-ins; availability of and increased costs associated with mining inputs and labour; contests over title to properties; changes in national and local government legislation (including tax legislation), controls or regulations; risk of loss due to sabotage and civil disturbances; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows; and, risks arising from holding derivative instruments.
Additional risk factors affecting the Company are set out in the Company’s latest Form 40-F/ Annual Information Form and MD&A, each under the heading “Risk Factors”, available on the SEDAR website at www.sedar.com or on EDGAR at www.sec.gov., and should be reviewed in conjunction with this . The foregoing should be reviewed in news release. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
alamos logo.png
Source: Alamos Gold Inc.
Alamos Gold Inc (AGI) Overall Average: 88% BUY
$4.81 +0.27 (+5.95%) 02/19/19 [NYSE]
4.80 x 5 4.85 x 2 POST-MARKET 4.84 +0.03 (+0.62%) 18:24 ET
BARCHART OPINION for Tue, Feb 19th, 2019
Overall Average: 88% BUY -
Overall Average Signal calculated from all 13 indicators.
Signal Strength is a long-term measurement of the historical
strength of the Signal, while Signal Direction is a short-term
(3-Day) measurement of the movement of the Signal.
http://www.streetwisereports.com/article/2019/02/18/gold-could-be-building-to-enter-major-growth-stage.html
Interesting to see some of the Canadian pro analysts
w/price targets of ~ $6.25 - $7.50 USD for AGI.
I see a couple USA pro analysts w/PT's (guesstimates) @ ~ $4.50
Meanwhile, AGI is quietly buying back shares with its
~ $200 Million Dollar cash hoard. )
AGI may also be considering various M&A possibilities (?)
Maybe shake things up with an increased cash dividend (?)
Future low-cost Au production in Turkey (TR) is high risk/high reward.
Why not AGI @ $5.50 !?
Island Gold Mine (Richmont) has become a great asset for AGI.
Thanks to Bob for posting updates.
$$$ glta
Thank you saturn_five for good analysts info -
please, post more messages from the analysts - )
In GOD We Trust -
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Ps.
opinion appreciated
TIA
Alamos Gold Provides Notice of Fourth Quarter and Year-End 2018 Financial Results and Conference Call
T.AGI |
TORONTO, Jan. 29, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) plans
to release its fourth quarter and year-end 2018 financial results
after market close on Wednesday, February 20, 2019.
Senior management will host a conference call on Thursday,
February 21, 2019 at 11:00 am ET to discuss the results.
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Gold-Provides-Notice-of-Fourth-Quarter-and-Year-End-2018-Financial-Results-and-Conference-Call/default.aspx
Alamos Gold (AGI) last month has turned Bullish & great AGI NEWS )
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146232009
In GOD We Trust -
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Ps.
opinion appreciated
TIA
I'm just a bit nervous regarding Turkey.
I've been trading AGI, AG and NGD.
Any thoughts on NGD?
Have a large bet on CRCUF.
Alamos Gold Provides Notice of Fourth Quarter and Year-End 2018 Financial Results and Conference Call
T.AGI | 3 hours ago
TORONTO, Jan. 29, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) plans
to release its fourth quarter and year-end 2018 financial results
after market close on Wednesday, February 20, 2019.
Senior management will host a conference call on Thursday,
February 21, 2019 at 11:00 am ET to discuss the results.
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Gold-Provides-Notice-of-Fourth-Quarter-and-Year-End-2018-Financial-Results-and-Conference-Call/default.aspx
Alamos Gold (AGI) last month has turned Bullish & great AGI NEWS )
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146232009
In GOD We Trust -
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Ps.
opinion appreciated
TIA
Previous | Next
Flight From Dollar Will Spike Gold and Silver -
John Williams -
58,310 views
Greg Hunter
Published on Jan 26, 2019
Interesting to see some of the Canadian pro analysts w/price targets of ~ $6.25 - $7.50 USD for AGI.
I see a couple USA pro analysts w/PT's (guesstimates) @ ~ $4.50
Meanwhile, AGI is quietly buying back shares with its
~ $200 Million Dollar cash hoard.
AGI may also be considering various M&A possibilities (?)
Maybe shake things up with an increased cash dividend (?)
Future low-cost Au production in Turkey (TR) is high risk/high reward.
Why not AGI @ $5.50 !?
Island Gold Mine (Richmont) has become a great asset for AGI.
Thanks to Bob for posting updates.
$$$ glta
"Alamos obtained Island Gold in November 2017 through its acquisition of Richmont Mines."
Bob, any input on past Richmont Mines management?
Thanks.
Alamos Gold (AGI) last month has turned Bullish & great AGI NEWS )
Alamos produces record 505,000oz gold
Alamos Gold has reported record 2018 production of 505,000 ounces of gold,
an 18% increase over the 429,400oz produced in 2017, following strong
performance from its Mulatos operation in Mexico and
Island Gold operation in Canada.
Alamos obtained Island Gold in November 2017 through its acquisition of
Richmont Mines.
https://www.mining-journal.com/gold-and-silver-news/news/1354324/alamos-produces-record-505-000oz-gold
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today
reported fourth quarter and annual 2018 production.
The Company also provided 2019 production and operating guidance.
“Alamos produced a record 505,000 ounces of gold in 2018, meeting
production guidance and marking an 18% increase from 2017.
This was driven by strong performances from Mulatos and Island Gold,
the latter setting a new record for production and continuing to
demonstrate strong potential for growth in mineral reserves and
resources,” said John A. McCluskey, President and Chief Executive
Officer.
“We expect a similar rate of production in 2019 with lower costs
driving stronger margins.
Lower costs are expected to result from improvements at Young-Davidson
and low-cost production growth at Island Gold.
Looking forward to the second half of 2020, we expect Alamos to
transition from reinvesting in growth to generating strong free cash
flow.
With long-life production from our existing operations at declining
costs, a leading portfolio of high return growth projects, and a
strong, debt-free balance sheet, Alamos is well positioned to deliver
on this growth,” Mr. McCluskey added.
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Reports-Fourth-Quarter-2018-Production-and-Provides-2019-Outlook/default.aspx
ALAMOS GOLD REPORTS ADDITIONAL HIGH-GRADE INTERCEPTS AT ISLAND GOLD INCLUDING BEST SURFACE DIRECTIONAL INTERSECTION TO DATE WITHIN WESTERN EXTENSION
01/10/2019
Download this Press Release (PDF 5.75 MB)
TORONTO, Jan. 10, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today
reported new results from surface and underground exploration drilling at
the Island Gold Mine.
Drilling throughout 2018, including new intercepts from the fourth
quarter, continues to extend high-grade gold mineralization across each
of the Main, Western and Eastern Extensions.
All reported drill widths are true width of the mineralized zones,
unless otherwise state
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Gold-Reports-Additional-High-Grade-Intercepts-at-Island-Gold-Including-Best-Surface-Directional-Intersection-to-Date-within-Western-Extension/default.aspx
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146226083
https://www.alamosgold.com/investors/Presentations/default.aspx
https://www.alamosgold.com
God Bless
They should have turned the corner a long time ago. Nothing you can do until this bear sector goes bullish.
Thanks for posting this.
I think too it is a good bet longterm.
God bless
Is Alamos Gold Finally Turning The Corner?
Jan. 18, 2019 12:43 PM ET | About: Alamos Gold Inc (AGI)
Vladimir Zernov
(9,904 followers)
Summary
https://seekingalpha.com/article/4234277-alamos-gold-finally-turning-corner
----
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Gold-Reports-Additional-High-Grade-Intercepts-at-Island-Gold-Including-Best-Surface-Directional-Intersection-to-Date-within-Western-Extension/default.aspx
https://www.alamosgold.com/investors/Presentations/default.aspx
https://www.alamosgold.com
God Bless
Alamos produces record 505,000oz gold
Alamos Gold has reported record 2018 production of 505,000 ounces of gold,
an 18% increase over the 429,400oz produced in 2017, following strong
performance from its Mulatos operation in Mexico and
Island Gold operation in Canada.
Alamos obtained Island Gold in November 2017 through its acquisition of
Richmont Mines.
https://www.mining-journal.com/gold-and-silver-news/news/1354324/alamos-produces-record-505-000oz-gold
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today
reported fourth quarter and annual 2018 production.
The Company also provided 2019 production and operating guidance.
“Alamos produced a record 505,000 ounces of gold in 2018, meeting
production guidance and marking an 18% increase from 2017.
This was driven by strong performances from Mulatos and Island Gold,
the latter setting a new record for production and continuing to
demonstrate strong potential for growth in mineral reserves and
resources,” said John A. McCluskey, President and Chief Executive
Officer.
“We expect a similar rate of production in 2019 with lower costs
driving stronger margins.
Lower costs are expected to result from improvements at Young-Davidson
and low-cost production growth at Island Gold.
Looking forward to the second half of 2020, we expect Alamos to
transition from reinvesting in growth to generating strong free cash
flow.
With long-life production from our existing operations at declining
costs, a leading portfolio of high return growth projects, and a
strong, debt-free balance sheet, Alamos is well positioned to deliver
on this growth,” Mr. McCluskey added.
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Reports-Fourth-Quarter-2018-Production-and-Provides-2019-Outlook/default.aspx
ALAMOS GOLD REPORTS ADDITIONAL HIGH-GRADE INTERCEPTS AT ISLAND GOLD INCLUDING BEST SURFACE DIRECTIONAL INTERSECTION TO DATE WITHIN WESTERN EXTENSION
01/10/2019
Download this Press Release (PDF 5.75 MB)
TORONTO, Jan. 10, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today
reported new results from surface and underground exploration drilling at
the Island Gold Mine.
Drilling throughout 2018, including new intercepts from the fourth
quarter, continues to extend high-grade gold mineralization across each
of the Main, Western and Eastern Extensions.
All reported drill widths are true width of the mineralized zones,
unless otherwise state
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Gold-Reports-Additional-High-Grade-Intercepts-at-Island-Gold-Including-Best-Surface-Directional-Intersection-to-Date-within-Western-Extension/default.aspx
https://www.alamosgold.com/investors/Presentations/default.aspx
https://www.alamosgold.com
God Bless
jmat1 thank you, well the producing gold mines are:
Diversified North American gold production:
A.
Four operating gold mines in North America -
B.
Exploration and development hard assets;
mining properties are
in North America and Turkey -
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146147461
God Bless
Them mines in Turkey have me a bit cautions.
I may wait a bit before committing.
I like Nevada, Canada and Mexico.
Alamos Gold forecasts 2019 gold production
Northern Miner Staff | about an hour ago |
Young-Davidson (Image from Alamos Gold)
Alamos Gold (TSX: AGI; NYSE: AGI) produced 505,000 ounces of gold
from its four mines in North America last year and expects a
“similar rate of production” this year.
The company anticipates production of between 480,000 and 520,000 ounces
of gold in 2019 at total cash costs of between US$710 and
US$750 per oz., down 10% from its revised 2018 guidance of
US$810 per oz., and all-in sustaining costs of between
US$920 and US$960 per oz., down 5% from revised 2018 guidance of
US$990 per oz. (Total cash costs and AISCs for 2018 have not been
finalized yet.)
The gold miner has penciled-in a 2019 capital budget of
US$290 to US$315 million, reflecting the construction of
two new mines in Turkey (Kirazli) and Mexico (Cerro Pelon), and
a global exploration budget of US$33 million,
including US$19 million budgeted for its Island Gold mine.
Alamos Gold was debt-free at the end of last year and had about
US$206 million in cash.
The intermediate gold producer has two operating mines in Canada
(Young-Davidson and Island Gold in northern Ontario), and
two mines in Mexico (Mulatos and El Chanate, both in Sonora state).
At presstime in Toronto Alamos Gold was trading at $5.41 per share.
Macquarie Research has trimmed its target price on the company
from C$10 to C$9.25 per share following its 2019 guidance and
Investor Day. Haywood Securities has lowered its
target price from C$10 to C$9.00 per share.
Laurentian Bank Securities’ price target of C$9.00 per share and
BMO Capital Markets’ target of C$10.00 per share remain unchanged.
This story first appeared on The Northern Miner.
News and gold price going up still do not matter as the attack on all miners continues.
Alamos produces record 505,000oz gold
Alamos Gold has reported record 2018 production of 505,000 ounces of gold,
an 18% increase over the 429,400oz produced in 2017, following strong
performance from its Mulatos operation in Mexico and
Island Gold operation in Canada.
Alamos obtained Island Gold in November 2017 through its acquisition of
Richmont Mines.
https://www.mining-journal.com/gold-and-silver-news/news/1354324/alamos-produces-record-505-000oz-gold
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today
reported fourth quarter and annual 2018 production.
The Company also provided 2019 production and operating guidance.
“Alamos produced a record 505,000 ounces of gold in 2018, meeting
production guidance and marking an 18% increase from 2017.
This was driven by strong performances from Mulatos and Island Gold,
the latter setting a new record for production and continuing to
demonstrate strong potential for growth in mineral reserves and
resources,” said John A. McCluskey, President and Chief Executive
Officer.
“We expect a similar rate of production in 2019 with lower costs
driving stronger margins.
Lower costs are expected to result from improvements at Young-Davidson
and low-cost production growth at Island Gold.
Looking forward to the second half of 2020, we expect Alamos to
transition from reinvesting in growth to generating strong free cash
flow.
With long-life production from our existing operations at declining
costs, a leading portfolio of high return growth projects, and a
strong, debt-free balance sheet, Alamos is well positioned to deliver
on this growth,” Mr. McCluskey added.
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Reports-Fourth-Quarter-2018-Production-and-Provides-2019-Outlook/default.aspx
ALAMOS GOLD REPORTS ADDITIONAL HIGH-GRADE INTERCEPTS AT ISLAND GOLD INCLUDING BEST SURFACE DIRECTIONAL INTERSECTION TO DATE WITHIN WESTERN EXTENSION
01/10/2019
Download this Press Release (PDF 5.75 MB)
TORONTO, Jan. 10, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today
reported new results from surface and underground exploration drilling at
the Island Gold Mine.
Drilling throughout 2018, including new intercepts from the fourth
quarter, continues to extend high-grade gold mineralization across each
of the Main, Western and Eastern Extensions.
All reported drill widths are true width of the mineralized zones,
unless otherwise state
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Gold-Reports-Additional-High-Grade-Intercepts-at-Island-Gold-Including-Best-Surface-Directional-Intersection-to-Date-within-Western-Extension/default.aspx
https://www.alamosgold.com/investors/Presentations/default.aspx
https://www.alamosgold.com
God Bless
ALAMOS REPORTS FOURTH QUARTER 2018 PRODUCTION AND PROVIDES 2019 OUTLOOK
01/14/2019
Download this Press Release (PDF 381 KB)
TORONTO, Jan. 14, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today
reported fourth quarter and annual 2018 production.
The Company also provided 2019 production and operating guidance.
“Alamos produced a record 505,000 ounces of gold in 2018, meeting
production guidance and marking an 18% increase from 2017.
This was driven by strong performances from Mulatos and Island Gold,
the latter setting a new record for production and continuing to
demonstrate strong potential for growth in mineral reserves and
resources,” said John A. McCluskey, President and Chief Executive
Officer.
“We expect a similar rate of production in 2019 with lower costs
driving stronger margins.
Lower costs are expected to result from improvements at Young-Davidson
and low-cost production growth at Island Gold.
Looking forward to the second half of 2020, we expect Alamos to
transition from reinvesting in growth to generating strong free cash
flow.
With long-life production from our existing operations at declining
costs, a leading portfolio of high return growth projects, and a
strong, debt-free balance sheet, Alamos is well positioned to deliver
on this growth,” Mr. McCluskey added.
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Reports-Fourth-Quarter-2018-Production-and-Provides-2019-Outlook/default.aspx
ALAMOS GOLD REPORTS ADDITIONAL HIGH-GRADE INTERCEPTS AT ISLAND GOLD INCLUDING BEST SURFACE DIRECTIONAL INTERSECTION TO DATE WITHIN WESTERN EXTENSION
01/10/2019
Download this Press Release (PDF 5.75 MB)
TORONTO, Jan. 10, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today
reported new results from surface and underground exploration drilling at
the Island Gold Mine.
Drilling throughout 2018, including new intercepts from the fourth
quarter, continues to extend high-grade gold mineralization across each
of the Main, Western and Eastern Extensions.
All reported drill widths are true width of the mineralized zones,
unless otherwise state
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Gold-Reports-Additional-High-Grade-Intercepts-at-Island-Gold-Including-Best-Surface-Directional-Intersection-to-Date-within-Western-Extension/default.aspx
https://www.alamosgold.com/investors/Presentations/default.aspx
https://www.alamosgold.com
God Bless
ALAMOS GOLD REPORTS ADDITIONAL HIGH-GRADE INTERCEPTS AT ISLAND GOLD INCLUDING BEST SURFACE DIRECTIONAL INTERSECTION TO DATE WITHIN WESTERN EXTENSION
01/10/2019
Download this Press Release (PDF 5.75 MB)
TORONTO, Jan. 10, 2019 (GLOBE NEWSWIRE) --
Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today
reported new results from surface and underground exploration drilling at
the Island Gold Mine.
Drilling throughout 2018, including new intercepts from the fourth
quarter, continues to extend high-grade gold mineralization across each
of the Main, Western and Eastern Extensions.
All reported drill widths are true width of the mineralized zones,
unless otherwise state
https://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2019/Alamos-Gold-Reports-Additional-High-Grade-Intercepts-at-Island-Gold-Including-Best-Surface-Directional-Intersection-to-Date-within-Western-Extension/default.aspx
https://www.alamosgold.com/investors/Presentations/default.aspx
https://www.alamosgold.com
God Bless
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