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.
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