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Alamos Gold reporting strong Q1

 

Alamos Gold Inc. (TSX:AGI) is reporting what it calls a strong first quarter for the three month period that ended on March 31, 2019.

Alamos had a solid start to 2019, with strong performances at each operation. This included another record quarter of production from Island Gold, achieving budgeted mining rates at Young-Davidson, producing our two millionth ounce of gold at Mulatos and reducing consolidated cash costs by seven percent compared to a year ago. With the strong first quarter performance, we remain on track to achieve full year production and cost guidance,” said John A. McCluskey, President and Chief Executive Officer.

Our various growth initiatives remain on schedule with the lower mine expansion at Young-Davidson and development of the Cerro Pelon project progressing well in the quarter. In addition, construction activities at Kirazlı will be ramping up through the year having received the Operating Permit during the quarter. These projects will be drivers of strong free cash flow growth starting in the second half of 2020 which will in turn support growing returns to our shareholders,” Mr. McCluskey added.

First Quarter 2019

  • Reported 125,300 ounces of gold producti

  • on, reflecting strong performances from each site, including record quarterly gold production of 35,600 ounces and record quarterly free cash flow1 of $16.6 million from Island Gold

  • Produced the two millionth ounce of gold at Mulatos in March 2019, marking the end of the 5% royalty that has been paid since the start of production in 2005

  • Achieved underground mining rates of 6,500 tonnes per day at Young-Davidson, and produced 45,000 ounces of gold, both consistent with annual guidance

  • Sold 119,705 ounces of gold at an average realized price of $1,304 per ounce, in-line with the average London PM Fix for the quarter, for revenues of $156.1 million. Gold production exceeded gold sales

  •  with a portion of first quarter production sold subsequent to quarter end

  • Total cash costs1 of $732 per ounce, all-in sustaining costs (“AISC”)1 of $957 per ounce, and cost of sales of $1,061 per ounce were in line with annual guidance. Total cash costs were 5% lower than the fourth quarter of 2018 and 7% lower than the first quarter of 2018 driven by low cost production growth at Island Gold

  • Reported adjusted net earnings1 of $10.3 million, or $0.03 per share1, reflecting adjustments for unrealized foreign exchange gains recorded within both deferred taxes and foreign exchange of $4.3 million, and other gains totaling $2.2 million

  • Realized net earnings of $16.8 million, or $0.04 per share
  • Generated cash flow from operating activities of $42.4 million ($61.7 million, or $0.16 per share, before changes in working capital1)

  • Ended the quarter with no debt and cash and 
  • cash equivalents of $180.6 million
  • Repurchased and canceled 2,565,752 common shares at a cost of $10.6 million, or $4.14 per share under its Normal Course Issuer Bid (“NCIB”) announced in December 2018

  • Announced a doubling of the annual dividend, with a $0.01 per share dividend to be paid quarterly in 2019 (up from $0.01 per share semi-annually previously). The first quarterly dividend, paid on March 29, 2019, totaled $3.9 million

  • Received the Operating Permit for the Kirazlı project in Turkey, and has been granted all the major permits required for the start of construction

  • Subsequent to quarter-end, sold n
  • on-core royalties to Metalla Royalty & Streaming Ltd.  (“Metalla”) for proceeds of $8.0 million

(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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