Canadian gold producer Alamos Gold (TSE:AGI) shares were up almost 4 per cent after it released significantly stronger third quarter results and said it expects to achieve the highest annual production in its history in 2012.
The Toronto-based company owns and operates the Mulatos Mine in Mexico, and has exploration and development activities in Mexico and Turkey.
The Toronto-based company owns and operates the Mulatos Mine in Mexico, and has exploration and development activities in Mexico and Turkey.
For the three months that ended September 30, earnings before income taxes were $36.8 million or 31 cents per basic share, compared to $15.3 million or 13 cents per basic share in the third quarter of 2011.
On an after-tax basis, earnings of $25.9 million, or 22 cents per basic share increased 376 per cent over the comparable period of 2011 as the prior period earnings were hurt by lower gold production, a significant foreign exchange loss and a high effective tax rate, the company said.
On an after-tax basis, earnings of $25.9 million, or 22 cents per basic share increased 376 per cent over the comparable period of 2011 as the prior period earnings were hurt by lower gold production, a significant foreign exchange loss and a high effective tax rate, the company said.
The latest quarter’s results, which included 21 cents per share in earnings on a diluted basis, were helped by higher realized gold prices and low cash costs.
“In 2012, Alamos will achieve the highest annual production in its history. We anticipate producing at least 200,000 ounces of gold, while continuing to be among the lowest cost producers in our industry,” said president and CEO, John A. McCluskey.
“We expect record results in our fourth quarter, from both an operational and a financial perspective. Gold production for October is on track to exceed 24,000 ounces, and crusher throughput is averaging 19,000 tonnes per day.”
Gold production in the quarter rose 32 per cent to 43,500 ounces of gold, mainly due to production from the gravity mill, which started in early 2012.
Gold production in the quarter rose 32 per cent to 43,500 ounces of gold, mainly due to production from the gravity mill, which started in early 2012.
Cash operating costs of $359 per ounce of gold sold was 6 per cent lower than the $382 per ounce in the same period last year, and below the low end of its full year outlook range of $365 to $390 per ounce.
The company said it sold 43,255 ounces of gold for quarterly revenues of $71.3 million.
The average grade milled for the quarter was 13.2 grams per tonne of gold (g/t) including over 20 g/t gold in the month of September.
“We are financially strong, generating cash from operating activities of more than $35 million every quarter this year, and the company remains debt-free,” McCluskey added.
“In terms of our growth plans, we are advancing on schedule toward filing for Environmental Impact Assessment approvals of our late-stage development projects in Turkey.”
The company increased its cash and equivalents position to $316.9 million at quarter end. Cash from operating activities before changes in non-cash working capital in the third quarter were $38.2 million, up 85 per cent relative to the same period of 2011.
Shares in the company were lately up 3.2 per cent Thursday afternoon, at $18.91.
