https://www.miningweekly.com

Alamos reports upbeat Q3 results as Mulatos fires on all cylinders despite intense rains

10th November 2016

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

VANCOUVER (miningweekly.com) – Intermediate Canadian miner Alamos Gold has reported earnings from operations of $17.2-million in the third quarter ended September 30, compared with a loss from operations of $18.9-million in the same period in 2015, driven by higher gold prices, lower cost of sales, and lower corporate and administrative costs.

The TSX- and NYSE-listed company reported net earnings of $4.8-million, or $0.02 a share, compared with a net loss of $33.4-million, or $0.13 a share, in the comparable period a year earlier.

Wall Street analysts had forecast earnings of $0.03 a share.

Alamos sold 94 791 oz of gold for proceeds of $125.6-million, a 21% increase when compared with the third quarter of 2015. This reflected a higher number of ounces of gold sold and an 18% higher average realised price of $1 325/oz.

Gold output from the company’s three operating mines, including the Young-Davidson mine, in northern Ontario, Canada, and the Mulatos and El Chanate mines in Sonora state, Mexico, totalled 99 228 oz in the third quarter, the strongest result this year driven by strong operating results at all three mines, Alamos said.

Young-Davidson produced 43 629 oz, Mulatos produced 38 500 oz, and El Chanate produced 17 099 oz – an increase in production at all three operations compared with the previous quarter.

With gold production of 286 324 oz for the first nine months, Alamos expected to hit its 2016 full-year production and cost guidance.

At Mulatos, both the heap leach and milling operations performed well in the third quarter, despite a heavy rainy season. Through increased carbon column capacity, the company successfully mitigated the impact of heavy rains in the quarter on the heap leach operations, despite a build-up of inventory.

All-in sustaining costs per ounce fell to $979, compared with $1 155 a year earlier, reflecting lower sustaining capital at Young-Davidson and Mulatos, lower corporate and administrative expenses and lower realised losses on foreign exchange option contracts.

Alamos continues to focus on development at its La Yaqui and Cerro Pelon projects, also in Mexico. The 2016 exploration programme continues to deliver results at both deposits, most notably at La Yaqui. In September, the company reported a significant increase to the combined mineral resources at La Yaqui of 93%, or 215 000 oz, to total 447 000 oz.

An aggressive exploration programme is ongoing at La Yaqui, and positive ongoing results are highlighted by two new holes hitting 3.17 g/t and 4.37 g/t over true widths of at least 60 m, Alamos stated.

La Yaqui also received final approval of the environmental impact assessment for Phase 1 of the project in October. Construction activities are expected to start later this year with initial production on track for mid-2017.

Edited by Samantha Herbst
Creamer Media Deputy Editor

Comments

Showroom

John Deere (Pty) Ltd
John Deere (Pty) Ltd

In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.

VISIT SHOWROOM 
Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.124 0.17s - 107pq - 2rq
Subscribe Now