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.