All amounts are in United States dollars, unless otherwise
stated.
Alamos Gold Inc. (TSX:AGI) (NYSE:AGI) (“Alamos” or
the “Company”) today reported its financial results for the quarter
and year ended December 31, 2017 and reviewed its operating,
exploration and development activities.
“We executed on a number of operational and strategic objectives
in 2017, all of which continue to strengthen our outlook. We met
guidance with a 10% increase in production to a new record of
429,400 ounces while delivering an 8% decrease in all-in sustaining
costs. This drove strong free cash flow growth from our operations
and our best financial performance in years,” said John A.
McCluskey, President and Chief Executive Officer.
“With a solid operating base of 500,000 ounces of annual
production we expect further growth in 2018 and remain focused on
continuing to expand margins and cash flow over the next several
years. We’re making good progress within our development
pipeline with construction activities at Kirazlı ramping up, and we
continue to expand the size and quality of our long life mineral
reserve base. Combined with a peer-leading, debt free balance
sheet, Alamos is well positioned to deliver sustainable, long-term
shareholder value,” Mr. McCluskey added.
Fourth Quarter 2017
Highlights
- Completed the acquisition of Richmont Mines Inc. (“Richmont”)
and its Island Gold mine, a high-grade, long life asset in Ontario,
Canada
- Produced a record 120,300 ounces of gold at cost of sales of
$1,077 per ounce, total cash costs1 of $753 per ounce and all-in
sustaining costs ("AISC")1 of $902 per ounce. This included a
record 56,500 ounces from Young-Davidson, 42,700 ounces from
Mulatos, 12,100 ounces from El Chanate and 9,000 ounces from Island
Gold (following completion of the Richmont acquisition on November
23, 2017)
- Sold 126,786 ounces of gold at an average realized price of
$1,275 per ounce for record revenues of $161.7 million
- Reported a net loss of $4.7 million, or $0.01 per share, which
was impacted by transaction costs related to the Richmont
acquisition of $5.1 million ($0.02 per share), a fair value
accounting adjustment on the Island Gold acquisition of $4.1
million net of tax ($0.01 per share) and unrealized foreign
exchange losses of $5.1 million ($0.02 per share) recorded within
both deferred taxes and foreign exchange
- Generated cash flow from operating activities of $48.6 million
($52.7 million before changes in working capital1), reflecting
lower cash costs and stronger operating margins
- Generated $37.1 million in mine-site free cash flow1, including
a record $16.4 million at Young-Davidson. Company-wide,
approximately $19 million of free cash flow1 was generated
excluding transaction costs of $10 million paid related to the
Richmont acquisition
- Ended the quarter with no debt and $236.6 million in cash and
cash equivalents and equity securities, up from $167.7 million as
of September 30, 2017
- Reported a positive feasibility study for the Lynn Lake gold
project located in Manitoba, Canada
- Achieved a significant safety milestone of five million hours
without a lost-time incident ("LTI") at El Chanate
(1) Refer to the “Non-GAAP Measures and
Additional GAAP Measures” disclosure at the end of this press
release for a description and calculation of these measures.
Full Year 2017 Highlights
- Produced a record 429,400 ounces of gold in 2017 marking a 10%
increase from 2016, including approximately one month of production
from Island Gold. Gold production was above the mid-point of 2017
production guidance and marked the third consecutive year
production guidance has been achieved
- Achieved the top end of production guidance at Island Gold,
Mulatos and El Chanate
- Sold 430,115 ounces of gold at an average realized price of
$1,262 per ounce for record revenues of $542.8 million
- Cost of sales per ounce of gold sold of $1,062, and total cash
costs of $770 both improved relative to 2016
- Significantly improved the Company's cost profile with all-in
sustaining costs of $933 per ounce, an 8% reduction compared to
2016
- Realized net earnings of $27.4 million, or $0.09 per share
- Generated positive free cash flow at each of the Company's
operations for total mine-site free cash flow of $77.5 million,
including record free cash flow at Young-Davidson. Mine-site free
cash flow more than doubled from $35.4 million in 2016, reflecting
stronger production, lower costs and lower capital spending
- Strengthened the balance sheet with the repurchase and
retirement of $315 million senior secured notes in April
- Enhanced liquidity with an amendment to the undrawn revolving
credit facility including an increase in the size of the facility
to $400 million on peer-leading terms
- Returned $6.0 million in the form of dividends to
shareholders
- Completed construction of La Yaqui Phase I on budget and ahead
of schedule with the first gold pour in August
- Reported positive feasibility studies for the Kirazlı and Aği
Daği projects in Turkey, and the Lynn Lake project in Manitoba
Canada, outlining more than 400,000 ounces of combined annual
production growth potential
Highlight Summary
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Financial Results (in millions) |
|
|
|
|
Operating revenues |
$ |
161.7 |
|
$ |
132.2 |
|
$ |
542.8 |
|
$ |
482.2 |
|
Cost of sales (1) |
$ |
136.6 |
|
$ |
121.6 |
|
$ |
456.8 |
|
$ |
429.3 |
|
Earnings from operations |
$ |
17.1 |
|
$ |
3.5 |
|
$ |
56.0 |
|
$ |
21.3 |
|
Net (loss) earnings |
$ |
(4.7 |
) |
$ |
(20.6 |
) |
$ |
26.6 |
|
$ |
(17.9 |
) |
Cash provided by operations before working capital and
cash taxes(2) |
$ |
52.7 |
|
$ |
34.0 |
|
$ |
183.3 |
|
$ |
148.0 |
|
Cash provided by operating activities |
$ |
48.6 |
|
$ |
38.3 |
|
$ |
163.5 |
|
$ |
135.7 |
|
Capital expenditures (sustaining) (2) |
$ |
11.5 |
|
$ |
12.3 |
|
$ |
42.7 |
|
$ |
49.2 |
|
Capital expenditures (growth) (2),(3) |
$ |
27.7 |
|
$ |
25.2 |
|
$ |
119.8 |
|
$ |
97.3 |
|
Operating Results |
|
|
|
|
Gold
production (ounces) (4) |
|
120,300 |
|
|
105,676 |
|
|
429,400 |
|
|
392,000 |
|
Gold
sales (ounces) |
|
126,786 |
|
|
107,505 |
|
|
430,115 |
|
|
389,151 |
|
Per Ounce Data |
|
|
|
|
Average realized gold price |
$ |
1,275 |
|
$ |
1,230 |
|
$ |
1,262 |
|
$ |
1,239 |
|
Average spot gold price (London PM Fix) |
$ |
1,275 |
|
$ |
1,222 |
|
$ |
1,257 |
|
$ |
1,251 |
|
Cost of sales per ounce of gold sold (includes amortization)
(1) |
$ |
1,077 |
|
$ |
1,131 |
|
$ |
1,062 |
|
$ |
1,103 |
|
Total cash costs per ounce of gold sold (2) |
$ |
753 |
|
$ |
842 |
|
$ |
770 |
|
$ |
797 |
|
All-in sustaining costs per ounce of gold sold (2) |
$ |
902 |
|
$ |
1,033 |
|
$ |
933 |
|
$ |
1,010 |
|
Share Data |
|
|
|
|
Earnings
per share, basic and diluted |
$ |
(0.01 |
) |
$ |
(0.08 |
) |
$ |
0.09 |
|
$ |
(0.07 |
) |
Weighted
average common shares outstanding (basic) (000’s) |
|
337,178 |
|
|
267,067 |
|
|
305,521 |
|
|
265,234 |
|
Financial Position (in millions) |
|
|
|
|
Cash and cash
equivalents |
|
|
$ |
200.8 |
|
$ |
252.2 |
|
Total
debt and financing obligations |
|
|
$ |
7.5 |
|
$ |
304.9 |
|
(1) Cost of sales includes mining and processing
costs, royalties, and amortization expense.(2) Refer to
the “Non-GAAP Measures and Additional GAAP Measures” disclosure at
the end of this press release a description and calculation of
these measures.(3) Includes capitalized exploration and
La Yaqui Phase I development.(4) Gold production from
Island Gold have been included in this table for the period
subsequent to November 23, 2017 only. Gold production from Island
Gold for the three and twelve months ended December 31, 2017 was
22,100 ounces (2016 - 24,086) and 98,600 ounces (2016 - 83,323),
respectively.
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2017 |
|
2016 (1) |
|
2017 |
|
2016 (1) |
|
Gold production (ounces) |
|
|
|
|
Young-Davidson |
|
56,500 |
|
|
44,662 |
|
|
200,000 |
|
|
170,000 |
|
Mulatos |
|
42,700 |
|
|
44,900 |
|
|
160,000 |
|
|
154,000 |
|
Island Gold (1) |
|
9,000 |
|
|
— |
|
|
9,000 |
|
|
— |
|
El Chanate |
|
12,100 |
|
|
16,114 |
|
|
60,400 |
|
|
68,000 |
|
Gold sales (ounces) |
|
|
|
|
Young-Davidson |
|
52,475 |
|
|
40,934 |
|
|
197,937 |
|
|
168,979 |
|
Mulatos |
|
50,006 |
|
|
50,178 |
|
|
159,276 |
|
|
151,337 |
|
Island Gold (1) |
|
11,720 |
|
|
— |
|
|
11,720 |
|
|
— |
|
El Chanate |
|
12,585 |
|
|
16,393 |
|
|
61,182 |
|
|
68,835 |
|
Cost of sales (in millions)(2) |
|
|
|
|
Young-Davidson |
$ |
58.1 |
|
$ |
44.1 |
|
$ |
213.4 |
|
$ |
183.7 |
|
Mulatos |
$ |
47.7 |
|
$ |
56.8 |
|
$ |
153.0 |
|
$ |
164.6 |
|
Island Gold (1) |
$ |
13.4 |
|
|
— |
|
$ |
13.4 |
|
|
— |
|
El Chanate |
$ |
17.4 |
|
$ |
20.7 |
|
$ |
77.0 |
|
$ |
81.0 |
|
Cost of sales per ounce of gold sold (includes
amortization) |
|
|
|
Young-Davidson |
$ |
1,107 |
|
$ |
1,077 |
|
$ |
1,078 |
|
$ |
1,087 |
|
Mulatos |
$ |
954 |
|
$ |
1,132 |
|
$ |
961 |
|
$ |
1,088 |
|
Island Gold (1) |
$ |
1,143 |
|
|
— |
|
$ |
1,143 |
|
|
— |
|
El Chanate |
$ |
1,383 |
|
$ |
1,263 |
|
$ |
1,259 |
|
$ |
1,177 |
|
Total cash costs per ounce of gold sold (3) |
|
|
|
|
Young-Davidson |
$ |
690 |
|
$ |
667 |
|
$ |
658 |
|
$ |
657 |
|
Mulatos |
$ |
762 |
|
$ |
877 |
|
$ |
775 |
|
$ |
838 |
|
Island Gold (1) |
$ |
401 |
|
|
— |
|
$ |
401 |
|
|
— |
|
El Chanate |
$ |
1,311 |
|
$ |
1,171 |
|
$ |
1,188 |
|
$ |
1,052 |
|
Mine-site all-in sustaining costs per ounce of gold sold
(3),(4) |
|
|
|
Young-Davidson |
$ |
859 |
|
$ |
926 |
|
$ |
834 |
|
$ |
897 |
|
Mulatos |
$ |
798 |
|
$ |
931 |
|
$ |
835 |
|
$ |
916 |
|
Island Gold (1) |
$ |
546 |
|
|
— |
|
$ |
546 |
|
|
— |
|
El
Chanate |
$ |
1,335 |
|
$ |
1,190 |
|
$ |
1,218 |
|
$ |
1,069 |
|
Capital expenditures (growth and sustaining) (in
millions)(3) |
|
|
|
|
Young-Davidson |
$ |
17.0 |
|
$ |
22.6 |
|
$ |
80.3 |
|
$ |
94.6 |
|
Mulatos(5) |
$ |
9.0 |
|
$ |
9.5 |
|
$ |
43.9 |
|
$ |
32.9 |
|
Island Gold (1),(5) |
$ |
4.8 |
|
|
— |
|
$ |
4.8 |
|
|
— |
|
El Chanate |
$ |
0.2 |
|
$ |
0.2 |
|
$ |
1.4 |
|
$ |
0.8 |
|
Other |
$ |
8.2 |
|
$ |
5.2 |
|
$ |
32.1 |
|
$ |
18.2 |
|
(1) Operating and financial results
from Island Gold are included in Alamos’ consolidated financial
statements for the period subsequent to November 23, 2017. Gold
production from Island Gold for the three and twelve months ended
December 31, 2017 was 22,100 ounces (2016 - 24,086) and 98,600
ounces (2016 - 83,323), respectively.(2) Cost of sales
includes mining and processing costs, royalties and
amortization.(3) Refer to the “Non-GAAP Measures and
Additional GAAP Measures” disclosure at the end of this press
release for a description and calculation of these
measures.(4) For the purposes of calculating mine-site
all-in sustaining costs, the Company does not include an allocation
of corporate and administrative and share based compensation
expenses.(5) Includes capitalized exploration.
Outlook and Strategy
|
2018 Guidance |
|
Young-Davidson |
Mulatos |
Island Gold |
El Chanate |
Turkey |
OtherDevelopment (2) |
Total |
Gold
production (000’s ounces) |
200-210 |
150-160 |
90-100 |
40-50 |
— |
— |
480-520 |
Cost of sales, including amortization (in
millions)(4) |
$220 |
$147 |
$112 |
$57 |
— |
— |
$536 |
Cost of sales, including amortization ($ per
ounce)(4) |
$1,075 |
$950 |
$1,175 |
$1,270 |
— |
— |
$1,075 |
Total cash
costs ($ per ounce)(1) |
$675 |
$800 |
$575 |
$1,200 |
— |
— |
$740 |
All-in sustaining costs ($ per ounce)(1) |
|
|
|
|
— |
— |
$950 |
Mine-site
all-in sustaining costs ($ per ounce)(1),(3) |
$850 |
$900 |
$825 |
$1,200 |
— |
— |
— |
Capital expenditures (in millions) |
|
|
|
|
|
|
|
Sustaining capital(1) |
$35-40 |
$8-10 |
$25-27 |
— |
— |
— |
$68-77 |
Growth capital(1) |
$35-40 |
$18-20 |
$25-28 |
— |
$100 |
$46 (2) |
$224-234 |
Total capital expenditures(1) |
$70-80 |
$26-30 |
$50-55 |
— |
$100 |
$46 |
$292-$311 |
(1) Refer to the "Non-GAAP Measures and Additional
GAAP" disclosure at the end of this press release for a description
of these measures.(2) Includes capitalized exploration
at all operating sites and development projects.(3) For
the purposes of calculating mine-site all-in sustaining costs at
individual mine sites, the Company does not include an allocation
of corporate and administrative and share based compensation
expenses to the mine sites.(4) Cost of sales includes
mining and processing costs, royalties, and amortization
expense
The Company executed on several strategic
priorities in 2017, all of which support its objective of
increasing cash flow from its operations while advancing its
portfolio of low-cost development projects. This included
delivering record gold production of 429,400 ounces at an 8%
decrease in all-in sustaining costs. This drove mine-site free cash
flow to $78 million, up nearly 120% from 2016. Additionally, the
Company strengthened its operating base through the acquisition of
the Island Gold mine, adding a third core, low-cost, long life
operation, which will be a strong driver of free cash flow growth
in the years ahead. The Company also made significant progress
advancing its development pipeline including the completion of
three positive feasibility studies, construction of La Yaqui Phase
I ahead of schedule and on budget, and initiating development of
Kirazlı.
The strong operational performance is expected
to continue into 2018 with gold production expected to increase to
a range of 480,000 to 520,000 ounces, a 16% increase over 2017
(based on the mid-point of guidance). All-in sustaining costs are
expected to average $950 per ounce, supporting strong ongoing
operating margins and mine-site free cash flow. Capital spending at
the four operating mines is expected to total between $146 and $165
million. The Company expects stronger gold production, lower costs
and a lower rate of capital spending in the second half of 2018,
all of which is expected to contribute to higher mine-site free
cash flow compared to the first half of the year.
Young-Davidson is expected to produce between
200,000 and 210,000 ounces in 2018 at mine-site all-in sustaining
costs of $850 per ounce. Capital spending at Young-Davidson in 2018
is expected to be between $70 and $80 million, including $35 to $40
million of sustaining capital. Capital spending will be focused on
ongoing development and lower mine infrastructure. The tie in of
the upper and lower mines is expected to be completed in the fourth
quarter of 2019 which will temporarily limit underground
throughput. Following completion of the tie in, underground mining
rates are expected to increase above 7,500 tpd supporting higher
production rates and free cash flow in 2020 and beyond.
Island Gold is expected to produce 90,000 to
100,000 ounces in 2018 at mine-site all-in sustaining costs of $825
per ounce, both consistent with the Phase I expansion preliminary
economic assessment (“PEA”) released in 2017. With the addition of
a second mine in Ontario, the Company is evaluating opportunities
to reduce costs through purchasing, tax and other synergies.
The Phase I expansion of the Island Gold mill to
1,100 tpd remains on track and is expected to be completed in the
second half of 2018. This is expected to drive strong production
growth and lower costs in the fourth quarter and into 2019.
Combined with lower capital spending, the Company expects
significant free cash flow growth in 2019. In parallel to the Phase
I expansion, the Company will continue an aggressive exploration
program at Island Gold which has been successful in driving nearly
a 400% increase in Mineral Reserves and 60% increase in grade since
2014. Ongoing exploration success will be incorporated into an
evaluation of the most effective and economic approach to a Phase
II expansion of the operation beyond 1,100 tpd.
Total production from the Mulatos district
(including La Yaqui Phase I) is expected to be between 150,000 to
160,000 ounces in 2018 at mine-site all-in sustaining costs of $900
per ounce. Capital spending is expected to total $26 to $30
million, including $8 to $10 million of sustaining capital.
Annual gold production at Mulatos is expected to
remain in a similar range of 150,000 to 160,000 ounces per year
between 2018 and 2020, at declining costs. The decline will be
driven in part by the construction of a power line which will
connect the mine to lower cost grid power, and the end of the 5%
royalty at Mulatos in 2019. Approximately 200,000 ounces remain
subject to the royalty after which costs will decrease by $65 per
ounce (assuming spot gold prices of $1,300 per ounce).
El Chanate is expected to produce 40,000 to
50,000 ounces in 2018, down from 2017 reflecting lower mining rates
with mining activities expected to cease mid-2018. Given the long
leach cycle at El Chanate, the Company expects to benefit from
ongoing gold production beyond 2018 through residual leaching. This
will be lower cost and higher margin production with mining
activities completed and is expected to drive higher mine-site free
cash flow from the operation.
The Company expects combined annual gold
production of at least 500,000 ounces from its existing operations
in 2019 and 2020 with low cost production growth from Island Gold
offsetting higher cost production from El Chanate. Consolidated
all-in sustaining costs are expected to decrease in 2019 reflecting
the completion of the Phase I expansion at Island Gold and end of
the 5% royalty at Mulatos, with a further decrease expected in 2020
reflecting higher underground mining rates at Young-Davidson.
Similarly, capital spending at existing operations is expected to
trend lower in 2019 and 2020 reflecting the completion of the Phase
I expansion at Island Gold and lower mine infrastructure at
Young-Davidson. Combined with declining operating costs, the
Company expects strong free cash flow growth from its operations
over the next three years.
Capital spending on development projects,
including capitalized exploration, is expected to total $146
million in 2018, of which $100 million relates to construction on
the Kirazlı project. The remainder of the spending is comprised of
capitalized exploration at Island Gold, Mulatos and Lynn Lake and
advancing permitting and development of Cerro Pelon, La Yaqui
Grande and Lynn Lake. The Company has also increased its global
exploration budget to $36 million, up 50% from 2017 with nearly 80%
of the spending to be focused on Island Gold and Mulatos.
Approximately 80% of the 2018 budget for Kirazlı
is contingent upon, and will be spent following receipt of the
GSM (Business Opening and Operation) permit. Pending receipt
of final permits, Kirazlı is expected to produce more than 100,000
ounces in 2020, its first full year of production, at mine-site
all-in sustaining costs of less than $400 per ounce. This is
expected to drive company-wide production above 600,000 ounces in
2020, representing more than 20% growth from 2018, while further
lowering the Company’s cost profile.
The Company is well positioned to fund this
growth having significantly de-risked its balance sheet over the
past year with the repayment of the $315 million senior
secured notes in April 2017. The Company is debt free with growing
cash flow from its operations and over $635 million of cash and
available liquidity under the Company's credit facility.
Fourth Quarter and Full Year 2017
Results
Young-Davidson Financial and Operational
Review
|
Three Months Ended December 31, |
|
|
Years Ended December 31, |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Gold production (ounces) |
|
56,500 |
|
|
44,662 |
|
|
200,000 |
|
|
170,000 |
|
Gold
sales (ounces) |
|
52,475 |
|
|
40,934 |
|
|
197,937 |
|
|
168,979 |
|
Financial
Review (in millions) |
|
|
|
|
Operating Revenues |
$ |
66.8 |
|
$ |
51.2 |
|
$ |
249.7 |
|
$ |
211.9 |
|
Cost of sales (1) |
$ |
58.1 |
|
$ |
44.1 |
|
$ |
213.4 |
|
$ |
183.7 |
|
Earnings from
operations |
$ |
8.7 |
|
$ |
7.1 |
|
$ |
36.3 |
|
$ |
28.2 |
|
Cash provided by
operating activities |
$ |
33.4 |
|
$ |
26.0 |
|
$ |
114.5 |
|
$ |
98.4 |
|
Capital expenditures
(sustaining) (2) |
$ |
8.7 |
|
$ |
10.5 |
|
$ |
34.1 |
|
$ |
40.0 |
|
Capital expenditures
(growth) (2) |
$ |
8.3 |
|
$ |
12.1 |
|
$ |
46.2 |
|
$ |
54.6 |
|
Mine-site free cash
flow (2) |
$ |
16.4 |
|
$ |
3.4 |
|
$ |
34.2 |
|
$ |
3.8 |
|
Cost of sales, including amortization per ounce of gold sold
(1) |
$ |
1,107 |
|
$ |
1,077 |
|
$ |
1,078 |
|
$ |
1,087 |
|
Total
cash costs per ounce of gold sold (2) |
$ |
690 |
|
$ |
667 |
|
$ |
658 |
|
$ |
657 |
|
Mine-site
all-in sustaining costs per ounce of gold sold (2),(3) |
$ |
859 |
|
$ |
926 |
|
$ |
834 |
|
$ |
897 |
|
Underground
Operations |
|
|
|
|
Tonnes of
ore mined |
|
664,847 |
|
|
614,101 |
|
|
2,423,289 |
|
|
2,199,857 |
|
Tonnes of
ore mined per day ("tpd") |
|
7,227 |
|
|
6,675 |
|
|
6,639 |
|
|
6,011 |
|
Average
grade of gold (4) |
|
2.70 |
|
|
2.40 |
|
|
2.69 |
|
|
2.54 |
|
Metres
developed |
|
2,776 |
|
|
3,044 |
|
|
12,787 |
|
|
12,379 |
|
Unit
mining costs per tonne |
$ |
34 |
|
$ |
32 |
|
$ |
34 |
|
$ |
33 |
|
Unit mining costs per tonne (CAD) |
$ |
44 |
|
$ |
42 |
|
$ |
44 |
|
$ |
43 |
|
Mill
Operations |
|
|
|
|
Tonnes of
ore processed |
|
716,273 |
|
|
694,753 |
|
|
2,735,267 |
|
|
2,629,032 |
|
Tonnes of
ore processed per day |
|
7,786 |
|
|
7,552 |
|
|
7,494 |
|
|
7,183 |
|
Average
grade of gold (4) |
|
2.59 |
|
|
2.18 |
|
|
2.47 |
|
|
2.19 |
|
Contained
ounces milled |
|
59,561 |
|
|
48,755 |
|
|
217,184 |
|
|
184,928 |
|
Average recovery rate |
|
92 |
% |
|
90 |
% |
|
92 |
% |
|
91 |
% |
(1) Cost of sales includes mining and processing
costs, royalties and amortization.(2) Refer to the
“Non-GAAP Measures and Additional GAAP Measures” disclosure at the
end of this press release for a description and calculation of
these measures. Total cash costs and mine-site AISC are
exclusive of net-realizable value adjustments.(3) For
the purposes of calculating mine-site all-in sustaining costs, the
Company does not include an allocation of corporate and
administrative and share based compensation
expenses.(4) Grams per tonne of gold ("g/t Au").
Young-Davidson produced a record 56,500 ounces
of gold in the fourth quarter of 2017, 27% higher than the same
period of 2016 and exceeding the previous record set in the third
quarter of 2017. The increase in production reflects record
underground mining rates and an increase in mill throughput during
the quarter.
The Company mined a record 664,847 tonnes of ore
from underground in the fourth quarter of 2017, or 7,227 tpd, a 10%
increase from the previous quarter and 8% higher than the prior
year period. The Company expects underground mining rates to
average more than 7,000 tpd in 2018, up from an average of 6,639
tpd in 2017, driving stronger gold production and free-cash flow.
Underground grades in the fourth quarter were 2.70 g/t Au, and
averaged 2.69 g/t Au for the full year, consistent with the mineral
reserve grade, and higher than the prior year period.
During the fourth quarter, 716,273 tonnes, or
7,786 tpd, were processed through the mill with grades averaging
2.59 g/t Au. Grades were higher than the prior year period
reflecting a higher contribution of underground tonnes as well as
higher underground grades mined. Mill throughput increased compared
to the third quarter of 2017 reflecting the commissioning of the
pebble crusher in the fourth quarter. Mill recoveries of 92% were
consistent with expectations and higher than the prior year
period.
Financial Review
For the three months ended December 31, 2017,
revenues of $66.8 million were $15.6 million higher than the
prior-year period, reflecting more ounces sold and a higher
realized gold price. For 2017, revenues of $249.7 million were
$37.8 million higher than the prior year period, attributable to
both to a higher realized gold and a higher number of ounces
sold.
In the fourth quarter of 2017, cost of sales of
$58.1 million were higher than the prior year period reflecting
higher gross costs from additional tonnes mined and milled, as well
as a stronger Canadian dollar. Cost of sales reflects mining and
processing costs, royalties, and amortization expense. For 2017,
cost of sales of $213.4 million were $29.7 million higher than the
prior-year period, reflecting more tonnes mined and milled and a
stronger Canadian dollar.
Total cash costs in the fourth quarter were $690
per ounce, representing a 3% increase from the fourth quarter of
2016. The increase was attributable to a stronger Canadian
dollar and a higher proportion of operating development which is
reflected in cash costs rather than capital. Underground unit
mining costs were $34 per tonne in the fourth quarter, slightly
higher than the prior year period as the benefit of higher
underground mining rates was offset by a stronger Canadian dollar.
Further strengthening in the Canadian dollar is not expected to
adversely impact costs against guidance in the first half of 2018
as the Company has hedged the majority of its Canadian dollar
operating and capital costs at budgeted rates. Mine-site AISC
were $859 per ounce, 7% lower than the prior year period reflecting
a lower level of sustaining capital across a higher number of
ounces sold. For the full 2017 year, total cash costs were $658 per
ounce and mine-site AISC were $834 per ounce, compared to $657 and
$897 per ounce, respectively, in the prior year. The decrease in
mine-site AISC was attributable to lower sustaining capital
expenditures and a higher number of ounces sold.
Capital expenditures totaled $17.0 million in
the fourth quarter, 25% lower than the same period of 2016.
For 2017, capital expenditures of $80.3 million were 16% lower than
2016 and consistent with guidance. Capital spending in the fourth
quarter was focused primarily on lateral development in the upper
and lower mines, and lower mine infrastructure. Total capital
expenditures in the fourth quarter included $8.7 million of
sustaining capital and $8.3 million of growth capital.
Young-Davidson generated record mine-site free
cash flow of $16.4 million in the fourth quarter driven by stronger
production and lower capital spending. For 2017, Young-Davidson
generated $34.2 million of mine-site free cash flow, a significant
increase compared to $3.8 million in the prior year period, driven
by higher production, lower costs and capital spending and higher
gold prices.
Mulatos Financial and Operational
Review
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Gold production (ounces) |
|
42,700 |
|
|
44,900 |
|
|
160,000 |
|
|
154,000 |
|
Gold
sales (ounces) |
|
50,006 |
|
|
50,178 |
|
|
159,276 |
|
|
151,337 |
|
Financial
Review (in millions) |
|
|
|
|
Operating Revenues |
$ |
64.0 |
|
$ |
60.8 |
|
$ |
201.4 |
|
$ |
187.3 |
|
Cost of sales (1) |
$ |
47.7 |
|
$ |
56.8 |
|
$ |
153.0 |
|
$ |
164.6 |
|
Earnings from
operations |
$ |
14.5 |
|
$ |
3.3 |
|
$ |
41.7 |
|
$ |
20.7 |
|
Cash provided by
operating activities |
$ |
22.3 |
|
$ |
19.6 |
|
$ |
64.3 |
|
$ |
59.7 |
|
Capital expenditures
(sustaining) (2) |
$ |
0.9 |
|
$ |
1.6 |
|
$ |
5.5 |
|
$ |
8.4 |
|
Capital expenditures
(Mulatos growth) (2),(6) |
$ |
8.1 |
|
$ |
7.9 |
|
$ |
25.9 |
|
$ |
24.5 |
|
La Yaqui Phase I
construction cost (2) |
|
— |
|
|
— |
|
$ |
12.5 |
|
|
— |
|
Mine-site free cash
flow, excluding La Yaqui construction capital (2) |
$ |
13.3 |
|
$ |
10.1 |
|
$ |
32.9 |
|
$ |
26.8 |
|
Cost of sales, including amortization per ounce of gold sold
(1) |
$ |
954 |
|
$ |
1,132 |
|
$ |
961 |
|
$ |
1,088 |
|
Total
cash costs per ounce of gold sold (2) |
$ |
762 |
|
$ |
877 |
|
$ |
775 |
|
$ |
838 |
|
Mine site
all-in sustaining costs per ounce of gold sold (2),(3) |
$ |
798 |
|
$ |
931 |
|
$ |
835 |
|
$ |
916 |
|
Open Pit &
Underground Operations |
|
|
|
|
Tonnes of
ore mined - open pit (4) |
|
2,575,306 |
|
|
1,795,562 |
|
|
8,485,933 |
|
|
7,034,978 |
|
Total
waste mined - open pit |
|
1,719,986 |
|
|
2,614,810 |
|
|
6,443,971 |
|
|
9,184,468 |
|
Total
tonnes mined - open pit |
|
4,515,673 |
|
|
4,410,372 |
|
|
15,566,165 |
|
|
16,396,080 |
|
Waste-to-ore ratio (operating) |
|
0.67 |
|
|
1.46 |
|
|
0.76 |
|
|
1.31 |
|
Tonnes of
ore mined - underground |
|
23,238 |
|
|
25,139 |
|
|
100,701 |
|
|
122,516 |
|
Crushing and
Heap Leach Operations |
|
|
|
|
Tonnes of
ore stacked |
|
1,745,513 |
|
|
1,709,346 |
|
|
6,796,155 |
|
|
6,552,742 |
|
Average
grade of gold processed (5) |
|
0.91 |
|
|
0.81 |
|
|
0.92 |
|
|
0.81 |
|
Contained ounces stacked |
|
51,242 |
|
|
44,609 |
|
|
201,222 |
|
|
170,600 |
|
Mill
Operations |
|
|
|
|
Tonnes of
high grade ore milled |
|
31,449 |
|
|
33,867 |
|
|
133,328 |
|
|
133,720 |
|
Average
grade of gold processed (5) |
|
8.15 |
|
|
9.76 |
|
|
9.42 |
|
|
11.23 |
|
Contained
ounces milled |
|
8,238 |
|
|
10,623 |
|
|
40,378 |
|
|
48,284 |
|
Total contained ounces stacked and milled |
|
59,480 |
|
|
55,232 |
|
|
241,600 |
|
|
218,884 |
|
Recovery
ratio (ratio of ounces produced to contained ounces stacked
and milled) |
|
72 |
% |
|
81 |
% |
|
66 |
% |
|
70 |
% |
Ore
crushed per day (tonnes) - combined |
|
19,300 |
|
|
18,900 |
|
|
19,000 |
|
|
18,300 |
|
(1) Cost of sales includes mining and processing
costs, royalties and amortization.(2) Refer to the
“Non-GAAP Measures and Additional GAAP Measures” disclosure at the
end of this press release for a description and calculation of
these measures. Total cash costs and mine-site AISC are
exclusive of net-realizable value adjustments.(3) For
the purposes of calculating mine-site all-in sustaining costs, the
Company does not include an allocation of corporate and
administrative and share based compensation
expenses.(4) Includes ore stockpiled during the
quarter.(5) Grams per tonne of gold ("g/t
Au").(6) Includes capitalized exploration, of $1.0
million and $6.9 million for the three and twelve months ended
December 31, 2017.
Mulatos produced 42,700 ounces of gold in the
fourth quarter of 2017, including approximately 7,000 ounces from
La Yaqui Phase I. Production in the quarter was slightly
lower than the prior year period due to lower production from the
mill circuit. For the full year, Mulatos produced 160,000
ounces of gold, achieving the top end of production guidance for
2017.
Total crusher throughput averaged 19,300 tpd,
above the same period of 2016 reflecting the startup of La Yaqui
Phase I. A total of 1,745,513 tonnes were stacked in the fourth
quarter, at a grade of 0.91 g/t Au, both higher than the same
period of 2016 due to a combination of mine sequencing, positive
grade reconciliation and the addition of higher grade tonnes from
La Yaqui Phase I. The waste-to-ore ratio of 0.67:1 was lower than
the prior year period and 2017 guidance due to mine sequencing and
the addition of La Yaqui Phase I, which has a minimal waste-to-ore
ratio.
La Yaqui Phase I construction was completed in
the third quarter, ahead of schedule and on budget. For the full
year 2017, La Yaqui produced 10,000 ounces of gold.
Underground tonnes mined from San Carlos during
the quarter were lower than the same period of 2016 but higher than
the third quarter of 2017. For the fourth quarter, 31,449 tonnes
were milled at an average grade of 8.15 g/t Au. The underground San
Carlos deposit and high grade surface stockpiles are expected to be
depleted during the first half of 2018. At the end of 2017,
the Company had approximately 28,000 tonnes remaining in high grade
stockpiles which will continue to supplement mill feed during that
period.
The ratio of ounces produced to contained ounces
stacked and milled (or recovery ratio) was 72% in the quarter
compared to 81% in the prior year period. For the full year,
the recovery ratio was 66%, slightly lower than plan reflecting a
temporary increase in ounces on the leach pad which will be
recovered in 2018.
Financial Review
For the three months ended December 31, 2017,
revenues of $64.0 million were $3.2 million higher than the
prior-year period reflecting a higher realized gold price during
the quarter. For 2017, revenues of $201.4 million were $14.1
million higher than the prior year, attributable to both more
ounces sold and a higher realized gold price.
Cost of sales in the fourth quarter of $47.7
million were lower than the prior-year period as gross costs
decreased reflecting a lower waste-to-ore ratio, lower amortization
per ounce charges, and the inclusion of lower cost La Yaqui Phase I
production. Cost of sales reflects mining and processing costs,
royalties, and amortization expense. For 2017, cost of sales of
$153.0 million were $11.6 million lower than the prior-year period,
driven by a lower waste-to-ore ratio and lower mining and
processing costs.
Total cash costs of $762 per ounce in the fourth
quarter were 13% lower than $877 per ounce in the prior year
period, reflecting higher grades stacked, a lower waste-to-ore
ratio, and the addition of lower cost La Yaqui Phase I production.
Mine-site AISC in the quarter were $798 per ounce, $133 or 14%
lower than the prior year period reflecting lower total cash costs
and lower sustaining capital. For 2017, total cash costs were $775
per ounce and mine-site AISC were $835 per ounce, a significant
improvement from 2016 reflecting higher grades stacked, a lower
waste-to-ore ratio and lower cost La Yaqui Phase I production.
The improvement of the cost profile at Mulatos
resulted in another strong quarter from a cash flow perspective,
generating $13.3 million in mine-site free cash flow. For the full
year, Mulatos generated $32.9 million in mine-site free cash flow,
reflecting strong earnings from operations, an increase in Value
Added Tax ("VAT") refunds and lower sustaining capital.
Island Gold Financial and Operational
Review
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2017 (1) |
|
|
2016 (1) |
|
|
2017 (1) |
|
|
2016 (1) |
|
Gold production
(ounces) (1) |
|
9,000 |
|
|
— |
|
|
9,000 |
|
|
— |
|
Gold sales (ounces)
(1) |
|
11,720 |
|
|
— |
|
|
11,720 |
|
|
— |
|
Financial Review (in millions) |
|
|
|
|
Operating Revenues |
$ |
14.9 |
|
$ |
— |
|
$ |
14.9 |
|
$ |
— |
|
Cost of sales (2) |
$ |
13.4 |
|
$ |
— |
|
$ |
13.4 |
|
$ |
— |
|
Earnings from
operations |
$ |
1.5 |
|
$ |
— |
|
$ |
1.5 |
|
$ |
— |
|
Cash provided by
operating activities |
$ |
11.8 |
|
$ |
— |
|
$ |
11.8 |
|
$ |
— |
|
Capital expenditures
(sustaining) (3) |
$ |
1.7 |
|
$ |
— |
|
$ |
1.7 |
|
$ |
— |
|
Capital expenditures
(growth) (3) |
$ |
3.1 |
|
$ |
— |
|
$ |
3.1 |
|
$ |
— |
|
Mine-site free cash
flow (3) |
$ |
7.0 |
|
$ |
— |
|
$ |
7.0 |
|
$ |
— |
|
Cost of sales, including amortization per ounce of gold sold
(2) |
$ |
1,143 |
|
$ |
— |
|
$ |
1,143 |
|
$ |
— |
|
Total
cash costs per ounce of gold sold (3) |
$ |
401 |
|
$ |
— |
|
$ |
401 |
|
$ |
— |
|
Mine-site
all-in sustaining costs per ounce of gold sold (3),(4) |
$ |
546 |
|
$ |
— |
|
$ |
546 |
|
$ |
— |
|
Underground
Operations |
|
|
|
|
Tonnes of
ore mined |
|
94,407 |
|
|
89,881 |
|
|
374,962 |
|
|
318,045 |
|
Tonnes of
ore mined per day ("tpd") |
|
1,026 |
|
|
977 |
|
|
1,027 |
|
|
869 |
|
Average
grade of gold (5) |
|
9.44 |
|
|
8.83 |
|
|
9.42 |
|
|
8.67 |
|
Metres
developed |
|
1,667 |
|
|
1,464 |
|
|
6,906 |
|
|
5,218 |
|
Unit
mining costs per tonne |
$ |
100 |
|
$ |
87 |
|
$ |
95 |
|
$ |
103 |
|
Unit mining costs per tonne (CAD) |
$ |
127 |
|
$ |
116 |
|
$ |
124 |
|
$ |
136 |
|
Mill
Operations |
|
|
|
|
Tonnes of
ore processed |
|
84,559 |
|
|
83,091 |
|
|
338,603 |
|
|
297,757 |
|
Tonnes of
ore processed per day |
|
919 |
|
|
903 |
|
|
928 |
|
|
814 |
|
Average
grade of gold (5) |
|
8.46 |
|
|
9.31 |
|
|
9.36 |
|
|
9.02 |
|
Contained
ounces milled |
|
23,005 |
|
|
24,857 |
|
|
101,842 |
|
|
86,345 |
|
Average recovery rate |
|
96 |
% |
|
97 |
% |
|
97 |
% |
|
97 |
% |
(1) Financial results from Island
Gold are included in Alamos’ consolidated financial statements for
the period subsequent to November 23, 2017. Gold production from
Island Gold for the three and twelve months ended December 31, 2017
was 22,100 ounces (2016 - 24,086) and 98,600 ounces (2016 -
83,323), respectively.(2) Cost of sales includes mining
and processing costs, royalties and amortization.(3)
Refer to the “Non-GAAP Measures and Additional GAAP Measures”
disclosure at the end of this press release for a description and
calculation of these measures. Total cash costs and mine-site
AISC are exclusive of net-realizable value
adjustments.(4) For the purposes of calculating
mine-site all-in sustaining costs, the Company does not include an
allocation of corporate and administrative and share based
compensation expenses.(5) Grams per tonne of gold ("g/t
Au").
Island Gold produced 22,100 ounces of gold in
the fourth quarter of 2017 (9,000 ounces of which is attributable
to the Company for the period subsequent to November 23, 2017) down
slightly from the prior year period reflecting lower grades milled.
Full year production of 98,600 ounces exceeded full year guidance
of 87,000 to 93,000 ounces. This also represented an 18% increase
from 2016 reflecting higher mining and milling rates as well as
grades processed.
The Company mined 94,407 tonnes of ore from
underground in the fourth quarter of 2017, or 1,026 tpd, slightly
higher than the prior year period. Underground mining rates are
expected to average about 1,000 tpd in 2018, consistent with the
rates achieved in 2017. Underground grades in the fourth quarter
were 9.44 g/t Au, higher than the prior year period due to mine
sequencing.
During the fourth quarter, 84,559 tonnes or 919
tpd were processed through the mill with grades averaging 8.46 g/t
Au, lower than the prior year period. Mill throughput is expected
to average 980 tpd in 2018 with mill grades ranging between 8.3 and
8.9 g/t Au. Expected tonnes mined, milled and grades processed for
2018 are all consistent with the Phase I expansion PEA released in
2017.
The operation is currently undergoing a mill
expansion to 1,100 tpd. The mill expansion is expected to be
completed during the second half of 2018. Higher mill throughput
will drive strong production growth and lower costs into 2019.
This, combined with lower capital spending, will generate
significant free cash flow growth in 2019.
Financial Review
For the period of Alamos' ownership of the asset
(subsequent to November 23, 2017), the Company sold 11,720 ounces
and generated revenues of $14.9 million. Cost of sales were $13.4
million and includes mining and processing costs, royalties, and
amortization expense. Cost of sales includes a one-time charge of
$5.9 million within amortization expense related to the fair value
adjustment of Island Gold. Total cash costs were $401 per ounce and
mine-site AISC were $546 per ounce relating to the ounces sold by
Alamos, and not indicative of full year results given the
short-period of time under ownership.
El Chanate Financial and Operational
Review
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Gold production (ounces) |
|
12,100 |
|
|
16,114 |
|
|
60,400 |
|
|
68,000 |
|
Gold
sales (ounces) |
|
12,585 |
|
|
16,393 |
|
|
61,182 |
|
|
68,835 |
|
Financial
Review (in millions) |
|
|
|
|
Operating Revenues |
$ |
16.0 |
|
$ |
20.2 |
|
$ |
76.8 |
|
$ |
83.0 |
|
Cost of sales (1) |
$ |
17.4 |
|
$ |
20.7 |
|
$ |
77.0 |
|
$ |
81.0 |
|
(Loss) earnings from
operations |
$ |
(1.4 |
) |
$ |
(0.5 |
) |
$ |
(0.2 |
) |
$ |
2.0 |
|
Cash provided by
operating activities |
$ |
0.6 |
|
$ |
0.2 |
|
$ |
4.8 |
|
$ |
5.6 |
|
Capital
expenditures |
$ |
0.2 |
|
$ |
0.2 |
|
$ |
1.4 |
|
$ |
0.8 |
|
Mine-site free cash
flow (2) |
$ |
0.4 |
|
$ |
— |
|
$ |
3.4 |
|
$ |
4.8 |
|
Cost of sales, including amortization per ounce of gold sold
(1) |
$ |
1,383 |
|
$ |
1,263 |
|
$ |
1,259 |
|
$ |
1,177 |
|
Total
cash costs per ounce of gold sold (2) |
$ |
1,311 |
|
$ |
1,171 |
|
$ |
1,188 |
|
$ |
1,052 |
|
Mine site
all-in sustaining costs per ounce of gold sold (2),(3) |
$ |
1,335 |
|
$ |
1,190 |
|
$ |
1,218 |
|
$ |
1,069 |
|
Open Pit
Operations |
|
|
|
|
Tonnes of
ore mined |
|
895,545 |
|
|
1,641,448 |
|
|
4,475,004 |
|
|
6,306,469 |
|
Total
tonnes mined |
|
4,156,001 |
|
|
8,604,171 |
|
|
22,646,606 |
|
|
31,288,807 |
|
Waste-to-ore ratio (operating) |
|
3.64 |
|
|
4.24 |
|
|
4.06 |
|
|
3.96 |
|
Average grade of gold (4) |
|
0.48 |
|
|
0.61 |
|
|
0.47 |
|
|
0.60 |
|
Crushing and
Heap Leach Operations |
|
|
|
|
Total tonnes of ore stacked |
|
988,640 |
|
|
1,699,327 |
|
|
4,536,847 |
|
|
6,320,627 |
|
Average grade of gold (4) |
|
0.48 |
|
|
0.61 |
|
|
0.50 |
|
|
0.60 |
|
Total contained ounces stacked |
|
15,257 |
|
|
33,327 |
|
|
72,932 |
|
|
121,928 |
|
Ore crushed and run-of-mine ore stacked per day (tonnes) -
combined |
|
10,700 |
|
|
18,500 |
|
|
12,400 |
|
|
17,300 |
|
Recovery ratio (ratio of ounces produced to contained ounces
stacked) |
|
79 |
% |
|
48 |
% |
|
83 |
% |
|
56 |
% |
(1) Cost of sales includes mining and processing
costs, royalties and amortization(2) Refer to the
“Non-GAAP Measures and Additional GAAP Measures” disclosure at the
end of this press release for a description and calculation of
these measures. Total cash costs and mine-site AISC are
exclusive of net-realizable value adjustments.(3) For
the purposes of calculating mine-site all-in sustaining costs, the
Company does not include an allocation of corporate and
administrative and share based compensation
expenses.(4) Grams per tonne of gold ("g/t Au").
El Chanate produced 12,100 ounces of gold in the
fourth quarter compared to 16,114 ounces in the prior year period.
Quarterly production decreased in the fourth quarter reflecting
lower stacking rates during 2017. For the full year, El
Chanate produced 60,400 ounces of gold, achieving the top end of
production guidance. Full year production benefited from the
recovery of ounces stacked in previous year, resulting in a
drawdown of leach pad inventory.
El Chanate is expected to continue to produce at
lower than historical rates in 2018 as the mine reaches the end of
mining activities by mid-year. Given the long leach cycle at El
Chanate, the Company expects to benefit from ongoing gold
production beyond 2018 through residual leaching of the pad. This
is expected to drive higher mine-site free cash flow from the
operation in the second half of the year.
In 2017 El Chanate continued with industry
leading safety performance achieving milestones of 1,100 days and
4.8 million hours without a Lost Time Injury ("LTI") by year
end. The site continues its strong commitment to ensuring all
of our employees go home safe every day. The site achieved 5
million hours on February 1, 2018.
Financial Review
For the three months ended December 31, 2017,
revenue of $16.0 million was $4.2 million lower than the prior year
period, reflecting less ounces sold, partially offset by higher
realized gold prices. For 2017, revenue of $76.8 million was $6.2
million lower.
For the fourth quarter, cost of sales were lower
than the prior-year period, decreasing by $3.3 million to $17.4
million as a result of lower gold sales and a lower amortization
per ounce. Cost of sales reflects mining and processing costs,
royalties, and amortization expense. For 2017, cost of sales of
$77.0 million were $4.0 million lower than the prior-year
period.
Total cash costs of $1,311 per ounce and
mine-site all-in sustaining costs of $1,335 per ounce in the fourth
quarter increased from the same period of 2016 due to lower grades
stacked. For 2017, total cash costs were $1,188 per ounce and
mine-site AISC were $1,218 per ounce, also attributable to lower
grades stacked.
El Chanate continued to generate positive
mine-site free cash flow of $0.4 million in the quarter, and $3.4
million for 2017. Given El Chanate's higher cost structure, the
Company has hedged all of its expected 2018 gold production through
gold collar contracts, ensuring a minimum gold price of $1,270 and
participation up to a price of $1,444 per ounce.
Fourth Quarter 2017 Development Activities
Mulatos District
La Yaqui Phase I
During 2017, the Company spent $12.5 million to
complete construction of the first phase of La Yaqui. In early
September, the Company announced the completion of construction and
commercial production ahead of schedule and within budget. La Yaqui
Phase I produced 10,000 ounces in 2017 and is expected to
contribute annual production of approximately 25,000 ounces at
significantly lower cash costs over an approximate three year mine
life.
Cerro Pelon and La Yaqui
Grande
The Company invested $7.9 million at Cerro Pelon
and La Yaqui Grande in 2017 consisting of $6.9 million of
capitalized exploration and $1.0 million focused on early stage
engineering and baseline work in support of permitting. The
capital budget for Cerro Pelon in 2018 is $8 million which will be
spent on engineering, permitting and early stage construction
activities. The Cerro Pelon deposit is located approximately three
kilometres from the existing Mulatos operation. Given its proximity
to Mulatos’ infrastructure, ore from the Cerro Pelon open pit is
expected to be trucked to the existing heap leach circuit for
processing. The environmental impact assessment (“MIA”) for Cerro
Pelon is expected to be finalized and submitted mid-2018. Following
approval, construction and pre-stripping activities are expected to
take approximately 18 months with initial production expected in
2020.
La Yaqui Grande’s capital budget for 2018 is $5
million with spending focused on permitting and project
engineering. The MIA is expected to be completed and submitted by
the end of 2018 with construction and pre-stripping activities
commencing in the latter part of 2019 and production in 2021.
Similar to La Yaqui Phase I, La Yaqui Grande will be developed as a
standalone, open pit, heap leach operation. La Yaqui Grande
exploration activities in 2017 were successful in increasing the
Mineral Reserves by 28% to 644,000 ounces (14.3 million tonnes
grading 1.4 g/t Au).
Lynn Lake
The Company owns 100% of the Lynn Lake
development project, in Manitoba, Canada. The Company released a
positive Feasibility Study on the project in December 2017
outlining average annual production of 143,000 ounces over a 10
year mine life (170,000 ounces over its first six years) at average
mine-site all-in sustaining costs of $745 per ounce.
The 2018 capital budget for Lynn Lake is $12
million, comprised of $8 million for development activities and $4
million for exploration. Development spending will be focused on
baseline work in support of the Environmental Impact Study (“EIS”)
for the project that will be submitted to satisfy federal and
provincial environmental assessment requirements. The permitting
process is expected to take approximately two years followed by two
years of construction. The Company will also be evaluating various
opportunities to enhance the project’s economics as outlined in the
December 2017 Feasibility Study. This includes incorporating
exploration success over the past year and ongoing results with a
further $4 million budgeted for exploration in 2018.
During the fourth quarter, $1.4 million was
spent at Lynn Lake ($17.3 million for 2017) on development and
exploration activities. Spending for the year consisted of
completing the Feasibility Study, exploration activities and the
purchase and cancellation of a 2.0% net smelter return royalty.
Turkey
The Company has been granted the Environmental
Impact Assessment and Forestry Permits for Kirazlı and is awaiting
the GSM (Business Opening and Operation) permit, which is granted
by the Çanakkale Governorship.
The 2018 capital budget for Kirazlı is $100
million which will be focused on construction and development of
the project. Development activities including power line
construction, tree clearing and road relocation began in the second
half of 2017 and will continue into 2018. The Company has awarded
several key contracts which will comprise the majority of the
spending in 2018, including civil works and the water
reservoir.
Approximately 80% of the 2018 budget is
contingent upon receipt of the GSM permit. The remainder of
Kirazlı's initial capital will be spent in 2019 with initial gold
production expected in the second half of 2019. Kirazlı is expected
to produce more than 100,000 ounces of gold in its first full year
of production at mine-site AISC of less than $400 per ounce. This
is expected to drive company-wide production growth of more than
20% between 2018 and 2020, while significantly lowering the
Company’s cost profile.
For the three and twelve months ended December
31, 2017, total development expenditures in Turkey were $6.0
million and $16.5 million respectively.
Other
The Company capitalized $0.2 million related to the Esperanza
Project ($1.9 million, year to date) and capitalized $0.4 million
to Quartz Mountain during the fourth quarter ($2.2 million, year to
date).
Fourth Quarter 2017 Exploration Activities
Mulatos District, Mexico
The Company has a large exploration package
covering 28,777 hectares with the majority of past exploration
efforts focused around the Mulatos mine. Over the last three years,
exploration has moved beyond the main Mulatos pit area and focused
on prospects throughout the wider district. In 2017, the Company
invested $13.6 million in exploration activities within the Mulatos
District, of which $6.9 million was capitalized and $6.7 million
was expensed. After significant exploration success at La Yaqui
Grande, emphasis in 2018 will move to other parts of the district
including El Carricito, El Halcon and El Jaspe.
La Yaqui Grande
The Company continued drilling at La Yaqui
Grande during the fourth quarter, with a total of 4,587 metres
(“m”) of drilling undertaken in 30 holes. Exploration spending at
La Yaqui Grande in the fourth quarter of 2017 totaled $0.9 million
($5.7 million year-to-date).
Exploration drilling in 2017 resulted in an
increase of Mineral Reserves at La Yaqui Grande by 28% to 644,000
ounces (14.3 million tonnes grading 1.4 g/t Au).
Island Gold, Canada
Surface exploration drilling
Surface exploration drilling continued at Island
Gold Mine during the fourth quarter of 2017 with 9,705 m drilled in
11 holes. Seven deep directional holes were completed for a total
of 5,645 m of diamond core. This drilling was peripheral to deep
inferred resource blocks below the 1,000 m level and comprised both
infill holes and 100 meter spaced step-out holes. The area covered
by this exploration drilling covers a 950m strike length and a 200m
vertical extent.
In 2018, diamond drilling programs will focus on
defining new inferred resources.
Underground exploration
drilling
During the fourth quarter of 2017, a total of
5,721m of underground exploration diamond drilling was completed.
This comprised 1,716 m from the 620 level in and 4,005 m from the
840 level. The objective of this drilling was to identify new
resources close to known resource or reserve blocks.
Delineation drilling at Island Gold in 2017 was
successful in increasing mineral reserves by 18%, net of mining
depletion. In addition, the 2017 exploration drilling resulted in
the addition of new mineral resources.
Lynn Lake, Canada
Exploration drilling continued at Lynn Lake
during the fourth quarter of 2017 with 4,116 m drilled in 13
holes. This was scout drilling to test the structures between
the Linkwood and Burnt Timber deposits. Total spending in the
fourth quarter was $0.9 million ($3.4 million year-to-date).
A total of $4 million and 10,000 m of drilling
is budgeted at the Lynn Lake project for 2018.
Review of Fourth Quarter Financial
Results
During the fourth quarter of 2017, the Company
sold 126,786 ounces of gold for total proceeds of $161.7 million, a
22% increase compared to the prior year period. This reflected
higher ounces sold (a $24.6 million benefit), and a higher realized
price of $1,275 per ounce compared to $1,230 per ounce in the prior
year period (a $4.8 million benefit). Sales at Young-Davidson were
28% higher in the quarter as a result of higher production
generated by stronger underground mining rates. Island Gold
contributed an additional 11,720 ounces of gold sold from November
23, 2017 onward, which generated $14.9 million in revenue. The
Company's realized gold price in the fourth quarter was in line
with the average London PM fix of $1,275 per ounce.
For the fourth quarter of 2017, cost of sales
were $136.6 million, compared to $121.6 million in the prior-year
period.
Mining and processing costs were $90.6 million
compared to $86.9 million in the prior-year period. The increased
costs were mainly the result of the inclusion of Island Gold, which
added $4.1 million of mining and processing costs in the
period.
Consolidated total cash costs for the quarter
were $753 per ounce, compared to $842 in the prior year period. The
decrease in total cash costs is attributable to higher grades mined
at Young-Davidson and Mulatos, as well as the inclusion of lower
cost ounces from Island Gold.
In the fourth quarter, AISC per ounce decreased
to $902 from $1,033 in the prior year period. This was primarily
driven by lower mining and processing costs and lower sustaining
capital expenditures.
Royalty expense was higher in the fourth quarter
at $4.9 million, compared to $3.6 million in the prior year period,
primarily due to inclusion of Island Gold in the quarter, and
higher ounces sold at Young-Davidson.
Amortization of $41.1 million in the quarter was
higher than the prior year period expense of $31.1 million.
Amortization was $324 per ounce, up from $289 per ounce in the
prior year period. This reflected lower amortization at Mulatos and
El Chanate, more than offset by the inclusion of Island Gold which
has a higher depreciation per ounce reflecting the acquisition
price of the asset. Amortization at Island Gold also included a
one-time charge of $5.9 million related to a fair value adjustment
of inventory.
The Company recognized earnings from operations
of $17.1 million in the quarter, compared to $3.5 million in the
same period of 2016, driven by higher production and gold sales and
stronger operating margins at Young-Davidson and Mulatos.
The Company reported a net loss of $4.7 million
in the quarter, compared to a net loss of $20.6 million in the same
period of 2016. The loss in the quarter was primarily attributable
to transaction costs of $3.8 million, an expense related to the
valuation of the replacement options of $1.3 million, and a
one-time charge of $5.9 million ($4.1 million, after tax) related
to fair value adjustment of inventory, all related to the Richmont
acquisition. Included in net loss is $5.1 million of foreign
exchange related losses as a result of the weakening Canadian
dollar and Mexican Peso in the quarter, recorded in foreign
exchange loss.
Associated Documents
This press release should be read in conjunction
with the Company’s consolidated financial statements for the years
ended December 31, 2017 and December 31, 2016 and associated
Management’s Discussion and Analysis (“MD&A”), which are
available from the Company's website, www.alamosgold.com, in the
"Investors" section under "Reports and Financials", and on SEDAR
(www.sedar.com) and EDGAR (www.sec.gov).
Reminder of Fourth Quarter and Year-End
2017 Results Conference Call
The Company's senior management will host a
conference call on Thursday, February 22, 2018 at 11:00 am ET to
discuss the fourth quarter and year-end 2017 financial results and
provide an update on operating, exploration, and development
activities.
Participants may join the conference call by
dialling (416) 340-2216 or (800) 273-9672 for calls within Canada
and the United States, or via webcast at www.alamosgold.com.
A playback will be available until March 22,
2018 by dialling (905) 694-9451 or (800) 408-3053 within Canada and
the United States. The pass code is 5164885. The webcast will be
archived at www.alamosgold.com.
Qualified Persons
Chris Bostwick, Alamos’ Vice President, Technical Services, who
is a qualified person within the meaning of National Instrument
43-101 ("Qualified Person"), has reviewed and approved the
scientific and technical information contained in this press
release. Information pertaining to the geological and exploration
content has been reviewed and approved by Aoife McGrath, Alamos'
Vice President, Exploration, a Qualified Person.
About Alamos
Alamos is a Canadian-based intermediate gold producer with
diversified production from four operating mines in North America.
This includes the Young-Davidson and Island Gold mines in northern
Ontario, Canada and the Mulatos and El Chanate mines in Sonora
State, Mexico. Additionally, the Company has a significant
portfolio of development stage projects in Canada, Mexico, Turkey,
and the United States. Alamos employs more than 1,700 people and is
committed to the highest standards of sustainable development. The
Company’s shares are traded on the TSX and NYSE under the symbol
“AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K.
Parsons |
Vice-President,
Investor Relations |
(416)
368-9932 x 5439 |
The TSX and NYSE have not reviewed and do not accept
responsibility for the adequacy or accuracy of this release.
Cautionary Note
This news release contains forward-looking
statements and forward-looking information as defined under
Canadian and U.S. securities laws. All statements, other than
statements of historical fact, are, or may be deemed to be,
forward-looking statements. Words such as "expect", "believe",
"anticipate", "will", "intend", "estimate", "forecast", "budget"
and similar expressions identify forward-looking statements.
Forward-looking statements include information
as to strategy, plans or future financial or operating performance,
such as the Company’s expansion plans, project timelines,
production plans and expected sustainable productivity increases,
expected increases in mining activities and corresponding cost
efficiencies, expected drilling targets, expected sustaining costs,
expected improvements in cash flows and margins, expectations of
changes in capital expenditures, forecasted cash shortfalls and the
Company’s ability to fund them, cost estimates, projected
exploration results, projected development and permitting
timelines, reserve and resource estimates, expected production
rates and use of the stockpile inventory, expected recoveries,
sufficiency of working capital for future commitments and other
statements that express management’s expectations or estimates of
future performance.
Forward-looking statements are necessarily based
upon a number of factors and assumptions that, while considered
reasonable by management at the time of making such statements, are
inherently subject to significant business, economic, political and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements.
Such factors and assumptions underlying the
forward-looking statements in this document include, but are not
limited to: changes to current estimates of mineral reserves and
resources; changes to production estimates (which assume accuracy
of projected ore grade, mining rates, recovery timing and recovery
rate estimates and may be impacted by unscheduled maintenance;
labour and contractor availability and other operating or technical
difficulties); fluctuations in the price of gold; changes in
foreign exchange rates (particularly the Canadian dollar, Mexican
peso, Turkish Lira and U.S. dollar); the impact of inflation;
changes in our credit rating; any decision to declare a dividend;
employee relations; litigation; disruptions affecting operations;
availability of and increased costs associated with mining inputs
and labour; development delays at the Young-Davidson mine; inherent
risks associated with mining and mineral processing; the risk that
the Young-Davidson, Island Gold, Mulatos and El Chanate mines may
not perform as planned; uncertainty with the Company’s ability to
secure additional capital to execute its business plans; the
speculative nature of mineral exploration and development,
including the risks of obtaining necessary licenses and permits,
including the necessary licenses, permits, authorizations and/or
approvals from the appropriate regulatory authorities for the
Company’s development stage assets, including specifically its
Turkish mineral properties; contests over title to properties;
changes in national and local government legislation (including tax
legislation) in Canada, Mexico, Turkey, the United States and other
jurisdictions in which the Company does or may carry on business in
the future; risk of loss due to sabotage and civil disturbances;
the impact of global liquidity and credit availability and the
values of assets and liabilities based on projected future cash
flows; risks arising from holding derivative instruments; and
business opportunities that may be pursued by the
Company.
Additional risk factors and details with respect
to risk factors affecting the Company are set out in the Company’s
latest Annual Information Form and MD&A, each under the heading
“Risk Factors”, available on the SEDAR website at www.sedar.com.
The foregoing should be reviewed in conjunction with the
information found in this news release. The Company disclaims
any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise, except as required by applicable law.
Cautionary Note to U.S. Investors
Concerning Measured, Indicated and Inferred Resources
The Company is required to prepare its resource
estimates in accordance with standards of the Canadian
Institute of Mining, Metallurgy and Petroleum referred to in
Canadian National Instrument 43-101 (NI 43-101). These standards
are materially different from the standards generally permitted in
reports filed with the United States Securities and Exchange
Commission. When describing resources we use the terms "measured",
"indicated" or "inferred” resources which are not recognized by the
United States Securities and Exchange Commission. The
estimation of measured resources and indicated resources involve
greater uncertainty as to their existence and economic feasibility
than the estimation of proven and probable reserves. U.S. investors
are cautioned not to assume that any part of measured or indicated
resources will ever be converted into economically or legally
mineable proven or probable reserves. The estimation of inferred
resources may not form the basis of a feasibility or other economic
studies and involves far greater uncertainty as to their existence
and economic viability than the estimation of other categories of
resources.
Non-GAAP Measures and Additional GAAP
Measures
The Company has included certain non-GAAP
financial measures to supplement its Consolidated Financial
Statements, which are presented in accordance with IFRS, including
the following:
- cash flow from operating activities before changes in working
capital and taxes received;
- total mine-site free cash flow
- mine-site free cash flow;
- total cash cost per ounce of gold sold;
- all-in sustaining cost ("AISC") per ounce of gold sold;
- mine-site all-in sustaining cost ("Mine-site AISC") per ounce
of gold sold;
- sustaining and non-sustaining capital expenditures; and
- earnings before interest, taxes, depreciation, and
amortization
The Company believes that these measures,
together with measures determined in accordance with IFRS, provide
investors with an improved ability to evaluate the underlying
performance of the Company. Non-GAAP financial measures do not have
any standardized meaning prescribed under IFRS, and therefore they
may not be comparable to similar measures employed by other
companies. The data is intended to provide additional information
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS.
Management's determination of the components of non-GAAP and
additional measures are evaluated on a periodic basis influenced by
new items and transactions, a review of investor uses and new
regulations as applicable. Any changes in to the measures are dully
noted and retrospectively applied as applicable.
Cash Flow from Operating Activities
before Changes in Working Capital and Cash Taxes
“Cash flow from operating activities before
changes in working capital and cash taxes” is a non-GAAP
performance measure that could provide an indication of the
Company’s ability to generate cash flows from operations, and is
calculated by adding back the change in working capital and taxes
received to “Cash provided by (used in) operating activities” as
presented on the Company’s consolidated statements of cash flows.
“Cash flow from operating activities before changes in working
capital” is a non-GAAP financial measure with no standard
meaning under IFRS.
The following table reconciles the non-GAAP
measure to the consolidated statements of cash flows.
(in millions) |
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Cash flow from operating activities |
$ |
48.6 |
|
$ |
38.3 |
|
$ |
163.5 |
|
$ |
135.7 |
|
Add back: Changes in
working capital and cash taxes |
|
4.1 |
|
|
(4.3 |
) |
|
19.8 |
|
|
12.3 |
|
Cash flow from operating activities before changes in
working capital and cash taxes |
$ |
52.7 |
|
$ |
34.0 |
|
$ |
183.3 |
|
$ |
148.0 |
|
Mine-site Free Cash Flow
"Mine-site free cash flow" is a non-GAAP
financial performance measure calculated as cash flow from
mine-site operating activities, less mineral property, plant
and equipment expenditures. The Company believes this to be a
useful indicator of our ability to operate without reliance on
additional borrowing or usage of existing cash. Free cash flow is
intended to provide additional information only and does not have
any standardized meaning under IFRS and may not be comparable to
similar measures of performance presented by other mining
companies. Free cash flow should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS.
Total Mine-Site Free Cash Flow |
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
(in millions) |
|
|
|
|
Cash flow from
operating activities |
$ |
48.6 |
|
$ |
38.3 |
|
$ |
163.5 |
|
$ |
135.7 |
|
Less: operating cash
flow used by non-mine site activity |
|
(19.5 |
) |
|
(7.5 |
) |
|
(31.9 |
) |
|
(28.0 |
) |
Cash flow from operating mine-sites |
$ |
68.1 |
|
$ |
45.8 |
|
$ |
195.4 |
|
$ |
163.7 |
|
|
|
|
|
|
Mineral property, plant
and equipment expenditure |
$ |
39.2 |
|
$ |
37.5 |
|
$ |
162.5 |
|
$ |
146.5 |
|
Less: capital
expenditures from development projects, and corporate |
|
(8.2 |
) |
|
(5.2 |
) |
|
(44.6 |
) |
|
(18.2 |
) |
Capital expenditure from mine-sites |
$ |
31.0 |
|
$ |
32.3 |
|
$ |
117.9 |
|
$ |
128.3 |
|
|
|
|
|
|
Total mine-site free cash flow |
$ |
37.1 |
|
$ |
13.5 |
|
$ |
77.5 |
|
$ |
35.4 |
|
Young-Davidson Mine-Site Free Cash Flow |
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
(in millions) |
|
|
|
|
Cash flow from
operating activities |
$ |
33.4 |
|
$ |
26.0 |
|
$ |
114.5 |
|
$ |
98.4 |
|
Mineral property, plant
and equipment expenditure |
|
(17.0 |
) |
|
(22.6 |
) |
|
(80.3 |
) |
|
(94.6 |
) |
Mine-site free cash flow |
$ |
16.4 |
|
$ |
3.4 |
|
$ |
34.2 |
|
$ |
3.8 |
|
Mulatos Mine-Site Free Cash Flow |
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
(in millions) |
|
|
|
|
Cash flow from
operating activities |
$ |
22.3 |
|
$ |
19.6 |
|
$ |
64.3 |
|
$ |
59.7 |
|
Mineral property, plant
and equipment expenditure |
|
(9.0 |
) |
|
(9.5 |
) |
|
(43.9 |
) |
|
(32.9 |
) |
Less: La
Yaqui Phase I construction cost |
|
— |
|
|
— |
|
|
12.5 |
|
|
— |
|
Mulatos
mineral property, plant and equipment expenditure |
$ |
(9.0 |
) |
$ |
(9.5 |
) |
$ |
(31.4 |
) |
$ |
(32.9 |
) |
Mine-site free cash flow1 |
$ |
13.3 |
|
$ |
10.1 |
|
$ |
32.9 |
|
$ |
26.8 |
|
1. Excludes construction capital at La Yaqui Phase I.
Island Gold Mine-Site Free Cash Flow |
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
(in millions) |
|
|
|
|
Cash flow from
operating activities |
$ |
11.8 |
|
|
— |
|
$ |
11.8 |
|
|
— |
|
Mineral property, plant
and equipment expenditure |
|
(4.8 |
) |
|
— |
|
|
(4.8 |
) |
|
— |
|
Mine-site free cash flow |
$ |
7.0 |
|
$ |
— |
|
$ |
7.0 |
|
$ |
— |
|
El Chanate Mine-Site Free Cash Flow |
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
(in millions) |
|
|
|
|
Cash flow from
operating activities |
$ |
0.6 |
|
$ |
0.2 |
|
$ |
4.8 |
|
$ |
5.6 |
|
Mineral property, plant
and equipment expenditure |
|
(0.2 |
) |
|
(0.2 |
) |
|
(1.4 |
) |
|
(0.8 |
) |
Mine-site free cash flow |
$ |
0.4 |
|
$ |
— |
|
$ |
3.4 |
|
$ |
4.8 |
|
Total Cash Costs per ounce
Total cash costs per ounce is a non-GAAP term
typically used by gold mining companies to assess the level of
gross margin available to the Company by subtracting these costs
from the unit price realized during the period. This non-GAAP term
is also used to assess the ability of a mining company to generate
cash flow from operations. Total cash costs per ounce includes
mining and processing costs plus applicable royalties, and net of
by-product revenue and net realizable value adjustments. Total cash
costs per ounce is exclusive of exploration costs.
Total cash costs per ounce is intended to
provide additional information only and does not have any
standardized meaning under IFRS and may not be comparable to
similar measures presented by other mining companies. It should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. The measure is not
necessarily indicative of cash flow from operations under IFRS or
operating costs presented under IFRS.
All-in Sustaining Costs per ounce and
Mine-site All-in Sustaining Costs
The Company adopted an “all-in sustaining costs
per ounce” non-GAAP performance measure in accordance with the
World Gold Council published in June 2013. The Company
believes the measure more fully defines the total costs associated
with producing gold; however, this performance measure has no
standardized meaning. Accordingly, there may be some
variation in the method of computation of “all-in sustaining costs
per ounce” as determined by the Company compared with other mining
companies. In this context, “all-in sustaining costs per ounce” for
the consolidated Company reflects total mining and processing
costs, corporate and administrative costs, share-based
compensation, exploration costs, sustaining capital, and other
operating costs.
For the purposes of calculating "mine-site
all-in sustaining costs" at the individual mine-sites, the Company
does not include an allocation of corporate and administrative
costs and share-based compensation, as detailed in the
reconciliations below.
Sustaining capital expenditures are expenditures
that do not increase annual gold ounce production at a mine site
and excludes all expenditures at the Company’s development projects
as well as certain expenditures at the Company’s operating sites
that are deemed expansionary in nature. For each mine-site
reconciliation, corporate and administrative costs, and non-site
specific costs are not included in the all-in sustaining cost per
ounce calculation.
All-in sustaining costs per gold ounce is
intended to provide additional information only and does not have
any standardized meaning under IFRS and may not be comparable to
similar measures presented by other mining companies. It should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS.
The measure is not
necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.
Total Cash Costs and All-in Sustaining
Costs per Ounce Reconciliation Tables
The following tables reconciles these non-GAAP
measures to the most directly comparable IFRS measures on a
Company-wide and individual mine-site basis.
Total Cash Costs and AISC Reconciliation -
Company-wide |
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2015 |
|
(in millions, except
ounces and per ounce figures) |
|
|
|
|
|
Mining and
processing |
$ |
90.6 |
|
$ |
86.9 |
|
$ |
315.6 |
|
$ |
297.0 |
|
$ |
259.2 |
|
Royalties |
|
4.9 |
|
|
3.6 |
|
|
15.6 |
|
|
13.3 |
|
|
7.3 |
|
Inventory
and other adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(29.4 |
) |
Total cash costs |
$ |
95.5 |
|
$ |
90.5 |
|
$ |
331.2 |
|
$ |
310.3 |
|
$ |
237.1 |
|
Gold
ounces sold |
|
126,786 |
|
|
107,505 |
|
|
430,115 |
|
|
389,151 |
|
|
309,468 |
|
Total cash
costs per ounce |
$ |
753 |
|
$ |
842 |
|
$ |
770 |
|
$ |
797 |
|
$ |
766 |
|
|
|
|
|
|
|
Total cash costs |
$ |
95.5 |
|
$ |
90.5 |
|
$ |
331.2 |
|
$ |
310.3 |
|
$ |
237.1 |
|
Corporate and
administrative(1) |
|
4.6 |
|
|
4.6 |
|
|
15.5 |
|
|
16.3 |
|
|
17.6 |
|
Sustaining capital
expenditures(2) |
|
11.5 |
|
|
12.3 |
|
|
42.7 |
|
|
49.2 |
|
|
68.2 |
|
Share-based
compensation |
|
1.1 |
|
|
0.9 |
|
|
6.2 |
|
|
10.2 |
|
|
5.1 |
|
Sustaining
exploration |
|
1.0 |
|
|
1.6 |
|
|
3.9 |
|
|
3.5 |
|
|
3.4 |
|
Accretion of
decommissioning liabilities |
|
0.7 |
|
|
0.5 |
|
|
2.7 |
|
|
2.1 |
|
|
1.3 |
|
Realized gains on FX
options |
|
— |
|
|
0.6 |
|
|
(0.8 |
) |
|
1.6 |
|
|
5.0 |
|
Total all-in sustaining costs |
$ |
114.4 |
|
$ |
111.0 |
|
$ |
401.4 |
|
$ |
393.2 |
|
$ |
337.7 |
|
Gold ounces sold |
|
126,786 |
|
|
107,505 |
|
|
430,115 |
|
|
389,151 |
|
|
309,468 |
|
All-in sustaining costs per ounce |
$ |
902 |
|
$ |
1,033 |
|
$ |
933 |
|
$ |
1,010 |
|
$ |
1,091 |
|
(1) Corporate and administrative expenses exclude
expenses incurred at development properties.(2)
Sustaining capital expenditures are defined as those expenditures
which do not increase annual gold ounce production at a mine site
and exclude all expenditures at growth projects and certain
expenditures at operating sites which are deemed expansionary in
nature. Total sustaining capital for the period is as follows:
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2015 |
|
Capital expenditures
per cash flow statement |
$ |
39.2 |
|
$ |
37.5 |
|
$ |
162.5 |
|
$ |
146.5 |
|
$ |
163.1 |
|
Less: non-sustaining
capital expenditures at: |
|
|
|
|
|
Young-Davidson |
|
(8.3 |
) |
|
(12.1 |
) |
|
(46.2 |
) |
|
(54.6 |
) |
|
(61.1 |
) |
Mulatos |
|
(8.1 |
) |
|
(7.9 |
) |
|
(38.4 |
) |
|
(24.5 |
) |
|
(9.9 |
) |
Island
Gold |
|
(3.1 |
) |
|
— |
|
|
(3.1 |
) |
|
— |
|
|
— |
|
El
Chanate |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.9 |
) |
Corporate
and other |
|
(8.2 |
) |
|
(5.2 |
) |
|
(32.1 |
) |
|
(18.2 |
) |
|
(23.0 |
) |
|
$ |
11.5 |
|
$ |
12.3 |
|
$ |
42.7 |
|
$ |
49.2 |
|
$ |
68.2 |
|
Young-Davidson Total Cash Costs and Mine-site
AISC Reconciliation |
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
(in millions, except
ounces and per ounce figures) |
|
|
|
|
Mining and
processing |
$ |
35.1 |
|
$ |
26.5 |
|
$ |
125.9 |
|
$ |
107.4 |
|
Royalties |
|
1.1 |
|
|
0.8 |
|
|
4.4 |
|
|
3.7 |
|
Total cash costs |
$ |
36.2 |
|
$ |
27.3 |
|
$ |
130.3 |
|
$ |
111.1 |
|
Gold
ounces sold |
|
52,475 |
|
|
40,934 |
|
|
197,937 |
|
|
168,979 |
|
Total cash
costs per ounce |
$ |
690 |
|
$ |
667 |
|
$ |
658 |
|
$ |
657 |
|
|
|
|
|
|
Total cash costs |
$ |
36.2 |
|
$ |
27.3 |
|
$ |
130.3 |
|
$ |
111.1 |
|
Sustaining capital
expenditures |
|
8.7 |
|
|
10.5 |
|
|
34.1 |
|
|
40.0 |
|
Exploration |
|
0.1 |
|
|
0.1 |
|
|
0.4 |
|
|
0.3 |
|
Accretion of
decommissioning liabilities |
|
0.1 |
|
|
— |
|
|
0.2 |
|
|
0.1 |
|
Total all-in sustaining costs |
$ |
45.1 |
|
$ |
37.9 |
|
$ |
165.0 |
|
$ |
151.5 |
|
Gold ounces sold |
|
52,475 |
|
|
40,934 |
|
|
197,937 |
|
|
168,979 |
|
Mine-site all-in sustaining costs per ounce |
$ |
859 |
|
$ |
926 |
|
$ |
834 |
|
$ |
897 |
|
Mulatos Total Cash Costs and Mine-site AISC
Reconciliation |
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
(in millions, except
ounces and per ounce figures) |
|
|
|
|
Mining and
processing |
$ |
34.9 |
|
$ |
41.2 |
|
$ |
112.9 |
|
$ |
117.2 |
|
Royalties |
|
3.2 |
|
|
2.8 |
|
|
10.6 |
|
|
9.6 |
|
Total cash costs |
$ |
38.1 |
|
$ |
44.0 |
|
$ |
123.5 |
|
$ |
126.8 |
|
Gold
ounces sold |
|
50,006 |
|
|
50,178 |
|
|
159,276 |
|
|
151,337 |
|
Total cash
costs per ounce |
$ |
762 |
|
$ |
877 |
|
$ |
775 |
|
$ |
838 |
|
|
|
|
|
|
Total cash costs |
$ |
38.1 |
|
$ |
44.0 |
|
$ |
123.5 |
|
$ |
126.8 |
|
Sustaining capital
expenditures |
|
0.9 |
|
|
1.6 |
|
|
5.5 |
|
|
8.4 |
|
Exploration |
|
0.4 |
|
|
0.7 |
|
|
1.9 |
|
|
1.9 |
|
Accretion of
decommissioning liabilities |
|
0.5 |
|
|
0.4 |
|
|
2.1 |
|
|
1.6 |
|
Total all-in sustaining costs |
$ |
39.9 |
|
$ |
46.7 |
|
$ |
133.0 |
|
$ |
138.7 |
|
Gold ounces sold |
|
50,006 |
|
|
50,178 |
|
|
159,276 |
|
|
151,337 |
|
Mine-site all-in sustaining costs per ounce |
$ |
798 |
|
$ |
931 |
|
$ |
835 |
|
$ |
916 |
|
Island Gold Total Cash Costs and Mine-site AISC
Reconciliation |
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
(in millions, except
ounces and per ounce figures) |
|
|
|
|
Mining and
processing |
$ |
4.1 |
|
$ |
— |
|
$ |
4.1 |
|
$ |
— |
|
Royalties |
|
0.6 |
|
|
— |
|
|
0.6 |
|
|
— |
|
Total cash costs |
$ |
4.7 |
|
$ |
— |
|
$ |
4.7 |
|
$ |
— |
|
Gold
ounces sold |
|
11,720 |
|
|
— |
|
|
11,720 |
|
|
— |
|
Total cash
costs per ounce |
$ |
401 |
|
$ |
— |
|
$ |
401 |
|
$ |
— |
|
|
|
|
|
|
Total cash costs |
$ |
4.7 |
|
$ |
— |
|
$ |
4.7 |
|
$ |
— |
|
Sustaining capital
expenditures |
|
1.7 |
|
|
— |
|
|
1.7 |
|
|
— |
|
Exploration |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total all-in sustaining costs |
$ |
6.4 |
|
$ |
— |
|
$ |
6.4 |
|
$ |
— |
|
Gold ounces sold |
|
11,720 |
|
|
— |
|
|
11,720 |
|
|
— |
|
Mine-site all-in sustaining costs per ounce |
$ |
546 |
|
$ |
— |
|
$ |
546 |
|
$ |
— |
|
El Chanate Total Cash Costs and Mine-site AISC
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
(in millions, except
ounces and per ounce figures) |
|
|
|
|
Mining and
processing |
$ |
16.5 |
|
$ |
19.2 |
|
$ |
72.7 |
|
$ |
72.4 |
|
Total cash costs |
$ |
16.5 |
|
$ |
19.2 |
|
$ |
72.7 |
|
$ |
72.4 |
|
Gold
ounces sold |
|
12,585 |
|
|
16,393 |
|
|
61,182 |
|
|
68,835 |
|
Total cash
costs per ounce |
$ |
1,311 |
|
$ |
1,171 |
|
$ |
1,188 |
|
$ |
1,052 |
|
|
|
|
|
|
Total cash costs |
$ |
16.5 |
|
$ |
19.2 |
|
$ |
72.7 |
|
$ |
72.4 |
|
Sustaining capital
expenditures |
|
0.2 |
|
|
0.2 |
|
|
1.4 |
|
|
0.8 |
|
Accretion of
decommissioning liabilities |
|
0.1 |
|
|
0.1 |
|
|
0.4 |
|
|
0.4 |
|
Total all-in sustaining costs |
$ |
16.8 |
|
$ |
19.5 |
|
$ |
74.5 |
|
$ |
73.6 |
|
Gold ounces sold |
|
12,585 |
|
|
16,393 |
|
|
61,182 |
|
|
68,835 |
|
Mine-site all-in sustaining costs per ounce |
$ |
1,335 |
|
$ |
1,190 |
|
$ |
1,218 |
|
$ |
1,069 |
|
Earnings Before Interest, Taxes,
Depreciation, and Amortization (“EBITDA”)
EBITDA represents net earnings before interest,
taxes, depreciation, and amortization. EBITDA is an indicator of
the Company’s ability to generate liquidity by producing operating
cash flow to fund working capital needs, service debt obligations,
and fund capital expenditures.
EBITDA does not have any standardized meaning
under IFRS and may not be comparable to similar measures presented
by other mining companies. It should not be considered in isolation
or as a substitute for measures of performance prepared in
accordance with IFRS.
The following is a reconciliation of EBITDA to
the consolidated financial statements:
(in
millions) |
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Net earnings |
$ |
(4.7 |
) |
$ |
(20.6 |
) |
$ |
26.6 |
|
$ |
(17.9 |
) |
Add back: |
|
|
|
|
Finance
expense |
|
1.4 |
|
|
6.4 |
|
|
9.1 |
|
|
24.0 |
|
Amortization |
|
41.1 |
|
|
31.1 |
|
|
125.6 |
|
|
119.0 |
|
Loss on
redemption of senior secured notes |
|
— |
|
|
— |
|
|
29.1 |
|
|
— |
|
Deferred
income tax expense (recovery) |
|
6.0 |
|
|
11.5 |
|
|
(16.3 |
) |
|
6.5 |
|
Current income tax expense |
|
4.3 |
|
|
0.9 |
|
|
11.9 |
|
|
3.8 |
|
EBITDA |
$ |
48.1 |
|
$ |
29.3 |
|
$ |
186.0 |
|
$ |
135.4 |
|
Additional GAAP Measures
Additional GAAP measures are presented on the
face of the Company’s consolidated statements of comprehensive
income and are not meant to be a substitute for other subtotals or
totals presented in accordance with IFRS, but rather should be
evaluated in conjunction with such IFRS measures. The
following additional GAAP measures are used and are intended to
provide an indication of the Company’s mine and operating
performance:
- Earnings from operations - represents the amount of earnings
before net finance income/expense, foreign exchange gain/loss,
other income/loss, loss on redemption of senior secured notes and
income tax expense
|
Unaudited Consolidated Statements of Financial
Position, Comprehensive Income, and Cash
Flows |
|
ALAMOS GOLD INC. |
Consolidated Statements of Financial Position |
(Stated in
millions of United States dollars) |
|
|
December 31,2017 |
|
December 31,2016 |
ASSETS |
|
|
|
Current
Assets |
|
|
|
Cash and cash
equivalents |
$ |
200.8 |
|
|
$ |
252.2 |
|
Equity securities |
|
35.8 |
|
|
|
14.1 |
|
Amounts receivable |
|
34.5 |
|
|
|
44.9 |
|
Inventory |
|
161.2 |
|
|
|
131.7 |
|
Other current
assets |
|
14.4 |
|
|
|
11.6 |
|
Total Current
Assets |
|
446.7 |
|
|
|
454.5 |
|
|
|
|
|
Non-Current
Assets |
|
|
|
Long-term
inventory |
|
68.7 |
|
|
|
75.8 |
|
Mineral property, plant
and equipment |
|
2,753.4 |
|
|
|
1,918.2 |
|
Other non-current
assets |
|
45.0 |
|
|
|
43.7 |
|
Total Assets |
$ |
3,313.8 |
|
|
$ |
2,492.2 |
|
|
|
|
|
LIABILITIES |
|
|
|
Current
Liabilities |
|
|
|
Accounts payable and
accrued liabilities |
$ |
96.8 |
|
|
$ |
94.5 |
|
Current portion of
financing obligations |
|
4.2 |
|
|
|
3.6 |
|
Income taxes
payable |
|
5.7 |
|
|
|
1.5 |
|
Total Current
Liabilities |
|
106.7 |
|
|
|
99.6 |
|
|
|
|
|
Non-Current
Liabilities |
|
|
|
Deferred income
taxes |
|
477.0 |
|
|
|
291.0 |
|
Decommissioning
liabilities |
|
44.6 |
|
|
|
39.6 |
|
Debt and financing
obligations |
|
3.3 |
|
|
|
301.3 |
|
Other non-current
liabilities |
|
1.0 |
|
|
|
1.3 |
|
Total Liabilities |
|
632.6 |
|
|
|
732.8 |
|
|
|
|
|
EQUITY |
|
|
|
Share capital |
$ |
3,691.7 |
|
|
$ |
2,822.2 |
|
Contributed
surplus |
|
89.5 |
|
|
|
70.9 |
|
Warrants |
|
4.0 |
|
|
|
3.5 |
|
Accumulated other
comprehensive income |
|
13.0 |
|
|
|
0.4 |
|
Deficit |
|
(1,117.0 |
) |
|
|
(1,137.6 |
) |
Total Equity |
|
2,681.2 |
|
|
|
1,759.4 |
|
Total Liabilities and Equity |
$ |
3,313.8 |
|
|
$ |
2,492.2 |
|
|
|
|
|
|
|
|
|
|
ALAMOS GOLD INC. |
Condensed Interim Consolidated Statements of Comprehensive
Income |
(Unaudited
- stated in millions of United States dollars, except share and per
share amounts) |
|
|
For three months ended |
|
For twelve months ended |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
OPERATING
REVENUES |
$ |
161.7 |
|
|
$ |
132.2 |
|
|
$ |
542.8 |
|
|
$ |
482.2 |
|
|
|
|
|
|
|
|
|
COST OF
SALES |
|
|
|
|
|
|
|
Mining and
processing |
|
90.6 |
|
|
|
86.9 |
|
|
|
315.6 |
|
|
|
297.0 |
|
Royalties |
|
4.9 |
|
|
|
3.6 |
|
|
|
15.6 |
|
|
|
13.3 |
|
Amortization |
|
41.1 |
|
|
|
31.1 |
|
|
|
125.6 |
|
|
|
119.0 |
|
|
|
136.6 |
|
|
|
121.6 |
|
|
|
456.8 |
|
|
|
429.3 |
|
EXPENSES |
|
|
|
|
|
|
|
Exploration |
|
2.3 |
|
|
|
1.6 |
|
|
|
8.3 |
|
|
|
5.1 |
|
Corporate and
administrative |
|
4.6 |
|
|
|
4.6 |
|
|
|
15.5 |
|
|
|
16.3 |
|
Share-based
compensation (note 8) |
|
1.1 |
|
|
|
0.9 |
|
|
|
6.2 |
|
|
|
10.2 |
|
|
|
144.6 |
|
|
|
128.7 |
|
|
|
486.8 |
|
|
|
460.9 |
|
EARNINGS FROM
OPERATIONS |
|
17.1 |
|
|
|
3.5 |
|
|
|
56.0 |
|
|
|
21.3 |
|
|
|
|
|
|
|
|
|
OTHER
EXPENSES |
|
|
|
|
|
|
|
Finance expense |
|
(1.4 |
) |
|
|
(6.4 |
) |
|
|
(9.1 |
) |
|
|
(24.0 |
) |
Foreign exchange (loss)
gain |
|
(5.1 |
) |
|
|
(7.8 |
) |
|
|
5.0 |
|
|
|
(12.5 |
) |
Other (loss) gain |
|
(5.0 |
) |
|
|
2.5 |
|
|
|
(0.6 |
) |
|
|
7.6 |
|
Loss on redemption of
senior secured notes |
|
— |
|
|
|
— |
|
|
|
(29.1 |
) |
|
|
— |
|
EARNINGS (LOSS)
BEFORE INCOME TAXES |
$ |
5.6 |
|
|
$ |
(8.2 |
) |
|
$ |
22.2 |
|
|
$ |
(7.6 |
) |
|
|
|
|
|
|
|
|
INCOME
TAXES |
|
|
|
|
|
|
|
Current income tax
expense |
|
(4.3 |
) |
|
|
(0.9 |
) |
|
|
(11.9 |
) |
|
|
(3.8 |
) |
Deferred income tax
(expense) recovery |
|
(6.0 |
) |
|
|
(11.5 |
) |
|
|
16.3 |
|
|
|
(6.5 |
) |
NET (LOSS)
EARNINGS |
$ |
(4.7 |
) |
|
$ |
(20.6 |
) |
|
$ |
26.6 |
|
|
$ |
(17.9 |
) |
|
|
|
|
|
|
|
|
Items that may be
subsequently reclassified to net earnings: |
|
|
|
|
|
|
|
Realized
disposition on equity securities, reclassified to net loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.3 |
) |
Unrealized gains on equity securities, net of taxes |
|
— |
|
|
|
(0.4 |
) |
|
|
— |
|
|
|
5.1 |
|
Gain on
currency hedging instruments, net of taxes |
|
(1.4 |
) |
|
|
— |
|
|
|
6.0 |
|
|
|
— |
|
Items that will not be
reclassified to net earnings: |
|
|
|
|
|
|
|
Unrealized gains on equity securities, net of taxes |
|
3.9 |
|
|
|
— |
|
|
|
6.6 |
|
|
|
— |
|
Total other
comprehensive income |
$ |
2.5 |
|
|
$ |
(0.4 |
) |
|
$ |
12.6 |
|
|
$ |
4.8 |
|
COMPREHENSIVE
INCOME |
$ |
(2.2 |
) |
|
$ |
(21.0 |
) |
|
$ |
39.2 |
|
|
$ |
(13.1 |
) |
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE |
|
|
|
|
|
|
|
–
basic |
$ |
(0.01 |
) |
|
$ |
(0.08 |
) |
|
$ |
0.09 |
|
|
$ |
(0.07 |
) |
–
diluted |
$ |
(0.01 |
) |
|
$ |
(0.08 |
) |
|
$ |
0.09 |
|
|
$ |
(0.07 |
) |
Weighted average number
of common shares outstanding (000's) |
|
|
|
|
|
|
|
– basic |
|
337,178 |
|
|
|
267,067 |
|
|
|
305,521 |
|
|
|
265,234 |
|
– diluted |
|
337,178 |
|
|
|
267,067 |
|
|
|
309,021 |
|
|
|
267,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALAMOS GOLD INC. |
Condensed Interim Consolidated Statements of Cash
Flows |
(Unaudited
- Stated in millions of United States dollars) |
|
|
For three months ended |
|
For twelve months ended |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
CASH PROVIDED
BY: |
|
|
|
|
|
|
|
OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
Net earnings for the
period |
$ |
(4.7 |
) |
|
$ |
(20.6 |
) |
|
$ |
26.6 |
|
|
$ |
(17.9 |
) |
Adjustments for items
not involving cash: |
|
|
|
|
|
|
|
Amortization |
|
41.1 |
|
|
|
31.1 |
|
|
|
125.6 |
|
|
|
119.0 |
|
Foreign
exchange loss (gain) |
|
5.1 |
|
|
|
7.8 |
|
|
|
(5.0 |
) |
|
|
12.5 |
|
Current
income tax expense |
|
4.3 |
|
|
|
0.9 |
|
|
|
11.9 |
|
|
|
3.8 |
|
Deferred
income tax expense (recovery) |
|
6.0 |
|
|
|
11.5 |
|
|
|
(16.3 |
) |
|
|
6.5 |
|
Share-based compensation |
|
1.1 |
|
|
|
0.9 |
|
|
|
6.2 |
|
|
|
10.2 |
|
Finance
expense |
|
1.4 |
|
|
|
6.4 |
|
|
|
9.1 |
|
|
|
24.0 |
|
Loss on
redemption of senior secured notes |
|
— |
|
|
|
— |
|
|
|
29.1 |
|
|
|
— |
|
Other
items |
|
(1.6 |
) |
|
|
(4.0 |
) |
|
|
(3.9 |
) |
|
|
(10.1 |
) |
Changes in working
capital and cash taxes |
|
(4.1 |
) |
|
|
4.3 |
|
|
|
(19.8 |
) |
|
|
(12.3 |
) |
|
|
48.6 |
|
|
|
38.3 |
|
|
|
163.5 |
|
|
|
135.7 |
|
INVESTING
ACTIVITIES |
|
|
|
|
|
|
|
Mineral property, plant
and equipment |
|
(39.2 |
) |
|
|
(37.5 |
) |
|
|
(162.5 |
) |
|
|
(146.5 |
) |
Purchase of Lynn Lake
gold project royalty |
|
— |
|
|
|
— |
|
|
|
(6.7 |
) |
|
|
— |
|
Cash received from
Richmont acquisition |
|
46.2 |
|
|
|
— |
|
|
|
46.2 |
|
|
|
— |
|
Other |
|
— |
|
|
|
(1.9 |
) |
|
|
3.6 |
|
|
|
(5.0 |
) |
|
|
7.0 |
|
|
|
(39.4 |
) |
|
|
(119.4 |
) |
|
|
(151.5 |
) |
FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
Net proceeds from
bought deal financing |
|
— |
|
|
|
— |
|
|
|
239.1 |
|
|
|
— |
|
Repayment of senior
secured notes |
|
— |
|
|
|
— |
|
|
|
(327.2 |
) |
|
|
— |
|
Repayment of equipment
financing obligations |
|
(0.9 |
) |
|
|
(3.8 |
) |
|
|
(4.4 |
) |
|
|
(9.7 |
) |
Interest paid |
|
— |
|
|
|
(12.2 |
) |
|
|
(12.2 |
) |
|
|
(24.4 |
) |
Revolving credit
facility transaction fees |
|
— |
|
|
|
— |
|
|
|
(2.1 |
) |
|
|
(1.1 |
) |
Proceeds from the
exercise of options and warrants |
|
0.1 |
|
|
|
— |
|
|
|
3.5 |
|
|
|
7.4 |
|
Dividends paid |
|
(3.0 |
) |
|
|
(2.7 |
) |
|
|
(6.0 |
) |
|
|
(5.4 |
) |
Proceeds from issuance
of flow-through shares |
|
— |
|
|
|
|
|
11.7 |
|
|
|
20.4 |
|
|
|
(3.8 |
) |
|
|
(18.7 |
) |
|
|
(97.6 |
) |
|
|
(12.8 |
) |
Effect of exchange
rates on cash and cash equivalents |
|
— |
|
|
|
(1.9 |
) |
|
|
2.1 |
|
|
|
(2.1 |
) |
Net increase (decrease)
in cash and cash equivalents |
|
51.8 |
|
|
|
(21.7 |
) |
|
|
(51.4 |
) |
|
|
(30.7 |
) |
Cash and cash
equivalents - beginning of period |
|
149.0 |
|
|
|
273.9 |
|
|
|
252.2 |
|
|
|
282.9 |
|
CASH AND CASH
EQUIVALENTS - END OF PERIOD |
$ |
200.8 |
|
|
$ |
252.2 |
|
|
$ |
200.8 |
|
|
$ |
252.2 |
|
Alamos Gold (NYSE:AGI)
Historical Stock Chart
From Jul 2024 to Aug 2024
Alamos Gold (NYSE:AGI)
Historical Stock Chart
From Aug 2023 to Aug 2024