Alamos Gold Reports Profit, Record Quarterly Output
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(Kitco News) - Alamos Gold Inc. (TSX, NYSE: AGI) flipped to a profit in the second quarter, despite a special charge for debt retirement, as production hit a company quarterly record of 105,900 gold ounces, including a record 47,300 ounces at Young-Davidson. Further, since the quarter ended, the company says it produced a monthly record of some 20,000 ounces in July at Young-Davidson, driven by underground grades averaging above 3 grams per tonne of gold. April-June earnings were $2.4 million, or a penny per share, which included a one-time pre-tax charge of $29.1 million on the retirement of the senior secured notes, as well as unrealized foreign-exchange gains of $10.9 million. Alamos posted an $11.8 million net loss in the same quarter of 2016. “We made significant gains in the second quarter with record production and lower costs driving the highest combined free cash flow from our operations in years. We expect this trend to continue in the second half of the year…,” says John A. McCluskey, president and chief executive officer. Construction of the La Yaqui Phase I project remains on budget, with initial production expected later this year. The company says it remains on track to meet full-year guidance of 400,000 to 430,000 ounces.