Make Kitco Your Homepage

Alamos Gold reports record revenue, higher 4Q adjusted profit

Kitco News

Alamos Gold Inc. (TSX, NYSE: AGI) late Wednesday listed a larger fourth-quarter adjusted profit than in the same period a year ago, along with record quarterly revenue as the price of gold rose.

Adjusted net earnings came in at $32.1 million, or eight cents per share, up from $4.3 million, or a penny, in the same quarter of 2018.

The company produced 122,100 ounces of gold in the fourth quarter, which officials said was consistent with guidance. Alamos sold 127,148 ounces at an average realized price of $1,463 per ounce for record revenues of $186 million. In the same period of 2018, Alamos sold 131,161 ounces at an average price of $1,244 for revenues of $163.1 million.

All-in sustaining costs decreased to $972 an ounce from $983 in the fourth quarter of 2018.

“We reported a solid fourth quarter and 2019,” said John A. McCluskey, president and chief executive officer. “We met our production guidance for the fifth consecutive year, and we met our cost guidance with a 10% reduction in total cash costs from a year ago. Stronger gold prices and lower costs drove a 40% increase in operating cash flow.”

The company listed net earnings of $38 million, or 10 cents per share, for the fourth quarter. The company said it ended 2019 with no debt, cash and cash equivalents of $182.8 million and equity securities of $22.8 million.

Alamos also reported that it completed construction of the Cerro Pelon mine ahead of schedule and achieved initial production in the fourth quarter.

For full-year 2019, Alamos produced 494,500 ounces of gold. Island Gold exceeded guidance with record production of 150,400 ounces, the company said.

For 2020, Alamos listed guidance of 425,000 to 465,000 ounces of gold. The expected decline from last year is due to previously guided lower production from Young-Davidson during the first half of 2020 while completing the tie-in of the upper and lower mines, as well as the end of production at El Chanate. Alamos said. AISC guidance is between $1,020 and $1,060 per ounce.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.