On November 10, Alamos Gold Inc (NYSE:AGI, TSE:AGI)—a gold miner with properties in Canada, Turkey, Mexico, and the U.S.—reported stellar financial and operational performances in Q3. Sadly for the company, it was not enough to entice investors.
Regarding operations, the president and CEO of Alamos Gold, John A. McCluskey, said:
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All three of our mines performed well in the third quarter driving our strongest operating and financial results thus far this year. Production increased to 99,228 ounces of gold while all-in sustaining costs fell to $979 per ounce. Our operations continued to generate positive free cash flow and at current gold prices we expect strong free cash flow growth in the fourth quarter and into 2017. We remain well positioned to meet our full year production, cost and capital guidance.
(Source: “Alamos Reports Third Quarter 2016 Results And Provides Exploration Update At La Yaqui,” Alamos Gold Inc., November 10, 2016.)
Alamos Gold’s revenue jumped over 21%. In the third quarter of 2016, it sold 94,791 ounces of gold, with an average realized price per ounce at $1,325, for revenue of $125.6 million. In the same period a year ago, gold sales were 92,229, with an average realized price of $1,123. Revenue was $103.6 million.
Its costs declined: all-in sustaining costs for Alamos Gold were $979.00 per ounce of gold sold. In the same period a year ago, all-in sustaining costs for the company were $1,155. This represents a decline of 15.23%.
With revenue increasing and costs declining, Alamos Gold reported net income of $4.8 million, or $0.02 per diluted share. In the third quarter of 2015, the company reported a net loss of $36.9 million, or $0.13 per diluted share.
Alamos Gold ended the third quarter with $478.9 million in current assets and just $111.3 million in current liabilities. This gives the company working capital of $367.6 million. Through its operation, the company generated cash flow of $36.7 million. In the same period a year ago, Alamos Gold actually used $8.4 million from its operations.
At the time of writing, on the New York Stock Exchange, Alamos Gold stock was trading at $7.20, down close to 4.30% from the previous day’s close. Year-to-date, the AGI stock has increased over 128%, with a 52-week high at $10.41 and a 52-week low at $2.27.
