Alamos Gold Inc. (
TSX:AGI;
NYSE:AGI) (“Alamos” or the “Company”) today reported its
financial results for the quarter and year ended December 31, 2018.
“Alamos closed 2018 on a high note with record
production from Island Gold and a stronger performance from
Young-Davidson driving production higher and costs lower in
the fourth quarter. This contributed to an 18% increase in full
year production to 505,000 ounces, meeting guidance and achieving a
new record. We expect similar production in 2019 at lower costs
contributing to stronger margins and financial performance,” said
John A. McCluskey, President and Chief Executive Officer.
“We also advanced various growth initiatives at
our existing operations. This was highlighted by the completion of
the Phase I expansion and the addition of nearly one million ounces
of mineral reserves and resources at Island Gold, which will
support future expansions. We also advanced construction of the
lower mine expansion at Young-Davidson. Combined with declining
costs at Mulatos, we expect these initiatives to drive strong free
cash flow growth starting in the second half of 2020. Aligned with
our strong outlook and focus on returning value to shareholders, we
have doubled our annual dividend and have been active in buying
back stock,” Mr. McCluskey added.
Fourth Quarter 2018
Highlights
- Produced 125,600 ounces of gold, an increase from the third
quarter reflecting a stronger performance from Young-Davidson and
record quarterly production from Island Gold
- Sold a record 131,161 ounces of gold at an average realized
price of $1,244 per ounce, $17 above the average London PM Fix, for
revenues of $163.1 million
- Total cash costs1 decreased to $770 per ounce, the lowest in
2018 reflecting improved performance at Young-Davidson; all-in
sustaining costs ("AISC")1 of $983 per ounce also decreased from
the third quarter
- Cost of sales of $1,579 per ounce were higher than guidance
reflecting a non-cash inventory impairment charge at El Chanate of
$64.0 million, or $488 per ounce
- Reported adjusted net earnings1 of $4.3 million, or $0.01 per
share1, which includes one-time adjustments for a $64.0 million
($49.9 million after-tax) non-cash inventory impairment charge at
El Chanate, as well as unrealized foreign exchange losses recorded
within both deferred taxes and foreign exchange of $15.8 million,
and other items totaling $10.1 million
- Realized a net loss of $71.5 million, or $0.18 per share
- Generated cash flow from operating activities1 of $47.4 million
($52.8 million, or $0.14 per share, before changes in working
capital1), an increase from the third quarter primarily reflecting
lower costs, higher gold sales and a higher realized gold
price
- Ended the quarter with no debt and cash and cash equivalents of
$206.0 million
- Announced a Normal Course Issuer Bid permitting Alamos to
purchase for cancellation up to 25,513,043 common shares,
representing 10% of the Company’s public float
- Received the Schedule 2 Amendment from the Federal government
for a new tailings facility at Young-Davidson, securing tailings
capacity for all existing Mineral Reserves and Resources
- Successfully obtained permits for the high return Cerro Pelon
project in Mexico and commenced full scale construction
Full year 2018 Highlights
- Met the mid-point of guidance with record production of 505,000
ounces of gold, representing an 18% increase from the previous
record in 2017
- Achieved increased production guidance at both Island Gold and
Mulatos, with guidance having been revised higher twice at both
operations in 2018
- Sold a record 509,879 ounces of gold at an average realized
price of $1,278 per ounce for record revenues of $651.8
million
- Total cash costs1 of $802 and AISC1 of $989 per ounce were in
line with revised cost guidance. Cost of sales of $1,254 per ounce
were above guidance reflecting the non-cash inventory impairment
charge at El Chanate
- Reported adjusted net earnings1 of $19.6 million, or $0.05 per
share1 which includes one-time adjustments for the El Chanate
non-cash inventory impairment, as well as unrealized foreign
exchange losses recorded within both deferred taxes and foreign
exchange of $33.2 million, and other items totaling $9.1
million
- Realized a net loss of $72.6 million, or $0.19 per share
- Reported record cash flow from operating activities1 of $213.9
million ($211.7 million, or $0.54 per share, before changes in
working capital1), a 15% increase from 2017
- Generated positive free cash flow at each of the Company's
operations for total mine-site free cash flow of $56.4
million1
- Continued exploration success at Island Gold, driving a 14%
increase in Mineral Reserves, 76% increase in Measured and
Indicated Mineral Resources and 73% increase in Inferred Mineral
Resources at Island Gold, compared to the end of 2017
- Successfully commissioned the Phase I expansion at Island Gold
on schedule in the third quarter, increasing mill capacity to 1,100
tonnes per day
- Liquidated the Company's equity positions in AuRico Metals and
Corex Gold, generating proceeds of $24.9 million and realizing a
gain of $14.3 million reported in retained earnings (deficit)
Subsequent to Year-End
- The Company re-purchased and canceled 2,444,352 common shares
at a cost of $10.0 million, or $4.07 per share under its Normal
Course Issuer Bid
- Announced a doubling of the annual dividend, with a $0.01 per
share dividend to be paid quarterly in 2019 (up from $0.01
semi-annually previously). The first quarterly dividend of $0.01
per share will be payable to shareholders of record on March 15,
2019, to be paid on March 29, 2019
(1) Refer to the “Non-GAAP Measures and
Additional GAAP Measures” disclosure at the end of this press
release and associated MD&A for a description and calculation
of these measures.
Highlight Summary
| |
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 |
2018 |
|
2017 |
|
|
Financial Results (in millions) |
|
|
|
|
| Operating
revenues |
$163.1 |
|
$161.7 |
|
$651.8 |
|
$542.8 |
|
| Cost of
sales (1) |
$207.1 |
|
$136.6 |
|
$639.4 |
|
$456.8 |
|
| Earnings
from operations |
($51.3 |
) |
$17.1 |
|
($22.6 |
) |
$56.0 |
|
| Net
earnings (loss) |
($71.5 |
) |
($4.7 |
) |
($72.6 |
) |
$26.6 |
|
| Adjusted
net (loss) earnings (2) |
$4.3 |
|
$0.3 |
|
$19.6 |
|
$38.9 |
|
| Cash
provided by operations before working capital and cash
taxes(2) |
$52.8 |
|
$52.7 |
|
$211.7 |
|
$183.3 |
|
| Cash
provided by operating activities |
$47.4 |
|
$48.6 |
|
$213.9 |
|
$163.5 |
|
| Capital
expenditures (sustaining) (2) |
$21.4 |
|
$11.5 |
|
$63.8 |
|
$42.7 |
|
| Capital
expenditures (growth) (2) |
$36.4 |
|
$25.6 |
|
$139.2 |
|
$111.8 |
|
| Capital
expenditures (capitalized exploration) (3) |
$3.7 |
|
$2.1 |
|
$18.5 |
|
$8.0 |
|
| Operating
Results |
|
|
|
|
| Gold
production (ounces) (4) |
125,600 |
|
120,300 |
|
505,000 |
|
429,400 |
|
| Gold
sales (ounces) |
131,161 |
|
126,786 |
|
509,879 |
|
430,115 |
|
| Per Ounce
Data |
|
|
|
|
| Average
realized gold price |
$1,244 |
|
$1,275 |
|
$1,278 |
|
$1,262 |
|
| Average
spot gold price (London PM Fix) |
$1,227 |
|
$1,275 |
|
$1,268 |
|
$1,257 |
|
| Cost of
sales per ounce of gold sold (includes amortization) (1) |
$1,579 |
|
$1,077 |
|
$1,254 |
|
$1,062 |
|
| Total cash
costs per ounce of gold sold (2) |
$770 |
|
$753 |
|
$802 |
|
$770 |
|
| All-in
sustaining costs per ounce of gold sold (2) |
$983 |
|
$902 |
|
$989 |
|
$933 |
|
|
Share Data |
|
|
|
|
| Earnings per share,
basic |
($0.18 |
) |
($0.01 |
) |
($0.19 |
) |
$0.09 |
|
| Adjusted earnings per
share, basic (2) |
$0.01 |
|
$— |
|
$0.05 |
|
$0.13 |
|
| Weighted average common
shares outstanding (basic) (000’s) |
390,540 |
|
337,178 |
|
389,816 |
|
305,521 |
|
|
Financial Position (in millions) |
|
|
|
|
| Cash and cash equivalents
(5) |
|
|
$206.0 |
|
$200.8 |
|
(1) Cost of sales includes mining
and processing costs, royalties, and amortization expense. For the
three months and year ended December 31, 2018, cost of sales
includes a $64.0 million non-cash inventory charge at El
Chanate.(2) Refer to the “Non-GAAP Measures and
Additional GAAP Measures” disclosure at the end of this press
release and associated MD&A for a description and calculation
of these measures.(3) Includes capitalized exploration
at Mulatos and Island Gold.
(4) Gold production from Island Gold
has 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 and
98,600 ounces respectively.
| |
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
|
2017(1) |
2018 |
|
2017(1) |
|
Gold production (ounces) |
|
|
|
|
|
Young-Davidson |
50,900 |
|
56,500 |
|
180,000 |
|
200,000 |
|
|
Mulatos |
35,600 |
|
42,700 |
|
175,500 |
|
160,000 |
|
| Island Gold
(1) |
29,000 |
|
9,000 |
|
105,800 |
|
9,000 |
|
| El
Chanate |
10,100 |
|
12,100 |
|
43,700 |
|
60,400 |
|
|
Gold sales (ounces) |
|
|
|
|
|
Young-Davidson |
51,944 |
|
52,475 |
|
185,593 |
|
197,937 |
|
|
Mulatos |
38,819 |
|
50,006 |
|
175,104 |
|
159,276 |
|
|
Island Gold (1) |
30,199 |
|
11,720 |
|
105,520 |
|
11,720 |
|
| El
Chanate |
10,199 |
|
12,585 |
|
43,662 |
|
61,182 |
|
|
Cost of sales (in millions)(2) |
|
|
|
|
|
Young-Davidson |
$61.5 |
|
$58.1 |
|
$235.0 |
|
$213.4 |
|
|
Mulatos |
$38.4 |
|
$47.7 |
|
$173.1 |
|
$153.0 |
|
| Island Gold
(1) |
$28.7 |
|
$13.4 |
|
$106.5 |
|
$13.4 |
|
|
El Chanate(2) |
$78.5 |
|
$17.4 |
|
$124.8 |
|
$77.0 |
|
|
Cost of sales per ounce of gold sold (includes
amortization) |
|
|
|
|
Young-Davidson |
$1,184 |
|
$1,107 |
|
$1,266 |
|
$1,078 |
|
|
Mulatos |
$989 |
|
$954 |
|
$989 |
|
$961 |
|
| Island Gold
(1) |
$950 |
|
$1,143 |
|
$1,009 |
|
$1,143 |
|
| El
Chanate |
$7,697 |
|
$1,383 |
|
$2,858 |
|
$1,259 |
|
|
Total cash costs per ounce of gold sold (3) |
|
|
|
|
|
Young-Davidson |
$764 |
|
$690 |
|
$822 |
|
$658 |
|
|
Mulatos |
$793 |
|
$762 |
|
$786 |
|
$775 |
|
| Island Gold
(1) |
$570 |
|
$401 |
|
$589 |
|
$401 |
|
| El
Chanate |
$1,304 |
|
$1,311 |
|
$1,289 |
|
$1,188 |
|
|
Mine-site all-in sustaining costs per ounce of gold sold
(3),(4) |
|
|
|
|
Young-Davidson |
$974 |
|
$859 |
|
$1,017 |
|
$834 |
|
|
Mulatos |
$881 |
|
$798 |
|
$855 |
|
$835 |
|
| Island Gold
(1) |
$834 |
|
$546 |
|
$781 |
|
$546 |
|
| El
Chanate |
$1,333 |
|
$1,335 |
|
$1,317 |
|
$1,218 |
|
|
Capital expenditures (sustaining, growth and
capitalized exploration) (in millions)(3) |
|
|
|
Young-Davidson |
$23.1 |
|
$17.0 |
|
$86.6 |
|
$80.3 |
|
|
Mulatos(5) |
$11.8 |
|
$9.0 |
|
$35.3 |
|
$43.9 |
|
| Island Gold
(1),(6) |
$16.8 |
|
$4.8 |
|
$66.1 |
|
$4.8 |
|
| El
Chanate |
$0.1 |
|
$0.2 |
|
$0.6 |
|
$1.4 |
|
| Other |
$9.7 |
|
$8.2 |
|
$32.9 |
|
$32.1 |
|
(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 and 98,600 ounces
respectively.(2) Cost of sales includes mining and
processing costs, royalties and amortization. For the three months
and year ended December 31, 2018, cost of sales includes a $64.0
million non-cash inventory impairment charge at El
Chanate.(3) Refer to the “Non-GAAP Measures and
Additional GAAP Measures” disclosure at the end of this press
release and associated MD&A 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 at Mulatos of $0.6 million and $2.9 million for the
three and twelve months ended December 31, 2018 ($1.0 million and
$6.9 million for the three and twelve months ended December 31,
2017).(6) Includes capitalized exploration at Island
Gold of $3.1 million and $15.6 million for the three and twelve
months ended December 31, 2018.
Outlook and Strategy
| 2019
Guidance |
|
|
Young-Davidson |
Mulatos |
Island Gold |
El Chanate |
Turkey |
Other (2) |
Total |
| Gold
production (000’s ounces) |
180-190 |
150-160 |
135-145 |
15-25 |
|
|
480-520 |
|
Cost of sales, including
amortization (in
millions)(4),(5) |
$226 |
$165 |
$123 |
$26 |
— |
— |
$540 |
|
Cost of sales, including amortization
($ per ounce)(4),(5) |
$1,220 |
$1,065 |
$880 |
$1,300 |
— |
— |
$1,080 |
| Total cash
costs ($ per ounce)(1),(5) |
$750-790 |
$820-860 |
$460-500 |
$1,200 |
— |
— |
$710-750 |
|
All-in sustaining costs ($ per
ounce)(1),(5) |
|
|
|
|
— |
— |
$920-960 |
| Mine-site
all-in sustaining costs ($ per
ounce)(1),(3),(5) |
$940-980 |
$860-900 |
$730-770 |
$1,200 |
— |
— |
— |
|
Amortization costs ($ per ounce)(1) |
$450 |
$225 |
$400 |
$100 |
— |
— |
$350 |
| Capital
expenditures (in millions) |
|
|
|
|
|
|
|
|
Sustaining capital(1) |
$35-40 |
$5.0 |
$35-40 |
— |
— |
— |
$75-85 |
|
Growth capital(1) |
$45-50 |
$45-50 (6) |
$15-20 |
— |
$75 |
$35 (2) |
$215-230 |
|
Total capital expenditures(1) |
$80-90 |
$50-55 |
$50-60 |
— |
$75 |
$35 |
$290-315 |
(1) Refer to the "Non-GAAP Measures and Additional
GAAP" disclosure at the end of this press release and associated
MD&A for a description of these measures.(2)
Includes capitalized exploration at all operating sites and
development projects (excluding Turkey which is separately
disclosed).
(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, and is calculated based
on the mid-point of guidance.
(5) Company-wide cost of sales,
total cash costs, and all-in sustaining costs guidance have been
updated from original guidance. The Company has not revised
guidance for cost of sales, total cash costs, and mine-site all-in
sustaining costs at individual mine sites.(6)
Includes capital spending at Cerro Pelon and La Yaqui Grande
of approximately $33 million
The Company’s long-term strategic objective is
to generate increasing cash flow through low-cost production growth
from its existing operations and portfolio of development projects.
In 2018, the Company produced a record 505,000 ounces of gold, an
18% increase from 2017, driven by strong operational performances
from both Island Gold and Mulatos. Since 2014, Alamos has
transformed from a single asset producer with 140,000 ounces of
annualized production to producing 505,000 ounces from four
operating mines. This transformational growth has been accomplished
while also improving margins through lower operating costs. Looking
forward, the Company anticipates a substantial reduction in growth
capital in 2020 and beyond and a further reduction in costs, which
will lead to strong free cash flow growth.
In 2018, the Company continued to execute on its
various internal growth initiatives. This included advancing the
lower mine expansion at Young-Davidson, as well as the successful
completion of the Phase I expansion at Island Gold while also
delivering a significant increase in Mineral Reserves and Resources
which will support future expansions. Within the development
pipeline, the permits for the Cerro Pelon project in Mexico were
received in 2018 and construction has now commenced. In addition,
the GSM permit for the Kirazlı project in Turkey was received with
full scale construction anticipated to commence following the
receipt of the Operating License.
The Company expects a similar level of
production in 2019, relative to 2018, with total cash costs and
all-in sustaining costs expected to decrease 9% and 5%,
respectively (based on the mid-point of guidance) driven by
operational improvements at Young-Davidson and low-cost production
growth at Island Gold. Costs and capital are expected to decline
through the year driving stronger mine-site free cash flow in the
second half of the year.
The near-term focus at Young-Davidson remains on
maximizing efficiency from the upper mine infrastructure, while
completing development and construction of the lower mine. Gold
production at Young-Davidson is expected to increase slightly in
2019 to a range of 180,000 to 190,000 ounces, compared to 2018
production of 180,000 ounces. Total cash costs and mine-site all-in
sustaining costs are expected to decrease 6% compared to 2018,
driven by higher underground mining rates and grades mined.
Young-Davidson’s 2019 guidance for production, mining rates,
operating costs and capital are all consistent with its average
performance over the past two years.
Capital spending at Young-Davidson is expected
to total $80 to $90 million, consistent with 2018. Spending will be
focused on completing development and infrastructure of the lower
mine as well as starting construction of a newly permitted tailings
facility (“TIA 1”). The Company successfully completed permitting
of TIA 1 during the fourth quarter of 2018 with receipt of the
Schedule 2 Amendment from the Federal government. TIA 1 will
provide sufficient capacity for the remaining Mineral Reserves and
Resources at Young-Davidson at substantially lower costs than the
current facility.
Gold production from Young-Davidson is expected
to decrease in 2020 reflecting approximately three months of
downtime of the Northgate shaft to complete the tie-in of the upper
and lower mines. This will temporarily limit underground throughput
and impact three months of production during the first half of
2020. Following completion of the tie-in, underground mining rates
are expected to ramp up above 7,500 tpd in the second half of 2020
and towards the long-term target of 8,000 tpd in 2021. This is
expected to drive annual gold production above 200,000 ounces per
year in 2021 and beyond. Combined with declining costs and capital
spending, the Company expects strong free cash flow growth from
Young-Davidson starting in the second half of 2020.
Island Gold is expected to produce between
135,000 to 145,000 ounces in 2019, a 32% increase relative to the
previous record in 2018, reflecting higher grades and throughput
with the completion of the Phase I expansion last year. Combined
with an expected 19% decrease in total cash costs and 4% decrease
in mine-site all-in sustaining costs, Island Gold is expected to
generate strong free cash flow growth in 2019, net of a continued
significant investment of $19 million in exploration to further
expand Mineral Reserves and Resources.
Capital spending at Island Gold is expected to
total $50 to $60 million in 2019, consistent with 2018. This
includes $35 to $40 million of sustaining capital with underground
development being accelerated to bring the significant growth in
Mineral Reserves and Resources into the mine plan as well as
support mining rates above 1,100 tpd. Lateral exploration
development has also been increased to support the expanded
exploration program.
The Phase I expansion at Island Gold was
completed in September 2018, expanding the mill to a design
capacity of approximately 1,200 tpd. The current mine
infrastructure can support similar mining rates; however, the
operation is currently permitted to operate at an average annual
rate of 1,100 tpd. With a mine and mill that can support
higher throughput rates, the Company is in the process of
permitting an amendment to 1,200 tpd which is expected to be
received by the end of 2019 as part of a Phase II expansion. In
parallel, the Company has started an evaluation of a potential
Phase III expansion of the operation beyond 1,200 tpd.
Total production from the Mulatos District is
expected to be between 150,000 to 160,000 ounces of gold in 2019,
consistent with long term guidance provided in January 2018.
Mulatos significantly outperformed this production range in 2018
reflecting higher than expected recoveries at La Yaqui and Mulatos,
and extended production from the high-grade San Carlos underground
deposit which reached the end of its mine life in the third quarter
of 2018. Mine-site all-in sustaining costs are expected to decrease
relative to 2018 guidance of $900 per ounce reflecting the end of
the 5% royalty early in 2019. Mine-site all-in sustaining
costs are expected to increase slightly from 2018 with the
operation having outperformed in 2018 given the above noted
factors.
Capital spending across the Mulatos District is
expected to total $50 to $55 million in 2019 including $5 million
of sustaining capital. This increased from 2018 reflecting $25
million budgeted in 2019 for development of the Cerro Pelon
project. Cerro Pelon is higher grade, higher return project and is
expected to start contributing low cost production in 2020.
Mining activities ceased at El Chanate in the
fourth quarter of 2018 and the operation has transitioned to
residual leaching which will result in a declining rate of
production through 2019. Mine-site all-in sustaining costs
are expected to average $1,200 per ounce in 2019, with
approximately 25% of those costs having been already incurred.
Development capital spending in 2019 will be
primarily focused on the construction of the Kirazlı project, with
the bulk of the remainder comprised of capitalized exploration at
Island Gold and exploration, permitting and development activities
at Lynn Lake.
The 2019 global exploration budget is $33
million, down slightly from the 2018 budget reflecting lower
exploration spending at Mulatos. Island Gold continues to be the
main focus of exploration with $19 million budgeted, an increase
from the 2018 initial budget of $15 million. Mulatos and Lynn Lake
remain the other two areas of focus with $6 million budgeted for
each.
With over $600 million of cash and available
liquidity, no debt, and growing cash flow from its operations, the
Company is well positioned to fund its internal growth
initiatives.
Fourth Quarter and Full Year 2018
Results
Young-Davidson Financial and Operational
Review
| |
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 |
2018 |
|
2017 |
|
| Gold production
(ounces) |
50,900 |
|
56,500 |
|
180,000 |
|
200,000 |
|
| Gold sales (ounces) |
51,944 |
|
52,475 |
|
185,593 |
|
197,937 |
|
| Financial
Review (in millions) |
|
|
|
|
| Operating Revenues |
$64.4 |
|
$66.8 |
|
$236.3 |
|
$249.7 |
|
| Cost of sales (1) |
$61.5 |
|
$58.1 |
|
$235.0 |
|
$213.4 |
|
| Earnings from operations |
$2.9 |
|
$8.7 |
|
$1.3 |
|
$36.3 |
|
| Cash provided by operating activities |
$23.6 |
|
$33.4 |
|
$97.5 |
|
$114.5 |
|
| Capital expenditures (sustaining) (2) |
$10.8 |
|
$8.7 |
|
$35.8 |
|
$34.1 |
|
| Capital expenditures (growth) (2) |
$12.3 |
|
$8.3 |
|
$50.8 |
|
$46.2 |
|
| Mine-site free cash flow (2) |
$0.5 |
|
$16.4 |
|
$10.9 |
|
$34.2 |
|
| Cost
of sales, including amortization per ounce of gold sold (1) |
$1,184 |
|
$1,107 |
|
$1,266 |
|
$1,078 |
|
| Total cash costs per
ounce of gold sold (2) |
$764 |
|
$690 |
|
$822 |
|
$658 |
|
| Mine-site all-in
sustaining costs per ounce of gold sold (2),(3) |
$974 |
|
$859 |
|
$1,017 |
|
$834 |
|
| Underground Operations |
|
|
|
|
| Tonnes of ore mined |
588,956 |
|
664,847 |
|
2,280,399 |
|
2,423,289 |
|
| Tonnes of ore mined per day
("tpd") |
6,402 |
|
7,227 |
|
6,248 |
|
6,639 |
|
| Average grade of gold (4) |
2.71 |
|
2.70 |
|
2.51 |
|
2.69 |
|
| Metres developed |
2,975 |
|
2,776 |
|
12,009 |
|
12,787 |
|
| Mill
Operations |
|
|
|
|
| Tonnes of ore processed |
745,567 |
|
716,273 |
|
2,683,962 |
|
2,735,267 |
|
| Tonnes of ore processed per
day |
8,104 |
|
7,786 |
|
7,353 |
|
7,494 |
|
| Average grade of gold (4) |
2.39 |
|
2.59 |
|
2.31 |
|
2.47 |
|
| Contained ounces milled |
57,192 |
|
59,561 |
|
197,701 |
|
217,184 |
|
| Average
recovery rate |
92 |
% |
92 |
% |
92 |
% |
92 |
% |
(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 and associated MD&A 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 met revised production guidance
with strong fourth quarter production of 50,900 ounces of gold.
This was lower than the comparative quarter of 2017; however, a 4%
improvement from the third quarter of 2018 and the highest
quarterly production of the year reflecting higher underground
mining rates and grades. Full year production of 180,000 ounces
decreased 10% from 2017 primarily due to unscheduled downtime
encountered in the first half of 2018 to both the Northgate hoist
and the mill.
Underground mining rates increased to 6,402 tpd
in the fourth quarter, a 7% increase from the third quarter and
in-line with revised near-term guidance of 6,500 tpd until the
tie-in of the lower mine in the first half of 2020 is completed.
For the full year, underground mining rates were below prior year
rates at 6,248 tpd due to temporary ore pass challenges experienced
in the first half of the year, and eight days of downtime to the
Northgate shaft in the second quarter. Underground mining rates are
expected to increase substantially in the second half of 2020
following completion of the lower mine tie-in.
Underground grades mined also improved
significantly to 2.71 g/t Au in the fourth quarter, a 5% increase
from the third quarter and the highest grades of the year.
Underground grades mined of 2.51 g/t Au for the year were slightly
below guided levels and reserve grade of 2.69 g/t Au, due primarily
to mine sequencing.
Mill throughput increased to a record 745,567
tonnes, or 8,104 tpd, in the fourth quarter, an 11% increase from
the third quarter, bringing full year mill throughput to 7,353 tpd.
Mill throughput is expected to average 7,800 tpd in the first half
of 2019 before decreasing to match underground mining rates in the
second half of the year once lower grade surface stockpiles have
been depleted.
Mill recoveries of 92% in the quarter and
year-to-date were in line with expectations and the prior year
period.
Financial Review
Fourth quarter revenues of $64.4 million were
consistent with the comparative prior year quarter, and 12% higher
than the third quarter of 2018 reflecting higher ounces sold and a
higher realized gold price. Revenues of $236.3 million in 2018 were
$13.4 million lower than the prior year due to a 6% decline in
ounces sold, partially offset by a higher realized gold price.
Cost of sales, which reflects mining and
processing costs, royalties, and amortization expense of $61.5
million were higher than the comparative quarter of 2017 reflecting
higher per tonne underground mining costs and processing costs. For
2018, cost of sales were $235.0 million, an increase of $21.6
million due to higher underground mining costs, primarily
attributable to increased maintenance and input costs.
Total cash costs decreased to $764 per ounce in
the fourth quarter, down 7% from the third quarter and the lowest
quarterly costs in 2018. Total cash costs were 11% higher than the
fourth quarter of 2017 due to lower grades processed and a higher
mining cost per tonne. Mining costs of CAD $51 per tonne in the
quarter were above budget, reflecting the impact of lower mining
rates on fixed costs, as well as higher diesel and maintenance
costs. Total cash costs of $822 per ounce for 2018 were 25% higher
than the prior year period reflecting 7% lower grades mined, and a
16% increase in mining cost per tonne.
Mine-site AISC also decreased to $974 per ounce
in the fourth quarter, down 5% from the third quarter. For the full
year, mine-site AISC averaged $1,017 per ounce. Mine-site
AISC were 13% and 22% higher than the prior year quarter and prior
year, respectively, reflecting higher total cash costs and higher
sustaining capital. Total cash costs and mine-site AISC are both
expected to decrease by approximately 6% in 2019.
Capital expenditures were $23.1 million in the
fourth quarter, higher than the same quarter of 2017. This included
$10.8 million of sustaining capital and $12.3 million of growth
capital. Major capital spending in the fourth quarter was focused
on lower mine development and lateral development in the upper and
lower mines. Capital expenditures of $86.6 million for the
twelve-month period were higher than the prior year period and
guidance reflecting increased spending on tailings and water
management.
Young-Davidson generated mine-site free cash
flow of $0.5 million in the fourth quarter and $10.9 million for
the full year, lower than the same periods of 2017 due to less
ounces sold, lower gross margins and higher capital spending.
Island Gold Financial and Operational
Review
| |
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 (1) |
2018 |
2017 (1) |
| Gold production (ounces) (1) |
29,000 |
|
9,000 |
|
105,800 |
|
9,000 |
|
| Gold sales (ounces) (1) |
30,199 |
|
11,720 |
|
105,520 |
|
11,720 |
|
|
Financial Review (in millions) |
|
|
|
|
| Operating Revenues |
$37.5 |
|
$14.9 |
|
$135.1 |
|
$14.9 |
|
| Cost of sales (2) |
$28.7 |
|
$13.4 |
|
$106.5 |
|
$13.4 |
|
| Earnings from operations |
$7.8 |
|
$1.5 |
|
$27.2 |
|
$1.5 |
|
| Cash provided by operating activities |
$16.3 |
|
$11.8 |
|
$75.9 |
|
$11.8 |
|
| Capital expenditures (sustaining) (3) |
$8.0 |
|
$1.7 |
|
$20.2 |
|
$1.7 |
|
| Capital expenditures (growth) (3) |
$5.7 |
|
$2.0 |
|
$30.3 |
|
$2.0 |
|
| Capital expenditures (capitalized exploration)
(3) |
$3.1 |
|
$1.1 |
|
$15.6 |
|
$1.1 |
|
| Mine-site free cash flow (3) |
($0.5 |
) |
$7.0 |
|
$9.8 |
|
$7.0 |
|
| Cost
of sales, including amortization per ounce of gold sold (2) |
$950 |
|
$1,143 |
|
$1,009 |
|
$1,143 |
|
| Total cash costs per
ounce of gold sold (3) |
$570 |
|
$401 |
|
$589 |
|
$401 |
|
| Mine-site all-in
sustaining costs per ounce of gold sold (3),(4) |
$834 |
|
$546 |
|
$781 |
|
$546 |
|
| Underground Operations |
|
|
|
|
| Tonnes of ore mined |
102,692 |
|
94,407 |
|
344,336 |
|
374,962 |
|
| Tonnes of ore mined per day
("tpd") |
1,116 |
|
1,026 |
|
943 |
|
1,027 |
|
| Average grade of gold (5) |
8.95 |
|
9.44 |
|
9.07 |
|
9.42 |
|
| Metres developed |
1,560 |
|
1,667 |
|
6,477 |
|
6,906 |
|
| Mill
Operations |
|
|
|
|
| Tonnes of ore processed |
105,432 |
|
84,559 |
|
369,767 |
|
338,603 |
|
| Tonnes of ore processed per
day |
1,146 |
|
919 |
|
1,013 |
|
928 |
|
| Average grade of gold (5) |
9.02 |
|
8.46 |
|
9.20 |
|
9.36 |
|
| Contained ounces milled |
30,621 |
|
23,005 |
|
109,414 |
|
101,842 |
|
| Average
recovery rate |
96 |
% |
96 |
% |
96 |
% |
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 and 98,600 ounces.(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 and associated MD&A 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 a record 29,000 ounces in
the fourth quarter and a record 105,800 ounces for the full year, a
7% increase from 2017. Island Gold exceeded expectations in
2018 with full-year production meeting the mid-point of revised
guidance, which had been increased twice during the year.
Underground mining rates increased to 102,692
tonnes, or 1,116 tpd in the fourth quarter. This marked a 37%
improvement from the third quarter as mining rates were increased
to match the expanded mill capacity. For the full-year, 344,336
tonnes were mined, or 943 tpd, with mining rates in line with
milling capacity prior to completing the mill expansion.
Underground mining rates are expected to average 1,100 tpd in 2019,
a 17% increase from average mining rates of 943 tpd in 2018.
Underground grades mined averaged 8.95 g/t Au in the fourth quarter
and 9.07 g/t Au for the full year, the latter above guidance
reflecting a positive grade reconciliation.
Mill throughput increased to a new record of
105,432 tonnes, or 1,146 tpd in the fourth quarter reflecting the
completion of the Phase I expansion of the mill in September 2018.
This marked a 13% increase compared to the third quarter and 25%
increase compared to the prior year quarter. The Phase I expansion
has increased the design capacity of the mill to approximately
1,200 tpd; however, the operation is currently permitted to operate
at an average annual rate of 1,100 tpd. With a mine and mill that
can support higher throughput rates, the Company is in the process
of permitting an amendment to 1,200 tpd which is expected to be
received by the end of 2019 as part of a Phase II expansion.
Mill recoveries were 96% for both the fourth
quarter and full year, in line with the prior year and budget.
Milled grades of 9.02 g/t Au for the quarter and 9.20 g/t Au for
the year were consistent with underground grades mined. Milled
grades are expected to increase to between 10.50 and 11.50 g/t Au
in 2019. Combined with higher mining and milling rates, this is
expected to drive a 32% increase in gold production in 2019 (based
on the mid-point of guidance).
Financial Review
With the Company acquiring Island Gold on
November 23, 2017, financial information prior to the acquisition
date has not been included in the comparative table above.
Island Gold generated revenues of $37.5 million
in the fourth quarter reflecting record gold production and ounces
sold. Revenues for the year were $135.1 million compared to $14.9
million in the prior year, which was a partial period.
Cost of sales in the fourth quarter and for the
full year were $28.7 million and $106.5 million, respectively. Cost
of sales includes ongoing amortization charges related to the
purchase price of the asset, which increases amortization to
approximately $375 per ounce based on current Mineral Reserves and
Resources.
Total cash costs were $570 per ounce in the
fourth quarter, a 15% improvement from the third quarter of 2018,
reflecting lower per tonne mining costs driven by higher mining
rates. Full year total cash costs of $589 per ounce were slightly
above annual guidance of $575 per ounce reflecting higher
underground mining costs, partially offset by higher grades mined.
Total cash costs are expected to decrease approximately 19% in 2019
driven by higher grades mined and mining rates.
Mine-site AISC of $834 per ounce in the fourth
quarter were slightly above annual guidance of $825 per ounce
primarily reflecting the timing of sustaining capital, as spending
was below budget for the first half of the year. Full year
mine-site AISC of $781 per ounce were below full year guidance
reflecting higher production and lower sustaining capital.
Capital expenditures totaled $16.8 million in
the fourth quarter, with spending focused primarily on lateral
development, mining equipment, and capitalized exploration. This
included $8.0 million of sustaining capital and $8.8 million of
growth capital (inclusive of capitalized exploration). For 2018,
capital expenditures totaled $66.1 million, consistent with
guidance. This included $15.6 million of capitalized exploration
focused on increasing near-mine Mineral Resources.
Mine-site free cash flow was negative $0.5
million during the fourth quarter due to timing of capital
spending. For 2018, Island Gold generated mine-site free cash flow
of $9.8 million, ahead of budget driven by stronger than expected
production. Island Gold is expected to generate strong free cash
flow growth in 2019 driven by higher production and lower
costs.
Mulatos Financial and Operational
Review
| |
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 |
2018 |
|
2017 |
|
| Gold production
(ounces) |
35,600 |
|
42,700 |
|
175,500 |
|
160,000 |
|
| Gold sales (ounces) |
38,819 |
|
50,006 |
|
175,104 |
|
159,276 |
|
| Financial
Review (in millions) |
|
|
|
|
| Operating Revenues |
$48.1 |
|
$64.0 |
|
$223.3 |
|
$201.4 |
|
| Cost of sales (1) |
$38.4 |
|
$47.7 |
|
$173.1 |
|
$153.0 |
|
| Earnings from operations |
$8.8 |
|
$14.5 |
|
$42.7 |
|
$41.7 |
|
| Cash provided by operating activities |
$14.7 |
|
$22.3 |
|
$71.0 |
|
$64.3 |
|
| Capital expenditures (sustaining) (2) |
$2.5 |
|
$0.9 |
|
$7.2 |
|
$5.5 |
|
| Capital expenditures (growth) (2) |
$8.7 |
|
$7.1 |
|
$25.2 |
|
$19.0 |
|
| Capital expenditures
(capitalized exploration) (2) |
$0.6 |
|
$1.0 |
|
$2.9 |
|
$6.9 |
|
| La Yaqui Phase I
construction cost (2) |
$— |
|
$— |
|
$— |
|
$12.5 |
|
| Mine-site free cash
flow, excluding La Yaqui construction costs (2) |
$2.9 |
|
$13.3 |
|
$35.7 |
|
$32.9 |
|
| Cost
of sales, including amortization per ounce of gold sold (1) |
$989 |
|
$954 |
|
$989 |
|
$961 |
|
| Total
cash costs per ounce of gold sold (2) |
$793 |
|
$762 |
|
$786 |
|
$775 |
|
| Mine site
all-in sustaining costs per ounce of gold sold (2),(3) |
$881 |
|
$798 |
|
$855 |
|
$835 |
|
| Open Pit &
Underground Operations |
|
|
|
|
| Tonnes of ore mined - open pit
(4) |
2,118,300 |
|
2,575,306 |
|
8,479,211 |
|
8,485,933 |
|
| Total waste mined - open pit |
1,081,811 |
|
1,719,986 |
|
6,037,427 |
|
6,443,971 |
|
| Total tonnes mined - open pit |
4,270,049 |
|
4,515,673 |
|
17,267,699 |
|
15,566,165 |
|
|
Waste-to-ore ratio (operating) |
0.51 |
|
0.67 |
|
0.71 |
|
0.76 |
|
| Tonnes of ore mined -
underground |
0 |
|
23,238 |
|
48,772 |
|
100,701 |
|
| Crushing and
Heap Leach Operations |
|
|
|
|
| Tonnes of ore stacked |
1,776,719 |
|
1,745,513 |
|
6,795,175 |
|
6,796,155 |
|
| Average grade of gold processed
(5) |
0.92 |
|
0.91 |
|
0.90 |
|
0.92 |
|
| Contained
ounces stacked |
52,296 |
|
51,242 |
|
195,606 |
|
201,222 |
|
| Mill Operations |
|
|
|
|
| Tonnes of high grade ore
milled |
0 |
|
31,449 |
|
91,680 |
|
133,328 |
|
| Average grade of gold processed
(5) |
0.00 |
|
8.15 |
|
6.70 |
|
9.42 |
|
| Contained ounces milled |
0 |
|
8,238 |
|
19,744 |
|
40,378 |
|
|
Total contained ounces stacked and milled |
52,296 |
|
59,480 |
|
215,350 |
|
241,600 |
|
| Recovery ratio (ratio of
ounces produced to contained ounces stacked and milled) |
68 |
% |
72 |
% |
81 |
% |
66 |
% |
| Ore crushed per day
(tonnes) - combined |
19,300 |
|
19,300 |
|
18,900 |
|
19,000 |
|
(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 and associated MD&A 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").
Mulatos produced 35,600 ounces in the fourth
quarter, a decrease from the first three quarters of the year as
mining from the San Carlos underground deposit ceased in the third
quarter. For the full year, Mulatos produced 175,500 ounces
meeting the mid-point of revised guidance, which was increased
twice during the year. Mulatos outperformed initial guidance and
budget with the San Carlos underground mine operating approximately
six months longer than expected, as well as higher than budgeted
heap leach recoveries from both Mulatos and La Yaqui Phase I. With
no further production from San Carlos, the Company expects 2019
production to return to the previously guided long term range of
150,000 to 160,000 ounces.
Total tonnes mined in the fourth quarter were 6%
lower than the prior year quarter, due to an unexpected pit slope
movement in the El Salto area of the open pit which temporarily
impacted access to the Mulatos pit. On a year-to-date basis, total
tonnes mined were 11% higher than 2017 reflecting a full year of
mining at La Yaqui Phase I compared to one quarter in the prior
year. The waste-to-ore ratio of 0.51:1 was lower than the prior
year quarter and guidance.
Total crusher throughput averaged 19,300 tpd for
a total of 1,776,719 tonnes stacked in the fourth quarter at a
grade of 0.92 g/t Au, both in line with the prior year period.
Total crusher throughput and grade for the year was also in line
with the prior year period, and slightly above guidance.
The recovery ratio of ounces produced to
contained ounces stacked and milled was 68% in the quarter compared
to 72% in the prior year period. For the full-year, the recovery
ratio of 81% significantly outperformed guidance of 75%, resulting
in stronger production for the year. The Company expects a recovery
ratio of 70% in 2019.
Financial Review
Fourth quarter revenues of $48.1 million were
$15.9 million lower than the prior year quarter, primarily due to
lower concentrate ounces sold in 2018 with the completion of mining
at San Carlos in September. Revenues for 2018 were $223.3 million,
an 11% increase from the prior year due to higher realized gold
prices and ounces sold.
Cost of sales of $38.4 million in the fourth
quarter were lower than the prior year period, due to lower tonnes
mined in the open pit and the completion of underground mining at
San Carlos. For the full year of 2018, cost of sales of $173.1
million were higher than the prior year reflecting higher total
tonnes mined and increased amortization related to mining at La
Yaqui Phase I.
Total cash costs of $793 per ounce in the fourth
quarter were higher than $762 per ounce in the prior year quarter,
as a result of lower recoveries, partially offset by a lower strip
ratio. Total cash costs averaged $786 per ounce in 2018, below full
year guidance of $800 per ounce and consistent with 2017 costs of
$775 per ounce.
Mine-site AISC in the fourth quarter of $881 per
ounce were higher than the $798 per ounce reported in the prior
year quarter, due to timing of sustaining capital spending and
higher cash costs. Mine-site AISC averaged $855 per ounce in 2018,
below guidance of $900 per ounce and consistent with the prior year
period.
Mulatos generated mine-site free cash flow of
$2.9 million in the fourth quarter and $35.7 million for the full
year, driven by stronger than expected production, and increased
operating margins. A portion of Mulatos' strong cash flow in 2018
was invested in permitting and early construction activities at
Cerro Pelon, advancing permitting at La Yaqui Grande, as well as
funding ongoing exploration activities.
El Chanate Financial and Operational Review
| |
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 |
2018 |
|
2017 |
|
| Gold production
(ounces) |
10,100 |
|
12,100 |
|
43,700 |
|
60,400 |
|
| Gold sales (ounces) |
10,199 |
|
12,585 |
|
43,662 |
|
61,182 |
|
| Financial
Review (in millions) |
|
|
|
|
| Operating Revenues |
$13.1 |
|
$16.0 |
|
$57.1 |
|
$76.8 |
|
| Cost of sales (1) |
$78.5 |
|
$17.4 |
|
$124.8 |
|
$77.0 |
|
| Loss from operations |
($65.4 |
) |
($1.4 |
) |
($67.7 |
) |
($0.2 |
) |
| Cash provided by operating activities |
$2.4 |
|
$0.6 |
|
$0.6 |
|
$4.8 |
|
| Capital expenditures |
$0.1 |
|
$0.2 |
|
$0.6 |
|
$1.4 |
|
| Mine-site free cash flow (2) |
$2.3 |
|
$0.4 |
|
$— |
|
$3.4 |
|
| Cost
of sales, including amortization per ounce of gold sold (1) |
$7,697 |
|
$1,383 |
|
$2,858 |
|
$1,259 |
|
| Total cash costs per
ounce of gold sold (2) |
$1,304 |
|
$1,311 |
|
$1,289 |
|
$1,188 |
|
| Mine site all-in
sustaining costs per ounce of gold sold (2),(3) |
$1,333 |
|
$1,335 |
|
$1,317 |
|
$1,218 |
|
| Open Pit Operations |
|
|
|
|
| Tonnes of ore mined |
481,623 |
|
895,545 |
|
3,050,636 |
|
4,475,004 |
|
| Total tonnes mined |
658,014 |
|
4,156,001 |
|
8,815,076 |
|
22,646,606 |
|
|
Waste-to-ore ratio (operating) |
0.37 |
|
3.64 |
|
1.89 |
|
4.06 |
|
| Average
grade of gold (4) |
0.52 |
|
0.48 |
|
0.55 |
|
0.47 |
|
| Crushing and Heap Leach
Operations |
|
|
|
|
| Total tonnes
of ore stacked |
573,336 |
|
988,640 |
|
3,066,456 |
|
4,536,847 |
|
| Average
grade of gold (4) |
0.52 |
|
0.48 |
|
0.55 |
|
0.50 |
|
| Total
contained ounces stacked |
9,585 |
|
15,257 |
|
54,224 |
|
72,932 |
|
| Ore crushed
and run-of-mine ore stacked per day (tonnes) - combined |
6,200 |
|
10,700 |
|
8,400 |
|
12,400 |
|
(1) Cost of sales includes mining
and processing costs, royalties and amortization. For the three
months and year ended December 31, 2018, cost of sales includes a
$64.0 million non-cash inventory impairment charge at El
Chanate.(2) Refer to the “Non-GAAP Measures and
Additional GAAP Measures” disclosure at the end of this press
release and associated MD&A 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 10,100 ounces of gold in the
fourth quarter of 2018, down from 12,100 ounces in the prior year
quarter as the operation has transitioned to residual
leaching in the quarter. Mining activities ceased at El Chanate on
October 30, 2018. The Company expects to recover between 15,000 and
25,000 ounces in 2019 through residual leaching.
Financial Review
Fourth quarter revenues of $13.1 million were
lower than the prior year quarter due to fewer ounces sold as
mining activities wound down during the period. Revenues for 2018
of $57.1 million were down from $76.8 million in the prior year
period due to a lower realized gold price and ounces sold.
During the fourth quarter, the Company reviewed
the heap leach pad inventory at the El Chanate mine as the
operation transitioned to residual leaching activities. This
included an analysis of the number of ounces included in inventory
on the heap leach pad that are expected to be recovered
economically. It was determined that approximately 51,900 ounces
are not economically recoverable. As a result, the Company
incurred a non-cash inventory impairment charge of $64.0 million
(pre-tax) which has been included in cost of sales.
Total cash costs per ounce of $1,304 for the
fourth quarter, were consistent with the prior year period. Total
cash costs per ounce of $1,289 in 2018 were higher than 2017
reflecting lower ounces stacked in the period, and higher per-tonne
mining and processing costs resulting from lower throughput.
Mine-site AISC per ounce were $1,333 for the quarter and $1,317 for
the full year.
Mine-site free cash flow was $2.3 million in the
quarter and break-even for the year. The Company expects mine-site
free cash flow to improve in 2019 with the transition to residual
leaching.
Fourth Quarter 2018 Development Activities
Kirazlı (Çanakkale, Turkey)
The Company has been granted the three major
permits required for the start of construction of Kirazlı including
the Environmental Impact Assessment, Forestry Permits and GSM
(Business Opening and Operation) permit.
There are several additional permits required
prior to the start of gold production at Kirazlı, which the Company
expects to receive in due course. As disclosed in December 2018,
the next permit required to meet the construction schedule is an
Operating License which allows for the start of earthworks on the
future open pit. Following receipt of the Operating License, the
Company expects to ramp up major construction and earthworks
activities, putting initial production from Kirazlı on track for
the second half of 2020.
The Company spent $20.9 million of Kirazlı's
initial capital of $152 million in 2018 with road construction
complete and the water reservoir and power line 50% and 85%
complete, respectively.
As outlined in the 2017 Feasibility Study,
Kirazlı has a 44% after-tax internal rate of return and is expected
to produce over 100,000 ounces of gold during its first full year
of production at mine-site all-in sustaining costs of less than
$400 per ounce.
Mulatos District (Sonora,
Mexico)
Cerro Pelon and La Yaqui Grande
The environmental impact assessment (“MIA”) for
Cerro Pelon was submitted during the second quarter of 2018, with
approval of the MIA and Change in Land Use permits received in the
fourth quarter. The Company has invested $3.4 million on permitting
and engineering activities at these projects in the fourth quarter,
and $6.8 million for the full year. On receipt of these permits,
the Company has commenced full scale construction, with $25 million
budgeted in 2019 for development of the project.
Given its proximity to Mulatos’ infrastructure,
ore from the Cerro Pelon open pit will be trucked to the existing
heap leach circuit for crushing and processing. Recently
completed work includes construction of a bridge to cross the
overland conveyor, and a haulage road and crushing circuit which
will be located at the Mulatos mine. Cerro Pelon is a higher grade,
high return project, and is expected to start contributing low cost
production in 2020, driving down combined Mulatos District
costs.
In addition, $8 million is budgeted in 2019 for
permitting and engineering of La Yaqui Grande. The MIA for La Yaqui
Grande was submitted late in 2018 with approval expected in the
second half of 2019.
Lynn Lake (Manitoba,
Canada)
The Company released a positive Feasibility
Study on the Lynn Lake 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.
Over the past year, the Company has been
evaluating value engineering initiatives to enhance the project’s
economics, including modifications to the overall site layout,
structures and foundations for the process plant, and review of the
camp location. This work along with 259,000 ounces of newly defined
Mineral Reserves that were not included in the 2017 Feasibility
Study will be incorporated into an updated Feasibility Study which
is expected to be completed in the second quarter of 2019.
Development spending in the fourth quarter of $0.6 million related
to project optimization activities, and $2.4 million for the full
year.
The 2019 capital budget for Lynn Lake is $11
million, including $5 million for development activities and $6
million for exploration. Development spending will be focused on
completing the updated Feasibility Study and 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.
Fourth Quarter 2018 Exploration Activities
Island Gold (Ontario, Canada)
The 2018 exploration program targeted three main
areas within the Island Main Zone which extends over two-kilometres
along strike. The focus was on expanding the down-plunge and
lateral extensions of the deposit with the objective of adding new
near-mine Mineral Resources. Drill holes in the Main and Western
Extension areas were testing high-grade, east-plunging shoots below
existing Mineral Reserves and Resources. Drill holes in the Eastern
Extension were exploring for additional plunging shoots along
strike beyond existing Mineral Reserves and Resources.
The 2018 exploration budget included 45,000
metres ("m") of surface directional exploration drilling, 30,000 m
of underground exploration drilling, 35,000 m of underground
delineation drilling and 15,000 m of regional exploration
drilling.
The underground delineation drilling program was
focused on converting Inferred Mineral Resources into Indicated
Mineral Resources. This drilling was conducted from the 340, 450,
620, 730, and 840 levels.
Surface exploration drilling
A total of 9 holes were completed in the fourth
quarter as part of the directional drilling program which totaled
11,737 m. Directional drilling targeted areas peripheral to the
Inferred Mineral Resource blocks below the 1,000 m level, with
drill hole spacing ranging from 75 m to 100 m. The area that was
targeted by the surface directional drill program extends
approximately 2,000 m in strike length between the 1,000 m and
1,500 m elevation below surface.
The surface directional drilling program will
continue in 2019 with a focus on defining new Inferred Mineral
Resources.
In the fourth quarter, 5 holes totalling 6,039 m
were completed as part of the regional exploration drilling program
to drill test targets along the Goudreau Deformation Zone to the
west of the main Island Gold Mine deposit and at the Kremzar Gold
Deposit.
Underground exploration drilling
During the fourth quarter of 2018, a total of
2,596 m of underground exploration diamond drilling was completed
in 7 holes from the 450 and 840 levels. The objective of the
underground drilling is to identify new Mineral Resources close to
existing Mineral Resource or Reserve blocks.
Total capitalized exploration expenditures at
Island Gold during the fourth quarter of 2018 were $3.1 million,
with full year capitalized exploration expenditures of $15.6
million.
Mulatos District (Sonora,
Mexico)
The Company has a large exploration package
covering 28,972 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. After significant
exploration success at La Yaqui Grande over the past few years, the
focus in 2018 has shifted to other parts of the district including
El Carricito, El Halcon and El Jaspe.
In the fourth quarter of 2018, the Company
invested $1.5 million in exploration activities within the Mulatos
District, of which $0.6 million was capitalized and the remainder
expensed. This included 4,174 m of diamond drilling focused on El
Carricito. For the full year, the Company spent $10.5 million, of
which $2.9 million was capitalized.
At El Carricito, the drill program is testing
anomalous alteration and structural targets identified by mapping
in the first half of 2018.
Lynn Lake (Manitoba,
Canada)
The results from the 2018 regional exploration
program which included till sampling, mapping, and prospecting have
been integrated with the Lynn Lake database and are being
interpreted in conjunction with the results of the airborne gravity
gradiometer ("AGG") and magnetic survey with the objective of
generating a pipeline of prospective targets across the Lynn Lake
Greenstone Belt.
Spending in the fourth quarter totaled $1.4
million, with full year expenditures to $5.1 million.
Review of Fourth Quarter Financial Results
During the fourth quarter of 2018, the Company
sold 131,161 ounces of gold for total revenue of $163.1 million, an
increase of $1.4 million compared to the prior year period. This
was primarily driven by the Island Gold acquisition completed in
November 2017, which contributed a record 30,199 ounces, or $37.5
million in gold sales in the quarter, offset by lower ounces sold
at Mulatos and a lower realized gold price in the quarter. The
Company's realized gold price of $1,244 per ounce in the fourth
quarter was $17 per ounce higher than the London PM fix of $1,227
per ounce.
For the fourth quarter of 2018, cost of sales
were $207.1 million, compared to $136.6 million in the prior-year
period, with the increase driven by a non-cash inventory impairment
charge recorded at El Chanate in the quarter.
Mining and processing costs were $96.2 million
compared to $90.6 million in the prior-year period. The increased
costs were mainly the result of the addition of Island Gold, which
contributed $15.5 million of mining and processing costs in the
period, as well as higher per-unit operating costs at
Young-Davidson.
Consolidated total cash costs for the quarter
were $770 per ounce, compared to $753 in the prior year period. The
increase was driven by higher total cash costs at Young-Davidson
and El Chanate, partially offset by the addition of lower cost
production from Island Gold.
In the quarter, AISC per ounce increased to $983
from $902 in the prior year period. This was primarily driven by
higher total cash costs, and the timing of sustaining capital
spending at Young-Davidson.
During the quarter, the Company wrote down $64.0
million of heap leach inventory at El Chanate, of which $62.5
million was related to mining and processing costs and $1.5 million
was related to amortization. The Company ceased mining
activities at El Chanate during 2018 and has begun residual
leaching the heap leach pad. An analysis of the
recoverability of the ounces in inventory on the heap leach pad was
conducted as of December 31, 2018. The Company estimated that
approximately 51,900 ounces may not be economically recovered,
resulting in a non-cash impairment charge of $64.0 million ($49.9
million after-tax).
Royalty expense was $4.8 million in the fourth
quarter and consistent with the prior year period of $4.9 million,
as higher royalties at Island Gold were offset by lower royalties
at Mulatos.
Amortization of $42.1 million in the quarter was
consistent with the prior year period expense of $41.1 million.
Amortization was $321 per ounce, compared to $324 per ounce in the
prior year period, and consistent with guidance.
The Company recognized a loss from operations of
$51.3 million in the quarter, compared to earnings of $17.1 million
in the same period of 2017, as a result of the non-cash El Chanate
inventory impairment charge of $64.0 million and increased
operating costs at Young-Davidson.
The Company reported a net loss of $71.5 million
in the quarter, compared to net loss of $4.7 million in the same
period of 2017. Net loss for the fourth quarter was impacted by the
non-cash inventory impairment charge, other losses related to
disposals and settlement charges, and foreign exchange movements
related to the weakening of Canadian dollar and Mexican Peso, which
generated a foreign exchange loss of $1.7 million, as well as a
foreign exchange loss of $14.1 million recorded within deferred
income taxes.
Associated Documents
This press release should be read in conjunction
with the Company’s interim consolidated financial statements for
the year ended December 31, 2018 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 2018 Results
Conference Call
The Company's senior management will host a
conference call on Thursday, February 21, 2019 at 11:00 am ET to
discuss the fourth quarter and full-year 2018 results.
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 20,
2019 by dialling (905) 694-9451 or (800) 408-3053 within Canada and
the United States. The pass code is 5019707#. The webcast will be
archived at www.alamosgold.com
Qualified Persons
Chris Bostwick, FAusIMM, 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.
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 |
|
All amounts are in United States dollars, unless otherwise
stated.
The TSX and NYSE have not reviewed and do not accept
responsibility for the adequacy or accuracy of this
release.
Cautionary Note
This press release contains statements that
constitute forward-looking information as defined under applicable
Canadian and U.S. securities laws. All statements in this
press release, other than statements of historical fact, which
address events, results, outcomes or development that the Company
expects to occur are, or may be deemed to be “forward-looking
statements”. Forward-looking statements are generally, but not
always, identified by the use of forward-looking terminology such
as "expect", "believe", "anticipate”, “intend", "estimate",
"forecast", "budget", “contemplate”, “continue”, “plan” or
variations of such words and phrases and similar expressions or
statements that certain actions, events or results “may",
"could", "would", "might" or "will" be taken, occur or be
achieved.
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, 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.
Alamos cautions that forward-looking
statements are necessarily based upon several factors and
assumptions that, while considered reasonable by the Company at the
time of making such statements, are inherently subject to
significant business, economic, legal, 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;
employee and community 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 Company’s 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 and
maintaining necessary licenses, permits and authorizations
for the Company’s development and operating assets;
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 or on EDGAR on www.sec.gov. 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. 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:
- adjusted net earnings and adjusted earnings per share;
- cash flow from operating activities before changes in working
capital and taxes received;
- Company-wide free cash flow;
- 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.
Adjusted Net Earnings and Adjusted
Earnings per Share
“Adjusted net earnings” and “adjusted earnings
per share” are non-GAAP financial measures with no standard meaning
under IFRS which exclude the following from net earnings:
- Foreign exchange gain (loss)
- Items included in other gain (loss)
- Certain non-reoccurring items
- Foreign exchange gain (loss) recorded in deferred tax
expense
Net earnings have been adjusted, including the
associated tax impact, for the group of costs in “Other loss” on
the consolidated statement of comprehensive income. Transactions
within this grouping are: the fair value changes on non-hedged
derivatives; the renunciation of flow-through exploration
expenditures; and loss on disposal of assets. The adjusted entries
are also impacted for tax to the extent that the underlying entries
are impacted for tax in the unadjusted net earnings.
The Company uses adjusted net earnings for its
own internal purposes. Management’s internal budgets and forecasts
and public guidance do not reflect the items which have been
excluded from the determination of adjusted net earnings.
Consequently, the presentation of adjusted net earnings enables
shareholders to better understand the underlying operating
performance of the core mining business through the eyes of
management. Management periodically evaluates the components of
adjusted net earnings based on an internal assessment of
performance measures that are useful for evaluating the operating
performance of our business and a review of the non-GAAP measures
used by mining industry analysts and other mining companies.
Adjusted net earnings 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 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 operating profit or cash flows from operations as determined
under IFRS. The following table reconciles this non-GAAP measure to
the most directly comparable IFRS measure.
| (in millions) |
|
|
|
|
|
|
|
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 |
2018 |
2017 |
2016 |
| Net Earnings (Loss) |
($71.5 |
) |
($4.7 |
) |
($72.6 |
) |
$26.6 |
|
($17.9 |
) |
| Adjustments: |
|
|
|
|
|
| Impairment of El Chanate
inventory |
64.0 |
|
— |
|
64.0 |
|
— |
|
— |
|
| Tax impact on impairment of El
Chanate inventory |
(14.1 |
) |
— |
|
(14.1 |
) |
— |
|
— |
|
| Foreign exchange loss (gain) |
1.7 |
|
(5.1 |
) |
4.4 |
|
5.0 |
|
12.5 |
|
| Other loss (gain) |
10.1 |
|
5.3 |
|
8.4 |
|
3.1 |
|
(5.5 |
) |
| Unrealized foreign exchange loss
(gain) recorded in deferred tax expense |
14.1 |
|
(0.3 |
) |
28.8 |
|
(22.5 |
) |
(5.1 |
) |
| Transaction costs related to the
Richmont acquisition |
— |
|
3.8 |
|
— |
|
3.8 |
|
— |
|
| Acquisition fair value adjustment
on Richmont acquisition |
— |
|
1.3 |
|
— |
|
1.3 |
|
— |
|
| Loss on redemption of senior
secured notes |
— |
|
— |
|
— |
|
29.1 |
|
— |
|
| Other income and mining tax
adjustments (1) |
— |
|
— |
|
0.7 |
|
(7.5 |
) |
— |
|
|
Adjusted net earnings (loss) |
$4.3 |
|
$0.3 |
|
$19.6 |
|
$38.9 |
|
($16.0 |
) |
| Adjusted earnings (loss)
per share - basic |
$0.01 |
|
$— |
|
$0.05 |
|
$0.13 |
|
($0.06 |
) |
(1) This reflects the recognition of previously
unrecognized capital losses, and the tax impact on adjusted
earnings.
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, |
|
|
2018 |
2017 |
2018 |
2017 |
| Cash flow from operating
activities |
$47.4 |
|
$48.6 |
|
$213.9 |
|
$163.5 |
|
| Add back: Changes in working capital and cash
taxes |
5.4 |
|
4.1 |
|
(2.2 |
) |
19.8 |
|
|
Cash flow from operating activities before changes in
working capital and cash taxes |
$52.8 |
|
$52.7 |
|
$211.7 |
|
$183.3 |
|
Company-wide Free Cash Flow
“Company-wide free cash flow" is a non-GAAP
performance measure calculated from the consolidated operating cash
flow, less consolidated 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 company-wide. Company-wide 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. Company-wide free cash flow should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
| (in millions) |
|
|
|
|
|
|
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 |
2018 |
2017 |
| Cash flow from operating
activities |
$47.4 |
|
$48.6 |
|
$213.9 |
|
$163.5 |
|
| Less: mineral property, plant and equipment
expenditures |
(61.5 |
) |
(39.2 |
) |
(221.5 |
) |
(162.5 |
) |
|
Company-wide free cash flow |
($14.1 |
) |
$9.4 |
|
($7.6 |
) |
$1.0 |
|
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. Mine-site 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. Mine-site 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, |
|
|
2018 |
2017 |
2018 |
2017 |
| (in millions) |
|
|
|
|
| Cash flow from operating activities |
$47.4 |
|
$48.6 |
|
$213.9 |
|
$163.5 |
|
| Less: operating cash flow used by non-mine site
activity |
(9.6 |
) |
(19.5 |
) |
(31.1 |
) |
(31.9 |
) |
|
Cash flow from operating mine-sites |
$57.0 |
|
$68.1 |
|
$245.0 |
|
$195.4 |
|
| |
|
|
|
|
| Mineral property, plant and equipment
expenditure |
$61.5 |
|
$39.2 |
|
$221.5 |
|
$162.5 |
|
| Less: capital expenditures from development
projects, and corporate (1) |
(9.7 |
) |
(8.2 |
) |
(32.9 |
) |
(44.6 |
) |
|
Capital expenditure from mine-sites |
$51.8 |
|
$31.0 |
|
$188.6 |
|
$117.9 |
|
| |
|
|
|
|
| Total mine-site
free cash flow |
$5.2 |
|
$37.1 |
|
$56.4 |
|
$77.5 |
|
(1) The comparative periods include capital
expenditures related to La Yaqui Phase I of nil and $12.5
million for the three and twelve months ended December 31,
2017.
| Young-Davidson
Mine-Site Free Cash Flow |
|
|
|
|
|
|
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 |
2018 |
2017 |
| (in millions) |
|
|
|
|
| Cash flow from operating activities |
$23.6 |
|
$33.4 |
|
$97.5 |
|
$114.5 |
|
| Mineral property, plant and equipment
expenditure |
(23.1 |
) |
(17.0 |
) |
(86.6 |
) |
(80.3 |
) |
|
Mine-site free cash flow |
$0.5 |
|
$16.4 |
|
$10.9 |
|
$34.2 |
|
| Mulatos
Mine-Site Free Cash Flow |
|
|
|
|
|
|
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 |
2018 |
2017 |
| (in millions) |
|
|
|
|
| Cash flow from operating activities |
$14.7 |
|
$22.3 |
|
$71.0 |
|
$64.3 |
|
| Mineral property, plant and equipment
expenditure |
(11.8 |
) |
(9.0 |
) |
(35.3 |
) |
(43.9 |
) |
| Less: La Yaqui Phase I
construction cost |
— |
|
— |
|
— |
|
12.5 |
|
| Mulatos mineral property,
plant and equipment expenditure |
($11.8 |
) |
($9.0 |
) |
($35.3 |
) |
($31.4 |
) |
| Mine-site free
cash flow |
$2.9 |
|
$13.3 |
|
$35.7 |
|
$32.9 |
|
| Island Gold
Mine-Site Free Cash Flow |
|
|
|
|
|
|
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 |
2018 |
2017 |
| (in millions) |
|
|
|
|
| Cash flow from operating activities |
$16.3 |
|
$11.8 |
|
$75.9 |
|
$11.8 |
|
| Mineral property, plant and equipment
expenditure |
(16.8 |
) |
(4.8 |
) |
(66.1 |
) |
(4.8 |
) |
|
Mine-site free cash flow |
($0.5 |
) |
$7.0 |
|
$9.8 |
|
$7.0 |
|
| El Chanate
Mine-Site Free Cash Flow |
|
|
|
|
|
|
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 |
2018 |
2017 |
| (in millions) |
|
|
|
|
| Cash flow from operating activities |
$2.4 |
|
$0.6 |
|
$0.6 |
|
$4.8 |
|
| Mineral property, plant and equipment
expenditure |
(0.1 |
) |
(0.2 |
) |
(0.6 |
) |
(1.4 |
) |
|
Mine-site free cash flow |
$2.3 |
|
$0.4 |
|
$— |
|
$3.4 |
|
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, |
|
|
2018 |
2017 |
2018 |
2017 |
2016 |
| (in millions, except ounces and per ounce
figures) |
|
|
|
|
|
| Mining and processing |
$96.2 |
|
$90.6 |
|
$387.2 |
|
$315.6 |
|
$297.0 |
|
| Royalties |
4.8 |
|
4.9 |
|
21.6 |
|
15.6 |
|
13.3 |
|
| Total cash costs |
$101.0 |
|
$95.5 |
|
$408.8 |
|
$331.2 |
|
$310.3 |
|
| Gold ounces sold |
131,161 |
|
126,786 |
|
509,879 |
|
430,115 |
|
389,151 |
|
| Total cash costs per ounce |
$770 |
|
$753 |
|
$802 |
|
$770 |
|
$797 |
|
| |
|
|
|
|
|
| Total cash costs |
$101.0 |
|
$95.5 |
|
$408.8 |
|
$331.2 |
|
$310.3 |
|
| Corporate and administrative(1) |
3.5 |
|
4.6 |
|
17.4 |
|
15.5 |
|
16.3 |
|
| Sustaining capital expenditures(2) |
21.4 |
|
11.5 |
|
63.8 |
|
42.7 |
|
49.2 |
|
| Share-based compensation |
1.3 |
|
1.1 |
|
6.6 |
|
6.2 |
|
10.2 |
|
| Sustaining exploration |
0.9 |
|
1.0 |
|
4.8 |
|
3.9 |
|
3.5 |
|
| Accretion of decommissioning liabilities |
0.8 |
|
0.7 |
|
3.0 |
|
2.7 |
|
2.1 |
|
| Realized gains on FX options |
— |
|
— |
|
— |
|
(0.8 |
) |
1.6 |
|
| Total all-in sustaining
costs |
$128.9 |
|
$114.4 |
|
$504.4 |
|
$401.4 |
|
$393.2 |
|
| Gold ounces sold |
131,161 |
|
126,786 |
|
509,879 |
|
430,115 |
|
389,151 |
|
|
All-in sustaining costs per ounce |
$983 |
|
$902 |
|
$989 |
|
$933 |
|
$1,010 |
|
(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, |
|
|
2018 |
2017 |
2018 |
2017 |
2016 |
| (in millions) |
|
|
|
|
|
| Capital expenditures
per cash flow statement |
$61.5 |
|
$39.2 |
|
$221.5 |
|
$162.5 |
|
$146.5 |
|
| Less: non-sustaining
capital expenditures at: |
|
|
|
|
|
|
Young-Davidson |
(12.3 |
) |
(8.3 |
) |
(50.8 |
) |
(46.2 |
) |
(54.6 |
) |
|
Mulatos |
(9.3 |
) |
(8.1 |
) |
(28.1 |
) |
(38.4 |
) |
(24.5 |
) |
| Island
Gold |
(8.8 |
) |
(3.1 |
) |
(45.9 |
) |
(3.1 |
) |
— |
|
| Corporate
and other |
(9.7 |
) |
(8.2 |
) |
(32.9 |
) |
(32.1 |
) |
(18.2 |
) |
|
Sustaining capital expenditures |
$21.4 |
|
$11.5 |
|
$63.8 |
|
$42.7 |
|
$49.2 |
|
|
Young-Davidson Total Cash Costs and Mine-site AISC
Reconciliation |
|
|
| |
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 |
2018 |
2017 |
| (in millions, except ounces and per ounce
figures) |
|
|
|
|
| Mining and processing |
$38.7 |
|
$35.1 |
|
$149.0 |
|
$125.9 |
|
| Royalties |
1.0 |
|
1.1 |
|
3.6 |
|
4.4 |
|
| Total cash costs |
$39.7 |
|
$36.2 |
|
$152.6 |
|
$130.3 |
|
| Gold ounces sold |
51,944 |
|
52,475 |
|
185,593 |
|
197,937 |
|
| Total cash costs per ounce |
$764 |
|
$690 |
|
$822 |
|
$658 |
|
| |
|
|
|
|
| Total cash costs |
$39.7 |
|
$36.2 |
|
$152.6 |
|
$130.3 |
|
| Sustaining capital expenditures |
10.8 |
|
8.7 |
|
35.8 |
|
34.1 |
|
| Exploration |
0.1 |
|
0.1 |
|
0.2 |
|
0.4 |
|
| Accretion of decommissioning liabilities |
— |
|
0.1 |
|
0.2 |
|
0.2 |
|
| Total all-in sustaining
costs |
$50.6 |
|
$45.1 |
|
$188.8 |
|
$165.0 |
|
| Gold ounces sold |
51,944 |
|
52,475 |
|
185,593 |
|
197,937 |
|
|
Mine-site all-in sustaining costs per ounce |
$974 |
|
$859 |
|
$1,017 |
|
$834 |
|
|
Mulatos Total Cash Costs and Mine-site AISC
Reconciliation |
|
|
| |
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 |
2018 |
2017 |
| (in millions, except ounces and per ounce
figures) |
|
|
|
|
| Mining and processing |
$28.7 |
|
$34.9 |
|
$125.9 |
|
$112.9 |
|
| Royalties |
2.1 |
|
3.2 |
|
11.8 |
|
10.6 |
|
| Total cash costs |
$30.8 |
|
$38.1 |
|
$137.7 |
|
$123.5 |
|
| Gold ounces sold |
38,819 |
|
50,006 |
|
175,104 |
|
159,276 |
|
| Total cash costs per ounce |
$793 |
|
$762 |
|
$786 |
|
$775 |
|
| |
|
|
|
|
| Total cash costs |
$30.8 |
|
$38.1 |
|
$137.7 |
|
$123.5 |
|
| Sustaining capital expenditures |
2.5 |
|
0.9 |
|
7.2 |
|
5.5 |
|
| Exploration |
0.3 |
|
0.4 |
|
2.6 |
|
1.9 |
|
| Accretion of decommissioning liabilities |
0.6 |
|
0.5 |
|
2.2 |
|
2.1 |
|
| Total all-in sustaining
costs |
$34.2 |
|
$39.9 |
|
$149.7 |
|
$133.0 |
|
| Gold ounces sold |
38,819 |
|
50,006 |
|
175,104 |
|
159,276 |
|
|
Mine-site all-in sustaining costs per ounce |
$881 |
|
$798 |
|
$855 |
|
$835 |
|
|
Island Gold Total Cash Costs and Mine-site AISC
Reconciliation |
|
|
| |
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 |
2018 |
2017 |
| (in millions, except ounces and per ounce
figures) |
|
|
|
|
| Mining and processing |
$15.5 |
|
$4.1 |
|
$56.0 |
|
$4.1 |
|
| Royalties |
1.7 |
|
0.6 |
|
6.2 |
|
0.6 |
|
| Total cash costs |
$17.2 |
|
$4.7 |
|
$62.2 |
|
$4.7 |
|
| Gold ounces sold |
30,199 |
|
11,720 |
|
105,520 |
|
11,720 |
|
| Total cash costs per ounce |
$570 |
|
$401 |
|
$589 |
|
$401 |
|
| |
|
|
|
|
| Total cash costs |
$17.2 |
|
$4.7 |
|
$62.2 |
|
$4.7 |
|
| Sustaining capital expenditures |
8.0 |
|
1.7 |
|
20.2 |
|
1.7 |
|
| Total all-in sustaining
costs |
$25.2 |
|
$6.4 |
|
$82.4 |
|
$6.4 |
|
| Gold ounces sold |
30,199 |
|
11,720 |
|
105,520 |
|
11,720 |
|
|
Mine-site all-in sustaining costs per ounce |
$834 |
|
$546 |
|
$781 |
|
$546 |
|
| El
Chanate Total Cash Costs and Mine-site AISC
Reconciliation |
|
|
| |
Three Months Ended December 31, |
Years Ended December 31, |
|
|
2018 |
2017 |
2018 |
2017 |
| (in millions, except ounces and per ounce
figures) |
|
|
|
|
| Mining and processing |
$13.3 |
|
$16.5 |
|
$56.3 |
|
$72.7 |
|
| Total cash costs |
$13.3 |
|
$16.5 |
|
$56.3 |
|
$72.7 |
|
| Gold ounces sold |
10,199 |
|
12,585 |
|
43,662 |
|
61,182 |
|
| Total cash costs per ounce |
$1,304 |
|
$1,311 |
|
$1,289 |
|
$1,188 |
|
| |
|
|
|
|
| Total cash costs |
$13.3 |
|
$16.5 |
|
$56.3 |
|
$72.7 |
|
| Sustaining capital expenditures |
0.1 |
|
0.2 |
|
0.6 |
|
1.4 |
|
| Accretion of decommissioning liabilities |
0.2 |
|
0.1 |
|
0.6 |
|
0.4 |
|
| Total all-in sustaining
costs |
$13.6 |
|
$16.8 |
|
$57.5 |
|
$74.5 |
|
| Gold ounces sold |
10,199 |
|
12,585 |
|
43,662 |
|
61,182 |
|
|
Mine-site all-in sustaining costs per ounce |
$1,333 |
|
$1,335 |
|
$1,317 |
|
$1,218 |
|
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, |
|
|
2018 |
2017 |
2018 |
2017 |
| Net (loss)
earnings |
($71.5 |
) |
($4.7 |
) |
($72.6 |
) |
$26.6 |
|
| Add back: |
|
|
|
|
| Finance
expense |
0.2 |
|
1.1 |
|
3.0 |
|
6.6 |
|
|
Amortization |
42.1 |
|
41.1 |
|
166.6 |
|
125.6 |
|
|
Impairment of El Chanate inventory |
64.0 |
|
— |
|
64.0 |
|
— |
|
| Loss on
redemption of senior secured notes |
— |
|
— |
|
— |
|
29.1 |
|
| Deferred
income tax expense (recovery) |
8.8 |
|
6.0 |
|
16.9 |
|
(16.3 |
) |
|
Current income tax (recovery) expense |
(0.6 |
) |
4.3 |
|
17.3 |
|
11.9 |
|
|
EBITDA |
$43.0 |
|
$47.8 |
|
$195.2 |
|
$183.5 |
|
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, ComprehensiveIncome, and Cash
Flow
ALAMOS GOLD
INC.Condensed Interim Consolidated Statements of
Financial Position(Unaudited - stated in millions of
United States dollars)
| |
December 31, 2018 |
|
December 31, 2017 |
| A S S E T
S |
|
|
|
| Current
Assets |
|
|
|
| Cash and cash
equivalents |
$206.0 |
|
|
$200.8 |
|
| Equity securities |
7.8 |
|
|
35.8 |
|
| Amounts receivable |
40.5 |
|
|
41.0 |
|
| Inventory |
110.2 |
|
|
161.2 |
|
| Other current
assets |
15.5 |
|
|
14.4 |
|
| Total Current
Assets |
380.0 |
|
|
453.2 |
|
| |
|
|
|
| Non-Current
Assets |
|
|
|
| Long-term
inventory |
30.0 |
|
|
68.7 |
|
| Mineral property, plant
and equipment |
2,813.3 |
|
|
2,753.4 |
|
| Other non-current
assets |
41.9 |
|
|
45.0 |
|
|
Total Assets |
$3,265.2 |
|
|
$3,320.3 |
|
| |
|
|
|
| L I A B I L I T
I E S |
|
|
|
| Current
Liabilities |
|
|
|
| Accounts payable and
accrued liabilities |
$118.7 |
|
|
$101.0 |
|
| Income taxes
payable |
6.2 |
|
|
12.2 |
|
| Total Current
Liabilities |
124.9 |
|
|
113.2 |
|
| |
|
|
|
| Non-Current
Liabilities |
|
|
|
| Deferred income
taxes |
491.5 |
|
|
477.0 |
|
| Decommissioning
liabilities |
44.9 |
|
|
44.6 |
|
| Other non-current
liabilities |
1.6 |
|
|
4.3 |
|
|
Total Liabilities |
662.9 |
|
|
639.1 |
|
| |
|
|
|
| E Q U I T
Y |
|
|
|
| Share capital |
$3,705.2 |
|
|
$3,691.7 |
|
| Contributed
surplus |
87.3 |
|
|
89.5 |
|
| Warrants |
3.9 |
|
|
4.0 |
|
| Accumulated other
comprehensive (loss) income |
(9.2 |
) |
|
13.0 |
|
| Deficit |
(1,184.9 |
) |
|
(1,117.0 |
) |
|
Total Equity |
2,602.3 |
|
|
2,681.2 |
|
|
Total Liabilities and Equity |
$3,265.2 |
|
|
$3,320.3 |
|
ALAMOS GOLD
INC.Condensed Interim Consolidated Statements of
Comprehensive (Loss) 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, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
| OPERATING
REVENUES |
$163.1 |
|
|
$161.7 |
|
|
$651.8 |
|
|
$542.8 |
|
| |
|
|
|
|
|
|
|
| COST OF
SALES |
|
|
|
|
|
|
|
| Mining and
processing |
96.2 |
|
|
90.6 |
|
|
387.2 |
|
|
315.6 |
|
| Impairment of El
Chanate inventory |
64.0 |
|
|
— |
|
|
64.0 |
|
|
— |
|
| Royalties |
4.8 |
|
|
4.9 |
|
|
21.6 |
|
|
15.6 |
|
| Amortization |
42.1 |
|
|
41.1 |
|
|
166.6 |
|
|
125.6 |
|
| |
207.1 |
|
|
136.6 |
|
|
639.4 |
|
|
456.8 |
|
|
EXPENSES |
|
|
|
|
|
|
|
| Exploration |
2.5 |
|
|
2.3 |
|
|
11.0 |
|
|
8.3 |
|
| Corporate and
administrative |
3.5 |
|
|
4.6 |
|
|
17.4 |
|
|
15.5 |
|
| Share-based
compensation |
1.3 |
|
|
1.1 |
|
|
6.6 |
|
|
6.2 |
|
| |
214.4 |
|
|
144.6 |
|
|
674.4 |
|
|
486.8 |
|
| (LOSS) EARNINGS
FROM OPERATIONS |
(51.3 |
) |
|
17.1 |
|
|
(22.6 |
) |
|
56.0 |
|
| |
|
|
|
|
|
|
|
| OTHER
EXPENSES |
|
|
|
|
|
|
|
| Finance expense |
(0.2 |
) |
|
(1.1 |
) |
|
(3.0 |
) |
|
(6.6 |
) |
| Foreign exchange (loss)
gain |
(1.7 |
) |
|
(5.1 |
) |
|
(4.4 |
) |
|
5.0 |
|
| Other loss |
(10.1 |
) |
|
(5.3 |
) |
|
(8.4 |
) |
|
(3.1 |
) |
| Loss on redemption of
senior secured notes |
— |
|
|
— |
|
|
— |
|
|
(29.1 |
) |
| (LOSS) EARNINGS
BEFORE INCOME TAXES |
($63.3 |
) |
|
$5.6 |
|
|
($38.4 |
) |
|
$22.2 |
|
| |
|
|
|
|
|
|
|
| INCOME
TAXES |
|
|
|
|
|
|
|
| Current income tax
recovery (expense) |
0.6 |
|
|
(4.3 |
) |
|
(17.3 |
) |
|
(11.9 |
) |
| Deferred income tax
(expense) recovery |
(8.8 |
) |
|
(6.0 |
) |
|
(16.9 |
) |
|
16.3 |
|
| NET (LOSS)
EARNINGS |
($71.5 |
) |
|
($4.7 |
) |
|
($72.6 |
) |
|
$26.6 |
|
| |
|
|
|
|
|
|
|
| Items that may be
subsequently reclassified to net earnings: |
|
|
|
|
|
|
|
|
Unrealized (loss) gain on currency hedging instruments, net of
taxes |
(4.5 |
) |
|
(1.4 |
) |
|
(7.4 |
) |
|
6.0 |
|
|
Unrealized loss on fuel hedging instruments, net of taxes |
(0.5 |
) |
|
|
|
(0.5 |
) |
|
— |
|
| Items that will not be
reclassified to net earnings: |
|
|
|
|
|
|
|
|
Unrealized gain (loss) on equity securities, net of taxes |
3.2 |
|
|
3.9 |
|
|
(1.8 |
) |
|
6.6 |
|
| Total other
comprehensive (loss) income |
($1.8 |
) |
|
$2.5 |
|
|
($9.7 |
) |
|
$12.6 |
|
| COMPREHENSIVE
(LOSS) INCOME |
($73.3 |
) |
|
($2.2 |
) |
|
($82.3 |
) |
|
$39.2 |
|
| |
|
|
|
|
|
|
|
| (LOSS) EARNINGS
PER SHARE |
|
|
|
|
|
|
|
| –
basic |
($0.18 |
) |
|
($0.01 |
) |
|
($0.19 |
) |
|
$0.09 |
|
| –
diluted |
($0.18 |
) |
|
($0.01 |
) |
|
($0.19 |
) |
|
$0.09 |
|
| Weighted average number
of common shares outstanding (000's) |
|
|
|
|
|
|
|
| – basic |
390,540 |
|
|
337,178 |
|
|
389,816 |
|
|
305,521 |
|
| – diluted |
390,540 |
|
|
337,178 |
|
|
389,816 |
|
|
309,021 |
|
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, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
| CASH PROVIDED
BY (USED IN): |
|
|
|
|
|
|
|
| OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
| Net (loss) earnings for
the period |
($71.5 |
) |
|
($4.7 |
) |
|
($72.6 |
) |
|
$26.6 |
|
| Adjustments for items
not involving cash: |
|
|
|
|
|
|
|
|
Amortization |
42.1 |
|
|
41.1 |
|
|
166.6 |
|
|
125.6 |
|
| Foreign
exchange loss (gain) |
1.7 |
|
|
5.1 |
|
|
4.4 |
|
|
(5.0 |
) |
| Current
income tax (recovery) expense |
(0.6 |
) |
|
4.3 |
|
|
17.3 |
|
|
11.9 |
|
| Deferred
income tax expense (recovery) |
8.8 |
|
|
6.0 |
|
|
16.9 |
|
|
(16.3 |
) |
|
Share-based compensation |
1.3 |
|
|
1.1 |
|
|
6.6 |
|
|
6.2 |
|
| Finance
expense |
0.2 |
|
|
1.1 |
|
|
3.0 |
|
|
6.6 |
|
|
Impairment of El Chanate inventory |
64.0 |
|
|
— |
|
|
64.0 |
|
|
0.0 |
|
| Loss on
redemption of senior secured notes |
— |
|
|
— |
|
|
— |
|
|
29.1 |
|
| Other
items |
6.8 |
|
|
(1.3 |
) |
|
5.5 |
|
|
(1.4 |
) |
| Changes in working
capital and cash taxes |
(5.4 |
) |
|
(4.1 |
) |
|
2.2 |
|
|
(19.8 |
) |
| |
47.4 |
|
|
48.6 |
|
|
213.9 |
|
|
163.5 |
|
| INVESTING
ACTIVITIES |
|
|
|
|
|
|
|
| Mineral property, plant
and equipment |
(61.5 |
) |
|
(39.2 |
) |
|
(221.5 |
) |
|
(162.5 |
) |
| Proceeds from sale of
equity securities |
— |
|
|
46.2 |
|
|
24.9 |
|
|
46.2 |
|
| Purchase of Lynn Lake
gold project royalty |
— |
|
|
— |
|
|
— |
|
|
(6.7 |
) |
| Other |
— |
|
|
— |
|
|
— |
|
|
3.6 |
|
| |
(61.5 |
) |
|
7.0 |
|
|
(196.6 |
) |
|
(119.4 |
) |
| FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
| Net proceeds from
equity financing |
— |
|
|
— |
|
|
— |
|
|
239.1 |
|
| Repayment of senior
secured notes |
— |
|
|
— |
|
|
— |
|
|
(327.2 |
) |
| Repayment of equipment
financing obligations |
(0.9 |
) |
|
(0.9 |
) |
|
(4.1 |
) |
|
(4.4 |
) |
| Interest paid |
— |
|
|
— |
|
|
— |
|
|
(12.2 |
) |
| Revolving credit
facility transaction fees |
— |
|
|
— |
|
|
(0.8 |
) |
|
(2.1 |
) |
| Proceeds from the
exercise of options and warrants |
2.2 |
|
|
0.1 |
|
|
3.9 |
|
|
3.5 |
|
| Dividends paid |
(3.9 |
) |
|
(3.0 |
) |
|
(7.8 |
) |
|
(6.0 |
) |
| Proceeds from issuance
of flow-through shares |
— |
|
|
— |
|
|
— |
|
|
11.7 |
|
| |
(2.6 |
) |
|
(3.8 |
) |
|
(8.8 |
) |
|
(97.6 |
) |
| Effect of exchange
rates on cash and cash equivalents |
(2.1 |
) |
|
— |
|
|
(3.3 |
) |
|
2.1 |
|
| Net (decrease) increase
in cash and cash equivalents |
(18.8 |
) |
|
51.8 |
|
|
5.2 |
|
|
(51.4 |
) |
| Cash and cash
equivalents - beginning of year |
224.8 |
|
|
149.0 |
|
|
200.8 |
|
|
252.2 |
|
| CASH AND CASH
EQUIVALENTS - END OF YEAR |
$206.0 |
|
|
$200.8 |
|
|
$206.0 |
|
|
$200.8 |
|
Alamos Gold (NYSE:AGI)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Alamos Gold (NYSE:AGI)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
