All amounts are in United States dollars, unless otherwise
stated.
Alamos Gold Inc. (
TSX:AGI;
NYSE:AGI) (“Alamos” or the “Company”) today reported its
financial results for the quarter ended March 31, 2019.
“Alamos had a solid start to 2019, with strong
performances at each operation. This included another record
quarter of production from Island Gold, achieving budgeted mining
rates at Young-Davidson, producing our two millionth ounce of gold
at Mulatos and reducing consolidated cash costs by seven percent
compared to a year ago. With the strong first quarter performance,
we remain on track to achieve full year production and cost
guidance,” said John A. McCluskey, President and Chief Executive
Officer.
“Our various growth initiatives remain on
schedule with the lower mine expansion at Young-Davidson and
development of the Cerro Pelon project progressing well in the
quarter. In addition, construction activities at Kirazlı will be
ramping up through the year having received the Operating Permit
during the quarter. These projects will be drivers of strong free
cash flow growth starting in the second half of 2020 which will in
turn support growing returns to our shareholders,” Mr. McCluskey
added.
First Quarter 2019
- Reported 125,300 ounces of gold
production, reflecting strong performances from each site,
including record quarterly gold production of 35,600 ounces and
record quarterly free cash flow1 of $16.6 million from Island
Gold
- Produced the two millionth ounce of
gold at Mulatos in March 2019, marking the end of the 5% royalty
that has been paid since the start of production in 2005
- Achieved underground mining rates
of 6,500 tonnes per day at Young-Davidson, and produced 45,000
ounces of gold, both consistent with annual guidance
- Sold 119,705 ounces of gold at an
average realized price of $1,304 per ounce, in-line with the
average London PM Fix for the quarter, for revenues of $156.1
million. Gold production exceeded gold sales with a portion of
first quarter production sold subsequent to quarter end
- Total cash costs1 of $732 per
ounce, all-in sustaining costs ("AISC")1 of $957 per ounce, and
cost of sales of $1,061 per ounce were in line with annual
guidance. Total cash costs were 5% lower than the fourth quarter of
2018 and 7% lower than the first quarter of 2018 driven by low cost
production growth at Island Gold
- Reported adjusted net earnings1 of
$10.3 million, or $0.03 per share1, reflecting adjustments for
unrealized foreign exchange gains recorded within both deferred
taxes and foreign exchange of $4.3 million, and other gains
totaling $2.2 million
- Realized net earnings of $16.8 million, or $0.04 per share
- Generated cash flow from operating
activities of $42.4 million ($61.7 million, or $0.16 per share,
before changes in working capital1)
- Ended the quarter with no debt and cash and cash equivalents of
$180.6 million
- Repurchased and canceled 2,565,752
common shares at a cost of $10.6 million, or $4.14 per share under
its Normal Course Issuer Bid ("NCIB") announced in December
2018
- Announced a doubling of the annual
dividend, with a $0.01 per share dividend to be paid quarterly in
2019 (up from $0.01 per share semi-annually previously). The first
quarterly dividend, paid on March 29, 2019, totaled $3.9
million
- Received the Operating Permit for
the Kirazlı project in Turkey, and has been granted all the major
permits required for the start of construction
- Subsequent to quarter-end, sold non-core royalties to Metalla
Royalty & Streaming Ltd. ("Metalla") for proceeds of $8.0
million
(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 March 31, |
|
|
|
2019 |
|
|
2018 |
|
Financial Results (in millions) |
|
|
Operating revenues |
$156.1 |
|
$173.1 |
|
Cost of sales (1) |
$127.0 |
|
$144.7 |
|
Earnings from operations |
$18.7 |
|
$18.5 |
|
Net earnings |
$16.8 |
|
$0.6 |
|
Adjusted net earnings (2) |
$10.3 |
|
$12.3 |
|
Cash provided by operations before working capital and cash
taxes(2) |
$61.7 |
|
$62.6 |
|
Cash provided by operating activities |
$42.4 |
|
$58.8 |
|
Capital expenditures (sustaining) (2) |
$16.1 |
|
$10.7 |
|
Capital expenditures (growth) (2) |
$34.1 |
|
$36.6 |
|
Capital expenditures (capitalized exploration) (3) |
$3.1 |
|
$4.2 |
|
Operating Results |
|
|
Gold
production (ounces) |
|
125,300 |
|
|
128,900 |
|
Gold
sales (ounces) |
|
119,705 |
|
|
130,045 |
|
Per Ounce Data |
|
|
Average realized gold price |
$1,304 |
|
$1,331 |
|
Average spot gold price (London PM Fix) |
$1,304 |
|
$1,329 |
|
Cost of sales per ounce of gold sold (includes amortization)
(1) |
$1,061 |
|
$1,113 |
|
Total cash costs per ounce of gold sold (2) |
$732 |
|
$789 |
|
All-in sustaining costs per ounce of gold sold (2) |
$957 |
|
$935 |
|
Share Data |
|
|
Earnings
per share, basic |
$0.04 |
|
$0.00 |
|
Adjusted
earnings per share, basic (2) |
$0.03 |
|
$0.03 |
|
Weighted
average common shares outstanding (basic) (000’s) |
|
389,735 |
|
|
389,254 |
|
Financial Position (in millions) |
|
|
Cash and
cash equivalents (4) |
$180.6 |
|
$206.0 |
|
(1) Cost of sales includes mining and processing
costs, royalties, and amortization expense.(2) Refer to
the “Non-GAAP Measures and Additional GAAP Measures” disclosure at
the end of this press release and associated MD&A for a
description and calculation of these measures.(3)
Includes capitalized exploration at Mulatos and Island
Gold.(4) Comparative cash and cash equivalents balance
as at December 31, 2018.
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
Gold production (ounces) |
|
|
Young-Davidson |
|
45,000 |
|
|
41,000 |
|
Mulatos |
|
38,900 |
|
|
46,000 |
|
Island Gold |
|
35,600 |
|
|
28,100 |
|
El Chanate (1) |
|
5,800 |
|
|
13,800 |
|
Gold sales (ounces) |
|
|
Young-Davidson |
|
43,996 |
|
|
44,790 |
|
Mulatos |
|
36,089 |
|
|
44,659 |
|
Island Gold |
|
33,585 |
|
|
27,503 |
|
El Chanate (1) |
|
6,035 |
|
|
13,093 |
|
Cost of sales (in millions)(2) |
|
|
Young-Davidson |
$56.9 |
|
$57.0 |
|
Mulatos |
$33.8 |
|
$43.6 |
|
Island Gold |
$28.6 |
|
$27.5 |
|
El Chanate |
$7.7 |
|
$16.6 |
|
Cost of sales per ounce of gold sold (includes
amortization) |
|
Young-Davidson |
$1,293 |
|
$1,273 |
|
Mulatos |
$937 |
|
$976 |
|
Island Gold |
$852 |
|
$1,000 |
|
El Chanate |
$1,276 |
|
$1,268 |
|
Total cash costs per ounce of gold sold (3) |
|
|
Young-Davidson |
$839 |
|
$824 |
|
Mulatos |
$743 |
|
$786 |
|
Island Gold |
$497 |
|
$553 |
|
El
Chanate |
$1,193 |
|
$1,176 |
|
Mine-site all-in sustaining costs per ounce of gold sold
(3),(4) |
|
|
Young-Davidson |
$1,068 |
|
$994 |
|
Mulatos |
$809 |
|
$842 |
|
Island Gold |
$649 |
|
$633 |
|
El Chanate |
$1,193 |
|
$1,191 |
|
Capital expenditures (sustaining, growth and
capitalized exploration) (in millions)(3) |
Young-Davidson |
$22.3 |
|
$22.9 |
|
Mulatos(5) |
$12.6 |
|
$7.2 |
|
Island Gold (6) |
$12.4 |
|
$13.9 |
|
El Chanate |
$ |
— |
|
$0.1 |
|
Other |
$6.0 |
|
$7.4 |
|
(1) El Chanate ceased mining activities in October
2018 and transitioned to residual leaching.(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.(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 $nil for the three months ended March 31,
2019 ($1.1 million for the three months ended March 31,
2018).(6) Includes capitalized exploration at Island
Gold of $3.1 million for the three months ended March 31, 2019
($3.1 million for the three months ended March 31, 2018).
Outlook and Strategy
2019
Guidance |
|
Young-Davidson |
Mulatos |
IslandGold |
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) |
$226 |
$165 |
$120 |
$26 |
— |
— |
$537 |
Cost of sales, including amortization
($ per ounce)(4) |
$1,220 |
$1,065 |
$855 |
$1,300 |
— |
— |
$1,075 |
Total cash
costs ($ per ounce)(1) |
$750-790 |
$820-860 |
$460-500 |
$1,200 |
— |
— |
$710-750 |
All-in sustaining costs ($ per
ounce)(1) |
|
|
|
|
— |
— |
$920-960 |
Mine-site all-in sustaining
costs ($ per ounce)(1),(3) |
$940-980 |
$860-900 |
$730-770 |
$1,200 |
— |
— |
— |
Amortization costs ($ per ounce)(1) |
$450 |
$225 |
$375(6) |
$100 |
— |
— |
$345 |
Capital
expenditures (in millions) |
|
|
|
|
|
|
|
Sustaining capital(1) |
$35-40 |
$5 |
$35-40 |
— |
— |
— |
$75-85 |
Growth capital(1) |
$45-50 |
$45-50 (5) |
$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) Includes capital
spending at Cerro Pelon and La Yaqui Grande of approximately $33
million(6) Amortization per ounce was updated for
Island Gold, reflecting the 2018 Mineral Reserves and Resource
Statement released in February 2019.
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.
Since 2014, Alamos has transformed from a single asset producer
with 140,000 ounces of annualized production to producing over
500,000 ounces in 2018. 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.
The Company is on track to achieve 2019 guidance
with a strong first quarter performance, including production of
125,300 ounces at lower than budgeted total cash costs of $732 per
ounce. The Company expects production and total cash costs to be in
a similar range in the second quarter with all-in sustaining costs
expected to increase reflecting the timing of sustaining capital
spending. Costs are expected to decline in the second half of 2019
driving stronger mine-site free cash flow towards the end 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 in the first quarter of 45,000 ounces and mining rates
of 6,540 tpd were consistent with guidance. Young-Davidson is
expected to produce between 180,000 to 190,000 ounces in 2019.
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.
As the lower mine expansion nears completion,
approximately three months of downtime of the Northgate shaft is
required to facilitate the tie-in of the upper and lower mines.
Accordingly, and as previously guided, gold production from
Young-Davidson is expected to be lower in 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.
This is expected to drive annual gold production above 200,000
ounces per year in 2021 and beyond. This production increase
combined with declining costs and capital spending, is expected to
result in strong free cash flow growth from Young-Davidson starting
in the second half of 2020.
Island Gold started the year strong with record
quarterly production of 35,600 ounces, up 23% from the previous
record set in the fourth quarter of 2018. Further, Island Gold
generated $16.6 million in free cash flow in the first quarter, net
of all capital and exploration spending, reflecting the high-grade
nature of the Island Gold deposit. Island Gold is expected to
produce between 135,000 to 145,000 ounces in 2019, a 33% increase
from 2018. The increase in production reflects higher grades and
throughput with the completion of the Phase I expansion last year.
Combined with decreasing 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.
The Phase I expansion at Island Gold was
completed in 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 a Phase II expansion to 1,200 tpd
which is expected to be complete by the end of 2019. In parallel,
the Company is evaluating a Phase III expansion of the operation
beyond 1,200 tpd.
Total production from the Mulatos District was
on budget in the first quarter and is expected to be between
150,000 to 160,000 ounces of gold in 2019, consistent with long
term guidance provided last year. Mine-site all-in sustaining costs
are expected to range between $860 and $900 per ounce, and reflect
the end of the 5% royalty which was achieved in March 2019.
Construction of the higher grade, high return Cerro Pelon project
is advancing on schedule with initial low-cost production expected
in 2020.
Mining activities ceased at El Chanate in the
fourth quarter of 2018 and the operation has transitioned to
residual leaching which is anticipated to 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.
With the receipt of the Operating Permit at
Kirazlı, construction activities will be ramping up through the
remainder of the year driving the bulk of development capital
spending in 2019. The majority of the remaining development capital
spending will be comprised of capitalized exploration at Island
Gold and exploration, permitting and development activities at Lynn
Lake.
The 2019 global exploration budget is $33
million, with $19 million allocated for exploration at Island Gold.
Mulatos and Lynn Lake remain the other two areas of focus with $6
million budgeted for each.
With approximately $580 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.
First Quarter 2019 Results
Young-Davidson Financial and Operational
Review
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
Gold production (ounces) |
|
45,000 |
|
|
41,000 |
|
Gold
sales (ounces) |
|
43,996 |
|
|
44,790 |
|
Financial
Review (in millions) |
|
|
Operating Revenues |
$57.4 |
|
$59.5 |
|
Cost of sales (1) |
$56.9 |
|
$57.0 |
|
Earnings from
operations |
$0.5 |
|
$2.5 |
|
Cash provided by
operating activities |
$22.9 |
|
$27.4 |
|
Capital expenditures
(sustaining) (2) |
$10.0 |
|
$7.6 |
|
Capital expenditures
(growth) (2) |
$12.3 |
|
$15.3 |
|
Mine-site free cash
flow (2) |
$0.6 |
|
$4.5 |
|
Cost of sales, including amortization per ounce of gold sold
(1) |
$1,293 |
|
$1,273 |
|
Total
cash costs per ounce of gold sold (2) |
$839 |
|
$824 |
|
Mine-site
all-in sustaining costs per ounce of gold sold (2),(3) |
$1,068 |
|
$994 |
|
Underground
Operations |
|
|
Tonnes of
ore mined |
|
588,634 |
|
|
585,060 |
|
Tonnes of
ore mined per day ("tpd") |
|
6,540 |
|
|
6,501 |
|
Average
grade of gold (4) |
|
2.54 |
|
|
2.35 |
|
Metres
developed |
|
2,900 |
|
|
3,144 |
|
Mill Operations |
|
|
Tonnes of
ore processed |
|
609,927 |
|
|
669,287 |
|
Tonnes of
ore processed per day |
|
6,777 |
|
|
7,437 |
|
Average
grade of gold (4) |
|
2.47 |
|
|
2.22 |
|
Contained
ounces milled |
|
48,515 |
|
|
46,193 |
|
Average recovery rate |
|
90 |
% |
|
90 |
% |
(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.(3) For the purposes
of calculating mine-site all-in sustaining costs, the Company does
not include an allocation of corporate and administrative and share
based compensation expenses.(4) Grams per tonne of gold
("g/t Au").
Young-Davidson produced 45,000 ounces of gold,
10% higher than the comparative quarter of 2018, reflecting higher
grades mined, partially offset by lower tonnes milled in the
quarter. The operation is on track to achieve 2019 production and
cost guidance.
Underground mining rates of 6,540 tpd were
consistent with the comparative period, and in-line with 2019
guidance. Mining rates are expected to remain at a similar
level until the lower-mine tie-in is completed in the first half of
2020. Underground grades mined of 2.54 g/t Au were lower than
annual guidance due to mine sequencing but improved 8% relative to
the first quarter of 2018.
Mill throughput of 609,927 tonnes, or 6,777 tpd,
was lower than the comparative quarter and annual guidance due to
deferral of processing frozen low-grade stockpile to warmer months.
As the low-grade stockpiles thaw, mill throughput is expected to
increase to average 7,800 tpd until the stockpiles are depleted in
the third quarter, with mill throughput expected to drop to 6,500
tpd for the remainder of the year. Mill recoveries of 90% in the
quarter were in line with guidance.
Financial Review
First quarter revenues of $57.4 million were
slightly below the prior year quarter, reflecting a lower realized
gold price.
Cost of sales, which includes mining and
processing costs, royalties, and amortization expense of $56.9
million were consistent with the comparative quarter of 2018, as
were underground mining costs of approximately CAD$52 per
tonne. Amortization of $454 per ounce was also consistent
with the prior year period of $449 per ounce.
Total cash costs of $839 per ounce in the first
quarter were consistent with the comparative period, but were above
annual guidance as a result of lower grades mined, and higher than
anticipated underground maintenance costs.
Mine-site AISC were $1,068 per ounce in the
first quarter, up 7% from the first quarter of 2018, reflecting the
timing of sustaining capital expenditures. Full year total cash
costs and mine-site AISC are both expected to be within 2019
guidance as grades increase and sustaining capital spending
decreases throughout the year.
Capital expenditures were $22.3 million in the
first quarter. This included $10.0 million of sustaining capital
and $12.3 million of growth capital. Major capital spending in the
first quarter was focused on lower mine construction and lateral
development in the upper and lower mines.
Young-Davidson generated mine-site free cash
flow of $0.6 million in the first quarter, lower than the same
period of 2018 due to a lower realized gold price and working
capital payments. Young-Davidson continues to self-finance the
lower mine expansion.
Island Gold Financial and Operational
Review
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
Gold production
(ounces) |
|
35,600 |
|
|
28,100 |
|
Gold sales
(ounces) |
|
33,585 |
|
|
27,503 |
|
Financial Review (in millions) |
|
|
Operating Revenues |
$43.8 |
|
$36.6 |
|
Cost of sales (1) |
$28.6 |
|
$27.5 |
|
Earnings from
operations |
$15.0 |
|
$9.0 |
|
Cash provided by
operating activities |
$29.0 |
|
$23.7 |
|
Capital expenditures
(sustaining) (2) |
$5.1 |
|
$2.2 |
|
Capital expenditures
(growth) (2) |
$4.2 |
|
$8.6 |
|
Capital expenditures
(capitalized exploration) (2) |
$3.1 |
|
$3.1 |
|
Mine-site free cash
flow (2) |
$16.6 |
|
$9.8 |
|
Cost of sales, including amortization per ounce of gold sold
(1) |
$852 |
|
$1,000 |
|
Total
cash costs per ounce of gold sold (2) |
$497 |
|
$553 |
|
Mine-site
all-in sustaining costs per ounce of gold sold (2),(3) |
$649 |
|
$633 |
|
Underground
Operations |
|
|
Tonnes of
ore mined |
|
97,513 |
|
|
84,655 |
|
Tonnes of
ore mined per day ("tpd") |
|
1,083 |
|
|
941 |
|
Average
grade of gold (4) |
|
11.40 |
|
|
11.06 |
|
Metres
developed |
|
1,557 |
|
|
1,555 |
|
Mill Operations |
|
|
Tonnes of
ore processed |
|
101,997 |
|
|
82,105 |
|
Tonnes of
ore processed per day |
|
1,133 |
|
|
912 |
|
Average
grade of gold (4) |
|
11.11 |
|
|
11.07 |
|
Contained
ounces milled |
|
36,441 |
|
|
29,224 |
|
Average recovery rate |
|
97 |
% |
|
96 |
% |
(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.(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").
Island Gold produced a record 35,600 ounces in
the first quarter, a 27% increase from the comparative period
driven by higher mining and milling rates. The operation achieved
record gold production and record free cash flow of $16.6 million,
demonstrating the profitability of this high-grade operation.
Underground mining rates increased to 1,083 tpd
in the first quarter. This marked a 15% improvement from the first
quarter of 2018 as mining rates were increased to match the
expanded mill capacity. Underground mining rates are expected to
average 1,100 tpd in 2019. Underground grades mined averaged 11.40
g/t Au in the first quarter, in line with guidance.
Mill throughput increased to 1,133 tpd in the
first quarter, a 24% increase compared to the prior year quarter,
reflecting the completion of the Phase I expansion of the mill in
2018. Milling rates exceeded mining rates, as tonnes mined in the
quarter were supplemented with existing surface stockpiles. Mill
recoveries were 97% for the first quarter, in line with the prior
year and guidance.
Financial Review
Island Gold generated revenues of $43.8 million
in the first quarter reflecting record ounces sold. Revenues
increased by $7.2 million from the prior year period, or 20%
reflecting a 22% increase in ounces sold.
Cost of sales, which includes mining and
processing costs, royalties, and amortization expense of $28.6
million, were consistent with the comparative period, as more
ounces sold were offset by lower mining costs and lower
amortization driving down cost of sales per ounce by 15%.
Total cash costs were $497 per ounce in the
first quarter, a 10% improvement from the comparative quarter.
Higher mining rates in 2019 resulted in lower underground mining
costs per tonne. Total cash costs were consistent with guidance, as
mining rates and underground grades were in line with budget.
Mine-site AISC of $649 per ounce in the first
quarter were below the guidance range of $730 to $770 per ounce,
reflecting the timing of sustaining capital. The Company incurred
$5.1 million of sustaining capital in the first quarter, or 14% of
full year guidance (based on mid-point). Sustaining capital will
increase in subsequent quarters of 2019.
Total capital expenditures were $12.4 million in
the first quarter, with spending focused on lateral development,
mining equipment, and capitalized exploration. Capital spending was
comprised of $5.1 million of sustaining capital and $7.3 million of
growth capital (inclusive of capitalized exploration).
Island Gold generated mine-site free cash flow
of $16.6 million during the first quarter driven by record gold
production, strong operating margins, and lower capital spending.
Island Gold is expected to generate strong free cash flow in 2019,
net of a continued significant investment of $19 million in
exploration to further expand Mineral Reserves and Resources.
Mulatos Financial and Operational
Review
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
Gold production (ounces) |
|
38,900 |
|
|
46,000 |
|
Gold
sales (ounces) |
|
36,089 |
|
|
44,659 |
|
Financial
Review (in millions) |
|
|
Operating Revenues |
$47.1 |
|
$59.6 |
|
Cost of sales (1) |
$33.8 |
|
$43.6 |
|
Earnings from
operations |
$12.4 |
|
$12.7 |
|
Cash provided by
operating activities |
$0.6 |
|
$16.1 |
|
Capital expenditures
(sustaining) (2) |
$1.0 |
|
$0.8 |
|
Capital expenditures
(growth) (2) |
$11.6 |
|
$5.3 |
|
Capital expenditures
(capitalized exploration) (2) |
|
$— |
|
$1.1 |
|
Mine-site free cash
flow |
($12.0 |
) |
$8.9 |
|
Cost of sales, including amortization per ounce of gold sold
(1) |
$937 |
|
$976 |
|
Total
cash costs per ounce of gold sold (2) |
$743 |
|
$786 |
|
Mine site
all-in sustaining costs per ounce of gold sold (2),(3) |
$809 |
|
$842 |
|
Open Pit &
Underground Operations |
|
|
Tonnes of
ore mined - open pit (4) |
|
1,835,733 |
|
|
2,189,735 |
|
Total
waste mined - open pit |
|
1,977,839 |
|
|
1,998,605 |
|
Total
tonnes mined - open pit |
|
3,813,572 |
|
|
4,870,381 |
|
Waste-to-ore ratio (operating) |
|
0.51 |
|
|
0.91 |
|
Tonnes of
ore mined - underground |
|
— |
|
|
17,623 |
|
Crushing and
Heap Leach Operations |
|
|
Tonnes of
ore stacked |
|
1,875,556 |
|
|
1,750,471 |
|
Average
grade of gold processed (5) |
|
0.98 |
|
|
0.84 |
|
Contained ounces stacked |
|
59,174 |
|
|
47,358 |
|
Mill
Operations |
|
|
Tonnes of
high grade ore milled |
|
— |
|
|
30,389 |
|
Average
grade of gold processed (5) |
|
— |
|
|
8.11 |
|
Contained
ounces milled |
|
— |
|
|
7,917 |
|
Total contained ounces stacked and milled |
|
59,174 |
|
|
55,275 |
|
Recovery
ratio (ratio of ounces produced to contained ounces stacked and
milled) |
|
66 |
% |
|
83 |
% |
Ore
crushed per day (tonnes) - combined |
|
20,800 |
|
|
19,800 |
|
(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.(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 38,900 ounces in the first
quarter of 2019, in-line with annual guidance. This was down from
the prior year period with mining from the San Carlos underground
deposit having ceased in the third quarter of 2018. Mulatos
is on track to achieve production and cost guidance for the
year.
Total tonnes mined in the first quarter were 22%
lower than the prior year quarter, due to an unexpected pit slope
movement in the fourth quarter of 2018 of the El Salto area of the
open pit which temporarily impacted access to the Mulatos pit. The
Company is currently mining from both the Mulatos and Victor open
pits. In the first quarter, the Company completed pre-stripping of
the San Carlos pit and expects to commence mining ore in the second
quarter.
Total crusher throughput averaged 20,800 tpd for
a total of 1,875,556 tonnes stacked in the first quarter at a grade
of 0.98 g/t Au. Grades mined were higher than guidance as the
Company resequenced mining activities in the Mulatos pit. Grades
are expected to normalize to guided levels through the remainder of
the year.
The recovery ratio of ounces produced to
contained ounces stacked was 66% in the quarter. The Company
expects the recovery ratio to average 70% in 2019.
Financial Review
First quarter revenues of $47.1 million were
$12.5 million lower than the prior year quarter, primarily due to
lower concentrate ounces sold in 2019 with the completion of mining
at the San Carlos underground deposit in September of 2018.
Cost of sales, which includes mining and
processing costs, royalties, and amortization expense, were $33.8
million in the first quarter, lower than the prior year period due
to lower total tonnes mined in the open pit and fewer ounces sold.
Amortization of $194 per ounce was in line with the prior year and
below guidance.
Total cash costs of $743 per ounce in the first
quarter were lower than the prior year quarter, and significantly
below guided levels. This outperformance on costs was the result of
higher grades stacked in the quarter, a lower operating waste to
ore ratio, and low-cost ounces sold from concentrate. During the
first quarter, the Company recovered approximately 2,000 ounces in
concentrate from the mill that were previously not expected to be
recovered and had minimal associated inventory costs. This had the
impact of driving total cash costs at Mulatos down significantly in
the quarter. The Company does not expect cash costs to remain at
these lower levels through the remainder of the year and maintains
total cash cost guidance of $820 to $860 for the year.
Mine-site AISC of $809 per ounce in the first
quarter were lower than the $842 per ounce reported in the prior
year quarter, due to timing of sustaining capital spending and
lower cash costs. The Company does not expect mine-site AISC
to remain at these lower levels through the remainder of the year,
and maintains guidance of $860 to $900 for the year.
Mulatos reported negative free cash-flow of
$12.0 million in the first quarter, given higher growth capital
spending on construction of Cerro Pelon and San Carlos
pre-stripping activities. Mulatos paid the annual mining tax of
$4.1 million and did not collect value-added taxes in the first
quarter, both of which contributed to the cash out-flow.
El Chanate Financial and Operational Review
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
Gold production (ounces) |
|
5,800 |
|
|
13,800 |
|
Gold
sales (ounces) |
|
6,035 |
|
|
13,093 |
|
Financial
Review (in millions) |
|
|
Operating Revenues |
$7.8 |
|
$17.4 |
|
Cost of sales (1) |
$7.7 |
|
$16.6 |
|
Earnings from
operations |
$0.1 |
|
$0.8 |
|
Cash provided by
operating activities |
$1.2 |
|
$1.2 |
|
Capital
expenditures |
$ |
— |
|
$0.1 |
|
Mine-site free cash
flow (2) |
$1.2 |
|
$1.1 |
|
Cost of sales, including amortization per ounce of gold sold
(1) |
$1,276 |
|
$1,268 |
|
Total
cash costs per ounce of gold sold (2) |
$1,193 |
|
$1,176 |
|
Mine site
all-in sustaining costs per ounce of gold sold (2),(3) |
$1,193 |
|
$1,191 |
|
(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.(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.
El Chanate produced 5,800 ounces of gold in the
first quarter through the residual leaching process, in line with
guidance. The Company expects to recover between 15,000 and 25,000
ounces in 2019, and will continue to leach until such time the gold
becomes uneconomic to recover.
Financial Review
First quarter revenues of $7.8 million were
lower than the prior year quarter due to fewer ounces sold, as
mining and stacking ceased in 2018. Total cash costs, and mine-site
AISC per ounce were $1,193 for the first quarter were in line with
both the prior year period and guidance.
El Chanate generated $1.2 million of mine-site
free cash flow in the quarter. The Company expects mine-site free
cash flow to remain positive in 2019 before transitioning to
reclamation activities.
First Quarter 2019 Development Activities
Kirazlı (Çanakkale, Turkey)
The Company has been granted all the major
permits required for the start of construction at Kirazlı, as the
Company was granted the Operating Permit from the Turkish
Department of Energy and Natural Resources in the first quarter of
2019. With the receipt of the Operating Permit, the Company expects
to ramp up major construction and earthworks activities, putting
initial production from Kirazlı on track by the end of 2020.
The Company finalized several key contracts in
the quarter, including the mining services and earthworks contract,
which will provide for open pit mining services through the
life-of-mine. The Contractor is currently mobilizing to site and
expects to start commence stripping the open pit within the next
month. In addition, the Company finalized agreements with the
construction management contractor, as well as contracts related to
the water treatment plant, and other equipment purchases.
The Company spent $2.9 million in the first
quarter of 2019, and expects spending to ramp up significantly
starting in the second quarter as development activities focus on
earthworks, and completion of the water reservoir and power
line.
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”) and
Change in Land Use permits for Cerro Pelon were received in the
fourth quarter of 2018, with construction commencing thereafter.
The Company has budgeted $25 million 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. An independent
crushing circuit is being transferred from El Chanate that will be
dedicated to processing Cerro Pelon ore, thereby providing
additional capacity at Mulatos. Cerro Pelon is a higher grade, high
return project, and is expected to start contributing low cost
production in 2020.
First quarter activities focused on construction
of the haulage road from the Cerro Pelon deposit to the main
Mulatos deposit, which is approximately 50% complete at the end of
the first quarter. In addition, civil works were completed ahead of
the crusher installation. Second quarter activities will
focus on completion of the haul road and crusher, with
pre-stripping expected to commence in the third quarter.
During the first quarter, the Company spent $5.1
million on Cerro Pelon and $0.8 million on La Yaqui Grande.
Spending was primarily focused on earthworks related to the haul
road and crushing circuit, as well as engineering and other
activities to progress La Yaqui Grande.
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 at
average mine-site all-in sustaining costs of $745 per ounce.
The Company continues to evaluate value
engineering initiatives to enhance the project’s economics from the
12.5% IRR as indicated in the 2017 Feasibility Study. The Company
is updating the Feasibility Study which is expected to be completed
in mid 2019.
Development spending in the first quarter of
$0.7 million was related to project optimization activities. 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.
First Quarter 2019 Exploration Activities
Island Gold (Ontario, Canada)
The 2019 exploration program continues to target
three main areas within the Island Gold Deposit which extends over
two-kilometres along strike. During the first quarter of 2019, the
surface and underground exploration drilling programs focused 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, Western, and Eastern Extension areas were
testing high-grade, east-plunging shoots outside of existing
Mineral Reserves and Resources.
The 2019 exploration budget includes 48,000
metres ("m") of surface directional exploration drilling, 30,000 m
of underground exploration drilling and 900 m of exploration drift
development.
Surface exploration drilling
A total of 12 holes (10,079 m) were completed in
the first quarter as part of the directional exploration drilling
program. 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.
Two regional exploration drill holes that were
started in the fourth quarter of 2018 were completed during the
first quarter of 2019 for a total of 1,119 m. These holes were
drilled to test the Goudreau Deformation Zone to the west of the
Island Gold Mine.
Underground exploration drilling
During the first quarter of 2019, a total of
2,614 m of underground exploration diamond drilling was completed
in 13 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. A total of 93 m of
underground exploration drift development was completed on the 840
level during the first quarter of 2019.
Total exploration expenditures were $3.3 million
of which $3.1 million was capitalized during the first quarter of
2019.
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 earlier stage prospects throughout the wider district.
In the first quarter of 2019, the Company
invested $0.9 million in exploration activities within the Mulatos
District. Spending in the quarter primarily related to mapping and
re-logging, and administrative costs including mineral concession
payments. Exploration efforts are expected to ramp up in the second
quarter.
Lynn Lake (Manitoba,
Canada)
Surface exploration drilling commenced at Lynn
Lake during the first quarter of 2019, with a total of 4,585 m
drilled in 17 holes. Drill holes were designed to test
targets at the MacLellan and Gordon deposits with the objective of
expanding Mineral Resources.
The results from the 2018 regional exploration
program which included till sampling, mapping, and prospecting have
been integrated into the Lynn Lake database. These results 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. These targets will be the focus of regional
exploration programs which will commence in the second quarter of
2019.
Spending in the first quarter totaled $0.9
million. A total of $6.0 million comprised of 19,000 m of drilling
is budgeted for the Lynn Lake project in 2019.
Review of First Quarter Financial Results
During the first quarter of 2019, the Company
sold 119,705 ounces of gold for total revenue of $156.1 million, a
decrease of $17.0 million, or 10% compared to the prior year
period. This was driven by 8% lower gold sales in the quarter given
the timing of shipments at quarter-end, as well as a 2% decrease in
the average realized gold price. The Company's realized gold price
of $1,304 per ounce was in line with the average London PM fix for
the quarter.
Cost of sales were $127.0 million in the first
quarter of 2019, a decrease of 12% compared to the prior-year
period, driven by lower mining and processing costs and lower
amortization charges.
Mining and processing costs were $82.2 million
compared to $96.9 million in the prior-year period. This was due to
less ounces sold and lower operating costs at both Island Gold and
Mulatos, which drove down total cash costs for the quarter.
Consolidated total cash costs for the quarter
were $732 per ounce, compared to $789 in the prior year period. In
the current year, the Company increased lower-cost production at
Island Gold, which offset declining higher-cost El Chanate
production. In addition, total cash costs at Mulatos were
significantly lower than guidance as the operation benefited from
higher grades mined and unbudgeted production from concentrate.
AISC were $957 per ounce in the quarter, a 2%
increase from the prior year period, primarily driven by the timing
of sustaining capital spending at Young-Davidson.
Royalty expense was $5.4 million in the quarter,
consistent with the prior year period of $5.7 million, as higher
royalties at Island Gold were offset by lower royalties at Mulatos.
Royalty expense is expected to decrease in future quarters having
achieved two million ounces of cumulative production at Mulatos,
with the operation no longer subject to a third-party 5%
royalty.
Amortization of $39.4 million in the quarter was
lower than the prior year period expense of $42.1 million due to
less ounces sold. On a per-ounce basis, amortization of $329 was
consistent with the prior year period of $324, and consistent with
guidance. The Company expects amortization to average $345 per
ounce in 2019.
The Company recognized earnings from operations
of $18.7 million in the quarter, consistent with the prior year
period, as lower gold sales were offset by improved margins in the
quarter.
The Company reported net earnings of $16.8
million in the quarter, compared to $0.6 million in the same period
of 2018, mainly driven by the impact of foreign exchange on tax
expense. On an adjusted basis, earnings of $10.3 million or $0.03
per share for the quarter were consistent with the prior year
period. Adjusted net earnings reflects adjustments for other gains
and losses, as well as foreign exchange movements related to the
Canadian dollar and Mexican Peso, which generated foreign exchange
gains of $4.3 million recorded within both foreign exchange gain
and deferred income taxes.
Associated Documents
This press release should be read in conjunction with the
Company’s interim consolidated financial statements for the
three-month period ended March 31, 2019 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 First Quarter 2019 Results Conference
Call
The Company's senior management will host a
conference call on Thursday, May 2, 2019 at 11:00 am ET to discuss
the first quarter 2019 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 June 2, 2019
by dialling (905) 694-9451 or (800) 408-3053 within Canada and the
United States. The pass code is 6574529#. 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 |
|
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 which
are, or may be deemed to be, forward-looking information as defined
under applicable Canadian and U.S. securities laws
("forward-looking statement(s)"). All statements in this
press release, other than statements of historical fact, which
address events, results, outcomes or developments 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", “contemplates”, “continues”, “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 press release 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 and
administrative proceedings; disruptions affecting operations;
availability of and increased costs associated with mining inputs
and labour; development delays at the Kirazlı project or
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;
expropriation or nationalization of property; inherent risks and
hazards associated with mining including environmental hazards,
industrial accidents, unusual or unexpected formations, pressures
and cave-ins; changes in national and local government legislation
(including tax legislation), controls or regulations 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 at www.sec.gov. The foregoing should be reviewed in
conjunction with the information found in this press 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 March 31, |
|
|
|
2019 |
|
|
2018 |
|
Net Earnings |
$16.8 |
|
$0.6 |
|
Adjustments: |
|
|
Foreign
exchange (gain) loss |
|
(0.2 |
) |
|
1.3 |
|
Other
(gain) loss |
|
(2.2 |
) |
|
0.7 |
|
Unrealized foreign exchange (gain) loss recorded in deferred tax
expense |
|
(4.1 |
) |
|
9.5 |
|
Other
income and mining tax adjustments (1) |
|
— |
|
|
0.2 |
|
Adjusted net earnings |
$10.3 |
|
$12.3 |
|
Adjusted
earnings per share - basic |
$0.03 |
|
$0.03 |
|
(1) In the first quarter of 2018, 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 March 31, |
|
|
|
2019 |
|
|
2018 |
|
Cash flow from operating activities |
$42.4 |
|
$58.8 |
|
Add back: Changes in
working capital and cash taxes |
|
19.3 |
|
|
3.8 |
|
Cash flow from operating activities before changes in
working capital and cash taxes |
$61.7 |
|
$62.6 |
|
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 March 31, |
|
|
|
2019 |
|
|
2018 |
|
Cash flow from operating activities |
$42.4 |
|
$58.8 |
|
Less: mineral property, plant and
equipment expenditures |
|
(53.3 |
) |
|
(51.5 |
) |
Company-wide free cash flow |
($10.9 |
) |
$7.3 |
|
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 March 31, |
|
|
|
2019 |
|
|
2018 |
|
(in millions) |
|
|
Cash flow from
operating activities |
$42.4 |
|
$58.8 |
|
Less: operating cash
flow used by non-mine site activity |
|
(11.3 |
) |
|
(9.6 |
) |
Cash flow from operating mine-sites |
$53.7 |
|
$68.4 |
|
|
|
|
Mineral property, plant
and equipment expenditure |
$53.3 |
|
$51.5 |
|
Less: capital
expenditures from development projects, and corporate |
|
(6.0 |
) |
|
(7.4 |
) |
Capital expenditure from mine-sites |
$47.3 |
|
$44.1 |
|
|
|
|
Total mine-site free cash flow |
$6.4 |
|
$24.3 |
|
Young-Davidson
Mine-Site Free Cash Flow |
|
|
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
(in millions) |
|
|
Cash flow from
operating activities |
$22.9 |
|
$27.4 |
|
Mineral property, plant
and equipment expenditure |
|
(22.3 |
) |
|
(22.9 |
) |
Mine-site free cash flow |
$0.6 |
|
$4.5 |
|
Mulatos
Mine-Site Free Cash Flow |
|
|
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
(in millions) |
|
|
Cash flow from
operating activities |
$0.6 |
|
$16.1 |
|
Mineral property, plant
and equipment expenditure |
|
(12.6 |
) |
|
(7.2 |
) |
Mine-site free cash flow |
($12.0 |
) |
$8.9 |
|
Island Gold
Mine-Site Free Cash Flow |
|
|
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
(in millions) |
|
|
Cash flow from
operating activities |
$29.0 |
|
$23.7 |
|
Mineral property, plant
and equipment expenditure |
|
(12.4 |
) |
|
(13.9 |
) |
Mine-site free cash flow |
$16.6 |
|
$9.8 |
|
El Chanate
Mine-Site Free Cash Flow |
|
|
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
(in millions) |
|
|
Cash flow from
operating activities |
$1.2 |
|
$1.2 |
|
Mineral property, plant
and equipment expenditure |
|
— |
|
|
(0.1 |
) |
Mine-site free cash flow |
$1.2 |
|
$1.1 |
|
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 March 31, |
|
|
|
2019 |
|
|
2018 |
|
(in millions, except
ounces and per ounce figures) |
|
|
Mining and
processing |
$82.2 |
|
$96.9 |
|
Royalties |
|
5.4 |
|
|
5.7 |
|
Total cash costs |
$87.6 |
|
$102.6 |
|
Gold
ounces sold |
|
119,705 |
|
|
130,045 |
|
Total cash
costs per ounce |
$732 |
|
$789 |
|
|
|
|
Total cash costs |
$87.6 |
|
$102.6 |
|
Corporate and
administrative(1) |
|
5.5 |
|
|
4.4 |
|
Sustaining capital
expenditures(2) |
|
16.1 |
|
|
10.7 |
|
Share-based
compensation |
|
3.3 |
|
|
1.6 |
|
Sustaining
exploration |
|
1.4 |
|
|
1.7 |
|
Accretion of
decommissioning liabilities |
|
0.6 |
|
|
0.6 |
|
Total all-in sustaining costs |
$114.5 |
|
$121.6 |
|
Gold ounces sold |
|
119,705 |
|
|
130,045 |
|
All-in sustaining costs per ounce |
$957 |
|
$935 |
|
(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 March 31, |
|
|
|
2019 |
|
|
2018 |
|
(in millions) |
|
|
Capital expenditures
per cash flow statement |
$53.3 |
|
$51.5 |
|
Less: non-sustaining
capital expenditures at: |
|
|
Young-Davidson |
|
(12.3 |
) |
|
(15.3 |
) |
Mulatos |
|
(11.6 |
) |
|
(6.4 |
) |
Island
Gold |
|
(7.3 |
) |
|
(11.7 |
) |
Corporate
and other |
|
(6.0 |
) |
|
(7.4 |
) |
Sustaining capital expenditures |
$16.1 |
|
$10.7 |
|
Young-Davidson Total Cash Costs and Mine-site AISC
Reconciliation |
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
(in millions, except
ounces and per ounce figures) |
|
|
Mining and
processing |
$35.9 |
|
$36.0 |
|
Royalties |
|
1.0 |
|
|
0.9 |
|
Total cash costs |
$36.9 |
|
$36.9 |
|
Gold
ounces sold |
|
43,996 |
|
|
44,790 |
|
Total cash
costs per ounce |
$839 |
|
$824 |
|
|
|
|
Total cash costs |
$36.9 |
|
$36.9 |
|
Sustaining capital
expenditures |
|
10.0 |
|
|
7.6 |
|
Exploration |
|
0.1 |
|
|
— |
|
Total all-in sustaining costs |
$47.0 |
|
$44.5 |
|
Gold ounces sold |
|
43,996 |
|
|
44,790 |
|
Mine-site all-in sustaining costs per ounce |
$1,068 |
|
$994 |
|
Mulatos Total Cash Costs and Mine-site AISC
Reconciliation |
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
(in millions, except
ounces and per ounce figures) |
|
|
Mining and
processing |
$24.5 |
|
$31.9 |
|
Royalties |
|
2.3 |
|
|
3.2 |
|
Total cash costs |
$26.8 |
|
$35.1 |
|
Gold
ounces sold |
|
36,089 |
|
|
44,659 |
|
Total cash
costs per ounce |
$743 |
|
$786 |
|
|
|
|
Total cash costs |
$26.8 |
|
$35.1 |
|
Sustaining capital
expenditures |
|
1.0 |
|
|
0.8 |
|
Exploration |
|
0.8 |
|
|
1.2 |
|
Accretion of
decommissioning liabilities |
|
0.6 |
|
|
0.5 |
|
Total all-in sustaining costs |
$29.2 |
|
$37.6 |
|
Gold ounces sold |
|
36,089 |
|
|
44,659 |
|
Mine-site all-in sustaining costs per ounce |
$809 |
|
$842 |
|
Island Gold Total Cash Costs and Mine-site AISC
Reconciliation |
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
(in millions, except
ounces and per ounce figures) |
|
|
Mining and
processing |
$14.6 |
|
$13.6 |
|
Royalties |
|
2.1 |
|
|
1.6 |
|
Total cash costs |
$16.7 |
|
$15.2 |
|
Gold
ounces sold |
|
33,585 |
|
|
27,503 |
|
Total cash
costs per ounce |
$497 |
|
$553 |
|
|
|
|
Total cash costs |
$16.7 |
|
$15.2 |
|
Sustaining capital
expenditures |
|
5.1 |
|
|
2.2 |
|
Total all-in sustaining costs |
$21.8 |
|
$17.4 |
|
Gold ounces sold |
|
33,585 |
|
|
27,503 |
|
Mine-site all-in sustaining costs per ounce |
$649 |
|
$633 |
|
El
Chanate Total Cash Costs and Mine-site AISC
Reconciliation |
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
(in millions, except
ounces and per ounce figures) |
|
|
Mining and
processing |
$7.2 |
|
$15.4 |
|
Total cash costs |
$7.2 |
|
$15.4 |
|
Gold
ounces sold |
|
6,035 |
|
|
13,093 |
|
Total cash
costs per ounce |
$1,193 |
|
$1,176 |
|
|
|
|
Total cash costs |
$7.2 |
|
$15.4 |
|
Sustaining capital
expenditures |
|
— |
|
|
0.1 |
|
Accretion of
decommissioning liabilities |
|
— |
|
|
0.1 |
|
Total all-in sustaining costs |
$7.2 |
|
$15.6 |
|
Gold ounces sold |
|
6,035 |
|
|
13,093 |
|
Mine-site all-in sustaining costs per ounce |
$1,193 |
|
$1,191 |
|
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 March 31, |
|
|
|
2019 |
|
|
2018 |
|
Net earnings |
$16.8 |
|
$0.6 |
|
Add back: |
|
|
Finance
expense |
|
0.5 |
|
|
0.9 |
|
Amortization |
|
39.4 |
|
|
42.1 |
|
Deferred
income tax (recovery) expense |
|
(3.7 |
) |
|
7.0 |
|
Current income tax expense |
|
7.5 |
|
|
8.0 |
|
EBITDA |
$60.5 |
|
$58.6 |
|
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)
|
March 31, 2019 |
|
|
December 31, 2018 |
|
A S S E T
S |
|
|
|
Current
Assets |
|
|
|
Cash and cash
equivalents |
$180.6 |
|
|
$206.0 |
|
Equity securities |
|
10.2 |
|
|
|
7.8 |
|
Amounts receivable |
|
37.5 |
|
|
|
40.5 |
|
Inventory |
|
117.0 |
|
|
|
110.2 |
|
Other current
assets |
|
18.1 |
|
|
|
15.5 |
|
Total Current
Assets |
|
363.4 |
|
|
|
380.0 |
|
|
|
|
|
Non-Current
Assets |
|
|
|
Long-term
inventory |
|
29.8 |
|
|
|
30.0 |
|
Mineral property, plant
and equipment |
|
2,826.1 |
|
|
|
2,813.3 |
|
Other non-current
assets |
|
43.2 |
|
|
|
41.9 |
|
Total Assets |
$3,262.5 |
|
|
$3,265.2 |
|
|
|
|
|
L I A B I L I T
I E S |
|
|
|
Current
Liabilities |
|
|
|
Accounts payable and
accrued liabilities |
$104.6 |
|
|
$118.7 |
|
Income taxes
payable |
|
6.8 |
|
|
|
6.2 |
|
Total Current
Liabilities |
|
111.4 |
|
|
|
124.9 |
|
|
|
|
|
Non-Current
Liabilities |
|
|
|
Deferred income
taxes |
|
489.1 |
|
|
|
491.5 |
|
Decommissioning
liabilities |
|
45.7 |
|
|
|
44.9 |
|
Other non-current
liabilities |
|
3.1 |
|
|
|
1.6 |
|
Total Liabilities |
|
649.3 |
|
|
|
662.9 |
|
|
|
|
|
E Q U I T
Y |
|
|
|
Share capital |
$3,681.8 |
|
|
$3,705.2 |
|
Contributed
surplus |
|
92.6 |
|
|
|
87.3 |
|
Warrants |
|
— |
|
|
|
3.9 |
|
Accumulated other
comprehensive loss |
|
(3.0 |
) |
|
|
(9.2 |
) |
Deficit |
|
(1,158.2 |
) |
|
|
(1,184.9 |
) |
Total Equity |
|
2,613.2 |
|
|
|
2,602.3 |
|
Total Liabilities and Equity |
$3,262.5 |
|
|
$3,265.2 |
|
ALAMOS GOLD
INC.Condensed Interim Consolidated Statements of
Comprehensive Income(Unaudited - stated in millions of
United States dollars, except share and per share amounts)
|
|
For three months ended |
|
|
March 31, |
|
March 31, |
|
|
|
2019 |
|
|
|
2018 |
|
OPERATING
REVENUES |
|
$156.1 |
|
|
$173.1 |
|
|
|
|
|
|
COST OF
SALES |
|
|
|
|
Mining and
processing |
|
|
82.2 |
|
|
|
96.9 |
|
Royalties |
|
|
5.4 |
|
|
|
5.7 |
|
Amortization |
|
|
39.4 |
|
|
|
42.1 |
|
|
|
|
127.0 |
|
|
|
144.7 |
|
EXPENSES |
|
|
|
|
Exploration |
|
|
1.6 |
|
|
|
3.9 |
|
Corporate and
administrative |
|
|
5.5 |
|
|
|
4.4 |
|
Share-based
compensation |
|
|
3.3 |
|
|
|
1.6 |
|
|
|
|
137.4 |
|
|
|
154.6 |
|
EARNINGS FROM
OPERATIONS |
|
|
18.7 |
|
|
|
18.5 |
|
|
|
|
|
|
OTHER
EXPENSES |
|
|
|
|
Finance expense |
|
|
(0.5 |
) |
|
|
(0.9 |
) |
Foreign exchange gain
(loss) |
|
|
0.2 |
|
|
|
(1.3 |
) |
Other gain (loss) |
|
|
2.2 |
|
|
|
(0.7 |
) |
EARNINGS BEFORE
INCOME TAXES |
|
$20.6 |
|
|
$15.6 |
|
|
|
|
|
|
INCOME
TAXES |
|
|
|
|
Current income tax
expense |
|
|
(7.5 |
) |
|
|
(8.0 |
) |
Deferred income tax
recovery (expense) |
|
|
3.7 |
|
|
|
(7.0 |
) |
NET
EARNINGS |
|
$16.8 |
|
|
$0.6 |
|
|
|
|
|
|
Items that may be
subsequently reclassified to net earnings: |
|
|
|
|
Unrealized gain (loss) on currency hedging instruments, net of
taxes |
|
|
3.3 |
|
|
|
(1.4 |
) |
Unrealized gain on fuel hedging instruments, net of taxes |
|
|
0.6 |
|
|
|
— |
|
Items that will not be
reclassified to net earnings: |
|
|
|
|
Unrealized gain on equity securities, net of taxes |
|
|
2.3 |
|
|
|
1.0 |
|
Total other
comprehensive income (loss) |
|
$6.2 |
|
|
($0.4 |
) |
COMPREHENSIVE
INCOME |
|
$23.0 |
|
|
$0.2 |
|
|
|
|
|
|
EARNINGS PER
SHARE |
|
|
|
|
–
basic |
|
$0.04 |
|
|
$0.00 |
|
–
diluted |
|
$0.04 |
|
|
$0.00 |
|
Weighted average number
of common shares outstanding (000's) |
|
|
|
|
– basic |
|
|
389,735 |
|
|
|
389,254 |
|
– diluted |
|
|
394,196 |
|
|
|
392,413 |
|
ALAMOS GOLD
INC.Condensed Interim Consolidated Statements of
Cash Flows(Unaudited - stated in millions of United States
dollars)
|
|
For three months ended |
|
|
March 31, |
|
March 31, |
|
|
|
2019 |
|
|
|
2018 |
|
CASH PROVIDED
BY (USED IN): |
|
|
|
|
OPERATING
ACTIVITIES |
|
|
|
|
Net earnings for the
period |
|
$16.8 |
|
|
$0.6 |
|
Adjustments for items
not involving cash: |
|
|
|
|
Amortization |
|
|
39.4 |
|
|
|
42.1 |
|
Foreign
exchange (gain) loss |
|
|
(0.2 |
) |
|
|
1.3 |
|
Current
income tax expense |
|
|
7.5 |
|
|
|
8.0 |
|
Deferred
income tax (recovery) expense |
|
|
(3.7 |
) |
|
|
7.0 |
|
Share-based compensation |
|
|
3.3 |
|
|
|
1.6 |
|
Finance
expense |
|
|
0.5 |
|
|
|
0.9 |
|
Other
items |
|
|
(1.9 |
) |
|
|
1.1 |
|
Changes in working
capital and cash taxes |
|
|
(19.3 |
) |
|
|
(3.8 |
) |
|
|
|
42.4 |
|
|
|
58.8 |
|
INVESTING
ACTIVITIES |
|
|
|
|
Mineral property, plant
and equipment |
|
|
(53.3 |
) |
|
|
(51.5 |
) |
Proceeds from sale of
equity securities |
|
|
— |
|
|
|
24.9 |
|
|
|
|
(53.3 |
) |
|
|
(26.6 |
) |
FINANCING
ACTIVITIES |
|
|
|
|
Repayment of equipment
financing obligations |
|
|
(1.1 |
) |
|
|
(1.2 |
) |
Repurchase and
cancellation of common shares |
|
|
(10.6 |
) |
|
|
— |
|
Proceeds from the
exercise of options and warrants |
|
|
0.6 |
|
|
|
0.7 |
|
Dividends paid |
|
|
(3.9 |
) |
|
|
— |
|
|
|
|
(15.0 |
) |
|
|
(0.5 |
) |
Effect of exchange
rates on cash and cash equivalents |
|
|
0.5 |
|
|
|
(0.7 |
) |
Net (decrease) increase
in cash and cash equivalents |
|
|
(25.4 |
) |
|
|
31.0 |
|
Cash and cash
equivalents - beginning of period |
|
|
206.0 |
|
|
|
200.8 |
|
CASH AND CASH
EQUIVALENTS - END OF PERIOD |
|
$180.6 |
|
|
$231.8 |
|
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