TORONTO, ONTARIO -- (Marketwired) -- 04/25/13 -- 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, 2013 and announced that it has filed with the Toronto Stock Exchange (the "TSX") a Notice of Intention to make a Normal Course Issuer Bid ("NCIB").
Production of 55,000 ounces in the first quarter of 2013 was the highest ever achieved by the Company in a first quarter and second highest in its history. Cash operating costs of $358 per ounce were significantly below annual guidance, contributing to strong operating margins and cash flow generation. Cash from operating activities before changes in non-cash working capital totaled $40.4 million ($0.32 per basic share) in the first quarter of 2013 and earnings were $26.0 million ($0.21 per basic share), which included approximately $0.05 per share of costs and foreign exchange losses associated with the Aurizon offer.
"The strong first quarter performance posted by Alamos, together with our announcement of the share buyback program, underscore management's success in building an effective financial and operating platform to support profitable growth and value creation. By any measure, Alamos' focus on continuous improvement, and its disciplined approach to growth and risk management, consistently produce first-quartile costs and margins, positioning the Company to outperform irrespective of the gold price environment. With nearly $490 million in cash and equity investments, no debt, and strong operating cash flow, Alamos plans to grow both organically and through acquisition," said John A. McCluskey, President and Chief Executive Officer. "We believe that repurchasing shares from time to time, when they are trading at prices that in our view reflect a discount to their value, is advantageous to the Company and its shareholders. Purchasing shares for cancellation increases the value of the remaining shares and is consistent with our fundamental value creation strategy.
"With respect to Alamos' growth plans, we expect that in 2013 we will obtain the approvals required to begin building Agi Dagi and Kirazli, two self-funded mines in Turkey. As we have noted previously, the Kirazli Project is in the final stage of Environmental Impact Assessment (EIA) approval. In the next few weeks, we plan to submit our EIA for Agi Dagi," Mr. McCluskey added.
First Quarter 2013 Highlights
-- Sold 53,000 ounces of gold at an average realized price of $1,628 per ounce for quarterly revenues of $86.3 million-- Realized quarterly earnings of $26.0 million ($0.21 per basic share). Earnings for the period included a $3.6 million ($0.03 per basic share) foreign exchange loss on the Company's equity investment in the shares of Aurizon Mines Ltd. ("Aurizon"), and $3.0 million ($0.02 per basic share) in transaction costs related to the Aurizon offer-- Generated cash from operating activities before changes in non-cash working capital of $40.4 million ($0.32 per basic share); after changes in non-cash working capital of $33.0 million ($0.26 per basic share)-- Increased cash and cash equivalents and short-term investments by $19.6 million to $373.3 million at March 31, 2013 ($489.1 million including equity investments)-- Declared a semi-annual dividend of $0.10 per common share. The dividend is payable on April 30, 2013 to shareholders of record as of the close of business on April 15, 2013