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Be the first with the news that moves the market- An upswing on gold prices in 2019 helped play a part in Alamos Gold
(TSX:AGI) posting record profits in the final quarter - Operating cash flow in the fourth quarter of 2019 achieved $86 million for the gold miner, contributing to a total of $297 million for the year
- Net earnings in that quarter alone hit $32.1 million
- Although the company sold less gold than in the final quarter of 2018, a higher price in the market and lower price in sustaining reserves paved way for record performances
- Shares in Alamos Gold increased 2.7 per cent on the Toronto Stock Exchange on Thursday — reaching a valuation of $8.67 per share.
A rising price in gold has boosted large-cap Alamos Gold (TSX:AGI) to achieve record profits — as revealed in the company’s 2019 roundup.
Released on Thursday, Alamos Gold announced a net earnings performance of $32.1 million for the fourth quarter of 2019’s calendar year. This is a massive increase from this time last year when Alamos achieved a much smaller $4.3 million.
Operating cash flow in the quarter alone reached $86 million, a record as well, contributing to 2019’s total of $297 million.
“We reported a solid fourth quarter and 2019,” Chief Executive John McCluskey said.
“We met our production guidance for the fifth consecutive year, and we met our cost guidance with a 10 per cent reduction in total cash costs from a year ago.”
The company produced 122,100 ounces of gold in the final quarter of the year, selling a total of 127,148 ounces from its reserves at $1,463 per ounce. This netted the company a revenue of $186 million.
“Stronger gold prices and lower costs drove a 40% increase in operating cash flow,” John added.
In the final quarter of 2018, Alamos Gold actually sold more of the shiny produce at 131,161 ounces. However the significantly higher gold price in 2019 helped the company beat its profit records.
“We expect 2020 will be a transformational year for Alamos driven by several significant catalysts,” John said.
Sustaining costs of gold reserves also decreased $11 per ounce, increasing the significant profit margin for Alamos’ haul.
For 2020, Alamos Gold is expecting a guidance of 425,000 to 465,000 ounces of gold.
The company also has a lot to look forward to in the present year as well, with significant progress to come from its ‘Young-Davidson’ flagship mine.
“The lower mine expansion at Young-Davidson is on track for completion in June after which we expect to transition to strong free cash flow growth,” John
McCluskey added.
Shares in Alamos Gold increased 2.7 per cent on the Toronto Stock Exchange on Thursday — reaching a valuation of $8.67 per share.
