Alamos Gold Inc (US)(NYSE:AGI) posted its financial report for the first quarter closed March 31, 2017 and assessed its exploration, development and operating activities. John A. McCluskey, the CEO and President, reported that they recorded a strong start to the year operationally and with lower costs and stronger production anticipated through the rest of 2017, they are on track to record full year projection across all metrics.
They anticipate to drive considerable free cash flow growth from their operations, particularly in the 2H2017 as they benefit from better throughput rates at Young-Davidson and preliminary production from La Yaqui.
Alamos recorded remarkable progress surfacing value within its portfolio of development assets in the first quarter. Construction work of La Yaqui Phase I is going as planned. The company continued to advance La Yaqui Grande, posting a preliminary reserve of more than 0.5 million ounces. It delivered two promising feasibility studies on projects in Turkey and anticipate report from a third feasibility assessment on Lynn Lake in the Q3 2017.
Alamos strengthened its balance sheet. The company has a strong position now and is debt free, which makes it well suited to deliver on growth. In Q1 2017, the company gold production stood at 96,200 ounces at total cash costs of $827 an ounce and AISC of $1,014 an ounce. Lower costs and stronger quarterly production are projected through the remainder of the year in terms with full year guidance.
Gold sales in Q1 2017 stood at 98,755 ounces at an average realized rate of $1,225 an ounce for revenues of $121 million. Realized net earnings came at $0.1 million, which comprised an unrealized foreign exchange gain of $0.02 per share. Cash flow from operating segment before working capital changes amounted to $34.2 million in Q1 2017. Alamos also closed an equity financing pursuant to which 31.45 million common shares were offered at a price of $7.95 a share.