Blog Coverage Alamos Provided FY17 Outlook, Achieved Production for FY16

Upcoming AWS Coverage on Goldcorp

LONDON, UK / ACCESSWIRE / January 9, 2017 / Active Wall St. blog coverage looks at the headline from Alamos Gold Inc. (NYSE: AGI) as the Company reported on January 06, 2017, its Q4 2016 and FY16 production results. The Company also provided FY17 production and operating guidance. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

One of Alamos Gold’s competitors within the Gold space, Goldcorp Inc. (NYSE: GG), is estimated to report earnings on February 23, 2017. AWS will be initiating a research report on Goldcorp following the releases of its next earnings results.

Today, AWS is promoting its blog coverage on AGI; touching on GG. Get all of our free blog coverage and more by clicking on the links below:

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“Alamos had a breakthrough year in 2016. With a record fourth quarter, we produced 392,000 ounces of gold for the year. We also achieved a significant reduction in our operating costs and capital spending which resulted in strong free cash flow growth from our operations. With stronger production and lower costs expected in 2017, this is a trend we expect to continue,” said John A. McCluskey, the Company’s President and Chief Executive Officer.

2016 Operating Highlights

During FY16, Alamos produced 392,000 ounces of gold, above the mid-point of its guidance. The all-in sustaining costs for FY16 are expected to be approximately $1,000 per ounce, marking a significant decrease from 2015 all-in sustaining costs of $1,091 per ounce. During Q4 2016, Alamos reported record production of 105,676 ounces of gold, including 44,662 ounces from Young-Davidson, 44,900 ounces from Mulatos, and 16,114 ounces from El Chanate. During Q42016, Underground mining rates increased to an average record of over 6,600 tonnes per day (“tpd”) at Young-Davidson, and averaged over 7,000 tpd in December, consistent with the year-end target.

During Q4 2016, Alamos sold a record 107,504 ounces of gold at an average realized price of $1,229 per ounce, $8 per ounce above the London Fix, for record revenues of approximately $132 million.

FY17 Guidance

For FY17, Alamos is providing production guidance of 400,000 to 430,000 ounces of gold, a 6% increase over FY16 (based on the mid-point of guidance) driven by production growth from both Young-Davidson and Mulatos. The Company expects consolidated all-in sustaining costs are expected to decrease to $940 per ounce, marking a 6% decrease from 2016 all-in sustaining costs of approximately $1,000 per ounce reflecting lower costs and sustaining capital spending driving continued margin expansion at both Young-Davidson and Mulatos. Excluding El Chanate, all-in sustaining costs are expected to decrease to $890 per ounce in 2017.

During FY17, Alamos is projecting capital budget for operating mines in the range of $105 million-$122 million, down from FY16 guidance of $111 million-$131 million reflecting an expected $20 million decrease in capital spending at Young-Davidson, which was partially offset by higher capital at Mulatos for the development of La Yaqui Phase I. The Company also announced global exploration budget of $24 million for FY17 with nearly 90% focused on programs at Mulatos and Lynn Lake.

Alamos are projecting construction of La Yaqui Phase I to be completed at a cost of $12 million with initial production expected in H2 2017. The Company announced that approximately 75% of El Chanate’s 2017 production has been hedged ensuring a minimum gold price of $1,225 per ounce and participation up to a price of $1,450 per ounce.

Alamos’ corporate and administrative expenses are expected to total $16 million (excluding stock based compensation) for FY17, consistent with FY16 budget and among the lowest within the intermediate producer peer group.

Stock Performance

Last Friday, following the announcement of production and outlook, the stock closed the trading session at $7.95, dropping 7.13% from its previous closing price of $8.56. A total volume of 4.22 million shares have exchanged hands, which was higher than the 3-month average volume of 2.44 million shares. Alamos Gold’s stock price surged 31.19% in the last month, 11.19% in the past three months, and 117.21% in the previous twelve months. Moreover, shares of the Company surged 16.23% since the start of the year. The stock currently has a market cap of $2.12 billion.

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