Home > Mining Companies > AuRico Gold > News > Alamos Reports Second...
AuRico Gold

Alamos Reports Second Quarter 2015 Results

Aug 12, 2015
TORONTO, ONTARIO--(Marketwired - Aug. 12, 2015) - All amounts are in United States dollars, unless otherwise stated.
 
Alamos Gold Inc. (TSX:AGI)(NYSE:AGI) ("Alamos" or the "Company") today reported financial results for the quarter ended June 30, 2015 and reviewed its operating, exploration and development activities.
 
Subsequent to the end of the second quarter, on July 2, 2015, Alamos Gold Inc. ("Former Alamos") and AuRico Gold Inc. ("AuRico") completed the previously announced agreement to merge the two companies (the "Merger"). Accordingly, the financial statements and associated Management's Discussion and Analysis of both AuRico and Former Alamos for the three and six-month periods ended June 30, 2015 have been reported separately. For the purposes of this press release, the merged company, which retained the Alamos name, has included the operating and financial results of both Former Alamos and AuRico. The first, second, third and fourth quarters of the Company's fiscal year are referred to as "Q1", "Q2", "Q3" and "Q4", respectively.

 
Merger with AuRico Gold Inc.
 
On April 13, 2015, Former Alamos announced a definitive agreement with AuRico to combine the respective companies by way of a Plan of Arrangement (the "Arrangement"), creating a new, leading intermediate gold producer. The Merger combined two top-quality, highly-complementary asset portfolios, including two long-life, cash flow generating gold mines: AuRico's Young-Davidson mine in Ontario, Canada and Former Alamos' Mulatos mine in Sonora, Mexico.
 
The Arrangement was completed on July 2, 2015 and AuRico and Former Alamos amalgamated to form Alamos. As part of the Arrangement, certain assets of AuRico, including the Kemess project, a 1.5% net smelter return royalty on the Young-Davidson mine, AuRico's Fosterville and Stawell royalties, and $20 million of cash, were transferred to a new company, AuRico Metals Inc. ("AuRico Metals"). Approximately 95.1% of the common shares of AuRico Metals were distributed to Former Alamos and AuRico shareholders. Following completion of the Arrangement, the Company held an equity interest of approximately 4.9% in AuRico Metals.
 
Under the terms of the Arrangement, each Former Alamos share held was exchanged for 1 Class A common share of Alamos ("Class A Shares"), $0.0001 in cash, and 0.4397 common shares of AuRico Metals, and each AuRico share held was exchanged for 0.5046 Class A Shares and 0.2219 AuRico Metals Shares. Upon closing, Alamos had approximately 255,505,000 Class A Shares outstanding, with Former Alamos and AuRico shareholders each owning approximately 50%, and AuRico Metals had approximately 118,120,000 shares outstanding, with Former Alamos and AuRico shareholders each owning approximately 50% of the shares not held by Alamos.
 
President and Chief Executive Officer of Alamos, John A. McCluskey commented on the Merger and second quarter results as follows: "We have created a stronger and better company through the merger. On a combined basis, the Young-Davidson, Mulatos and El Chanate gold mines produced over 95,000 ounces of gold in the second quarter of 2015. With our strong balance sheet, diversified North American based operations and low cost production growth, the merged company is well positioned to succeed in the current gold price environment".


 
Second Quarter 2015 Highlights

 
Financial Performance - AuRico
 
• Sold 59,725 ounces of gold at an average realized gold price of $1,194. Revenues totaled $72.1 million in the quarter
• Recognized a quarterly loss of $379.5 million or $1.43 per share, reflecting transaction costs of $16.3 million ($11.1 million after-tax) and non-cash charges of approximately $365 million on an after-tax basis, comprised of impairment charges and net realizable value ("NRV") inventory adjustments associated with the Young-Davidson and El Chanate mines, as well as a revaluation charge associated with the Kemess project.
• Reported cash of $129.7 million as at June 30, 2015, which is net of the $20.0 million transferred to AuRico Metals on July 2, 2015

 
Operational Performance - AuRico
 
• Produced a total of 62,606 ounces of gold from the Young-Davidson and El Chanate mines
• Gold production from Young-Davidson totaled 39,365 ounces of gold at a total cash cost of $697 per ounce of gold sold before NRV adjustments ($777 per ounce of gold sold after NRV adjustments) and all-in sustaining cost ("AISC") of $1,008 per ounce of gold sold before NRV adjustments ($1,088 per ounce of gold sold after NRV adjustments)
• Achieved average daily underground mining rates of 5,149 tonnes of ore per day ("TPD") for the quarter
• Underground mining costs of $33 per tonne decreased significantly from $45 per tonne in the second quarter of 2014 and $39 per tonne in the first quarter of 2015 reflecting ongoing productivity improvements and weakness in the Canadian dollar.
• Reported record gold production at the El Chanate mine of 23,241 ounces of gold at a total cash cost of $621 per ounce of gold sold before NRV adjustments ($838 per ounce of gold sold after NRV adjustments) and AISC of $878 per ounce of gold sold before NRV adjustments ($1,094 per ounce of gold sold after NRV adjustments)
• Financial Performance - Former Alamos
 
Sold 36,748 ounces of gold at an average realized gold price of $1,198 for revenues of $44.0 million
Recognized a quarterly loss of $14.2 million, or $0.11 per share, reflecting a $3.0 million loss from operations, $8.2 million of transaction costs associated with the Merger and a $1.4 million foreign exchange loss
Reported cash and cash equivalents of $249.1 million as at June 30, 2015


Operational Performance - Former Alamos
 
• Produced 33,000 ounces of gold at a total cash cost of $861 per ounce of gold sold and AISC of $1,154 per ounce of gold sold
• Achieved above budgeted crusher throughput levels at the Mulatos mine of 18,100 TPD
• Received a positive ruling from the Turkish High Administrative Court which reinstated the Environmental Impact • Assessment ("EIA") certificate for the Kirazli gold project
• Subsequent to quarter-end
 
Completed the merger between AuRico and Former Alamos on July 2, 2015. The new company, Alamos, commenced trading on the Toronto Stock Exchange and New York Stock Exchange on July 6, 2015 under the symbol "AGI". Former Alamos and AuRico shares were delisted on the same day
In conjunction with the merger, certain assets of AuRico were transferred to a new company, AuRico Metals, including $20 million cash, the Kemess project, a 1.5% net smelter royalty on the Young Davidson mine and the Fosterville and Stawell royalties

Click here to see the rest of this post

Source: http://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2015/Alamos-Reports-Second-Quarter-2015-Results/default.aspx

MILL PLANNER

Reporting to the Mill General Foreman, the Mill Planner is responsible for planning and scheduling mill mechanical maintenance, shut down and project work, collaborating with the Electrical and Mobile Planners, Mill Supervisors, Operators, Millwrights and Process Engineers.

Director, Sustainability

The Director, Sustainability is responsible for supporting and executing Alamos’ company-wide sustainability strategy with a focus on environmental aspects including, regulatory compliance, environmental permitting as well as stakeholder and community engagement.

Geologist (Core Logger)

Reporting to the Sr. Exploration Geologist, the Geologist will focus on carrying out exploration programs related to geological mapping, geochemical sampling programs, geophysical surveys and drilling and to ensure service and/or operating standards are met (internally and/or externally).