Alamos
Gold Inc. Reports a 50% Increase in Quarterly Revenues and a 28% Increase in
Gold Sales
Toronto,
Ontario ? Alamos Gold Inc. (TSX: AGI) (?Alamos? or the ?Company?) reports
continued increases in quarterly revenues, gold sales and gold production in
the first quarter of 2008. Revenues in the first quarter of 2008 increased 50%,
the number of ounces of gold sold increased 28% and gold production and crusher
throughput increased 5% and 3% respectively compared to the fourth quarter of
2007. Cash operating costs for the quarter are not yet available, but are
expected to be consistent with the Company?s previous guidance of below $400
per ounce (exclusive of royalties).
Crusher
performance continued to improve in the first quarter of 2008 with daily average
throughput of approximately 13,700 tonnes of fine crushed ore per day. Production
improvements were also noted throughout the quarter. In March 2008, crusher
throughput exceeded 14,400 tonnes per day, and gold production was in excess of
11,500 ounces.
Key
financial and operational metrics reflect continued quarterly improvements as
presented in the table below:
|
Q1
2008 (1)
|
Q4
2007
|
%
Change
|
Revenues (000)
|
$31,030
|
$20,683
|
50%
|
Gold sales (ounces)
|
34,609
|
27,029
|
28%
|
Operating cash margin
(per ounce sold)
|
$450
|
$259
|
74%
|
Gold production
(ounces) (2)
|
33,000
|
31,390
|
5%
|
Ore crushed per day
(tonnes)
|
13,700
|
13,300
|
3%
|
(1)(1)
All amounts for Q1-2008 are
preliminary based on initial period-end estimates - final adjustments may be
required.
(2)(2)
Before final refinery settlements
which may result in increases or decreases to reported gold production.
About Alamos
Alamos
is a Canadian-based gold producer with operations, exploration and development
activities in Mexico.
The Company employs approximately 400 people in Mexico
and is committed to the highest standards of environmental management, social
responsibility, and health and safety for its employees and neighboring
communities. Alamos is fully leveraged to increases in gold prices. Alamos?
common shares are traded on the Toronto Stock Exchange under the symbol ?AGI?
and convertible debentures under the symbol ?AGI.DB?.
FOR
FURTHER INFORMATION, PLEASE CONTACT:
|
Victoria Vargas
|
|
Investor
Relations
|
|
Tel: 416-368-9932 x201
|
|
|
_________________________________________________________________________
The TSX has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Cautionary
Non-GAAP Statements
The
Company believes that investors use certain indicators to assess gold mining
companies. They are intended to provide additional information and should not
be considered in isolation or as a substitute for measures of performance
prepared with GAAP. ?Cash operating cost per ounce? and ?total cash cost per
ounce? as used in this analysis are non-GAAP terms typically used by gold
mining companies to assess the level of gross margin available to the Company
by subtracting these costs from the unit price realized during the period.
These non-GAAP terms are also used to assess the ability of a mining company to
generate cash flow from operations. There may be some variation in the method
of computation of ?cash operating cost per ounce? as determined by the Company
compared with other mining companies. In this context, ?cash operating cost per
ounce? reflects the cash operating cost allocated from in-process and dore
inventory associated with ounces of gold sold in the period. ?Cash operating
cost per ounce? may vary from one period to another due to operating
efficiencies, waste-to-ore ratios, grade of ore processed and gold recovery
rates in the period. ?Total cash cost per ounce? includes ?cash operating cost
per ounce? plus applicable royalties. ?Operating cash margin (per ounce sold)?
as used in this analysis is a non-GAAP term used by the Company to assess the
level of net cash generated from each ounce of gold sold by subtracting the
?total cash cost per ounce? from the realized gold sales price per ounce. These
non-GAAP terms are also used to assess the ability of a mining company to
generate cash flow from operations.
Cautionary Note
No stock exchange,
securities commission or other regulatory authority has approved or disapproved
the information contained herein. This news release includes certain
?forward-looking statements?. All statements other than statements of historical
fact included in this release, including without limitation statements
regarding gold production, gold sales, crusher throughput, gold recoveries,
potential mineralization and reserves, exploration results, and future plans
and objectives of Alamos, are forward-looking statements that involve various
risks and uncertainties. These forward-looking statements include, but are not
limited to, statements with respect to anticipated production statistics
(including ?Gold production (ounces?)? and ?Ore crushed per day (tonnes)?)
which may be subject to audit or final revision, estimates of costs of
production and operating margins (including ?Operating cash margin (per ounce
sold)?), mining and processing of ore, projected recovery rates, anticipated future
production rates and mine life, operating efficiencies, costs and expenditures,
changes in mineral resources and conversion of mineral resources to proven and
probable reserves, and other information that is based on forecasts of future
operational or financial results, estimates of amounts not yet determinable and
assumptions of management. These statements may be subject to change, and any
changes could be material.
Any statements that
express or involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"expects" or "does not expect", "is expected",
"anticipates" or "does not anticipate", "plans",
"estimates" or "intends", or stating that certain actions,
events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved) are not
statements of historical fact and may be "forward-looking
statements." Forward-looking statements are subject to a variety of
risks and uncertainties which could cause actual events or results to differ
from those reflected in the forward-looking statements.
There can be no
assurance that forward-looking statements will prove to be accurate and actual
results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ
materially from Alamos? expectations include, among others, risks related to
international operations, the actual results of current exploration activities,
conclusions of economic evaluations and changes in project parameters as plans
continue to be refined as well as future prices of gold and silver, as well as
those factors discussed in the section entitled ?Risk Factors? in Alamos?
Annual Information Form. Although Alamos has attempted to identify important
factors that could cause actual results to differ materially, there may be
other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those anticipated
in such statements.. Accordingly, readers should not place undue reliance on
forward-looking statements.
.