Business
Alamos Gold Inc. Reports Third Quarter 2006 Financial Results
Alamos Gold Inc. Reports Third Quarter 2006 Financial Results.
About this update from Alamos Gold Inc.
[{"type":"text","content":"\n\n\n\n\nTORONTO, Nov. 13 /CNW/ - Alamos Gold Inc. (TSX: AGI) (\"Alamos\" or the\n\"Company\") announces that it has released its unaudited interim financial\nresults for the three-month and nine-month periods ended September 30, 2006.\nUnaudited consolidated financial statements are attached, and together with\naccompanying notes and management's discussion and analysis for the\nthree-month and nine-month periods ended September 30, 2006 and 2005 will be\navailable under the Company's name at www.sedar.com.\nAll figures are unaudited and in United States dollars unless otherwise\nstated. Refer to the Cautionary Non-GAAP Statements section at the end of this\nrelease for a discussion of the non-GAAP measures used by the Company.\n\nThird Quarter 2006 Highlights:\n\nDuring the three-month period ended September 30, 2006, the Company:\n\n>\n\nResults of Operations\n\nThe Mulatos mine (the \"Mine\") achieved commercial production April 1,\n2006. The Company produces gold in dore bars for shipment to a refinery.\nGold production at the Mine in the third quarter of 2006 was 24,882\nounces of gold in dore and gold sales were 19,500 ounces. On a year-to-date\nbasis, the Mine produced 69,454 ounces of gold and gold sales were 65,950\nounces. All reported mine production is subject to final refinery settlement.\nThe Mine achieved cost levels per tonne of ore consistent with the\nFeasibility Study in the third quarter, taking into account a higher\nwaste-to-ore ratio in the quarter, as outlined in the attached table. Mining\ncosts were slightly above feasibility at $1.13 per tonne of material.\nManagement believes additional improvements in these unit costs can be\nrealized. Crusher throughput is achieving targeted Phase II levels of 15,000\ntonnes of ore per day.\nThe tables below outline key quarterly production and cost indicators\nduring 2006:\n\n>\n\nCash operating cost per ounce of gold sold was $287 in the third quarter\nof 2006 compared with $261 in the second quarter 2006 and $308 in the first\nquarter of 2006. On a year-to-date basis, cash operating costs per ounce of\ngold sold was $285. In the third quarter, cash operating costs were higher\nthan feasibility due primarily to a higher waste-to-ore ratio (2.73:1), lower\nmined head grade (1.43 g/t) and expected lower recoveries from coarsely\ncrushed ore stacked on the leach pa...