TORONTO, Nov. 13 /CNW/ - Alamos Gold Inc. (TSX: AGI) ("Alamos" or the
"Company") announces that it has released its unaudited interim financial
results for the three-month and nine-month periods ended September 30, 2006.
Unaudited consolidated financial statements are attached, and together with
accompanying notes and management's discussion and analysis for the
three-month and nine-month periods ended September 30, 2006 and 2005 will be
available under the Company's name at www.sedar.com.
All figures are unaudited and in United States dollars unless otherwise
stated. Refer to the Cautionary Non-GAAP Statements section at the end of this
release for a discussion of the non-GAAP measures used by the Company.
Third Quarter 2006 Highlights:
During the three-month period ended September 30, 2006, the Company:
<<
- Reported record gold production of 24,882 ounces
- Sold 19,500 ounces of gold at an average realized price of $624 per
ounce for proceeds of $12.2 million. An additional 3,700 ounces of
third quarter 2006 gold production were available for sale at quarter-
end
- Reduced mining costs to record low levels of $1.13 per tonne of
material
- Incurred cash operating costs of $287 per ounce of gold sold as a
result of a higher waste-to-ore ratio and lower grade material being
mined in the quarter
- Realized a cash margin per ounce of gold sold of $305 per ounce
- Cash flow from operating activities before changes in non-cash working
capital (a non-GAAP measure) of $3,768,000 in the quarter, and
$13,909,000 for the nine-month period ended September 30, 2006
- Recognized earnings of $835,000 in the quarter and $1,120,000 for the
nine-month period ended September 30, 2006
- Achieved crusher throughput averaging 15,000 tonnes of ore per day at
80% passing 1/2 inch crush size
Subsequent to quarter-end, the Company:
- Attained record average daily gold production of 390 ounces per day in
the first 7 days of November
- Commenced leaching of ore on expanded leach pad over an area of 35,000
square meters
>>
Results of Operations
The Mulatos mine (the "Mine") achieved commercial production April 1,
2006. The Company produces gold in dore bars for shipment to a refinery.
Gold production at the Mine in the third quarter of 2006 was 24,882
ounces of gold in dore and gold sales were 19,500 ounces. On a year-to-date
basis, the Mine produced 69,454 ounces of gold and gold sales were 65,950
ounces. All reported mine production is subject to final refinery settlement.
The Mine achieved cost levels per tonne of ore consistent with the
Feasibility Study in the third quarter, taking into account a higher
waste-to-ore ratio in the quarter, as outlined in the attached table. Mining
costs were slightly above feasibility at $1.13 per tonne of material.
Management believes additional improvements in these unit costs can be
realized. Crusher throughput is achieving targeted Phase II levels of 15,000
tonnes of ore per day.
The tables below outline key quarterly production and cost indicators
during 2006:
<<
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Production summary Q1 2006(1) Q2 2006 Q3 2006 YTD 2006
-------------------------------------------------------------------------
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Ounces produced(2) 20,949 23,623 24,882 69,454
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Ore mined - tonnes 1,165,787 1,224,319 1,116,973 3,507,079
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Waste mined - tonnes 2,198,484 2,070,213 3,049,427 7,318,124
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Total tonnes mined 3,364,271 3,294,532 4,166,400 10,825,203
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Tonnes of ore crushed 332,275 612,482 1,290,275 2,235,032
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Tonnes of ore mined per day 13,100 13,600 12,100 12,900
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Tonnes of ore crushed per
day(1) 6,400 6,800 14,000 9,800
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Waste-to-ore ratio 1.89 1.69 2.73 2.09
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Grade (g/t) 1.47 1.94 1.43 1.61
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Costs per tonne summary Feasibility Q1 2006 Q2 2006 Q3 2006
Study(3)
-------------------------------------------------------------------------
Mining cost per tonne $0.95 $1.29 $1.33 $1.13
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Waste-to-ore ratio 1.42 1.89 1.69 2.73
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Mining cost per tonne of ore $2.44 $3.71 $3.64 $4.22
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Crushing cost per tonne of
ore $1.15 $2.28 $1.99 $1.15
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Processing cost per tonne of
ore $1.98 $1.45 $1.81 $1.67
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Administration cost per
tonne of ore $0.97 $1.22 $1.26 $0.93
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Cost per tonne of ore $6.54 $8.66 $8.70 $7.97
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(1) Tonnes of ore crushed per day for Q1 2006 reflects the results of
March 2006 only as the crushing and conveying system was successfully
commissioned in February 2006.
(2) Q1 2006 and Q2 2006 reported gold production has been adjusted to
reflect final settlement amounts. Q3 2006 reported gold production is
subject to final settlement.
(3) Average life of mine amounts as reported in the Feasibility Study.
>>
Cash operating cost per ounce of gold sold was $287 in the third quarter
of 2006 compared with $261 in the second quarter 2006 and $308 in the first
quarter of 2006. On a year-to-date basis, cash operating costs per ounce of
gold sold was $285. In the third quarter, cash operating costs were higher
than feasibility due primarily to a higher waste-to-ore ratio (2.73:1), lower
mined head grade (1.43 g/t) and expected lower recoveries from coarsely
crushed ore stacked on the leach pad.
Gold recovery rates are sensitive to crush size with finer crushed
material yielding higher recovery. The Company has assembled a database of
monthly composite column tests to analyze the recovery rates of ore mined.
Based on the results to date the Company's expectations are that run-of-mine
ore will recover approximately 50% of gold content and coarsely crushed ore
(approximately 80% passing 1 inch) will recover between 55% and 60%. The
Company stacked run-of-mine and coarse-crushed ore on the pad until July 1,
2006.
During the third quarter the Company was able to crush the ore to a much
finer size than achieved in previous periods. Crushed ore to the pad averaged
80% passing 5/8 inch in the third quarter, which compares with 80% passing 1
inch in the second quarter. In September and October crusher throughput
achieved 80% passing 1/2 inch. The Company continues to reduce crush size in
the expectation of achieving the average life-of-mine feasibility recovery
rate of 73%.
The Company realized an operating cash margin of $305 per ounce compared
with $326 per ounce in the second quarter, based on the realized gold price.
The cash margin calculated in the Feasibility Study was $175 per ounce.
Mine operating costs allocated to ounces sold are summarized in the table
below for the periods indicated (change % is from Q2-2006 to Q3-2006):
<<
-------------------------------------------------------------------------
Q3 2006 Change Q2 2006 Q1 2006
-------------------------------------------------------------------------
%
-------------------------------------------------------------------------
Gold production - ounces(1) 24,882 +5.3 23,623 20,949
-------------------------------------------------------------------------
Gold sales - ounces 19,500 -18.0 23,780 22,670
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Cash operating costs
(000)(2) $5,592 -9.7 $6,195 $6,975
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- Per ounce sold $287 +10.0 $261 $308
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Royalties and production
taxes (000)(3) $623 -16.9 $750 -
-------------------------------------------------------------------------
Total cash costs (000)(4) $6,215 -10.5 $6,945 $6,975
-------------------------------------------------------------------------
- Per ounce sold $319 +9.2 $292 $308
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Amortization (000) $1,664 -18.0 $2,030 $1,931
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Accretion of asset retirement
obligations (000) $40 +2.6 $39 $38
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Total production costs
(000)(5) $7,919 -12.1 $9,014 $8,944
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- Per ounce sold $406 +7.1 $379 $394
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- Realized gold price per
ounce $624 +1.0 $618 $551
-------------------------------------------------------------------------
- Realized cash margin per
ounce(6) $305 -6.4 $326 $243
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(1) Q1 2006 and Q2 2006 reported gold production has been adjusted to
reflect final settlement amounts. Q3 2006 reported gold production is
subject to final settlement differences (if any).
(2) Cash operating costs is a non-GAAP measure which includes all direct
mining costs, refining and transportation costs and by-product
credits. Cash operating costs is equivalent to mining and processing
costs as reported in the Company's financial statements.
(3) Production royalties are included as of April 1, 2006 at 5% of net
precious metals revenues.
(4) Total cash costs is a non-GAAP measure which includes all cash
operating costs and royalties and production taxes. Total cash costs
is equivalent to mining and processing costs and royalties as
reported in the Company's financial statements.
(5) Total production costs is a non-GAAP measure which includes all total
cash costs, amortization, and accretion of asset retirement
obligations. Total production costs is equivalent to mining and
processing costs, royalties, amortization and accretion of asset
retirement obligations as reported in the Company's financial
statements.
(6) Realized cash margin per ounce is a non-GAAP measure which is
calculated as the difference between the Company's gold sales and
mining and processing and royalty expenses as reported in the
Company's financial statements.
>>
Financial Results
A summary of the Company's financial results for the three and nine-month
periods ended September 30, 2006 and 2005 is presented below:
<<
-------------------------------------------------------------------------
Q3 2006 YTD 2006 Q3 2005 YTD 2005
-------------------------------------------------------------------------
Cash provided by (used for)
operating activities before
changes in non-cash working
capital (000)(1) $3,768 $13,909 ($1,459) ($3,304)
-------------------------------------------------------------------------
Changes in non-cash working
capital (000) ($6,624) ($15,211) ($2,883) ($2,882)
-------------------------------------------------------------------------
Cash used for operating
activities (000) ($2,856) ($1,302) ($4,342) ($6,186)
-------------------------------------------------------------------------
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Earnings (loss) for the
period (000) $835 $1,120 ($2,448) ($6,302)
-------------------------------------------------------------------------
Earnings (loss) per share(2) $0.01 ($0.06) ($0.03) ($0.08)
-------------------------------------------------------------------------
Weighted average number
of common shares
outstanding - Basic 93,403,000 85,583,000 77,275,000 77,148,000
-------------------------------------------------------------------------
(1) A non-GAAP measure.
(2) Earnings (loss) per share YTD 2006 includes the debt settlement
expense related to the early conversion of convertible debentures
that was charged to retained earnings of $5,990,000 or $0.07 per
share.
>>
The Company reported revenue of $12.2 million based on sales of 19,500
ounces of gold. There was an additional 3,700 ounces of gold in dore available
for sale after the end of the third quarter. The Company generated cash from
operating activities (before changes in non-cash working capital) of
$3,768,000 in the third quarter of 2006, and $13,909,000 on a year-to-date
basis. Net of working capital changes the Company used $2,856,000 in
operations in the third quarter and $1,302,000 year-to-date, mainly as a
result of increasing spare parts and supplies at the Mine and to mine and
partially process gold-bearing ore. The Company had earnings of $835,000 or
$0.01 per share in the third quarter and $1,120,000 year-to-date. A loss per
share of $0.06 was incurred on a year-to-date basis reflecting a loss on
conversion of convertible debentures in June 2006. The third quarter of 2006
benefited significantly as a result of the early conversion of debentures, by
eliminating interest, accretion and foreign exchange costs associated with the
debentures. Results for the three and nine-month periods ended September 30,
2005 are not comparable as they do not reflect commercial mining activities.
Exploration and Mine Development Activities
During 2006, the Company's exploration activities have focused primarily
on resource definition projects. During the nine-month period ended September
30, 2006, the Company invested $6.8 million in exploration and development
activities of which $2.9 million was incurred in the third quarter.
Exploration activities during the year were primarily focused on development
drilling in the Escondida, Escondida Hanging Wall Zone (EHWZ), and El Victor
areas, and near-mine exploration drilling at San Carlos and Puerto del Aire. A
breakdown of the exploration expenditures by project is presented in the table
below:
<<
-------------------------------------------------------------------------
Project name Q3 2006 YTD 2006
($000) ($000)
-------------------------------------------------------------------------
Escondida 1,320 3,190
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El Victor 648 1,521
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San Carlos 532 532
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El Realito 56 309
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Puerto del Aire 125 212
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Bajios 2 188
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Other 240 861
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2,923 6,813
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>>
In August 2006, the Company released results of a Phase I drilling
program completed in the San Carlos area, located at the extreme northeast end
of the Escondida area. The area was selected as a high-priority exploration
target based on geologic similarities to the high-grade EHWZ. The drilling
program delineated an extensive area of blind mineralization extending a
minimum of 600 meters to the northeast from the El Victor project area.
A development drift connecting the Escondida and El Victor zones was
initiated in 2005 to complete development drilling from underground along a
two-kilometer mineralized structural corridor. Drill stations were established
at 50 to 100 meter intervals throughout the length of underground development.
Drilling was completed in the Escondida deposit in June, with a total of 128
underground core holes (10,276 meters) drilled. All Escondida drill holes have
been logged, photographed, sampled and sent for assay. Two underground core
rigs were moved from Escondida to El Victor in the second quarter. A total of
96 drill holes (6,950 meters) have been drilled to date at El Victor.
In addition, 26 reverse circulation ("RC") drill holes (4,191 meters)
have been drilled in the El Victor to Gap area. Drilling is expected to
continue and results to date have been favorable, with mineralization
continuity indicated between El Victor and Gap. Initial Gap zone intercepts
include 38.11m of 2.86 g/t Au in 06EV024 and 54.88m of 1.94 g/t Au in 06EV029.
Additional surface and underground drilling will be required to interpret zone
geometry and extent.
An update on the EHWZ was issued on March 15, 2006, announcing additional
high-grade gold intervals from recently completed drilling designed to further
define the zone. High-grade intercepts have been encountered in an area
approximately 165 meters long by 75 meters wide. Surface drilling is complete
with 64 reverse circulation holes (6,431 meters) and seven large-diameter core
holes (194 meters). Twenty-three additional RC holes (1,784 meters) were
drilled into the EHWZ during August and September to infill gaps in the
preliminary block model and to allow for core-RC comparison in areas of
predominantly underground core data. Additional intercepts of coarse visible
gold were encountered. Assay and logging data for all of the EHWZ surface
drill holes and underground drill holes are complete and resource modeling
using the new data is in progress.
A bulk sampling drift into the EHWZ commenced in the third quarter. To
date, 255 meters of development has been completed with an estimated total of
8,000 tonnes of high-grade material removed and stockpiled. Abundant visible
gold is present throughout the development workings, often in pockets of
coarse nuggety gold. Gold particle size is much greater than expected,
frequently greater than one millimeter, and occasionally to greater than 20
millimeters.
Gold mode of occurrence and sampling data to date suggest that large bulk
samples will be needed to accurately estimate grade. All rounds have been
carefully handled to avoid contamination and individually stockpiled for bulk
sampling. Large 12 kilogram grab samples taken from the first 67 bulk 40-60
tonne rounds within the high-grade zone average 25.29 g/t Au.
A recognized expert in coarse gold sampling will be on site in
mid-November to recommend sampling protocol for accurately estimating content
of the coarsest gold.
The exploration programs are being carried out under the direction of Ken
Balleweg, P. Geol, BSc. Geological Engineering, M.S. Geology, Alamos' Vice
President of Exploration and the Qualified Person as defined by National
Instrument 43-101 of the Canadian Securities Administrators. Sampling method
for bulk grab samples of mined material was to excavate a shallow trench at
four locations in each stockpiled individual round and sample the run of mine
material. Several rounds were also continuously grab sampled while being
mucked. Drilling method was reverse circulation using a center return bit and
1.5 meter sample intervals. Strict sampling and QA/QC protocol are followed,
including the insertion of standards and blanks on a regular basis. Samples
were sent to ALS Chemex Inc. in Hermosillo, Mexico for sample preparation and
then to Vancouver, British Columbia for analysis. Analytical method for the
bulk samples was screen fire assay. Analytical method for drill samples is
fire assay with atomic adsorption finish and gravimetric finish for individual
samples with a gold concentration greater than 3.0 g/t. A 0.5 g/t cut-off
grade was used for calculation of composite intervals, with only a single 1.5m
interval of sub-0.5 g/t material allowed within a composite interval.
Resource estimates for both the EHWZ and the Escondida main deposit are
expected to be completed in late 2006.
Liquidity and Capital Resources
At September 30, 2006 the Company had cash and cash equivalents of $9.4
million (December 31, 2005: $4.5 million) and working capital of $32.5 million
(December 31, 2005: $13.0 million).
As at September 30, 2006, the Company had an unsecured $10 million
revolving line of credit with a bank, available for general corporate
purposes. At the end of the third quarter, $3 million had been drawn on this
facility.
Outlook
The Company achieved several milestones in the third quarter in reporting
record quarterly gold production, and reaching its targeted rate of 15,000
tonnes of crushed ore per day in September. Considerable progress was also
made in reducing costs per tonne of ore to levels consistent with the
Feasibility Study. The Company expects to sustain the cost savings that were
realized in the third quarter.
In the third quarter, the Company was able to crush ore to a much finer
size than achieved in previous periods. Objectives for the fourth quarter of
2006 include reducing crush size to Feasibility Study specifications to
improve gold recoveries and to achieve record gold production and sales.
Alamos' common shares are traded on the Toronto Stock Exchange under the
symbol "AGI" and convertible debentures under the symbol AGI.DB".
The company anticipates that its yearly production will be in line with
its previous guidance.
Conference Call:
Alamos' senior management will host a conference call on Tuesday,
November 14th, at 11:00 a.m. EDT (8:00 am PDT) to discuss its financial
results and exploration and operations activities.
Live Conference Call:
---------------------
Please dial 416-644-3418 or 1-800-814-4862 to access this call between
11:00 AM ET and 12:00 PM ET on Tuesday, November 14th, 2006.
Instant Replay Access information:
----------------------------------
For those unable to participate in the conference call at the scheduled
time, a replay of the conference call will be available beginning on November
14th at 1:00 PM ET until Tuesday, November 21st at 11:59 PM ET.
Replay Access No.: 416-640-1917
Passcode: 21206477 followed by the number sign.
Replay Access No.: 877-289-8525
Passcode: 21206477 followed by the number sign.
Webcast:
--------
The conference call will also be webcast live at www.alamosgold.com
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 flow from operating activities before
changes in non-cash working capital" is a non-GAAP performance measurement
which could provide an indication of the Company's ability to generate cash
flows from operations, and is calculated by adding back the change in non-cash
working capital to "Cash provided by (used for) operating activities" as
presented on the Company's consolidated statements of cash flows. "Mining cost
per tonne of ore" is a non-GAAP performance measurement which could provide an
indication of the mining and processing efficiency and effectiveness at the
Mine. It is determined by dividing the relevant mining and processing costs by
the tonnes of ore processed in the period. "Cost per tonne of ore" is usually
affected by operating efficiencies and waste-to-ore ratios in the period.
"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 rate in the
period. "Total cash cost per ounce" includes "cash operating cost per ounce"
plus applicable cash royalties.
-------------------------------------------------------------------
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
Safe Harbor Statement under the United States Private Securities
Litigation Act of 1995. Except for the statements of historical fact contained
herein, the information presented constitutes "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements, include, but are not limited to those with respect
to, the price of gold, the estimation of mineral reserves and resources, the
realization of mineral reserves estimates, the timing and amount of estimated
future production, costs of production, capital expenditures, costs and timing
of the development of new deposits, success of exploration activities, Alamos'
hedging practices, permitting time lines, currency fluctuations, requirements
for additional capital, government regulation of mining operations,
environmental risks, unanticipated reclamation expenses, title disputes or
claims limitations on insurance coverage and the timing and possible outcome
of pending litigation. Often, but not always, forward-looking statements can
be identified by the use of words such as "plans", "expects", or "does not
expect", "is expected", "budget", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variation of such
words and phrases or statements that certain actions, events or results,
"may", "could", "would" "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements
of Alamos to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Such
factors include, among others, the actual results of current exploration
activities, actual results of current reclamation activities, conclusions of
economic evaluations, changes in project parameters as plans continue to be
refined, future prices of gold, possible variations in ore grade or recovery
rates, failure of plant, equipment or processes to operate as anticipated,
accidents, labour disputes and other risks of the mining industry, delays in
obtaining governmental approvals or financing or in the completion of
development or construction activities, as well as those factors discussed
under the section entitled "Risk Factors" of the Company's Annual Information
Form. Although Alamos has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking 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 contained herein.
<<
ALAMOS GOLD INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited - stated in thousands of United States dollars)
September 30, December 31,
2006 2005
-------------- -------------
ASSETS
Current Assets
Cash and cash equivalents $ 9,419 $ 4,519
Restricted cash 81 1,219
Fair value of forward contracts - 966
Amounts receivable 5,235 3,862
Advances and prepaid expenses 1,362 1,935
Inventory 25,404 9,989
-------------- -------------
41,501 22,490
Deferred financing charges - 1,183
Long-term investment 1,100 -
Mineral property held for sale - 1,013
Mineral property, plant and equipment 111,091 101,514
-------------- -------------
$ 153,692 $ 126,200
-------------- -------------
-------------- -------------
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities $ 4,474 $ 5,323
Bank loan 3,000 3,000
Current portion of capital lease obligations 1,500 1,190
-------------- -------------
8,974 9,513
Future income taxes 840 -
Capital lease obligations 7,004 3,616
Convertible debenture 1,126 33,326
Asset retirement obligations 2,235 2,100
SHAREHOLDERS' EQUITY
Share capital 158,493 87,830
Warrants - 265
Convertible debenture 297 9,983
Contributed surplus 3,196 3,170
Deficit (28,473) (23,603)
-------------- -------------
133,513 77,645
-------------- -------------
$ 153,692 $ 126,200
-------------- -------------
-------------- -------------
ALAMOS GOLD INC.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND DEFICIT
(Unaudited - stated in thousands of United States dollars, except per
share amounts)
For the three-month For the nine-month
periods ended periods ended
September 30 September 30
--------------------------- ---------------------------
2006 2005 2006 2005
OPERATING REVENUES
Gold sales $ 12,165 $ 441 $ 39,355 $ 441
------------- ------------- ------------- -------------
OPERATING EXPENSES
Mining and
processing 5,592 300 18,763 300
Royalties 623 - 1,373 -
Amortization 1,664 84 5,625 201
Exploration 1,500 495 3,374 884
Corporate and
administrative 722 531 2,827 2,214
Stock-based
compensation 390 - 1,170 927
Accretion of asset
retirement
obligations 40 4 117 9
------------- ------------- ------------- -------------
10,531 1,414 33,249 4,535
------------- ------------- ------------- -------------
EARNINGS (LOSS)
FROM OPERATIONS 1,634 (973) 6,106 (4,094)
Interest income 103 218 291 823
Interest expense (278) (588) (1,867) (1,205)
Financing charges (74) (114) (375) (202)
Accretion of
convertible
debenture discount (15) (413) (945) (866)
Foreign exchange
gain (loss) 166 (578) (843) (758)
Other loss (21) - (407) -
------------- ------------- ------------- -------------
Earnings (loss)
before income tax
for the period 1,515 (2,448) 1,960 (6,302)
Future income taxes (680) - (840) -
------------- ------------- ------------- -------------
Earnings (loss)
for the period 835 (2,448) 1,120 (6,302)
Deficit, beginning
of period (29,308) (18,010) (23,603) (14,156)
Conversion of
convertible
debentures - - (5,990) -
------------- ------------- ------------- -------------
Deficit, end
of period $ (28,473) $ (20,458) $ (28,473) $ (20,458)
------------- ------------- ------------- -------------
Earnings (loss)
per share
- basic
and diluted $ 0.01 $ (0.03) $ (0.06) $ (0.08)
------------- ------------- ------------- -------------
Weighted average
number of common
shares outstanding
- basic 93,403,000 77,275,000 85,583,000 77,148,000
- diluted 96,483,000 77,275,000 85,583,000 77,148,000
ALAMOS GOLD INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - stated in thousands of United States dollars)
For the three-month For the nine-month
periods ended periods ended
September 30 September 30
--------------------------- ---------------------------
Cash provided by
(used for): 2006 2005 2006 2005
Operating
Activities
Earnings (loss)
for the period $ 835 $ (2,448) $ 1,120 $ (6,302)
Adjustments for
items not
involving cash:
Amortization 1,664 84 5,625 201
Accretion of asset
retirement
obligations 40 4 117 9
Foreign exchange
loss (gain) on
convertible
debenture 85 1,578 1,578 1,984
Fair value of
forward contracts 59 (1,204) 966 (1,204)
Interest expense
settled with
common shares - - 833 -
Future income taxes 680 - 840 -
Accretion of
convertible
debenture discount 15 413 945 866
Loss on settlement
of convertible
debenture - - 414 -
Amortization of
deferred financing
charges - 114 301 215
Stock-based
compensation 390 - 1,170 927
Changes in non-cash
working capital:
Amounts receivable (581) 361 (1,373) 31
Inventory (6,508) (2,320) (12,028) (2,866)
Prepaid expenses (885) (88) (961) (65)
Accounts payable
and accrued
liabilities 1,350 (836) (849) 18
------------- ------------- ------------- -------------
(2,856) (4,342) (1,302) (6,186)
------------- ------------- ------------- -------------
Investing
Activities
Short-term
investments - - - 15,000
Deposits and
advances to
contractors 2,667 (158) 1,533 (2,557)
Mineral property,
plant and
equipment (5,590) (16,054) (18,657) (41,520)
------------- ------------- ------------- -------------
(2,923) (16,212) (17,124) (29,077)
------------- ------------- ------------- -------------
Financing
Activities
Convertible
debenture issued - - - 40,306
Common shares
issued 725 248 18,490 1,341
Capital lease
advances 1,427 - 4,450 -
Capital lease
repayments (437) - (752) -
Restricted cash (6) 1,263 1,138 (1,092)
Deferred financing
charges - 26 - (1,690)
------------- ------------- ------------- -------------
1,709 1,537 23,326 38,865
Net (decrease)
increase in cash
and cash
equivalents (4,070) (19,017) 4,900 3,602
Cash and cash
equivalents -
beginning of
period 13,489 35,746 4,519 13,127
------------- ------------- ------------- -------------
Cash and cash
equivalents -
end of period $ 9,419 $ 16,729 $ 9,419 $ 16,729
------------- ------------- ------------- -------------
Supplemental
information:
Interest paid $ 252 $ 1,231 $ 1,787 $ 1,231
------------- ------------- ------------- -------------
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