TORONTO – Alamos Gold Inc. (TSX:AGI) reported Thursday a drop in second-quarter profits and revenue compared with a year ago, but maintained its production guidance for the year.
The gold miner, which keeps its books in U.S. dollars, said it earned $8.8 million or seven cents per diluted share for the quarter ended June 30 compared with $24.7 million or 20 cents per diluted share a year ago.
The results included a $6.8-million loss on the sale of its investment in Aurizon Mines and $4.9 million in total foreign exchange related losses.
Operating revenue slipped to $78.3 million, down from $80.9 million.
“Given our strong operational results through the first half of 2013, the company is well positioned to meet or exceed its full year 2013 production guidance of between 180,000 and 200,000 ounces of gold at a total cash cost of between $500 and $520 per ounce of gold sold,” president and chief executive John McCluskey said.
Earlier this month, Alamos announced a deal to buy Esperanza Resources (TSXV:EPZ). an exploration and development company focused on Mexico where it holds the Esperanza gold project.
Under the deal, which values Esperanza at about C$69.4 million, Alamos has agreed to pay 85 cents in cash for each Esperanza share.
Alamos owns and operates the Mulatos Mine in Mexico and development projects in Turkey.
Shares in the company were up 90 cents or about six per cent at $15.31 in trading on the Toronto Stock Exchange.