Solid Fourth Quarter Drives Record Annual Production, Revenue and Operating Cash Flow
All amounts are in
“With the strong finish to the year, we delivered a record operational and financial performance in 2023. Production increased 15% to a record 529,300 ounces, achieving the top end of our increased full year guidance. Costs were also in line with annual guidance and decreased 4% from 2022 reflecting strong performances across our operations. With the record production, lower costs, and higher gold price we set a number of financial records in 2023. Revenue increased 25% to a record
“This reinvestment in high-return growth continues to create long-term value. Global Mineral Reserves increased for the fifth consecutive year with grades also increasing driven by another year of exploration success. This included higher-grade additions at Island Gold and PDA, supporting longer-life, and more valuable assets. The growth at PDA will be incorporated into a development plan to be completed later this quarter that we expect will outline a significant mine life extension at Mulatos. The Phase 3+ Expansion at Island Gold continues to advance having achieved a significant milestone with the start of shaft sinking in December. The expansion remains on track to deliver significant production growth at substantially lower costs in 2026 and beyond.”
Fourth Quarter and Full Year 2023 Highlights
Operational and Financial Highlights
- Produced a record 529,300 ounces of gold in 2023, achieving the top end of increased production guidance and representing a 15% increase from 2022. This included a strong finish to the year from all three operations with fourth quarter production of 129,500 ounces
The Mulatos District exceeded guidance, producing 212,800 ounces in 2023, a 58% increase from the prior year, reflecting a strong performance from LaYaqui Grande in its first full year of production. The higher margin ounces from LaYaqui Grande drove a significant increase in mine-site free cash flow1 to$142.1 million , including$27.4 million in the fourth quarterYoung -Davidson produced 185,100 ounces in 2023, meeting guidance and generating record mine-site free cash flow1 of$117.6 million . This marked the third consecutive year mine-site free cash flow has exceeded$100 million , demonstrating the strong ongoing performance and consistency of the operation, including$35.0 million in the fourth quarter- Island Gold produced 131,400 ounces in 2023, meeting guidance and continuing to self fund the majority of
$178.1 million of growth capital invested in the Phase 3+ Expansion during the year - Total cash costs1 of
$850 per ounce, all-in sustaining costs ("AISC"1) of$1,160 per ounce, and cost of sales of$1,212 per ounce for the full year were in line with guidance. Fourth quarter total cash costs of$900 per ounce, and AISC of$1,233 per ounce were consistent with quarterly guidance - Record financial performance with full year gold sales totaling 526,258 ounces at an average realized price of
$1,944 per ounce for record revenue of$1.0 billion , a 25% increase from 2022. This included fourth quarter sales of 129,005 ounces at an average realized price of$1,974 per ounce, generating$254.6 million in revenue. The average realized gold price was$3 per ounce above the London PM fix for both the quarter and the year - Record annual cash flow from operating activities of
$472.7 million (including$518.9 million , or$1.31 per share before changes in working capital1), a 58% increase from 2022. Fourth quarter cash flow from operating activities was$124.1 million ($120.2 million , or$0.30 per share, before changes in working capital1) - Strong free cash flow1 of
$123.8 million in 2023 while funding the Phase 3+ Expansion at Island Gold - Realized adjusted net earnings1 of
$208.4 million , or$0.53 per share1 in 2023. Reported net earnings were$210.0 million , or$0.53 per share - Realized adjusted net earnings1 for the fourth quarter of
$49.2 million , or$0.12 per share1. Adjusted net earnings includes adjustments for net unrealized foreign exchange gains recorded within deferred taxes and foreign exchange of$12.6 million , offset by other adjustments, net of taxes totaling$14 .7 million. Reported net earnings were$47.1 million , or$0.12 per share - Cash and cash equivalents increased
$95.0 million , or 73%, to$224.8 million at year end, with no debt and$13.0 million in equity securities - Paid dividends of
$39.4 million , or$0.10 per share for the full year
Growth Projects, Mineral Reserves and Resources and Other Highlights
- Issued three-year guidance on
January 10, 2024 , which included increased production guidance for 2024 of between 485,000 and 525,000 ounces. Production is expected to increase 7% by 2026, with AISC decreasing 11% reflecting low cost production growth from Island Gold with the completion of the Phase 3+ Expansion - Reported year-end 2023 Mineral Reserves of 10.7 million ounces of gold, a 2% increase from 2022, with grades also increasing 1%. This marked the fifth consecutive year Mineral Reserves have grown for a combined increase of 10% with grades also increasing 9% over that time frame. Additionally, Measured and Indicated Mineral Resources increased 12% to 4.4 million ounces, with grades increasing 9%, and Inferred Mineral Resources increased 3% to 7.3 million ounces, at 1% higher grades
- Advanced construction of the Phase 3+ Expansion with completion of key shaft site infrastructure in 2023 including the headframe and hoist house. Construction remains on schedule with shaft sinking commencing in December and engineering on the mill and paste plant well underway
- Received approval of the updated Closure Plan Amendment from the Ontario Government in December allowing for the start of construction on the larger mill expansion and paste plant as outlined in the Phase 3+ Expansion study
- Achieved a significant permitting milestone for the
Lynn Lake project in March with a positive Decision Statement issued by theDepartment of Environment and Climate Change Canada based on the completed Federal Environmental Impact Statement, and Environment Act Licenses issued by theProvince of Manitoba - Completed an updated Feasibility Study on the
Lynn Lake project in August outlining a larger, longer-life, low-cost operation with attractive economics and significant exploration upside.Lynn Lake is expected to produce an average of 176,000 ounces of gold per year at mine-site AISC of$699 per ounce over its initial 10 years - Completed the acquisition of
Manitou Gold in May, adding significant exploration potential across the Michipicoten Greenstone Belt by more than tripling the regional land package adjacent to and along strike from Island Gold - Publication of Alamos’ inaugural Climate Change Report, outlining corporate governance around climate-related risks and opportunities, and issued the 2022 Environmental, Social and Governance ("ESG") Report, outlining the Company’s progress on its ESG performance
- Announced the acquisition of Orford Mining in
January 2024 , through which the Company will consolidate its existing ownership of Orford shares and add the highly prospectiveQiqavik Gold Project , located inQuebec, Canada . The Company expects to issue approximately 0.9 million shares for total consideration of approximately$12 million with the transaction expected to close inApril 2024
(1) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
Highlight Summary
Three Months Ended | Years Ended | ||||||||
2023 | 2022 | 2023 | 2022 | ||||||
Financial Results (in millions) | |||||||||
Operating revenues | $ | 254.6 | $ | 231.9 | $ | 1,023.3 | $ | 821.2 | |
Cost of sales (1) | $ | 166.7 | $ | 153.4 | $ | 637.7 | $ | 608.9 | |
Earnings from operations | $ | 71.9 | $ | 61.6 | $ | 318.1 | $ | 111.5 | |
Earnings before income taxes | $ | 51.2 | $ | 52.6 | $ | 293.7 | $ | 102.4 | |
Net earnings | $ | 47.1 | $ | 40.6 | $ | 210.0 | $ | 37.1 | |
Adjusted net earnings (2) | $ | 49.2 | $ | 33.7 | $ | 208.4 | $ | 107.9 | |
Earnings before interest, taxes, depreciation and amortization (2) | $ | 101.6 | $ | 100.4 | $ | 486.4 | $ | 351.7 | |
Cash provided by operations before working capital and taxes paid (2) | $ | 120.2 | $ | 109.3 | $ | 518.9 | $ | 361.6 | |
Cash provided by operating activities | $ | 124.1 | $ | 102.3 | $ | 472.7 | $ | 298.5 | |
Capital expenditures (sustaining) (2) | $ | 26.6 | $ | 26.5 | $ | 104.2 | $ | 95.2 | |
Capital expenditures (growth) (2) (3) | $ | 73.0 | $ | 50.2 | $ | 216.7 | $ | 191.9 | |
Capital expenditures (capitalized exploration) | $ | 10.1 | $ | 8.1 | $ | 28.0 | $ | 26.6 | |
Free cash flow (2) | $ | 14.4 | $ | 17.5 | $ | 123.8 | $ | (15.2 | ) |
Operating Results | |||||||||
Gold production (ounces) | 129,500 | 134,200 | 529,300 | 460,400 | |||||
Gold sales (ounces) | 129,005 | 133,164 | 526,258 | 456,574 | |||||
Per Ounce Data | |||||||||
Average realized gold price | $ | 1,974 | $ | 1,741 | $ | 1,944 | $ | 1,799 | |
Average spot gold price (London PM Fix) | $ | 1,971 | $ | 1,726 | $ | 1,941 | $ | 1,800 | |
Cost of sales per ounce of gold sold (includes amortization) (1) | $ | 1,292 | $ | 1,152 | $ | 1,212 | $ | 1,334 | |
Total cash costs per ounce of gold sold (2) | $ | 900 | $ | 810 | $ | 850 | $ | 884 | |
All-in sustaining costs per ounce of gold sold (2) | $ | 1,233 | $ | 1,138 | $ | 1,160 | $ | 1,204 | |
Share Data | |||||||||
Earnings per share, basic and diluted | $ | 0.12 | $ | 0.10 | $ | 0.53 | $ | 0.09 | |
Adjusted earnings per share, basic (2) | $ | 0.12 | $ | 0.09 | $ | 0.53 | $ | 0.28 | |
Weighted average common shares outstanding (basic) (000’s) | 396,577 | 393,034 | 395,509 | 392,172 | |||||
Financial Position (in millions) | |||||||||
Cash and cash equivalents | $ | 224.8 | $ | 129.8 |
(1) Cost of sales includes mining and processing costs, royalties, and amortization expense.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
(3) Includes growth capital from operating sites.
Three Months Ended | Years Ended | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Gold production (ounces) | ||||||||
49,800 | 44,600 | 185,100 | 192,200 | |||||
Island Gold | 31,600 | 40,500 | 131,400 | 133,700 | ||||
48,100 | 49,100 | 212,800 | 134,500 | |||||
Gold sales (ounces) | ||||||||
48,052 | 44,781 | 182,796 | 192,186 | |||||
Island Gold | 30,464 | 39,145 | 127,629 | 130,652 | ||||
50,489 | 49,238 | 215,833 | 133,736 | |||||
Cost of sales (in millions) (1) | ||||||||
$ | 64.6 | $ | 62.2 | $ | 248.2 | $ | 250.5 | |
Island Gold | $ | 33.8 | $ | 35.2 | $ | 123.6 | $ | 120.4 |
$ | 68.3 | $ | 56.0 | $ | 265.9 | $ | 238.0 | |
Cost of sales per ounce of gold sold (includes amortization) (1) | ||||||||
$ | 1,344 | $ | 1,389 | $ | 1,358 | $ | 1,303 | |
Island Gold | $ | 1,110 | $ | 899 | $ | 968 | $ | 922 |
$ | 1,353 | $ | 1,137 | $ | 1,232 | $ | 1,780 | |
Total cash costs per ounce of gold sold (2) | ||||||||
$ | 920 | $ | 942 | $ | 938 | $ | 878 | |
Island Gold | $ | 775 | $ | 605 | $ | 669 | $ | 637 |
$ | 957 | $ | 851 | $ | 883 | $ | 1,134 | |
Mine-site all-in sustaining costs per ounce of gold sold (2),(3) | ||||||||
$ | 1,211 | $ | 1,284 | $ | 1,208 | $ | 1,133 | |
Island Gold | $ | 1,136 | $ | 863 | $ | 1,017 | $ | 918 |
$ | 1,030 | $ | 922 | $ | 967 | $ | 1,241 | |
Capital expenditures (sustaining, growth, and capitalized exploration) (in millions) (2) | ||||||||
$ | 24.0 | $ | 20.6 | $ | 67.2 | $ | 71.5 | |
Island Gold (5) | $ | 73.9 | $ | 53.9 | $ | 233.1 | $ | 157.3 |
$ | 8.4 | $ | 5.5 | $ | 30.4 | $ | 62.7 | |
Other | $ | 3.4 | $ | 4.8 | $ | 18.2 | $ | 22.2 |
(1) Cost of sales includes mining and processing costs, royalties, and amortization expense.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative and share based compensation expenses.
(4) Includes capitalized exploration at
(5) Includes capitalized exploration at Island Gold of
(6) Includes capitalized exploration at
(7)
Environment, Social and Governance Summary Performance
Health and Safety
- Total recordable injury frequency rate1 ("TRIFR") of 1.45 in the fourth quarter, a decrease from 1.84 in the third quarter of 2023
- Lost time injury frequency rate1 ("LTIFR") of 0.10, an increase from 0.09 in the third quarter of 2023
- Full year TRIFR of 1.50 and LTIFR of 0.07, a reduction of 6% and an increase of 7%, respectively, from 2022
- Mulatos received the Silver Helmet Award from CAMIMEX for the second consecutive year. The Silver Helmet Award recognizes high safety standards & processes in the mining sector in
Mexico
During the fourth quarter of 2023, TRIFR decreased with 15 recordable injuries, as compared to 21 in the prior quarter, and one lost time injury, contributing to a significant improvement in annual safety performance.
Alamos strives to maintain a safe, healthy working environment for all, with a strong safety culture where everyone is continually reminded of the importance of keeping themselves and their colleagues healthy and injury-free. The Company’s overarching commitment is to have all employees and contractors return Home Safe Every Day.
Environment
- Zero significant environmental incidents and zero reportable spills in the fourth quarter and full year
- Updated Closure Plan Amendment received for Island Gold, allowing for construction of the larger mill expansion and paste plant, as outlined in the Phase 3+ Expansion study
- Completed year one of Alamos’
Independent Tailings Review Board work - Alamos’ climate change risk assessment was updated to evaluate the effects of material risks and opportunities on the Company’s strategy and financial position, using updated climate scenarios and industry practices. This exercise is expected to be completed in the first quarter of 2024 and will incorporate climate risk into Alamos’ financial performance, corporate strategy and mitigation plans in line with IFRS S2 and recommendations of the
Taskforce on Climate-Related Financial Disclosure ("TCFD")
The Company is committed to preserving the long-term health and viability of the natural environment that surrounds its operations and projects. This includes investing in new initiatives to reduce our environmental footprint with the goal of minimizing the environmental impacts of our activities and offsetting any impacts that cannot be fully mitigated or rehabilitated.
Community
Ongoing donations, medical support and infrastructure investments were provided to local communities, including:
- Various sponsorships to support local youth sports teams and community events, and donations to local charities and organizations around the Company's mines
- Scholarships awarded to local students in Matarachi, and students in
Canada as part of the Young Mining Professionals Scholarship Program - Health campaigns in Matarachi including full body health assessments for several hundred residents, and vaccination campaigns for influenza and COVID
- Ongoing support to our community beekeeping project involving both the
Mulatos Mine and participants from Matarachi - Community clean-up in Mulatos and Matarachi in preparation for the Day of the Dead and Mexican Revolution holidays
The Company believes that excellence in sustainability provides a net benefit to all stakeholders. The Company continues to engage with local communities to understand local challenges and priorities. Ongoing investments in local infrastructure, health care, education, cultural and community programs remain a focus of the Company.
Governance and Disclosure
- Published Alamos’ 2022 ESG Report, outlining the Company’s progress on its ESG performance in accordance with the Sustainability Accounting Standards Board Metals & Mining Industry Standard, the recommendations of the TCFD, and the Global Reporting Initiative Standards for sustainability reporting “Core” requirements. It focuses on economic, environmental, social and governance topics and indicators that are of the greatest interest to Alamos’ stakeholders
- The Mulatos mine was awarded the Empresa Socialmente Responsible award by the
Mexican Center for Philanthropy for the 15th consecutive year, and the Ethics and Values in Industry award from CONCAMIN for the fourth consecutive year
The Company maintains the highest standards of corporate governance to ensure that corporate decision-making reflects its values, including the Company’s commitment to sustainable development. During the quarter, the Company continued to advance its implementation of the Responsible Gold Mining Principles, developed by the
(1) Frequency rate is calculated as incidents per 200,000 hours worked.
Outlook and Strategy
2024 Guidance | |||||||||
Island Gold | Mulatos | Total | |||||||
Gold production (000's ounces) | 180 - 195 | 145 - 160 | 160 - 170 | 485 - 525 | |||||
Cost of sales, including amortization (in millions)(3) | $620 | ||||||||
Cost of sales, including amortization ($ per ounce)(3) | $1,225 | ||||||||
Total cash costs ($ per ounce)(1) | — | ||||||||
All-in sustaining costs ($ per ounce)(1) | |||||||||
Mine-site all-in sustaining costs ($ per ounce)(1)(2) | — | ||||||||
Capital expenditures (in millions) | |||||||||
Sustaining capital(1) | — | ||||||||
Growth capital(1) | — | ||||||||
— | |||||||||
Growth capital - development projects | $25 | ||||||||
Capitalized exploration(1) | $41 | ||||||||
Total capital expenditures and capitalized exploration(1) | $34 |
(1) Refer to the "Non-GAAP Measures and Additional GAAP" disclosure at the end of this press release and associated MD&A for a description of these measures.
(2) For the purposes of calculating mine-site all-in sustaining costs at individual mine sites, the Company does not include an allocation of corporate and administrative and share based compensation expenses to the mine sites.
(3) Cost of sales includes mining and processing costs, royalties, and amortization expense, and is calculated based on the mid-point of total cash cost guidance.
The Company’s objective is to operate a sustainable business model that supports growing returns to all stakeholders over the long-term, through growing production, expanding margins, and increasing profitability. This includes a balanced approach to capital allocation focused on generating strong ongoing free cash flow while re-investing in high-return internal growth opportunities, and supporting higher returns to shareholders.
2023 Year in Review
With the strong finish to the year, the Company delivered record operational and financial performance in 2023. This included record annual production of 529,300 ounces which drove record revenues of
La
Additionally, the Company delivered on a number of key catalysts, supporting ongoing value creation within its pipeline of growth projects. This included achieving a significant permitting milestone and completing an updated Feasibility Study on the
As announced earlier this week, Global Mineral Reserves increased to 10.7 million ounces of gold (
Island Gold's tremendous pace of growth continued in 2023 with an 18% increase in Mineral Reserves to 1.7 million ounces, and 16% increase in combined Mineral Reserves and Resources to 6.1 million ounces. PDA's Mineral Reserves increased 33% to 1.0 million ounces with grades increasing a further 16%. Both deposits remain open in multiple directions, highlighting the significant potential for this growth to continue. Reflecting the continued exploration success and growth potential, the Company has increased its 2024 exploration budget to the largest in its history.
2024 Outlook
The Company provided three-year production and operating guidance in
The increased production guidance was driven by higher expected production from the
Production is expected to be slightly higher during the first half of 2024, with the recovery of ounces through residual leaching at Mulatos expected to decline through the year. First quarter production is expected to be between 123,000 and 133,000 ounces with total cash costs and AISC above the top end of annual guidance reflecting a larger proportion of production coming through residual leaching at Mulatos and slightly lower planned grades at
Production is expected to increase 7% by 2026 to between 520,000 and 560,000 ounces, with AISC decreasing 11% to between
Capital spending is expected to increase from 2023 reflecting inflation, higher capital at Island Gold and
Given the strong profitability of the Mulatos operation in 2023, the Company expects to pay significantly higher cash tax payments in
The global exploration budget for 2024 is
The Company's liquidity position remains strong, ending the year with
Fourth Quarter and Year-End 2023 results
Young-Davidson Financial and Operational Review
Three Months Ended | Years Ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Gold production (ounces) | 49,800 | 44,600 | 185,100 | 192,200 | ||||||||
Gold sales (ounces) | 48,052 | 44,781 | 182,796 | 192,186 | ||||||||
Financial Review (in millions) | ||||||||||||
Operating Revenues | $ | 94.8 | $ | 78.1 | $ | 355.3 | $ | 347.8 | ||||
Cost of sales (1) | $ | 64.6 | $ | 62.2 | $ | 248.2 | $ | 250.5 | ||||
Earnings from operations | $ | 29.8 | $ | 15.6 | $ | 104.2 | $ | 93.0 | ||||
Cash provided by operating activities | $ | 59.0 | $ | 44.6 | $ | 184.8 | $ | 172.8 | ||||
Capital expenditures (sustaining) (2) | $ | 13.9 | $ | 15.2 | $ | 49.0 | $ | 48.8 | ||||
Capital expenditures (growth) (2) | $ | 8.8 | $ | 3.9 | $ | 13.1 | $ | 17.7 | ||||
Capital expenditures (capitalized exploration) (2) | $ | 1.3 | $ | 1.5 | $ | 5.1 | $ | 5.0 | ||||
Mine-site free cash flow (2) | $ | 35.0 | $ | 24.0 | $ | 117.6 | $ | 101.3 | ||||
Cost of sales, including amortization per ounce of gold sold (1) | $ | 1,344 | $ | 1,389 | $ | 1,358 | $ | 1,303 | ||||
Total cash costs per ounce of gold sold (2) | $ | 920 | $ | 942 | $ | 938 | $ | 878 | ||||
Mine-site all-in sustaining costs per ounce of gold sold (2),(3) | $ | 1,211 | $ | 1,284 | $ | 1,208 | $ | 1,133 | ||||
Underground Operations | ||||||||||||
Tonnes of ore mined | 687,738 | 661,012 | 2,878,155 | 2,783,831 | ||||||||
Tonnes of ore mined per day | 7,475 | 7,185 | 7,885 | 7,627 | ||||||||
Average grade of gold (4) | 2.39 | 2.32 | 2.20 | 2.30 | ||||||||
Metres developed | 2,045 | 2,731 | 9,085 | 11,664 | ||||||||
Mill Operations | ||||||||||||
Tonnes of ore processed | 724,670 | 697,816 | 2,878,047 | 2,859,608 | ||||||||
Tonnes of ore processed per day | 7,877 | 7,585 | 7,885 | 7,835 | ||||||||
Average grade of gold (4) | 2.38 | 2.31 | 2.20 | 2.31 | ||||||||
Contained ounces milled | 55,412 | 51,814 | 203,791 | 212,548 | ||||||||
Average recovery rate | 91 | % | 91 | % | 90 | % | 91 | % |
(1) Cost of sales includes mining and processing costs, royalties and amortization.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative and share based compensation expenses.
(4) Grams per tonne of gold ("g/t Au").
Operational review
Underground mining rates averaged 7,475 tpd in the fourth quarter, higher than the prior year period but below annual guidance due to maintenance on the headframe ore bin apron feeder. For the full year, mining rates averaged 7,885 tpd, consistent with guidance. Grades mined averaged 2.39 g/t Au in the fourth quarter, a 16% increase from the third quarter and a 3% increase compared to the prior year period. Grades increased as planned, reflecting the mining of higher grade stopes that had been deferred from the third quarter. Grades averaged 2.20 g/t Au for the year, in line with guidance.
Milling rates averaged 7,877 tpd in the fourth quarter, exceeding the prior year period as well as mining rates, with surface stockpiles supplementing mill feed. Milling rates averaged 7,885 tpd for the full year, consistent with the prior year and annual guidance. Mill recoveries averaged 91% in the quarter and 90% for the full year, both in line with guidance.
Financial Review
Fourth quarter revenues of
Cost of sales of
Total cash costs were
Capital expenditures in the fourth quarter included
Island Gold Financial and Operational Review
Three Months Ended | Years Ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Gold production (ounces) | 31,600 | 40,500 | 131,400 | 133,700 | ||||||||
Gold sales (ounces) | 30,464 | 39,145 | 127,629 | 130,652 | ||||||||
Financial Review (in millions) | ||||||||||||
Operating Revenues | $ | 60.0 | $ | 68.0 | $ | 247.8 | $ | 235.3 | ||||
Cost of sales (1) | $ | 33.8 | $ | 35.2 | $ | 123.6 | $ | 120.4 | ||||
Earnings from operations | $ | 25.3 | $ | 32.1 | $ | 120.5 | $ | 110.2 | ||||
Cash provided by operating activities | $ | 39.9 | $ | 39.1 | $ | 164.9 | $ | 148.1 | ||||
Capital expenditures (sustaining) (2) | $ | 10.9 | $ | 10.1 | $ | 43.9 | $ | 36.5 | ||||
Capital expenditures (growth) (2) | $ | 59.7 | $ | 38.9 | $ | 178.1 | $ | 102.0 | ||||
Capital expenditures (capitalized exploration) (2) | $ | 3.3 | $ | 4.9 | $ | 11.1 | $ | 18.8 | ||||
Mine-site free cash flow (2) | $ | (34.0 | ) | $ | (14.8 | ) | $ | (68.2 | ) | $ | (9.2 | ) |
Cost of sales, including amortization per ounce of gold sold (1) | $ | 1,110 | $ | 899 | $ | 968 | $ | 922 | ||||
Total cash costs per ounce of gold sold (2) | $ | 775 | $ | 605 | $ | 669 | $ | 637 | ||||
Mine-site all-in sustaining costs per ounce of gold sold (2),(3) | $ | 1,136 | $ | 863 | $ | 1,017 | $ | 918 | ||||
Underground Operations | ||||||||||||
Tonnes of ore mined | 114,895 | 101,045 | 437,541 | 420,801 | ||||||||
Tonnes of ore mined per day ("tpd") | 1,249 | 1,098 | 1,199 | 1,153 | ||||||||
Average grade of gold (4) | 8.96 | 12.13 | 9.43 | 10.03 | ||||||||
Metres developed | 1,730 | 2,109 | 8,031 | 7,114 | ||||||||
Mill Operations | ||||||||||||
Tonnes of ore processed | 116,440 | 119,924 | 439,008 | 456,592 | ||||||||
Tonnes of ore processed per day | 1,266 | 1,304 | 1,203 | 1,251 | ||||||||
Average grade of gold (4) | 8.76 | 10.70 | 9.48 | 9.64 | ||||||||
Contained ounces milled | 32,797 | 41,274 | 133,826 | 141,530 | ||||||||
Average recovery rate | 98 | % | 97 | % | 97 | % | 96 | % |
(1) Cost of sales includes mining and processing costs, royalties, and amortization.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative and share based compensation expenses.
(4) Grams per tonne of gold ("g/t Au").
Operational review
Island Gold produced 31,600 ounces in the fourth quarter of 2023, a 22% decrease from the prior year period, resulting from lower grades mined and processed, as planned. For the full year, Island Gold produced 131,400 ounces, achieving the mid-point of full year production guidance.
Underground mining rates averaged 1,249 tpd in the fourth quarter, exceeding annual guidance, and a 14% increase from the prior year period. Mining rates for the full year were in line with guidance. Grades mined averaged 8.96 g/t Au in the quarter, and 9.43 g/t Au for the full year, both consistent with annual guidance.
Mill throughput also exceeded guidance, averaging 1,266 tpd for the quarter. Mill throughput was lower than the prior year period, as the fourth quarter of 2022 included processing of approximately 5,800 tonnes of Island Gold stockpiled ore at the
Financial Review
Revenues of
Cost of sales of
Total cash costs of
Total capital expenditures were
Mine-site free cash flow was negative
Mulatos District Financial and Operational Review
Three Months Ended | Years Ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Gold production (ounces) | 48,100 | 49,100 | 212,800 | 134,500 | ||||||||
Gold sales (ounces) | 50,489 | 49,238 | 215,833 | 133,736 | ||||||||
Financial Review (in millions) | ||||||||||||
Operating Revenues | $ | 99.8 | $ | 85.8 | $ | 420.2 | $ | 238.1 | ||||
Cost of sales (1) | $ | 68.3 | $ | 56.0 | $ | 265.9 | $ | 238.0 | ||||
Earnings (loss) from operations | $ | 31.0 | $ | 28.8 | $ | 144.4 | $ | (7.4 | ) | |||
Cash provided by operating activities | $ | 35.8 | $ | 34.3 | $ | 172.5 | $ | 25.9 | ||||
Capital expenditures (sustaining) (2) | $ | 1.8 | $ | 1.2 | $ | 11.3 | $ | 9.9 | ||||
Capital expenditures (growth) (2) | $ | 1.1 | $ | 2.6 | $ | 7.3 | $ | 50.0 | ||||
Capital expenditures (capitalized exploration) (2) | $ | 5.5 | $ | 1.7 | $ | 11.8 | $ | 2.8 | ||||
Mine-site free cash flow (2) | $ | 27.4 | $ | 28.8 | $ | 142.1 | $ | (36.8 | ) | |||
Cost of sales, including amortization per ounce of gold sold (1) | $ | 1,353 | $ | 1,137 | $ | 1,232 | $ | 1,780 | ||||
Total cash costs per ounce of gold sold (2) | $ | 957 | $ | 851 | $ | 883 | $ | 1,134 | ||||
Mine site all-in sustaining costs per ounce of gold sold (2),(3) | $ | 1,030 | $ | 922 | $ | 967 | $ | 1,241 | ||||
Open Pit Operations | ||||||||||||
Tonnes of ore mined - open pit (4) | 920,058 | 1,034,974 | 3,867,172 | 2,271,387 | ||||||||
Total waste mined - open pit (6) | 4,918,849 | 6,133,308 | 22,069,019 | 23,602,762 | ||||||||
Total tonnes mined - open pit | 5,838,907 | 7,168,282 | 25,936,191 | 25,874,149 | ||||||||
Waste-to-ore ratio (operating) | 4.97 | 5.00 | 4.99 | 5.00 | ||||||||
Crushing and Heap Leach Operations | ||||||||||||
Tonnes of ore stacked | 954,127 | 1,020,449 | 3,936,145 | 2,147,558 | ||||||||
Average grade of gold processed (5) | 1.64 | 1.43 | 1.55 | 1.38 | ||||||||
Contained ounces stacked | 50,422 | 46,931 | 196,619 | 95,064 | ||||||||
Average recovery rate | 67 | % | 79 | % | 78 | % | 71 | % | ||||
Ore crushed per day (tonnes) | 10,400 | 11,100 | 10,800 | 7,809 | ||||||||
Open Pit Operations | ||||||||||||
Tonnes of ore mined - open pit (4) | — | 1,065,739 | 2,250,380 | 3,666,515 | ||||||||
Total waste mined - open pit (6) | — | 756,749 | 1,309,034 | 5,994,109 | ||||||||
Total tonnes mined - open pit | — | 1,822,487 | 3,559,415 | 9,660,624 | ||||||||
Waste-to-ore ratio (operating) | — | 0.71 | 0.58 | 1.36 | ||||||||
Crushing and Heap Leach Operations | ||||||||||||
Tonnes of ore stacked | 758,627 | 1,477,642 | 4,488,365 | 6,020,558 | ||||||||
Average grade of gold processed (5) | 2.17 | 0.78 | 1.34 | 0.73 | ||||||||
Contained ounces stacked | 52,924 | 37,262 | 193,299 | 142,227 | ||||||||
Average recovery rate | 27 | % | 32 | % | 31 | % | 47 | % | ||||
Ore crushed per day (tonnes) | 8,200 | 16,100 | 12,300 | 16,500 |
(1) Cost of sales includes mining and processing costs, royalties, and amortization expense.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative and share based compensation expenses.
(4) Includes ore stockpiled during the quarter.
(5) Grams per tonne of gold ("g/t Au").
(6) Total waste mined includes operating waste and capitalized stripping.
Mulatos District Operational Review
La Yaqui Grande Operational Review
La
Mulatos Operational Review
Mulatos produced 14,400 ounces in the fourth quarter and 59,400 ounces for the full year. Production was lower than the prior year periods reflecting completion of mining from the
Financial Review (
Revenues of
Cost of sales of
Total cash costs of
Total cash costs and mine-site AISC for the
Capital expenditures totaled
Fourth Quarter 2023 Development Activities
Island Gold (
Phase 3+ Expansion
On
The Phase 3+ Expansion to 2,400 tpd from the current rate of 1,200 tpd will involve various infrastructure investments. These include the installation of a shaft, paste plant, expansion of the mill as well as accelerated development to support the higher mining rates. Following the completion of the expansion in 2026, the operation will transition from trucking ore and waste up the ramp to skipping ore and waste to surface through the new shaft infrastructure, driving production higher and costs significantly lower.
Construction continued through the fourth quarter of 2023, including the start of shaft sinking in December, which was a significant milestone for the project. Further details on progress to the end of the year are summarized below:
- Completed the grid power tie-in for the shaft site and upgraded voltage regulation facility
- Commissioned the shaft sinking plant
- Mechanical and electrical outfitting for hoist house and headframe substantially complete
- Completed structural steel, roofing, interior and exterior cladding for the warehouse
- Completed buried services required for shaft sink, with first blast occurring in December
Paste plant detailed engineering 75% complete; issuance of long lead time equipment procurement packages is ongoing with construction activities expected to begin in the second half of 2024- Mill expansion basic engineering completed, and detailed engineering commenced in December with overall engineering being 40% complete. Issuance of long lead time equipment procurement packages is ongoing with construction activities on the mill expansion expected to commence in the second quarter of 2024
- Advanced lateral development to support higher mining rates with the Phase 3+ Expansion
The Phase 3+ Expansion remains on schedule to be completed during the first half of 2026. During the fourth quarter of 2023, the Company spent
(in US$M) Growth capital (including indirects and contingency) | P3+ 2400 Study1 | Spent to date2 | Committed to date | % of Spent & Committed | ||||
229 | 143 | 63 | 90 | % | ||||
Mill Expansion | 76 | 5 | 15 | 26 | % | |||
Paste Plant | 52 | 1 | 2 | 6 | % | |||
Power Upgrade | 24 | 8 | 6 | 58 | % | |||
16 | — | — | — | |||||
General Indirect Costs | 64 | 33 | 5 | 59 | % | |||
Contingency3 | 55 | — | ||||||
$ | 516 | $ | 190 | $ | 91 | 54 | % | |
Underground Equipment & Infrastructure | 79 | 32 | — | 41 | % | |||
162 | 71 | — | 44 | % | ||||
$ | 756 | $ | 293 | $ | 91 | 51 | % |
- Phase 3+ 2400 Study is as of
January 2022 . Phase 3+ capital estimate based on USD/CAD exchange$0 .78:1. Spent to date based on average USD/CAD of$0 .76:1 since the start of 2022. Committed to date based on the spot USD/CAD rate as atDecember 31, 2023 of$0 .76:1. - Amount spent to date accounted for on an accrual basis, including working capital movements.
- Contingency has been allocated to the various areas.
Growth capital spending at Island Gold on the Phase 3+ Expansion is expected to be between
Shaft site area -
In
On
2023 Study Highlights:
Higher production: average annual gold production of 207,000 ounces over the first five years and 176,000 ounces over the initial 10 years
- The 10-year average represents a 23% increase over the annual average of 143,000 ounces in the 2017 Study
Low-cost profile: average mine-site all-in sustaining costs of
- Average mine-site all-in sustaining costs decreased 6% from the 2017 Study over the initial 10-years with economies of scale provided by the larger operation, and higher average grades, more than offsetting cost inflation
Larger, longer-life operation supported by 44% larger Mineral Reserve with further upside potential
- 44% larger Mineral Reserve totaling 2.3 million ounces grading 1.52 g/t Au (47.6 million tonnes ("mt"))
- 17-year mine life, up from 10 years in the 2017 Study
- Life of mine production of 2.2 million ounces, a 46% increase from 1.5 million ounces reported in 2017
Modest increase in capital intensity with larger operation and 46% increase in life of mine production partly offsetting inflation
- Initial capital of
$632 million , and life of mine capital including sustaining capital and reclamation of$832 million , increased from the 2017 Study reflecting inflation and scope changes with the larger operation and Mineral Reserve - Total life of mine capital of
$381 per ounce increased 17% from$325 per ounce in the 2017 Study with the larger Mineral Reserve and economies of scale partly offsetting the significant industry-wide capital inflation experienced since 2017
Project de-risked given advanced level of engineering, additional geotechnical work, and EIS approval
- Detailed engineering 75% complete; basic engineering 100% complete as of
December 2023 - EIS approval and Provincial licenses received in
March 2023 with requirements outlined through the permitting process incorporated into the 2023 Study
Attractive economics with significant long-term exploration upside potential
- After-tax net present value (“NPV”) (5%) of
$428 million (base case gold price assumption of$1,675 per ounce and USD/CAD foreign exchange rate of$0 .75:1); after-tax internal rate of return (“IRR”) of 17% - After-tax NPV (5%) of
$670 million , and an after-tax IRR of 22%, at current gold prices of approximately$1,950 per ounce - Payback of less than four years at the base case gold price of
$1,675 per ounce and less than three years at a$1,950 per ounce gold prices
Significant near-mine and regional exploration upside potential
- The
Lynn Lake project encompasses most of the east-trending, 125 km long,Lynn Lake Greenstone Belt in northwesternManitoba , with a total of 58,000 hectares of mineral tenure, representing significant exploration potential, including:- Gordon deposit: higher-grade gold mineralization extended outside of Mineral Reserves and Resources in the northeastern extent of the planned Gordon pit, in an area modeled as waste in the 2023 Study
- Burnt Timber and Linkwood: potential for smaller, higher-grade Mineral Resource that could be trucked and processed at the planned MacLellan mill later in the mine life
- Regional targets: extensive pipeline of highly prospective exploration targets at various stages of exploration across the
Lynn Lake greenstone belt. This includes the Maynard and Tulune targets where ongoing drilling continues to intersect gold mineralization. Both targets are within trucking distance of the MacLellan mill
- 18% decrease in GHG emissions per ounce from the 2017 Study reflecting the incorporation of electric shovels and drills at MacLellan, and productivity improvements with the larger operation
- 58% lower emissions per ounce produced than the industry average. The project will be connected to Manitoba’s electric grid, of which nearly all electricity is produced from clean, renewable power, supporting the company-wide target of a 30% reduction in absolute GHG emissions by 2030
Development spending (excluding exploration) was
Capital spending on the
With
Kirazlı (Çanakkale, Türkiye)
On
On
Bilateral investment treaties are agreements between countries to assist with the protection of investments. The Treaty establishes legal protections for investment between Türkiye and
The Company incurred
Fourth Quarter 2023 Exploration Activities
Island Gold (
Total exploration expenditures during the fourth quarter were
As announced earlier this week, the program was successful with high-grade Mineral Reserves and Resources added across all categories to now total 6.1 million ounces, a 16% increase from the end of 2022. This included an 18% increase in Mineral Reserves to 1.7 million ounces (5.2 mt grading 10.30 g/t Au), a 146% increase in Measured and Indicated Mineral Resources to 0.7 million ounces (2.6 mt grading 8.73 g/t Au) and a 4% increase in Inferred Mineral Resources to 3.7 million ounces (7.9 mt grading 14.58 g/t Au).
The majority of these high-grade Mineral Reserve and Resource additions were in proximity to existing production horizons and infrastructure. This included additions within the main Island Gold structure as well as within the hanging wall and footwall. Given their proximity to existing infrastructure, these ounces are expected to be low cost to develop and could be incorporated into the mine plan and mined within the next several years, further increasing the value of the operation.
A regional exploration program was also completed in 2023 with the focus on evaluating and advancing exploration targets outside the Island Gold Deposit on the 55,300 ha Island Gold property. The program was successful in defining high-grade mineralization at two targets near the Island Gold mine. This included the
A total of 9,378 m of underground exploration drilling in 30 holes was completed in the fourth quarter. Additionally, a total of 9,481 m of underground delineation drilling was completed in 34 holes, focused on in-fill drilling to convert Mineral Resources to Mineral Reserves. For the full year, 157 holes totaling 39,110m were completed as part of the underground exploration program, and 155 holes totaling 31,636 m as part of the underground delineation drilling program. A total of 139 m of underground exploration drift development was also completed during the fourth quarter, totaling 404 m as of year end.
As announced in the
Island Gold Main zone exploration highlights: high-grade mineralization extended outside of Mineral Reserves and Resources in the E1E and C-Zones. These zones are the main structures which host the majority of currently defined Mineral Reserves and Resources at Island Gold. Previously reported highlights include1:
- Island East (E1E-Zone)
- 34.48 g/t Au (34.48 g/t cut) over 2.82 m (840-632-49);
- 20.85 g/t Au (20.85 g/t cut) over 2.41 m (1040-619-20);
- 19.22 g/t Au (19.22 g/t cut) over 2.05 m (945-624-34); and
- 16.13 g/t Au (16.13 g/t cut) over 2.45 m (840-530-09).
- Island West (C-Zone)
- 106.04 g/t Au (48.86 g/t cut) over 2.38 m (490-456-13); and
- 19.56 g/t Au (19.56 g/t cut) over 3.81 m (790-479-40).
Island Gold Hanging wall and Footwall exploration highlights: high-grade gold mineralization intersected within several recently defined hanging wall and footwall zones across the main Island Gold Deposit. These zones represent a significant opportunity to add near mine Mineral Reserves and Resources which would be low-cost to develop and produce given their proximity to existing infrastructure. This includes the
• Island West Hanging Wall Zones
- 29.33 g/t Au (23.89 g/t cut) over 6.93 m (790-479-34);
- 40.36 g/t Au (40.36 g/t cut) over 3.91 m (790-479-40);
- 65.23 g/t Au (24.36 g/t cut) over 2.28 m (900-506-09);
- 23.34 g/t Au (12.56 g/t cut) over 4.03 m (900-506-10);
- 17.30 g/t Au (8.61 g/t cut) over 3.41 m (900-506-11A);
- 12.33 g/t Au (12.33 g/t cut) over 3.96 m (900-506-07); and
- 10.46 g/t Au (10.46 g/t cut) over 4.17 m (900-506-08).
- Island East Footwall Zones
- 67.08 g/t Au (13.21 g/t cut) over 2.56 m (1040-619-22);
- 50.10 g/t Au (12.67 g/t cut) over 2.35 m (1040-619-31); and
- 14.78 g/t Au (14.39 g/t cut) over 2.17 m (1040-619-20).
- 228.50 g/t Au (70.63 g/t cut) over 2.79 m (945-624-31A); and
- 52.31 g/t Au (15.13 g/t cut) over 2.06 m (945-624-32).
Other Hanging Wall and Footwall intersections: drilling continues to intersect high-grade mineralization in proximity to existing underground infrastructure in yet to be defined zones. These are part of more than 2,000 intersections above 3 g/t Au outside of existing Mineral Reserves and Resources in the hanging wall and footwall, highlighting the opportunity for significant near-mine additions as ongoing drilling further defines these areas. Previously reported highlights include2:
Footwall
- 1389.65 g/t Au over 2.90 m (620-595-02);
- 39.42 g/t Au over 2.45 m (840-632-49);
- 25.85 g/t Au over 3.65 m (840-632-41);
- 18.71 g/t Au over 3.45 m (1015-640-06); and
- 16.05 g/t Au over 2.75 m (840-632-41).
Hanging Wall
- 103.37 g/t Au over 2.90 m (900-506-13);
- 52.65 g/t Au over 2.15 m (900-506-06); and
- 17.33 g/t Au over 2.70 m (900-506-13).
1 All reported composite intervals are calculated true width of the mineralized zones, unless otherwise stated. Drillhole composite intervals reported as “cut” may include higher grade samples which have been cut to: Island West (C-zone) and Island Main @ 225 g/t Au; Island Main and East (
2 All reported composite intervals are core length, true width is unknown at this time, and gold grades are reported as uncut).
Total exploration expenditures during the fourth quarter were
During the fourth quarter of 2023, two underground exploration drills completed 5,325 m in 12 holes from the 9220 West exploration drift and the 9025 East Footwall. Drilling is targeting syenite-hosted mineralization as well as continuing to test mineralization in the footwall sediments and in the hanging wall mafic-ultramafic stratigraphy. For the full year, a total of 23,205 m of mine exploration drilling was completed in 56 holes.
In addition, 7,052 m of surface drilling was completed in 21 holes in 2023, primarily focused on the MCM-target area, immediately east and adjacent to the
During the fourth quarter, exploration spending at Mulatos totaled
During the fourth quarter of 2023, exploration activities continued at PDA and the near-mine area with 15,937 m of drilling completed in 62 holes. Drilling in the fourth quarter focused on in-fill drilling the GAP-Victor portion of the Mineral Resource. The 2023 exploration program was successful in driving a 33% increase in Mineral Reserves at PDA to 1.0 million ounces (5.4 mt grading 5.61 g/t Au) with grades also increasing 16%. This growth in higher-grade Mineral Reserves will be incorporated into an updated development plan which is expected to be completed in the first quarter of 2024.
The regional drilling program was paused during the fourth quarter to complete ground geophysical surveys in the Capulin and
For the full year, a total of 56,712 m of drilling was completed in 196 holes at PDA including 10 geotechnical holes totaling 2,221 m. A total of 25,459 m of drilling in 79 holes was also completed at several targets across the
Exploration spending totaled
Review of Fourth Quarter Financial Results
During the fourth quarter of 2023, the Company sold 129,005 ounces of gold for operating revenues of
Cost of sales (which includes mining and processing costs, royalties, and amortization expense) were
Mining and processing costs were
Total cash costs of
Royalty expense was
Amortization of
The Company recognized earnings from operations of
The Company reported net earnings of
Review of 2023 Financial Results
During the year ended
Cost of sales (which includes mining and processing costs, royalties, and amortization expense) for the full year were
Mining and processing costs increased to
Total cash costs of
Royalty expense was
Amortization of
The Company recognized earnings from operations of
The Company reported net earnings of
(1) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
Associated Documents
This press release should be read in conjunction with the Company’s consolidated financial statements for the year ended
Reminder of Fourth Quarter and Year-End 2023 Results Conference Call
The Company's senior management will host a conference call on
(416) 340-2217 | ||
Toll free ( | (800) 806-5484 | |
Participant passcode: | 7181034# | |
Webcast: | www.alamosgold.com | |
A playback will be available until
Qualified Persons
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in
FOR FURTHER INFORMATION, PLEASE CONTACT:
Senior Vice President, Investor Relations
(416) 368-9932 x 5439
The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This press release contains or incorporates by reference “forward-looking statements” and “forward-looking information” as defined under applicable Canadian and
Such statements include, but may not be limited to, guidance and expectations pertaining to: free cash flow, mine-site free cash flow, gold production, total cash costs, all-in sustaining costs, mine-site all-in sustaining costs, capital expenditures, total sustaining and growth capital, capitalized exploration; achieving annual guidance; expected completion of the acquisition of Orford Mining Corporation by Alamos; increases to production, value of operation and decreases to costs resulting from intended completion of the Phase 3+ Expansion at Island Gold; intended infrastructure investments in, method of funding for, and timing of the completion of, the Phase 3+ Expansion; timing of construction decision for the
Alamos cautions that forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by the Company at the time of making such statements, are inherently subject to significant business, economic, technical, legal, political and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information.
Risk factors that may affect Alamos’ ability to achieve the expectations set forth in the forward-looking statements in this press release include, but are not limited to: changes to current estimates of mineral reserves and resources; changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing and recovery rate estimates which may be impacted by unscheduled maintenance, weather issues, labour and contractor availability and other operating or technical difficulties); operations may be exposed to new diseases, epidemics and pandemics, including any ongoing effects and potential further effects of COVID-19; the impact of COVID-19 or any other new illness, epidemic or pandemic on the broader market and the trading price of the Company's shares; provincial and federal orders or mandates (including with respect to mining operations generally or auxiliary businesses or services required for the Company’s operations) in
Additional risk factors and details with respect to risk factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release are set out in the Company's latest 40-F/Annual Information Form and Management’s Discussion and Analysis, each under the heading “Risk Factors”, which are available on the SEDAR+ website at www.sedarplus.ca or on EDGAR at www.sec.gov. The foregoing should be reviewed in conjunction with the information, risk factors and assumptions found in this press release.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Cautionary Note to U.S. Investors Concerning Measured, Indicated and Inferred Resources
Measured, Indicated and Inferred Resources: All resource and reserve estimates included in this press release and documents referenced in this press release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the
Investors are cautioned that while the above terms are “substantially similar” to CIM Definitions, there are differences in the definitions under Regulation S-K 1300 and the CIM Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the mineral reserve or mineral resource estimates under the standards adopted under Regulation S-K 1300. U.S. investors are also cautioned that while the
International Financial Reporting Standards: The consolidated financial statements of the Company have been prepared by management in accordance with International Financial Reporting Standards, as issued by the
Non-GAAP Measures and Additional GAAP Measures
The Company has included certain non-GAAP financial measures to supplement its Consolidated Financial Statements, which are presented in accordance with IFRS, including the following:
- adjusted net earnings and adjusted earnings per share;
- cash flow from operating activities before changes in working capital and taxes received;
- company-wide free cash flow;
- total mine-site free cash flow;
- mine-site free cash flow;
- total cash cost per ounce of gold sold;
- AISC per ounce of gold sold;
- Mine-site AISC per ounce of gold sold;
- sustaining and non-sustaining capital expenditures; and
- earnings before interest, taxes, depreciation, and amortization ("EBITDA")
The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management's determination of the components of non-GAAP and additional measures are evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are dully noted and retrospectively applied as applicable.
Adjusted Net Earnings and Adjusted Earnings per Share
“Adjusted net earnings” and “adjusted earnings per share” are non-GAAP financial measures with no standard meaning under IFRS which exclude the following from net earnings (loss):
- Foreign exchange (gain) loss
- Items included in other loss
- Certain non-recurring items
- Foreign exchange (gain) loss recorded in deferred tax expense
- The income and mining tax impact of items included in other loss
Net earnings (loss) have been adjusted, including the associated tax impact, for the group of costs in “other loss” on the consolidated statement of comprehensive income. Transactions within this grouping are: the fair value changes on non-hedged derivatives; the renunciation of flow-through exploration expenditures; loss on disposal of assets; and Turkish Projects holding costs and arbitration costs. The adjusted entries are also impacted for tax to the extent that the underlying entries are impacted for tax in the unadjusted net earnings.
The Company uses adjusted net earnings for its own internal purposes. Management’s internal budgets and forecasts and public guidance do not reflect the items which have been excluded from the determination of adjusted net earnings. Consequently, the presentation of adjusted net earnings enables shareholders to better understand the underlying operating performance of the core mining business through the eyes of management. Management periodically evaluates the components of adjusted net earnings based on an internal assessment of performance measures that are useful for evaluating the operating performance of our business and a review of the non-GAAP measures used by mining industry analysts and other mining companies.
Adjusted net earnings is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of operating profit or cash flows from operations as determined under IFRS. The following table reconciles this non-GAAP measure to the most directly comparable IFRS measure.
(in millions) | |||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2021 | |||||||||||
Net earnings (loss) | $ | 47.1 | $ | 40.6 | $ | 210.0 | $ | 37.1 | $ | (66.7 | ) | ||||
Adjustments: | |||||||||||||||
Inventory net realizable value adjustment, net of taxes | — | — | — | 22.4 | — | ||||||||||
Impairment charge, net of taxes | — | — | — | 26.7 | 213.8 | ||||||||||
Foreign exchange (gain) loss | (0.3 | ) | 0.2 | (1.9 | ) | (1.7 | ) | 0.9 | |||||||
Other loss | 21.2 | 6.6 | 23.8 | 5.1 | 7.2 | ||||||||||
Unrealized foreign exchange (gain) loss recorded in deferred tax expense | (12.3 | ) | (12.2 | ) | (16.3 | ) | 19.4 | 6.9 | |||||||
Other income and mining tax adjustments | (6.5 | ) | (1.5 | ) | (7.2 | ) | (1.1 | ) | — | ||||||
Adjusted net earnings | $ | 49.2 | $ | 33.7 | $ | 208.4 | $ | 107.9 | $ | 162.1 | |||||
Adjusted earnings per share - basic | $ | 0.12 | $ | 0.09 | $ | 0.53 | $ | 0.28 | $ | 0.41 |
Cash Flow from Operating Activities before Changes in Working Capital and Cash Taxes
“Cash flow from operating activities before changes in working capital and cash taxes” is a non-GAAP performance measure that could provide an indication of the Company’s ability to generate cash flows from operations, and is calculated by adding back the change in working capital and taxes received to “Cash provided by (used in) operating activities” as presented on the Company’s consolidated statements of cash flows. “Cash flow from operating activities before changes in working capital” is a non-GAAP financial measure with no standard meaning under IFRS.
The following table reconciles the non-GAAP measure to the consolidated statements of cash flows.
(in millions) | |||||||||
Three Months Ended | Years Ended | ||||||||
2023 | 2022 | 2023 | 2022 | ||||||
Cash flow from operating activities | $ | 124.1 | $ | 102.3 | $ | 472.7 | $ | 298.5 | |
Add: Changes in working capital and taxes paid | (3.9 | ) | 7.0 | 46.2 | 63.1 | ||||
Cash flow from operating activities before changes in working capital and taxes paid | $ | 120.2 | $ | 109.3 | $ | 518.9 | $ | 361.6 |
Company-wide Free Cash Flow
“Company-wide free cash flow" is a non-GAAP performance measure calculated from the consolidated operating cash flow, less consolidated mineral property, plant and equipment expenditures. The Company believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash company-wide. Company-wide free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other mining companies. Company-wide free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
(in millions) | ||||||||||||
Three Months Ended | Years Ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Cash flow from operating activities | $ | 124.1 | $ | 102.3 | $ | 472.7 | $ | 298.5 | ||||
Less: mineral property, plant and equipment expenditures | (109.7 | ) | (84.8 | ) | (348.9 | ) | (313.7 | ) | ||||
Company-wide free cash flow | $ | 14.4 | $ | 17.5 | $ | 123.8 | $ | (15.2 | ) |
Mine-site Free Cash Flow
"Mine-site free cash flow" is a non-GAAP financial performance measure calculated as cash flow from mine-site operating activities, less mineral property, plant and equipment expenditures. The Company believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash. Mine-site free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other mining companies. Mine-site free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Consolidated | Three Months Ended | Years Ended | ||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
(in millions) | ||||||||||||
Cash flow from operating activities | $ | 124.1 | $ | 102.3 | $ | 472.7 | $ | 298.5 | ||||
Add: operating cash flow used by non-mine site activity | 10.6 | 15.7 | 49.5 | 48.3 | ||||||||
Cash flow from operating mine-sites | $ | 134.7 | $ | 118.0 | $ | 522.2 | $ | 346.8 | ||||
Mineral property, plant and equipment expenditure | $ | 109.7 | $ | 84.8 | $ | 348.9 | $ | 313.7 | ||||
Less: capital expenditures from development projects, and corporate | (3.4 | ) | $ | (4.8 | ) | (18.2 | ) | (22.2 | ) | |||
Capital expenditure and capital advances from mine-sites | $ | 106.3 | $ | 80.0 | $ | 330.7 | $ | 291.5 | ||||
Total mine-site free cash flow | $ | 28.4 | $ | 38.0 | $ | 191.5 | $ | 55.3 |
Young-Davidson Mine-Site Free Cash Flow | Three Months Ended | Years Ended | ||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
(in millions) | ||||||||||||
Cash flow from operating activities | $ | 59.0 | $ | 44.6 | $ | 184.8 | $ | 172.8 | ||||
Mineral property, plant and equipment expenditure | (24.0 | ) | (20.6 | ) | (67.2 | ) | (71.5 | ) | ||||
Mine-site free cash flow | $ | 35.0 | $ | 24.0 | $ | 117.6 | $ | 101.3 |
Island Gold Mine-Site Free Cash Flow | Three Months Ended | Years Ended | ||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
(in millions) | ||||||||||||
Cash flow from operating activities | $ | 39.9 | $ | 39.1 | $ | 164.9 | $ | 148.1 | ||||
Mineral property, plant and equipment expenditure | (73.9 | ) | (53.9 | ) | (233.1 | ) | (157.3 | ) | ||||
Mine-site free cash flow | $ | (34.0 | ) | $ | (14.8 | ) | $ | (68.2 | ) | $ | (9.2 | ) |
Mulatos District Free Cash Flow | Three Months Ended | Years Ended | ||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
(in millions) | ||||||||||||
Cash flow from operating activities | $ | 35.8 | $ | 34.3 | $ | 172.5 | $ | 25.9 | ||||
Mineral property, plant and equipment expenditure | (8.4 | ) | (5.5 | ) | (30.4 | ) | (62.7 | ) | ||||
Mine-site free cash flow | $ | 27.4 | $ | 28.8 | $ | 142.1 | $ | (36.8 | ) |
Total Cash Costs per ounce
Total cash costs per ounce is a non-GAAP term 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. This non-GAAP term is also used to assess the ability of a mining company to generate cash flow from operations. Total cash costs per ounce includes mining and processing costs plus applicable royalties, and net of by-product revenue and net realizable value adjustments. Total cash costs per ounce is exclusive of exploration costs.
Total cash costs per ounce is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.
All-in Sustaining Costs per ounce and Mine-site All-in Sustaining Costs
The Company adopted an “all-in sustaining costs per ounce” non-GAAP performance measure in accordance with the
For the purposes of calculating "mine-site all-in sustaining costs" at the individual mine-sites, the Company does not include an allocation of corporate and administrative costs and share-based compensation, as detailed in the reconciliations below.
Sustaining capital expenditures are expenditures that do not increase annual gold ounce production at a mine site and excludes all expenditures at the Company’s development projects as well as certain expenditures at the Company’s operating sites that are deemed expansionary in nature. Non-sustaining capital expenditures are expenditures primarily incurred at development projects and costs related to major projects at existing operations, where the these projects will materially benefit the mine site. Capitalized exploration expenditures are expenditures that meet the IFRS definition for capitalization, and are incurred to further expand the known Mineral Reserve and Resource at existing operations or development projects. For each mine-site reconciliation, corporate and administrative costs, and non-site specific costs are not included in the all-in sustaining cost per ounce calculation.
All-in sustaining costs per gold ounce is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.
Total Cash Costs and All-in Sustaining Costs per Ounce Reconciliation Tables
The following tables reconciles these non-GAAP measures to the most directly comparable IFRS measures on a Company-wide and individual mine-site basis.
Total Cash Costs and AISC Reconciliation - Company-wide | ||||||||||
Three Months Ended | Years Ended | |||||||||
2023 | 2022 | 2023 | 2022 | 2021 | ||||||
(in millions, except ounces and per ounce figures) | ||||||||||
Mining and processing | $ | 113.4 | $ | 105.6 | $ | 437.3 | $ | 394.4 | $ | 351.5 |
Royalties | 2.7 | 2.2 | 10.2 | 9.1 | 11.7 | |||||
Total cash costs | 116.1 | 107.8 | 447.5 | 403.5 | 363.2 | |||||
Gold ounces sold | 129,005 | 133,164 | 526,258 | 456,574 | 457,517 | |||||
Total cash costs per ounce | $ | 900 | $ | 810 | $ | 850 | $ | 884 | $ | 794 |
Total cash costs | $ | 116.1 | $ | 107.8 | $ | 447.5 | $ | 403.5 | $ | 363.2 |
Corporate and administrative (1) | 7.6 | 7.2 | 27.6 | 25.9 | 24.5 | |||||
Sustaining capital expenditures (2) | 26.6 | 26.5 | 104.2 | 95.2 | 113.4 | |||||
Share-based compensation | 6.3 | 7.1 | 21.7 | 18.3 | 11.1 | |||||
Sustaining exploration | 0.8 | 0.7 | 2.7 | 2.5 | 4.9 | |||||
Accretion of decommissioning liabilities | 1.7 | 2.2 | 6.8 | 4.2 | 2.4 | |||||
Total all-in sustaining costs | $ | 159.1 | $ | 151.5 | $ | 610.5 | $ | 549.6 | $ | 519.5 |
Gold ounces sold | 129,005 | 133,164 | 526,258 | 456,574 | 457,517 | |||||
All-in sustaining costs per ounce | $ | 1,233 | $ | 1,138 | $ | 1,160 | $ | 1,204 | $ | 1,135 |
(1) Corporate and administrative expenses exclude expenses incurred at development properties.
(2) Sustaining capital expenditures are defined as those expenditures which do not increase annual gold ounce production at a mine site and exclude all expenditures at growth projects and certain expenditures at operating sites which are deemed expansionary in nature. Total sustaining capital expenditures for the period are as follows:
Three Months Ended | Years Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | 2021 | |||||||||||
(in millions) | |||||||||||||||
Capital expenditures per cash flow statement | $ | 109.7 | $ | 84.8 | $ | 348.9 | $ | 313.7 | $ | 348.6 | |||||
Less: non-sustaining capital expenditures at: | |||||||||||||||
(10.1 | ) | (5.4 | ) | (18.2 | ) | (22.7 | ) | (44.8 | ) | ||||||
Island Gold | (63.0 | ) | (43.8 | ) | (189.2 | ) | (120.8 | ) | (71.9 | ) | |||||
(6.6 | ) | (4.3 | ) | (19.1 | ) | (52.8 | ) | (97.0 | ) | ||||||
Corporate and other | (3.4 | ) | (4.8 | ) | (18.2 | ) | (22.2 | ) | (21.5 | ) | |||||
Sustaining capital expenditures | $ | 26.6 | $ | 26.5 | $ | 104.2 | $ | 95.2 | $ | 113.4 |
Young-Davidson Total Cash Costs and Mine-site AISC Reconciliation
Three Months Ended | Years Ended | |||||||
2023 | 2022 | 2023 | 2022 | |||||
(in millions, except ounces and per ounce figures) | ||||||||
Mining and processing | $ | 42.8 | $ | 41.1 | $ | 166.2 | $ | 163.4 |
Royalties | 1.4 | 1.1 | 5.3 | 5.3 | ||||
Total cash costs | $ | 44.2 | $ | 42.2 | $ | 171.5 | $ | 168.7 |
Gold ounces sold | 48,052 | 44,781 | 182,796 | 192,186 | ||||
Total cash costs per ounce | $ | 920 | $ | 942 | $ | 938 | $ | 878 |
Total cash costs | $ | 44.2 | $ | 42.2 | $ | 171.5 | $ | 168.7 |
Sustaining capital expenditures | 13.9 | 15.2 | 49.0 | 48.8 | ||||
Accretion of decommissioning liabilities | 0.1 | 0.1 | 0.4 | 0.3 | ||||
Total all-in sustaining costs | $ | 58.2 | $ | 57.5 | $ | 220.9 | $ | 217.8 |
Gold ounces sold | 48,052 | 44,781 | 182,796 | 192,186 | ||||
Mine-site all-in sustaining costs per ounce | $ | 1,211 | $ | 1,284 | $ | 1,208 | $ | 1,133 |
Island Gold Total Cash Costs and Mine-site AISC Reconciliation
Three Months Ended | Years Ended | |||||||
2023 | 2022 | 2023 | 2022 | |||||
(in millions, except ounces and per ounce figures) | ||||||||
Mining and processing | $ | 22.8 | $ | 23.0 | $ | 82.7 | $ | 80.6 |
Royalties | 0.8 | 0.7 | 2.7 | 2.6 | ||||
Total cash costs | $ | 23.6 | $ | 23.7 | $ | 85.4 | $ | 83.2 |
Gold ounces sold | 30,464 | 39,145 | 127,629 | 130,652 | ||||
Total cash costs per ounce | $ | 775 | $ | 605 | $ | 669 | $ | 637 |
Total cash costs | $ | 23.6 | $ | 23.7 | $ | 85.4 | $ | 83.2 |
Sustaining capital expenditures | 10.9 | 10.1 | 43.9 | 36.5 | ||||
Accretion of decommissioning liabilities | 0.1 | — | 0.5 | 0.2 | ||||
Total all-in sustaining costs | $ | 34.6 | $ | 33.8 | $ | 129.8 | $ | 119.9 |
Gold ounces sold | 30,464 | 39,145 | 127,629 | 130,652 | ||||
Mine-site all-in sustaining costs per ounce | $ | 1,136 | $ | 863 | $ | 1,017 | $ | 918 |
Mulatos District Total Cash Costs and Mine-site AISC Reconciliation
Three Months Ended | Years Ended | |||||||
2023 | 2022 | 2023 | 2022 | |||||
(in millions, except ounces and per ounce figures) | ||||||||
Mining and processing | $ | 47.8 | $ | 41.5 | $ | 188.4 | $ | 150.4 |
Royalties | 0.5 | 0.4 | 2.2 | 1.2 | ||||
Total cash costs | $ | 48.3 | $ | 41.9 | $ | 190.6 | $ | 151.6 |
Gold ounces sold | 50,489 | 49,238 | 215,833 | 133,736 | ||||
Total cash costs per ounce | $ | 957 | $ | 851 | $ | 883 | $ | 1,134 |
Total cash costs | $ | 48.3 | $ | 41.9 | $ | 190.6 | $ | 151.6 |
Sustaining capital expenditures | 1.8 | 1.2 | 11.3 | 9.9 | ||||
Sustaining exploration | 0.4 | 0.2 | 0.9 | 0.7 | ||||
Accretion of decommissioning liabilities | 1.5 | 2.1 | 5.9 | 3.7 | ||||
Total all-in sustaining costs | $ | 52.0 | $ | 45.4 | $ | 208.7 | $ | 165.9 |
Gold ounces sold | 50,489 | 49,238 | 215,833 | 133,736 | ||||
Mine-site all-in sustaining costs per ounce | $ | 1,030 | $ | 922 | $ | 967 | $ | 1,241 |
EBITDA
EBITDA represents net earnings before impairment charges, interest, taxes, depreciation, and amortization. EBITDA is an indicator of the Company’s ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.
EBITDA does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
The following is a reconciliation of EBITDA to the consolidated financial statements:
(in millions) | |||||||||
Three Months Ended | Years Ended | ||||||||
2023 | 2022 | 2023 | 2022 | ||||||
Net earnings | $ | 47.1 | $ | 40.6 | $ | 210.0 | $ | 37.1 | |
Add back: | |||||||||
Inventory net realizable value adjustment | — | — | — | 33.9 | |||||
Impairment expense | — | — | — | 38.2 | |||||
Finance (income) expense | (0.2 | ) | 2.2 | 2.5 | 5.7 | ||||
Amortization | 50.6 | 45.6 | 190.2 | 171.5 | |||||
Deferred income tax expense | 4.6 | 2.7 | 31.0 | 54.6 | |||||
Current income tax (recovery) expense | (0.5 | ) | 9.3 | 52.7 | 10.7 | ||||
EBITDA | $ | 101.6 | $ | 100.4 | $ | 486.4 | $ | 351.7 |
Additional GAAP Measures
Additional GAAP measures are presented on the face of the Company’s consolidated statements of comprehensive income (loss) and are not meant to be a substitute for other subtotals or totals presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. The following additional GAAP measures are used and are intended to provide an indication of the Company’s mine and operating performance:
- Earnings from operations - represents the amount of earnings before net finance income/expense, foreign exchange gain/loss, other income/loss, loss on redemption of senior secured notes and income tax expense
Unaudited Consolidated Statements of Financial Position, Comprehensive Income, and Cash Flow |
Consolidated Statements of Financial Position
(Unaudited - stated in millions of
A S S E T S | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 224.8 | $ | 129.8 | |||
Equity securities | 13.0 | 18.6 | |||||
Amounts receivable | 53.4 | 37.2 | |||||
Inventory | 271.2 | 234.2 | |||||
Other current assets | 23.6 | 16.2 | |||||
Assets held for sale | — | 5.0 | |||||
Total Current Assets | 586.0 | 441.0 | |||||
Non-Current Assets | |||||||
Mineral property, plant and equipment | 3,360.1 | 3,173.8 | |||||
Deferred income taxes | 9.0 | — | |||||
Other non-current assets | 46.1 | 59.4 | |||||
Total Assets | $ | 4,001.2 | $ | 3,674.2 | |||
L I A B I L I T I E S | |||||||
Current Liabilities | |||||||
Accounts payable and accrued liabilities | $ | 195.0 | $ | 172.7 | |||
Income taxes payable | 40.3 | 0.7 | |||||
Current portion of decommissioning liability | 12.6 | 8.5 | |||||
Total Current Liabilities | 247.9 | 181.9 | |||||
Non-Current Liabilities | |||||||
Deferred income taxes | 703.6 | 660.9 | |||||
Decommissioning liabilities | 124.2 | 108.1 | |||||
Other non-current liabilities | 2.0 | 2.2 | |||||
Total Liabilities | 1,077.7 | 953.1 | |||||
E Q U I T Y | |||||||
Share capital | $ | 3,738.6 | $ | 3,703.8 | |||
Contributed surplus | 88.6 | 90.7 | |||||
Accumulated other comprehensive loss | (26.9 | ) | (24.8 | ) | |||
Deficit | (876.8 | ) | (1,048.6 | ) | |||
Total Equity | 2,923.5 | 2,721.1 | |||||
Total Liabilities and Equity | $ | 4,001.2 | $ | 3,674.2 | |||
Consolidated Statements of Comprehensive Income
(Unaudited - stated in millions of
For three months ended | For twelve months ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
OPERATING REVENUES | $ | 254.6 | $ | 231.9 | $ | 1,023.3 | $ | 821.2 | |||||||
COST OF SALES | |||||||||||||||
Mining and processing | 113.4 | 105.6 | 437.3 | 394.4 | |||||||||||
Inventory net realizable value adjustment | — | — | — | 33.9 | |||||||||||
Royalties | 2.7 | 2.2 | 10.2 | 9.1 | |||||||||||
Amortization | 50.6 | 45.6 | 190.2 | 171.5 | |||||||||||
166.7 | 153.4 | 637.7 | 608.9 | ||||||||||||
EXPENSES | |||||||||||||||
Exploration | 2.1 | 2.6 | 18.2 | 18.4 | |||||||||||
Corporate and administrative | 7.6 | 7.2 | 27.6 | 25.9 | |||||||||||
Share-based compensation | 6.3 | 7.1 | 21.7 | 18.3 | |||||||||||
Impairment charge | — | — | — | 38.2 | |||||||||||
182.7 | 170.3 | 705.2 | 709.7 | ||||||||||||
EARNINGS BEFORE INCOME TAXES | 71.9 | 61.6 | 318.1 | 111.5 | |||||||||||
OTHER EXPENSES | |||||||||||||||
Finance income (expense) | 0.2 | (2.2 | ) | (2.5 | ) | (5.7 | ) | ||||||||
Foreign exchange gain (loss) | 0.3 | (0.2 | ) | 1.9 | 1.7 | ||||||||||
Other loss | (21.2 | ) | (6.6 | ) | (23.8 | ) | (5.1 | ) | |||||||
EARNINGS FROM OPERATIONS | $ | 51.2 | $ | 52.6 | $ | 293.7 | $ | 102.4 | |||||||
INCOME TAXES | |||||||||||||||
Current income tax recovery (expense) | 0.5 | (9.3 | ) | (52.7 | ) | (10.7 | ) | ||||||||
Deferred income tax expense | (4.6 | ) | (2.7 | ) | (31.0 | ) | (54.6 | ) | |||||||
NET EARNINGS | $ | 47.1 | $ | 40.6 | $ | 210.0 | $ | 37.1 | |||||||
Items that may be subsequently reclassified to net earnings: | |||||||||||||||
Net change in fair value of currency hedging instruments, net of taxes | 4.3 | 10.0 | 8.3 | (5.9 | ) | ||||||||||
Net change in fair value of fuel hedging instruments, net of taxes | (0.2 | ) | (0.4 | ) | (0.2 | ) | (0.3 | ) | |||||||
Items that will not be reclassified to net earnings: | |||||||||||||||
Unrealized loss on equity securities, net of taxes | (1.5 | ) | (1.4 | ) | (10.5 | ) | (20.5 | ) | |||||||
Total other comprehensive income (loss) | $ | 2.6 | $ | 8.2 | $ | (2.4 | ) | $ | (26.7 | ) | |||||
COMPREHENSIVE INCOME | $ | 49.7 | $ | 48.8 | $ | 207.6 | $ | 10.4 | |||||||
EARNINGS PER SHARE | |||||||||||||||
– basic | $ | 0.12 | $ | 0.10 | $ | 0.53 | $ | 0.09 | |||||||
– diluted | $ | 0.12 | $ | 0.10 | $ | 0.53 | $ | 0.09 | |||||||
Consolidated Statements of Cash Flows
(Unaudited - stated in millions of
For three months ended | For twelve months ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
CASH PROVIDED BY (USED IN): | |||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||
Net earnings for the period | $ | 47.1 | $ | 40.6 | $ | 210.0 | $ | 37.1 | |||||||
Adjustments for items not involving cash: | |||||||||||||||
Amortization | 50.6 | 45.6 | 190.2 | 171.5 | |||||||||||
Impairment charge | — | — | — | 38.2 | |||||||||||
Inventory net realizable value adjustment | — | — | — | 33.9 | |||||||||||
Foreign exchange (gain) loss | (0.3 | ) | 0.2 | (1.9 | ) | (1.7 | ) | ||||||||
Current income tax (recovery) expense | (0.5 | ) | 9.3 | 52.7 | 10.7 | ||||||||||
Deferred income tax expense | 4.6 | 2.7 | 31.0 | 54.6 | |||||||||||
Share-based compensation | 6.3 | 7.1 | 21.7 | 18.3 | |||||||||||
Finance (income) expense | (0.2 | ) | 2.2 | 2.5 | 5.7 | ||||||||||
Other items | 12.6 | 1.6 | 12.7 | (6.7 | ) | ||||||||||
Changes in working capital and taxes paid | 3.9 | (7.0 | ) | (46.2 | ) | (63.1 | ) | ||||||||
124.1 | 102.3 | 472.7 | 298.5 | ||||||||||||
INVESTING ACTIVITIES | |||||||||||||||
Mineral property, plant and equipment | (109.7 | ) | (84.8 | ) | (348.9 | ) | (313.7 | ) | |||||||
Proceeds from sale of | — | — | — | 5.0 | |||||||||||
Proceeds from disposition of equity securities | — | — | 0.1 | — | |||||||||||
Investment in equity securities | (0.1 | ) | (0.1 | ) | (2.8 | ) | (4.0 | ) | |||||||
Manitou transaction costs | — | — | (0.2 | ) | — | ||||||||||
(109.8 | ) | (84.9 | ) | (351.8 | ) | (312.7 | ) | ||||||||
FINANCING ACTIVITIES | |||||||||||||||
Dividends paid | (8.6 | ) | (8.8 | ) | (35.3 | ) | (35.1 | ) | |||||||
Repurchase and cancellation of common shares | — | — | — | (8.2 | ) | ||||||||||
Proceeds from issuance of flow-through shares | — | — | — | 10.4 | |||||||||||
Proceeds from the exercise of options and warrants | 3.0 | 4.6 | 9.3 | 5.3 | |||||||||||
Credit facility interest and transaction fees | — | (0.8 | ) | — | (0.8 | ) | |||||||||
(5.6 | ) | (5.0 | ) | (26.0 | ) | (28.4 | ) | ||||||||
Effect of exchange rates on cash and cash equivalents | 0.2 | 0.7 | 0.1 | (0.1 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 8.9 | 13.1 | 95.0 | (42.7 | ) | ||||||||||
Cash and cash equivalents - beginning of period | 215.9 | 116.7 | 129.8 | 172.5 | |||||||||||
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 224.8 | $ | 129.8 | $ | 224.8 | $ | 129.8 | |||||||
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/780c03aa-fc14-4326-a4ca-c7332a388af3
Shaft site area - February 2024
Shaft site area - February 2024
2024 GlobeNewswire, Inc., source