Higher gold sales lead to 70% Q3 profit rise for Alamos

Canadian gold miner Alamos Gold reports a big rise in quarterly earnings due to higher gold sales and price received. Confirms production outlook of 170,000 ounces

REUTERS - - 

Canadian mining company Alamos Gold Inc (AGI.TO: Quote) reported a 70 percent rise in quarterly profit, helped by an increase in gold sales and a higher average realized gold price.

For the third quarter, the company earned $14.1 million, or 13 cents a share, compared with $8.3 million, or 9 cents a share, a year earlier.

Analysts on average were expecting earnings of 12 cents a share, before special items, according to Thomson Reuters I/B/E/S.

The company, which operates in Mexico, said it produced 42,500 ounces of gold in the quarter, at a cash operating cost of $272 per ounce of gold sold. It produced 39,900 ounces of gold, a year ago.

Alamos said it sold 43,201 ounces of gold at an average realized gold price of $956 per ounce, for total revenues of $41.3 million in the quarter, compared with sales of 41,293 ounces at an average realized price of $901 per ounce, a year earlier.

The company affirmed its production outlook of 170,000 ounces.

Shares of the company closed at C$9.40 Wednesday on the Toronto Stock Exchange.

(Reporting by Koustav Samanta in Bangalore; Editing by Jarshad Kakkrakandy)

© Thomson Reuters 2009. All rights reserved.

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