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Thursday, August 5, 2010

Alamos Gold (TSE:AGI) Earnings Down on Lower Production

Alamos Gold (TSE:AGI) earnings dropped about 7 percent on lower production in the quarter, missing analysts' estimates.

Earnings in the second quarter reached $12.1 million, or 10 cents a share, down from $13 million, or 12 cents a share last year in the same quarter.

Analysts had expected on average for Alamos to earn 12 cents a share, excluding one-time charges.

As expected, revenue increased 13 percent, coming in at $47.5 million. The higher revenue was from gold prices rising 30 percent in the quarter.

Alamos had to have had a margin and cost problem, as the higher gold prices should have pushed their earnings up, even with the lower production, which was primarily the result of delays and drought at their flagship Mulatos mine in Mexico.

Going forward, Alamos kept its full-year production estimates of 160,000 ounces to 175,000 ounces, saying production should increase in the second half.

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