Alamos Gold (NYSE: AGI) reported Q4 EPS of $0.15, $0.10 better than the analyst estimate of $0.05. Revenue for the quarter came in at $226.6 million versus the consensus estimate of $167.43 million.

Fourth Quarter 2020

• Generated quarterly free cash flow1 of $58.0 million, the second consecutive quarter with strong free cash flow, driven by higher margins at all operations
• Announced a 25% increase in the dividend to US$0.025 per share to be paid in the first quarter of 2021, bringing the annual dividend to US$0.10 per share and marking the second consecutive quarterly increase
• Production increased to 120,400 ounces of gold, the highest quarterly total in 2020, driven by strong performances at Young-Davidson and Island Gold
• Young-Davidson produced 48,000 ounces of gold and generated record mine-site free cash flow1 of $30.8 million, driven by record mining rates of 7,651 tonnes per day ("tpd") from the new lower mine infrastructure, exceeding year end targets
• Island Gold produced a record 41,200 ounces of gold and generated mine-site free cash flow1 of $31.8 million
• Sold 121,831 ounces of gold at an average realized price of $1,860 per ounce for record revenues of $226.6 million
• Generated record cash flow from operating activities of $131.4 million ($126.5 million, or $0.32 per share, before changes in working capital1), a 69% increase from the fourth quarter of 2019
• Consolidated total cash costs1 of $733 per ounce and all-in sustaining costs ("AISC")1 of $1,030 per ounce were below and at the low end of revised full year guidance, respectively. As well, cost of sales per ounce of $1,115 were below guidance
• Record adjusted net earnings1 of $58.2 million, or $0.15 per share1, which includes adjustments for unrealized foreign exchange gains of $16.4 million recorded within deferred taxes and foreign exchange, and other one-time gains of $2.3 million. Adjusted net earnings increased 81% compared to the fourth quarter of 2019
• Realized record net earnings of $76.9 million, or $0.20 per share
• Ended the quarter with cash and cash equivalents of $220.5 million and equity securities of $43.7 million. In October 2020, the Company repaid $100.0 million drawn earlier in the year on its credit facility and is debt free
• Acquired Trillium Mining Corp. (“Trillium”) for cash consideration of $19.5 million, increasing its land package adjacent to, and along strike from the Island Gold deposit, by approximately 60%

“We closed 2020 on a strong note, meeting full year guidance with our highest production for the year in the fourth quarter. This was driven by another record quarter at Island Gold and significantly higher production at Young-Davidson following the completion of the lower mine expansion. With ongoing strong margins we had another solid quarter financially, generating $58 million of free cash flow,” said John A. McCluskey, President and Chief Executive Officer.

“We are expecting production to grow 15% in 2021, supporting strong ongoing free cash flow generation while we reinvest in high-return organic growth projects. This includes the Phase III Expansion at Island Gold where we just added another million ounces of combined high-grade Mineral Reserves and Resources as the value of the operation continues to grow. Reflecting the strong quarter and outlook, we are pleased to announce a further 25% increase in our dividend marking our second consecutive quarterly increase,” Mr. McCluskey added.

For earnings history and earnings-related data on Alamos Gold (AGI) click here.