Alamos Gold forecasts lower full-year production

Thu Jan 16, 2014 11:40am EST
 
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Jan 16 (Reuters) - Alamos Gold Inc forecast lower full-year production and higher cash costs as output from its high-grade Escondida deposit in Mexico winds down.

Alamos shares fell as much as 15 percent on the Toronto Stock Exchange as well as the New York Stock Exchange in early trading on Thursday.

The miner, which operates in Mexico, Turkey and United States of America, said it expects the Escondida deposit to be depleted by the first quarter of this year.

Alamos forecast 2014 production to fall to 150,000-170,000 ounces of gold from 190,000 ounces in 2013.

The company expects total cash costs to increase to $700-$740 per ounce of gold sold from an estimated $500 per ounce in 2013 due to more expensive underground mining to supply high grade ore to the mill.

Revenue halved to $53.8 million in the fourth quarter, reflecting lower gold prices and fewer ounces sold.

Alamos Gold shares, which have fallen more than 10 percent in the last three months, were trading at C$11.88 on the Toronto Stock Exchange on Thursday morning. (Reporting By Sneha Banerjee in Bangalore; Editing by Joyjeet Das)