08:56 AM EDT, 08/30/2024 (MT Newswires) -- Minera Alamos ( MAIFF ) on Friday reported a swing to a net loss for its second quarter, but flagged "improved operations activity so far during Q3" with the Nicho Main zone pit startup "progressing well".

Net loss of just over $7 million, compares with a profit of $2.73 million last year. It said the net loss is primarily a result of the non-cash unrealized foreign exchange loss associated with the weakening of the Mexican peso against the Canadian dollar and a decrease in the mining operations at the Santana project.

The company recorded revenue of $1.5 million with cost of goods sold and depletion amounting to $1,329,811 for a mine operations income of $169,633. That income on sales of 505 ounces of gold for the quarter compared to a loss of $411,822 on sales of 1,071 ounces of gold in the corresponding quarter in 2023.

Among other highlights, Cash and Cash Equivalents of $8,608,289 compared to $11,844,502 as at March 31, 2024. Working capital as of June 30, 2024 stood at $14,480,746 compared to $18,248,668 as at March 31, 2023. The company said both its cash position and overall working capital is expected to improve in Q4 as the operational plans implemented in late Q2 and Q3 bear fruit.

"The company is very pleased with the progress being made since implementing the new operating plan for the Santana gold mine in June. Mining and stacking rates are now approaching levels last achieved in 2022 and as the lagging gold leaching recoveries naturally expand we are looking forward to a forecasted return to cash generation at Minera in Q4 of this year," said CEO Darren Koningen in a statement.

"We remain committed to the development of our next mine, Cerro de Oro, which continues to work its way through the permitting process and has been met by constructive dialogue with the relevant government agencies and local stakeholders. This month we also completed the final payments required for 100% ownership of Cerro de Oro, which on final calculations cost the company less than US$6/oz based on the most recent resource estimates."

Minera Alamos ( MAIFF ), with operations in Mexico, last traded at $0.25.