Alio Gold Inc. announced consolidated earnings and operating results for the fourth quarter and year ended Dec. 31, 2017. For the quarter, the company reported metal revenues of $20,593,000 against $30,977,000 a year ago. Net loss from operations was $547,000 against earnings of $6,927,000 a year ago. Net loss was $2,853,000 or $0.06 per basic share against earnings of $5,957,000 or $0.18 per basic share a year ago. Cash flows used in operating activities was $2,183,000 against cash flows from operating activities of $9,993,000 a year ago.

For the full year, the company reported metal revenues of $105,162,000 against $123,873,000 a year ago. Net earnings from operations were $22,066,000 against $37,356,000 a year ago. Net earnings were $11,898,000 or $0.30 per basic share against $31,738,000 or $0.99 per basic share a year ago. Cash flows from operating activities were $13,070,000 against $34,082,000 a year ago. The decrease in Revenue was a result of fewer ounces sold. The decrease in earnings from operations was primarily due to a decrease in metal revenues due to fewer ounces sold. The decrease in cash flow was primarily due to: A decrease in metal revenues due to fewer ounces sold; Tax instalments being applied against VAT receivable; Slower VAT receivable collection; Building of ore in-process inventory.

The Mine produced 16,070 gold ounces and 7,873 silver ounces in fourth quarter of 2017 compared to 25,287 gold ounces and 12,994 silver ounces in fourth quarter of 2016. The decrease was primarily a result of lower grade as mining was primarily from the early stages of Phase 5 of the San Francisco pit during third quarter of 2017.

For the full year 2017 the Mine produced 83,558 gold ounces and 38,911 silver ounces compared to 100,322 gold ounces and 56,326 silver ounces. The decrease was primarily a result of lower grade as mining was primarily from the early stages of Phase 5 of the San Francisco pit, as mining of Phase 1 of the La Chicharra pit was depleted.

Gold production is expected to be between 90,000 and 100,000 ounces in 2018, with AISC between $1,000 and $1,100 per ounce and total capital and mine site exploration spending between $2.5 and $3.0 million.

The Company expects to spend approximately $20 million on development expenditures at Ana Paula in 2018 including feasibility study work, exploration drilling and the construction of the underground decline.

Gold production in the first quarter of 2018 is expected to be the lowest for the year with approximately 20% of the annual gold production expected in first quarter of 2018 as the ROM material was placed under leach in late January.