Alacer Gold Declared Annual Financial And Operating Results

Gold Mining

Today, Alacer Gold Corporation (ASX: AQG) has declared its FY18 operating and financial results. The company has announced their full-year 2018 gold production at 170,865 oz with all-in sustaining costs per oxide ounce at $609 and full year total cash costs per oxide ounce at $506. It operated 766 days and surpassed 19.1 mn hrs work without loss time injury.

It was able to complete the construction of sulfide plant which produced 23,246 oz of gold in the October-December Quarter out of which 21,916 oz was produced from sulfide ore in the December month. It got clearance from environmental impact assessment committee over the Cakmaktepe, the third ore source at the Copler Gold Mine, and commenced its gold mining and production in 2018 and 2019 respectively. A prospect of more substantial deposits of minerals was indicated at Ardich which is located approximately 6km from Copler Gold Mine, with an estimation of 294,000 oz mineral resource and 85,000 inferred oxide gold oz. 

Its Copler mine heap leach pad capacity was increased to 58 million tonnes, and the company is expected to further add 20 million tonnes capacity this year end. It reported having stockpiles of 8.3 mn tonnes of sulfide ore at an avg. grade of 3.2 g/t gold which was equivalent to 850,000 gold oz. The discovery of limestone-rich oxide material which after blending with lower sulfide and high carbonated ore helped the company to achieve its expected production in 2018.

It sold 167,172 oz of gold for proceed of $212 mn in 2018. It reported consolidated cash of $105 mn and a debt of $350 mn. Working capital and cash flow from operating were reported as $96.9 mn and $99.3 mn respectively. The full year earnings stood at $15.1 mn, with EPS of $0.05 whereas normalized earnings stood at $44.4 mn, with EPS of $0.15.

Alacer is a Canadian company which has a majority of its operation in the Copler gold mine in Turkey with 80% interest, operated by Anagold Madencilik Sanayi (Anagold), and remaining 20% interest by Lidya Madencilik Sanayi (Lidya Mining). The mine is in the Erzincan province in Turkey, approximately 550 km east from Ankara (Capital of Turkey). The Copler mine comprise Copler sulfide ore, Cakmaktepe oxide ore, and Copler oxide ore, as three primary sources for processing ore and it is expected to produce over 3.5 mn oz of gold for the first quartile with all in sustaining cost with the aim of generating continuous cash flow for next two decades. The company focus on near term growth with its Ardich deposits and medium-term growth with its Gediktepe.

The company has set its production guidance for the year 2019 as 90-110 K ozs for $700-750 per oz for oxide plant, 230-270 K oz for $600-650 per oz for sulfide plant, and consolidated production of 320-380 K oz for $675-725 per oz. It is expected to repay its first debt installment by Q1 2019.

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On stock information, Alacer Gold Corp. last traded at A$3.360 (up 5% as on February 6, 2019) with the market capitalization of A$949.56 mn. Its PE ratio was at 13.00. Its 52 weeks high has been noted at A$3.410 and 52 weeks low has been noted at A$2.010.


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