Alacer Gold (ASR-T) exceeds 2014 production guidance and provides 2015 guidance
Jan 20, '15 - NR
Alacer Gold announces certain unaudited fourth quarter and full-year 2014 results and the Company's 2015 production and cost guidance for its Çöpler Gold Mine in Turkey.
Highlights of 2014 (100%):
Çöpler gold production of 227,927 ounces Preliminary Total Cash Costs (C2)1 of $525 per ounce2 Preliminary All-in Sustaining Costs1 of $695 per ounce2 Cash balance of $347 million and no debt at year end 4.9 million man-hours, or 675 days worked without a lost-time injury Highlights of 2015 Guidance (100%):
Çöpler gold production
| 180,000 to 200,000 ounces
| Total Cash Costs (C2)1
| $525 to $575 per ounce
| All-in Sustaining Costs1
| $775 to $825 per ounce
| Çöpler sustaining capital expenditure
| $35 million
| Çöpler sulfide capital expenditure
| $100 million3
| Exploration expenditure
| $22 million
|
Rod Antal, Alacer's Chief Executive Officer, stated, "Çöpler has delivered another excellent year of production and cost performance. This strong performance is a direct result of the process improvements and operating team's continuing efforts to optimize the Çöpler orebody. Most importantly, the year's accomplishments were achieved without a lost-time injury.
Çöpler will continue to generate operating free cash flow in 2015 with production between 180,000 and 200,000 ounces at industry-low All-in Sustaining Costs of $775 to $825 an ounce. We are continuing to pursue initiatives to realize value beyond the existing mine plan, with re-optimization efforts underway to take advantage of the expanded heap leach pad capacity and extend oxide production beyond 2017. The results of this work will be announced at the end of the first quarter 2015."
Full-Year 2014 Unaudited Results
Çöpler's 2014 gold production of 227,292 ounces was largely a result of improved processing efficiencies, offset by lower stacked oxide tonnes and head grade.
Çöpler Gold Mine
|
| 2014
Year
| 2013
Year
| Ore treated
| (tonnes)
| 6,433,514
| 6,697,209
| Head grade
| (g/t gold)
| 1.7
| 1.9
| Ratio between gold produced and contained gold in ore stacked
| (%)
| 66%
| 66%
| Gold produced (100%)
| (oz)
| 227,927
| 271,063
| Gold produced (attributable4)
| (oz)
| 182,342
| 216,850
|
Fourth quarter and full-year 2014 financial statements and the related management's discussion and analysis are planned to be released on or about February 18, 2015 (North America) and February 19, 2015 (Australia). Conference call details will be announced in due course.
2015 Guidance
Guidance for Çöpler's 2015 gold production and costs are as follows:
Çöpler Mine
|
| 2015
| Waste tonnes mined (100%)
| (millions)
| 23.7
| Sulfide tonnes mined (100%)5
| (millions)
| 2.2
| Oxide ore tonnes treated
| (millions)
| 6.9
| Oxide ore grade
| (g/t gold)
| 1.3
| Ratio between gold produced and contained gold in ore stacked
| (%)
| 69%
| Heap-leach gold ounces produced (100%)
| ('000's)
| 180,000 to 200,000
| Heap-leach gold ounces produced (attributable4)
| ('000's)
| 144,000 to 160,000
|
|
|
| Total Cash Costs (C2)1
| ($/oz)
| 525 to 575
| All-in Sustaining Costs1
| ($/oz)
| 775 to 825
| All-in Costs1 Excluding Sulfide Growth
| ($/oz)
| 850 to 900
| All-in Costs1 Including Sulfide Growth
| ($/oz)
| 1,350 to 1,400
|
As previously announced, capital expenditures for the Sulfide Project will increase in 2015, resulting in the above noted increase to All-in Costs.
Çöpler's 2015 sustaining capital expenditure is planned to total $35 million ($28 million attributable), which includes the final phase of the heap leach pad expansion. Çöpler's 2015 growth capital expenditure is planned to total $100 million ($80 million attributable) for the Sulfide Project (subject to Board approval).
Expenditure on Alacer's exploration portfolio in Turkey is planned to total $22 million during 2015, of which $10 million is attributable to Alacer. Alacer's exploration portfolio in Turkey is held in various joint ventures with our Turkish partner, Lidya Madencilik San. Ve Tic, A.S. ("Lidya Mining").
| Alacer
Contribution
(%)
| Exploration
100%
($ millions)
| Exploration
Attributable*
($ millions)
| Çöpler District 80/20
| 80%
| 3.5
| 3.0
| Çöpler District 50/50
| 50%
| 5.5
| 2.5
| Turkey Regional – Dursunbey
| 50%
| 6.0
| 3.0
| Turkey Regional
| Varied
| 7.0
| 1.5
| TOTAL
|
| 22.0
| 10.0
|
*Rounding differences will occur
General and administrative cash expense for 2015 is planned to total $13 million.
Çöpler Gold Mine Production Statistics for 2014
Çöpler Gold Mine
| Q1
2014
| Q2
2014
| Q3
2014
| Q4
2014
| 2014
Year
| Waste tonnes mined
| 5,471,484
| 6,365,596
| 5,850,169
| 5,272,339
| 22,959,588
| Oxide ore mined – tonnes
| 1,418,391
| 1,558,392
| 1,714,695
| 1,782,923
| 6,474,401
| Oxide ore mined – grade (g/t)
| 1.50
| 1.43
| 1.88
| 1.87
| 1.69
| Oxide ore mined – ounces
| 68,336
| 71,656
| 103,879
| 107,427
| 351,298
| Sulfide ore mined – tonnes5
| 508,131
| 329,187
| 460,737
| 490,072
| 1,788,127
| Sulfide ore mined – grade (g/t)5
| 4.98
| 3.56
| 3.49
| 2.73
| 3.72
| Sulfide ore stockpiled – ounces5
| 81,368
| 37,689
| 51,743
| 43,092
| 213,892
| Oxide ore treated – tonnes
| 1,384,124
| 1,524,013
| 1,742,171
| 1,783,206
| 6,433,514
| Oxide ore treated - head grade (g/t)
| 1.48
| 1.46
| 1.84
| 1.88
| 1.68
| Ratio between gold produced and contained gold in ore stacked
| 80%
| 70%
| 61%
| 57%
| 66%
| Gold ounces produced
| 52,919
| 49,795
| 63,356
| 61,857
| 227,927
| Gold ounces sold
| 55,128
| 49,455
| 62,076
| 63,295
| 229,954
| Çöpler Attributable: (80% ownership)
|
|
|
|
|
| Gold ounces produced
| 42,335
| 39,836
| 50,685
| 49,486
| 182,342
| Gold ounces sold
| 44,102
| 39,564
| 49,661
| 50,636
| 183,963
|
2015 Reporting Dates
Alacer's quarterly MD&A and financial reporting schedule for the remainder of 2015 is expected to be as follows:
Reporting Period
| Release Date (North America)
| Q4 2014
| Wednesday, February 18
| Q1 2015
| Tuesday, April 28
| Q2 2015
| Tuesday, July 28
| Q3 2015
| Tuesday, October 27
|
Conference calls and audio webcasts are planned to be held for each quarterly report and details will be announced closer to the call.
Notes
In this announcement:
All production statistics are on a 100% basis except where otherwise noted. All $'s are US$'s except where otherwise noted. All ounces are troy ounces of gold. 2015 guidance is based on budgetary assumptions of a $1,200/ounce gold price and US$: TRY (Turkish Lira) of 2.2 to 1.0.About Alacer
Alacer is a leading intermediate gold mining company, with an 80% interest in the world-class Çöpler Gold Mine in Turkey. The Corporation's primary focus is to maximize portfolio value, maximize free cash flow, minimize project risk, and therefore create maximum value for shareholders.
Alacer is actively pursuing initiatives to enhance value beyond the current mine plan:
Çöpler Oxide Production Optimization – expansion of the existing heap leach pad to 56 million tonnes has started, and the Corporation continues to evaluate opportunities to optimize and extend the oxide production beyond the current reserves. Çöpler Sulfide Project – the Environmental Impact Assessment has been approved and the project is progressing as planned. The Sulfide Project is forecast to produce a further 3.2 million ounces of gold at industry low All-in Sustaining Costs1 averaging $597 per ounce over a 20 year life of the mine as detailed in the Definitive Feasibility Study. Alacer continues to pursue numerous high-potential exploration projects in Turkey in various joint ventures with our Turkish partner Lidya Mining. |
