Alacer Gold (ASR-T) April 27, '15 announced today that it has filed its 2015 first quarter operating, financial results and related management's discussion and analysis ("MD&A"). The corresponding financial statements and MD&A are available on www.AlacerGold.com and on www.sedar.com. All currencies referenced herein are denominated in USD unless otherwise stated.
Rod Antal, Alacer's President and Chief Executive Officer, stated, "It has been a productive quarter for Alacer as we again delivered strong results from Çöpler and received Board approval to advance the Sulfide Project. Importantly, we reported an increase in Çöpler's Life-of-Mine production by over 800,000 ounces, which provides near-term tangible value and continues to de-risk the Sulfide Project through an improved gold production profile. I am also pleased that we have a commitment in place from a syndicate of lenders for a $250 million credit facility for the Sulfide Project that further demonstrates the robustness of the project and provides us the flexibility to pursue our growth strategy.
As a positive result from the recent update to the Mineral Resources and Mineral Reserves and updated gold recovery model, we have increased 2015 production guidance and lowered cost metrics.
Alacer will continue to focus on delivering opportunities to optimize Çöpler, derisk the Sulfide Project and deliver value for our shareholders."
Highlights
Strategic
On April 27, the Corporation signed a commitment letter with a syndicate of lenders for a $250 million senior secured credit facility with no mandatory hedging, a 7-year term and interest rates of LIBOR plus 2.5% to 2.95%.
On April 24, the third incentive certificate was approved and will generate material cash tax credits from eligible expenditures on the Sulfide Project and Heap Leach Pad expansion.
On April 9, the Corporation announced the Board of Directors approved advancement of the Çöpler Sulfide Project into detailed engineering and procurement of long-lead time items.
On March 30, an updated NI 43-101 Technical Report was issued increasing Çöpler's reserves and increasing life-of-mine gold production by over 800,000 ounces.
On February 11, the Corporation announced the suspension of its dividend policy due to capital expenditure commitments, including the Sulfide Project.
On January 12, the Corporation announced the project development team leading the Çöpler Sulfide Project in Turkey.
Operational
At March 31, the Çöpler Gold Mine reached 5.7 million hours worked and 766 days without a lost-time injury.
Gold production was 50,949 ounces and attributable gold production1 was 40,759 ounces.
Total Cash Costs2 per ounce (C2) were $443 and All-in Sustaining Costs2 per ounce were $690.
Construction of the Heap Leach Pad Phase 4 expansion continued to advance on schedule.
An additional 0.5 million tonnes of sulfide ore was stockpiled bringing total sulfide stockpiles at quarter-end to 3.7 million tonnes at an average grade of 4.01 g/t.
Financial
Cash and cash equivalents was $349.9 million and no external debt at end of Q1.
Working capital increased $15.2 million to $394.6 million.
Cash flow from operating activities totaled $23.5 million.
Attributable net profit was $15.2 million, or $0.05 per share.
2015 Guidance Update
As a result of the updated Mineral Resources and Mineral Reserves statement, ensuing mine plan optimizations and updated gold recovery model, the Corporation has revised its 2015 production, cost metrics and capital guidance for the Sulfide Project.
Çöpler gold production (100%) of 190,000 to 210,000 ounces
Total Cash Costs2 (C2) of $450 to $500
All-in Sustaining Costs2 of $700 to $750
Çöpler sustaining capital expenditures of $35 million
Çöpler sulfide capital expenditure of $85 million
Exploration expenditure of $22 million
Çöpler Mine
|
| Revised 2015
Guidance
| Previous 2015
Guidance
| Change
| Heap-leach gold ounces produced (100%)
| ('000's)
| 190 to 210
| 180 to 200
| 10
|
|
|
|
|
| Waste tonnes mined (100%)
| (millions)
| 25.7
| 23.7
| 2.0
| Sulfide tonnes mined (100%)
| (millions)
| 0.7
| 2.2
| (1.5)
| Oxide ore tonnes treated (100%)
| (millions)
| 6.0
| 6.9
| (0.9)
| Oxide ore grade
| (g/t gold)
| 1.5
| 1.3
| 0.2
|
|
|
|
|
| Total Cash Costs2 (C2)
| ($/oz)
| 450 to 500
| 525 to 575
| (75)
| All-in Sustaining Costs2
| ($/oz)
| 700 to 750
| 775 to 825
| (75)
| All-in Costs Excluding Sulfide Growth
| ($/oz)
| 775 to 825
| 850 to 900
| (75)
| All-in Costs Including Sulfide Growth
| ($/oz)
| 1,175 to 1,225
| 1,350 to 1,400
| (175)
|
|
|
|
|
| Çöpler sustaining capital expenditure (100%)
| ($millions)
| $35
| $35
| -
| Çöpler sulfide capital expenditure (100%)
| ($millions)
| $85
| $100
| (15)
| Exploration expenditure (100%)
| ($millions)
| $22
| $22
| -
|
Assumptions underlying the revised 2015 guidance include the Mineral Reserves mine schedule as set out in the updated Technical Report and a gold price of $1,200 per ounce.
Conference Call / Webcast Details
Alacer will host a conference call on Tuesday, April 28 at 6:00 p.m. (North America Eastern Daylight Time) and Wednesday, April 29 at 8:00 a.m. (Australian Eastern Standard Time).
You may listen to the call via webcast at http://services.choruscall.ca/links/alacer150428.html. The conference call presentation will also be available at the link provided prior to the call commencing.
You may participate in the conference call by dialing:
1-800-319-4610
| for U.S. and Canada
| 1-800-423-528
| for Australia
| 800-930-470
| for Hong Kong
| 800-101-2425
| for Singapore
| 1-800-017-8660
| for United Kingdom
| 1-604-638-5340
| for International
| "Alacer Gold Call"
| Conference ID
|
If you are unable to participate in the call, a webcast will be archived until July 28, 2015 and a recording of the call will be available on Alacer's website at www.AlacerGold.com or through replay until Thursday, May 28, 2015 by using passcode 8901# and calling:
1-800-319-6413
| for U.S. and Canada
| 1-800-638-9854
| for Australia
|
The corresponding financial statements and management's discussion and analysis will be posted on Alacer's website and on www.SEDAR.com.
About Alacer
Alacer is a leading intermediate gold mining company, with an 80% interest in the world-class Çöpler Gold Mine in Turkey operated by Anagold Madencilik Sanayi ve Ticaret A.S. ("Anagold") owned 80% by Alacer and 20% by Lidya Madencilik Sanayi ve Ticaret A.S. ("Lidya Mining"). 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 58 million tonnes has started and the Corporation continues to evaluate opportunities to optimize and extend oxide production beyond the current reserves.
Çöpler Sulfide Project – the Corporation is moving into detailed engineering with procurement of long-lead time items progressively during 2015. The Project will deliver medium-term growth with robust financial returns and adds an additional 22 years of production. The Environmental Impact Assessment ("EIA") has been approved and the Project is on track for commissioning at the end of 2017. The Sulfide Project will bring Çöpler Life-of-Mine gold production to 3.9 million ounces at industry low All-in Sustaining Costs2 averaging $637 per ounce as detailed in the updated Technical Report.
Alacer continues to pursue numerous high-potential exploration projects in Turkey in various joint ventures with the Company's Turkish partner Lidya Mining.
SOURCE Alacer Gold Corp.
 on Alacer Gold Corp.,
please contact: Lisa Maestas, Director,
Investor Relations at +1-303-292-1299 |
