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Alacer Gold posts $447m loss but adjusted profit on par with 2012

Alacer Gold posts $447m loss but adjusted profit on par with 2012

Photo by Bloomberg

13th March 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – TSX- and ASX-listed Alacer Gold widened its 2013 net loss to $447-million, from $385-million in 2012, the Turkey-focused company reported on Thursday.

The results included a net loss of $515-million from its discontinued operations, which included the impacts of post-tax impairment losses on re-measurements taken in 2012 and 2013, and the results of operations in both periods.

During the year under review, Alacer took the decision to divest all of its poorly performing Australian assets through two strategic transactions, and instead redirected its focus to its Turkish assets.

“2013 was a transformative year for Alacer as the business was streamlined and refocused on our quality assets in Turkey. Our Copler gold mine achieved record annual gold production of 216 850 attributable ounces, a 44% increase over 2012 at $864/oz all-in costs,” said Alacer CEO Rod Antal.

He noted that Copler’s performance was expected to continue in 2014, with planned gold production forecast to be more than 160 000 attributable ounces.

During the full 2013, Alacer reported a 35% increase in gold sales volumes, resulting in revenue reaching $377.1-million, 12% higher than that achieved in 2012.

The increase in volume was offset by a 17% decline in realised sales prices from $1 664/oz to $1 379/oz.

However, Antal noted that the strength of Alacer’s business in Turkey was reflected in the company’s adjusted net profit of $111.7-million, which was on par with 2012.

“With a cash position at year end of $290-million, and no debt, Alacer has a solid financial foundation to support our future plans,” he added.

Alacer was expected to spend some $17-million over 2014 on capital projects and $9.4-million on exploration activities.

Meanwhile, Antal noted that a definitive feasibility study (DFS) evaluating the treatment of sulphide ore at Copler through pressure oxidation, was on track for delivery by the second quarter of the year.

“An important element of this study will be to understand the significant positive sulphide gold reconciliations we have experienced since mining the 1.5-million tonnes of sulphide ore to December,” Antal said.

“We have seen this positive trend continue across all three pits and, as a result, recently began an extensive study to determine the factors contributing to this positive bias. While the outcomes of this study may have a positive impact on the DFS, it will not delay our project schedule,” he added.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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