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Alacer reports lower FY profit as lower oxide ounces, grades weigh on bottom line

7th February 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

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VANCOUVER (miningweekly.com) – Canadian miner Alacer Gold's net profit fell sharply to $6.2-million, or $0.02 a share, for the 2016 financial year, compared with the $46.63-million, or $0.16 a share, reported for 2015.

Gold sales of $142-million for the 12 months to December 31, were 40% lower year-on-year, reflecting a 44% decrease in ounces sold, which was partly offset by an average realised price of $1 230/oz, which was 6% higher than in 2015.

Alacer ascribed the decrease in sales to 25% fewer oxide ore tonnes mined, which was compounded by the oxide ore grade having declined by 8% year-on-year.

The stacking of recoverable ounces on the heap leach pad was later than expected because of the pit wall instability in the Marble pit, moving this gold production into 2017. The lower recoverable ounces have driven a 53% increase in total cash costs per ounce, equivalent to production costs on a per ounce basis, in 2016 compared with 2015.

Waste tonnes mined came in at 16% higher in 2016, owing to the Marble pit layback and the planned Manganese pit pushback. C2 costs in 2016 were $738/oz, up 53% over 2015.

At year-end, cash and equivalents stood at $146.2-million.

Alacer has increased its production guidance to between 160 000 oz and 180 000 oz for this year, as higher gold output from the Çöpler gold mine, in Turkey, carried over from the end of 2016 into this year.

The company said the sulphide project is 21% complete, with first gold production on track for third quarter 2018.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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