Photo by: Alacer Gold
TORONTO (miningweekly.com) – Turkey-focused gold producer Alacer Gold on Tuesday reported a 57% year-on-year drop in headline earnings for the three months ended June 30, as lower grades at its 80%-owned Çöpler mine resulted in lower sales.
Excluding special items, Toronto-based Alacer reported adjusted net profit of $9.4-million, or $0.03 a share, which mainly reflected the impacts of lower gold sales volumes and prices and higher per‐ounce unit costs compared with the $22-million in the same quarter a year earlier.
Gold sales of $63.7-million were 29% lower over the same period last year, reflecting a 25% decline in sales volume to 39 564 oz, driven by a 27% decline in attributable gold output to 39 836 oz and a 5% decline in the realised sale price from $1 356/oz to $1 288/oz.
Bay Street analysts had on average expected revenue of $60-million.
Alacer reported all‐in sustaining costs of $714/oz and all‐in costs of $806/oz, down 19% and 12% respectively, compared with the same period a year earlier. The company said the variances reflected decreases in general and administrative costs and sustaining capital expenditures, partially offset by the 44% higher total cash costs of $568/oz.
The company said it was on track to meet its 2014 guidance. Çöpler was expected to produce 160 000 to 180 000 attributable ounces at all‐in costs of $730/oz to $780/oz this year. Çöpler’s oxide ore was currently being processed in a conventional crush, agglomeration, heap‐leach and gold recovery circuit.
Alacer last month published buoyant results for a definitive feasibility study (DFS) on the addition of a sulphide ore-processing circuit at Çöpler, which was expected to extend the life of the mine and boost current resources and reserves.
The TSX- and ASX-listed company explained that the DFS had adequately demonstrated the robustness of the sulphide project that would process sulphide ore through whole-ore pressure oxidation.
The corporation also had several other high‐potential exploration projects in Turkey in joint venture with Turkish partner Lidya Mining.
Alacer’s TSX-listed stock on Tuesday closed down 2.67% at C$2.55 apiece. From the start of the year, the stock had gained 17% in value.