Çöpler gold mine, Turkey
Photo by: Alacer Gold
TORONTO (miningweekly.com) – Turkey-focused gold producer Alacer Gold has announced a 50% drop in headline earnings, citing lower gold sales and prices, while per-ounce unit costs rose.
The TSX- and ASX-listed midtier miner on Monday reported adjusted earnings of $13.14-million, or $0.05 a share, compared with $26.32-million, or $0.09 a share, for the comparable quarter ended September 30, last year.
Gold sales of $79.6-million were 27% lower than in the comparable quarter of 2013, reflecting a 24% decline in sales volume at 49 661 oz, which was driven by a 22% fall in attributable gold output at 50 685 oz and a 4% decline in the realised sale price from $1 338/oz to $1 282/oz.
Analysts had, on average, expected earnings of $0.04 a share on revenue of about $54-million.
Cash operating costs an ounce of $533 were 41% higher year-on-year. The increase reflected an 18% decline in the year‐to‐date oxide ore grades, the corresponding decrease in ounces sold, higher processing costs related to implementing efficiency and improvement initiatives, and a 17% increase in the strip ratio over the same period last year.
All‐in sustaining costs were $711/oz and all‐in costs were $763/oz, or 2% and 9% higher than the comparative quarter, respectively. These variances reflected higher per-ounce total cash costs, almost entirely offset by decreases in general and administrative costs and sustaining capital expenditures. All‐in costs an ounce included expansion capital related to the sulphide project of $55/oz.
The company ended the third quarter with $319.7-million cash in the bank and had no external debt.
Alacer holds an 80% interest in the world‐class Çöpler gold mine, in Turkey.
Çöpler’s oxide ore was currently being processed in a conventional crush, agglomeration, heap‐leach and gold recovery circuit. Alacer was busy conducting a heap leach pad expansion study, expected to be complete by the end of this year and, if successful, would provide the company with the ability to extend the oxide mine life by converting the 4.2-million tonnes, grading 1.2 g/t of oxide ore, currently classified as waste into reserves.
Alacer earlier this year published buoyant results of a definitive feasibility study on adding a sulphide ore-processing circuit at Çöpler, which was expected to extend the life of the mine and boost current resources and reserves.
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 rose 4% on Monday to C$2.06 apiece.