Alacer generates ‘significant’ free cash, hikes Çöpler guidance
A strong performance at the Çöpler oxide and sulphide plants, in Turkey, has resulted in “significant” free cash flow for Toronto-headquartered Alacer Gold, which has used the cash to reduce its debt to below $90-million.
The miner reported attributable earnings of $34.8-million, or $0.12 a share, during the September quarter. The company ended the third quarter with cash of $188-million, debt of $298-million, resulting in net debt reducing to $110-million.
Subsequent to the quarter-end, Alacer further reduced its net debt, president and CEO Rod Antal said on Tuesday.
The Çöpler operation produced 290 127 oz at an all-in sustaining cost (AISC) of $714/oz in the first nine months of the year. The oxide plant contributed 128 670 oz and the sulphide plant 161 457 oz.
Alacer hiked the oxide plant gold production guidance range to 150 000 oz to 160 000 oz, but kept the sulphide plant gold production guidance range unchanged at 230 000 oz to 270 000 oz.
The updated consolidated production guidance range for 2019 is now 380 000 oz to 430 000 oz, at an AISC of $675/oz to $725/oz.
Antal said that Alacer had a “clear pathway” to increasing its oxide production over and above the reserve base.
“In the near term, our focus is to first improve the existing production profile from Çöpler and Çakmaktepe by adding ounces to the current reserve in much the same manner as we have successfully done this year and secondly to extend oxide gold production beyond the current mining areas through the development of Ardich and the Çöpler Saddle. The decision to begin Phase 1 construction of our heap leach pad expansion gives us capacity to treat these newly discovered oxide ounces.”
Çakmaktepe Phase 1 mining was completed with about 1.6-million tonnes of oxide ore hauled to the Çöpler oxide plant for processing. A diamond drilling programme started in the permitted mine area, aimed at fast-tracking Phase 2.
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