PERTH (miningweekly.com) – Dual-listed gold miner Alacer Gold has announced that it would review its production goals for the full year on an “all in” cost basis, and would focus on quality ounces and cost reductions.

The miner said that the review comes after a significant fall in the gold price, and a challenging first quarter.

During the three months to March, total gold production decreased by some 2% compared with the previous corresponding period, to 98 420 oz, while attributable gold production was down 4%, to 87 499 oz.

Alacer reported that total cash costs for the quarter had increased to $932/oz, compared with the $759/oz in the first quarter of 2012, while net profit was down to $4.2-million compared with the $53.9-million reported in the corresponding period of last year.

“In response to the less than acceptable first-quarter financial results at the Australian operations, and the recent volatility in the gold price, the corporation has immediately developed and started the implementation of a comprehensive strategy to reduce costs across all areas of its operations,” Alacer president and CEO David Quinlivan told shareholders.

He noted that efforts would also be focused on increasing production of higher-grade margin ounces to maintain the previously forecast 2013 cost guidance.

The miner has identified a number of key areas of cost savings, and was expected to save some $60-million in cash savings. Included in these key areas were a reduction in both mine capital and operating development expenses at the Higgensville operation, without affecting production, reducing exploration expenditure as well as mining costs across all operations, and eliminating discretionary expenditures.

Alacer would also look to increase high margin production at its Çöpler mine, in Turkey, as well as from the Artemis lode, at the Trident mine.

“Alacer faces the same issues that the gold mining industry globally is experiencing due to the recent drop in the gold price. Management is responding quickly to address our first-quarter performance and ensure cost reductions are introduced immediately across all operations, while aiming to increase production to deliver value for shareholders,” Quinlivan said.

He noted that while better production results were expected in the next quarter as Alacer processed higher-grade ore, given the uncertain global outlook, the company’s approach would be to scrutinize all expenditure and take action where necessary.