Çöpler Production 19% Higher Than Previous Record Quarter
TORONTO, Oct. 29, 2013 /CNW/ - Alacer Gold Corp. ("Alacer" or the "Corporation") [TSX: ASR and ASX: AQG] announced today that it has filed its third quarter 2013 financial results and related management's discussion and analysis ("MD&A"). The corresponding financial statements and MD&A are available on www.AlacerGold.com and on www.SEDAR.com.
Rod Antal, Alacer's Chief Executive Officer, commented "Alacer's Turkish operations continued to perform exceedingly well as Çöpler achieved record gold production of 81,059 ounces in the third quarter, a 19% increase over the prior record set in the second quarter of 2013. During the quarter, we made a number of transformational changes to re-focus the business on our Turkish operations. We announced the sale of the Australian Business Unit, we released the Çöpler oxide production profile through 2017 and we made important changes to the senior management team and Board. This on-going transformation sets Alacer up to leverage its strong balance sheet by focusing on its world-class asset base in Turkey to produce gold at low all-in costs. This quarter's results highlight the world-class nature of Alacer's assets in Turkey as Çöpler once again delivered record quarterly production at some of the lowest costs in the industry."
Third Quarter 2013 Highlights
- Alacer entered into a binding agreement (announced September 23, 2013) to sell the Australian Business Unit which will enable the Corporation to focus on its low-cost operations and exploration potential in Turkey.
- Alacer announced a 15% increase in Çöpler's 2013 production guidance and a four-year oxide production profile for Çöpler - demonstrating solid gold production through 2017 from this low-cost, heap-leach operation.
- Alacer's Board of Directors and executive management are committed to developing Çöpler's sulfide orebody in order to create value for shareholders and provide strong production beyond 2017. Alacer plans to announce the processing method for the sulfides before the end of 2013.
- The executive management team was re-organized as follows:
- Rodney P. Antal, Chief Executive Officer;
- Howard H.J. Stevenson, President and Chief Operating Officer;
- Mark E. Murchison, interim Chief Financial Officer; and
- Geoffrey T. Williams continues as Chief Legal Officer and Secretary.
- Significant changes to the composition of the Board of Directors occurred.
- Timothy J. Haddon, David F. Quinlivan, Rohan I. Williams and Stephanie J. Unwin each resigned.
- Richard P. Graff was appointed interim Chairman of the Board.
- The Board of Directors is seeking to add at least two new independent members.
Continuing Operations - Turkish Business Unit and Corporate
- A milestone was passed in July 2013 when Çöpler reached one million man-hours worked without a lost-time injury.
- Record quarterly gold production of 81,059 ounces was achieved in Q3 2013, which was 19% higher than the previous record achieved in Q2 2013.
- Attributable gold production1 was 64,847 ounces for Q3 2013.
- Improvements to the crushing/agglomerating circuit led to increased gold recoveries - the ratio between gold produced and contained gold in stacked ore increased to 87% in Q3 2013.
- Total Cash Costs/ounce2 were $342 for Q3 2013.
- All-in Sustaining Costs/ounce2 were $697 and All-in Costs/ounce2 were $701 for Q3 2013.
- Adjusted Net Profit2 was $28.3 million, or $0.10 per share, for Q3 2013.
- Cash flow from Operating Activities of continuing operations totaled $50.4 million for Q3 2013.
- The Corporation ended Q3 2013 with cash of $222.3 million (excluding discontinued operations cash of $2.9 million).
- Stamp duty of $58 million was paid during the quarter to the Government of Western Australia. The Corporation has lodged an objection against the assessed amount relating to the 2011 merger and estimates a refund of up to A$21 million could be received.
- The $3.3 million outstanding balance on the Turkish Business Unit's external debt facility was repaid and the Corporation had no external debt at September 30, 2013.
- Working capital increased by $16.6 million during the quarter to $275.3 million.
- Attributable net profit from continuing operations was $26.2 million for Q3 2013.
Conference Call Details
Alacer will host a conference call on Tuesday, October 29 at 5:30 pm (North America Eastern Daylight Time) and Wednesday, October 30 at 8:30 a.m. (Australian Eastern Daylight Time).
You may listen to the call via webcast at http://services.choruscall.ca/links/alacer131030.html. The conference call presentation will also be available at the link provided prior to the call commencing.
You may participate in the conference call by dialing:
|1-800-319-4610||for U.S. and Canada|
|800-930-470||for Hong Kong|
|1-800-017-8660||for United Kingdom|
|Alacer Gold Call||Conference ID|
If you are unable to participate in the call, a webcast will be archived until January 29, 2014 and a recording of the call will be available on Alacer's website at www.AlacerGold.com or through replay until Tuesday, November 12, 2013 by using passcode 2651# and calling:
|1-800-319-6413||for U.S. and Canada|
The corresponding financial statements and management's discussion and analysis will be posted on Alacer's website and on www.SEDAR.com.
Alacer Gold Corp. is a leading intermediate gold mining company and its world-class operation is the 80%-owned Çöpler Gold Mine in Turkey.
During 2013, Çöpler is forecast to produce 240,000 to 250,000 ounces at Total Cash Cost of less than $425 per ounce. Çöpler is an epithermal gold deposit with oxide ore currently being processed in a conventional crush, agglomeration, heap-leach and gold recovery circuit.
Alacer has 14 exploration projects in Turkey, which are 50%/50% joint ventures with our Turkish partner Lidya Mining.
Alacer's primary focus is to maximize portfolio value, maximize free cash flow, minimize project risk, and create value for shareholders.
Except for statements of historical fact relating to Alacer, certain statements contained in this press release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may be contained in this document and other public filings of Alacer. Forward-looking information often relates to statements concerning Alacer's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts.
Forward-looking information includes statements concerning, among other things, additional sale proceeds to be received from Metals X as a result of the working capital calculation; the continued listing of Alacer shares on the ASX; the generation of free cash flow and payment of dividends; matters relating to proposed exploration, communications with local stakeholders and community relations; negotiations of joint ventures, negotiation and completion of transactions; commodity prices; mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates; the development approach, the timing and amount of future production, timing of studies and analyses, the timing of construction and development of proposed mines and process facilities; capital and operating expenditures; economic conditions; availability of sufficient financing; exploration plans and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, regulatory and political matters that may influence or be influenced by future events or conditions.
Such forward-looking information and statements are based on a number of material factors and assumptions, including, but not limited in any manner to, those disclosed in any other of Alacer's filings, and includes statements concerning, among other things, the continued listing of Alacer shares on the ASX; development of the Çöpler mine, including the sulfide ore; proposed exploration; production guidance; the study, development and construction of proposed mines and process facilities; and the preparation and dissemination of technical studies. Such forward-looking information and statements are based on a number of material factors and assumptions, including, but not limited in any manner to, those disclosed in any other of Alacer's filings, and include the inherent speculative nature of exploration results; the ability to explore; communications with local stakeholders and community and government relations; status of negotiations of joint ventures; weather conditions at Alacer's operations; commodity prices; the ultimate determination of and realization of mineral reserves; existence or realization of mineral resources; the development approach; availability and final receipt of required approvals, titles, licenses, and permits; sufficient working capital to develop and operate the mines and implement development plans; access to adequate services and supplies; availability of a qualified work force; ability to negotiate, finalize and execute relevant agreements; lack of social opposition to the mines or facilities; lack of legal challenges with respect to the property of Alacer; the timing and amount of future production and ability to meet production targets; timing and ability to produce studies and analyses; capital and operating expenditures; economic conditions; availability of sufficient financing; the ultimate ability to mine, process and sell mineral products on economically favorable terms and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, regulatory and political factors that may influence future events or conditions. While we consider these factors and assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.
You should not place undue reliance on forward-looking information and statements. Forward-looking information and statements are only predictions based on our current expectations and our projections about future events. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in Alacer's filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by law, Alacer does not intend, and undertakes no obligation to update any forward-looking information to reflect, among other things, new information or future events.
|1||Attributable gold production is reduced by the 20% non-controlling interest at Çöpler.|
|2||Total Cash Costs/ounce, All-in Sustaining Costs/ounce, All-in Costs/ounce and Adjusted Net Profit are non- International Financial Reporting Standards financial performance measures with no standardized definitions under International Financial Reporting Standards. For further information and detailed reconciliations, see the "Non-IFRS Measures" section of this MD&A.|
SOURCE Alacer Gold Corp.