ALACER GOLD CORP. While COVID-19 has presented global challenges, we started preparing early for the potential impacts to our business. As a result of our preparation, we have been fortunate and able to manage COVID-19 without any material impact to our operations, logistics or financial position to date. This has also allowed us to maintain this year's production and cost guidance.
From a growth perspective, we continue to progress the Çöpler District Technical Report with an expected issuance later this year as we continue to march down the path of delineating a production profile of 300–400Kozs per year for the next 10 years."
Highlights
Operational
- Gold production was 87,863 ounces in Q1 2020 which is on track to meet 2020 guidance1 with 62,800 ounces produced from the sulfide plant and 25,063 ounces produced from the oxide plant.
- The Çöpler
Gold Mine produced its two millionth ounce during the quarter. - While there have been some indirect impacts caused by the COVID 19 pandemic, the Çöpler
Gold Mine continues to operate, to date, without any material impact on the mining operations, logistics, supply chain, sales or financial position of the Company. - The Çöpler
Gold Mine achieved 2.7 million man-hours and 218 days lost-time injury free as ofMarch 31, 2020 . The total recordable injury frequency rate2 for Q1 2020 was 2.69. - The first scheduled shutdown and internal inspection of autoclave 2 was completed in March and found the refractory linings and equipment to be in excellent condition. An assessment is underway to determine if the planned shutdown of autoclave 1, which is currently scheduled for June, should be rescheduled to later in 2020 or 2021.
- Consolidated All-In Sustaining Costs per ounce3 sold ("AISC") was
$700 , which is below guidance1 of$735 to$785 per ounce. - The 2019 Sustainability report was published and uploaded to the GRI Sustainability Database.
Growth
- The Company continued its focus on improving and extending oxide gold production in future years beyond the current Çöpler oxide reserves by accelerating the development of a number of near-mine targets within the Çöpler pits and surrounding areas with 10 drill rigs currently active.
- Drilling recommenced at the Ardich deposit in Q1. Ardich has an interim Indicated Mineral Resource4 of approximately 817,000 ounces of gold (15.86 million tonnes at 1.60 g/t of gold ("Au") and an Inferred Mineral Resource of approximately 594,000 ounces of gold (8.80 million tonnes at 2.10 g/t Au).
- An updated Çöpler District Technical Report5 is planned to be released in the second half of 2020. This will include preliminary development plans for Ardich, updating the performance expectations of the Çöpler Sulfide Plant, incorporating a proposed supplemental flotation circuit, as well as opportunities for tailings storage expansion and for resource conversion in Çöpler.
- The potential for heap leach pad constraints has been eliminated with the progression of an approximate 25 million tonnes Çöpler heap leach pad expansion that will be built in phases over the coming years and providing approximately 5 years of additional oxide processing capacity.
- The Company announced positive drill results for the Mavialtin Porphyry Belt6 which confirmed and extended the known extent of copper and gold mineralization in Mavidere, Findiklidere and Aslantepe.
- The Company continues to actively explore a number of highly prospective exploration targets across
Turkey . - Initial drill results from the Copper Hill copper exploration prospect in the
Black Sea region were issued onApril 22, 2020 7. Seven of the eight holes intersected high grade sulfide copper mineralization close to surface.
Financial
- Attributable Q1 2020 earnings were
$48.6 million or$0.16 per share with normalized attributable earnings8 of$28.4 million or$0.10 per share. - The Company ended the first quarter with consolidated cash9 of
$239 million , debt10 of$262 million , resulting in net debt10 of$23 million . - Gold sales in Q1 2020 were 89,604 ounces resulting in revenue of
$142.3 million and cash flow from operating activities of$63.4 million .
Conference Call / Webcast Details
You may listen to the call via webcast at http://services.choruscall.ca/links/alacer20200428.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 |
1-800-423-528 | for |
800-930-470 | for |
800-101-2425 | for |
0808-101-2791 | for |
1-604-638-5340 | for International |
"Alacer Gold Call" | Conference ID |
If you are unable to participate in the call, a webcast will be archived until
1-855-669-9658 | for |
800-984-354 | for |
About
Sustainability is of growing importance to all stakeholders, whether they are local communities, local and national governments, our shareholders, or our employees. We are committed to honest and open disclosure and continuous improvement.
The systematic and focused exploration efforts in the Çöpler District have been successful as evidenced by the discovery of Çakmaktepe, the Ardich deposit, and the Çöpler Saddle12 ("The Saddle") prospect. The Çöpler District remains the focus, with the goal of continuing to grow oxide resources that will deliver production into the future and additional sulfide resources to extend production from the sulfide plant. In the other regions of
The successful commissioning of the sulfide plant and the exploration successes have provided the business with a number of exceptional growth and development opportunities. An updated Çöpler District Technical Report is planned to be issued in 2020, updating the performance expectations of the installed assets and defining the growth and development pathways.
Cautionary Statements
Except for statements of historical fact relating to
Forward-looking information includes statements concerning, among other things, preliminary cost reporting in this document; production, cost, and capital expenditure guidance; the ability to expand the current heap leach pad; the results of any gold reconciliations; the ability to discover additional oxide gold ore; the generation of free cash flow and payment of dividends; matters relating to proposed exploration; communications with local stakeholders; maintaining community and government relations; negotiations of joint ventures; negotiation and completion of transactions; commodity prices; mineral resources, mineral reserves, realization of mineral reserves, and the existence or realization of mineral resource estimates; the development approach; the timing and amount of future production; the timing of studies, announcements, and analysis; the timing of construction and development of proposed mines and process facilities; capital and operating expenditures; economic conditions; the outbreak of pandemics, epidemics or other health crises (including, without limitation, the COVID-19 pandemic); availability of sufficient financing; exploration plans; receipt of regulatory approvals; and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, environmental, 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
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
This press release has been approved for release by the Alacer Gold Disclosure Committee.
___________________________________ | |
1 | Detailed information regarding the 2020 guidance can be found in the press release entitled "Alacer Gold Achieves 2019 Guidance and Provides 2020 Guidance of 310,000 to 360,000 ounces at AISC of |
2 | Total recordable injury frequency rate is the total recordable injuries per million hours worked. |
3 | Consolidated All-in Sustaining Costs (AISC) per ounce sold is a Non-GAAP Measure with no standardized definition under IFRS. For further information and a detailed reconciliation to IFRS, please see the "Non-GAAP Measures" section of the most recent MD&A. |
4 | Detailed information regarding the Ardich gold deposit can be found in the press release entitled "Alacer Gold Step-Out Drilling Program Confirms Significant Extension of Ardich Mineralization" dated |
5 | Further information regarding the Çöpler |
6 | Detailed information can be found in the press release entitled "Alacer Gold Reports Exploration Results from the Mavialtin Porphyry Belt in the Çöpler District" dated |
7 | Detailed information regarding the Copper Hill copper exploration prospect can be found in the press release entitled "Alacer Gold Reports Initial Drill Results from the Copper Hill Copper Exploration Prospect," dated |
8 | Normalized attributable earnings and normalized attributable earnings per share are Non-GAAP Measures with no standard definition under IFRS. Normalized earnings and normalized EPS are derived from attributable earnings and attributable EPS adjusted for foreign exchange effects on deferred tax assets and liabilities, incentive tax credit impact in tax expense, realized and unrealized gains and losses on interest rate swap contracts, share-based compensation, and impairment/reversal of impairment losses/(gains). |
9 | Consolidated cash is a Non-GAAP Measure and includes cash and cash equivalents, cash that is restricted and shown as a long-term asset in the Company's financial statements and attributable cash held by joint venture partners accounted for using the equity method. For further information, please see the "Non-GAAP Measures" section of the most recent MD&A. |
10 | Debt and Net debt are Non-GAAP Measures. For further information, please see the "Non-GAAP Measures" section of the most recent MD&A. |
11 | Free Cash Flow is a Non-GAAP Measure. For further information, please see the "Non-GAAP Measures" section of the most recent MD&A. |
12 | Detailed information regarding the Çöpler Saddle can be found in the press release entitled "Alacer Gold Reports Exploration Results from the Çöpler |
SOURCE
© Canada Newswire, source
