ALACER GOLD ANNOUNCES SECOND QUARTER 2019 OPERATING AND FINANCIAL RESULTS WITH NORMALIZED EARNINGS PER SHARE OF $0.08
Alacer Gold Corp. has filed its second quarter 2019 operating and financial results and related management's discussion and analysis (MD&A). The corresponding financial statements and MD&A are available on the company's website and on SEDAR. All currencies referenced herein are denominated in U.S. unless otherwise stated.
Rod Antal, Alacer's president and chief executive officer, stated: "Our operations delivered a solid first half with production of 188,853 ounces at consolidated AISC of $692/ounce. With the continued successful ramp-up of the sulphide plant and the dependable delivery from the oxide plant, we are generating significant free cash which has led to a $54-million reduction in net debt to $190-million in the first half of the year. The net debt position of $190-million does not include $20-million of gold sale proceeds received on July 1.
"Our focus for the balance of the year will continue to be on delivering on our production and cost guidance metrics and the advancement of Ardich."
Highlights
Operational
The company surpassed 21 million hours worked and operated 947 days without a lost-time injury.
Commercial production at the Copler sulphide plant was declared as of May 31, 2019 (1).
The company produced 188,853 ounces of gold through June 30, 2019, with 95,234 ounces produced from the oxide plant and 93,619 ounces produced from the sulphide plant.
Sulphide ore stockpiles at June 30, 2019, represented approximately 742,000 contained gold ounces.
The oxide plant production guidance range increased to 125,000 to 145,000 from 90,000 to 110,000 ounces (1) due to in-pit exploration success, higher recoveries and positive reconciliation.
Mine site oxide all-in sustaining costs (2) per ounce were $583, mine site sulphide all-in sustaining costs (2) per ounce were $574 and consolidated all-in sustaining costs per ounce (2) were $692 through June 30, 2019.
Growth
The company announced the sale (3) of its 50-per-cent equity interest in the Gediktepe project and as consideration received an uncapped net smelter return (NSR) of 2 per cent to 10 per cent and contingent cash.
The company's focus is to extend the Copler oxide production in the near term by fast-tracking the development of a number of targets.
The company is currently drilling in the Copler district with nine exploration diamond drills active, including four drills at Ardich.
Drilling in the Copler Saddle has identified some mineralized areas and drilling and analysis continues.
Cakmaktepe had an approximate 40-per-cent positive gold reconciliation to the mine plan. Given this, some infill diamond drilling is being undertaken to help inform a review of the geological model.
Engineering to support the phase one extension of the Copler heap leach pad (about six million tonnes) will be complete in Q3 2019.
Financial
The company ended the second quarter with consolidated cash of $125-million (4) which did not include proceeds of $20-million from bullion sales made on June 28, 2019, which were received on July 1.
Debt at the end of the quarter was reduced to $315-million resulting in net debt (5) of $190-million -- a decrease of $54-million from the start of the year.
The company sold 192,260 ounces of gold through June 30, 2019, resulting in gold sales proceeds of $252-million (6).
Cash flow from operating activities through June 30, 2019, totalled $59.8-million, excluding the precommercial sulphide plant production.
Attributable earnings for Q2 2019 were $4.8-million or two cents per share and normalized attributable earnings (7) for Q2 2019 were $23.3-million or eight cents per share. Attributable earnings through June 30, 2019, were $8.2-million or three cents per share and normalized attributable earnings (7) through June 30, 2019, were $41.5-million or 14 cents per share.
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