PRECIOUS METALS

Alacer earnings up

Full-year guidance remains intact as Alacer seeks to leverage district position for growth

Alacer Gold's Copler sulphide plant achieved commercial production in May, 2019

Alacer Gold's Copler sulphide plant achieved commercial production in May, 2019

Net March quarter earnings of US$48.6 million, or 16c/share, were up from $3.3 million, or 1c per share a year earlier.

Revenue for the period nearly doubled to $142.3 million, derived from gold sales of 89,604oz.

Copler produced 87,863oz in the quarter, lower year-on-year, at AISC of $700/oz (versus guidance of $735-$785/oz).

CEO Rod Antal said 2020 production guidance for 310,000-360,000oz remained unchanged, with AISC forecast at $775-$825/oz for the oxide plant and $650-$700/oz for the sulphide plant.

"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," he said.

Antal said a planned autoclave shutdown and internal inspection was completed in March, showing "refractory linings and equipment were in excellent condition". As a result Alacer is assessing whether to defer a planned shutdown of a second autoclave, currently scheduled for June, to later in 2020 or 2021.

Alacer commissioned its sulphide plant last year and says regional exploration successes have provided it with several growth and development opportunities. It expects to publish an updated Copler district technical report later this year.

"We continue to march down the path of delineating a production profile of 300,000-400,000ozpa for the next 10 years," said Antal.

Shares in the company (TSX:ASR) have gained 53% in the past month to C$7.14, which capitalises it at $2.1 billion (US$1.5 billion).

 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.