Highlights
Operational
- Gold production was 167,212 ounces through
June 30, 2020 which is on track to meet 20201 guidance. - The Çöpler
Gold Mine achieved 3.9 million man-hours and 309 days lost-time injury ("LTI") free atJune 30, 2020 . - The planned major shutdown of autoclave 1 in 2020, which was scheduled for June, was delayed due to the excellent condition found in autoclave 2 during its shutdown in
March 2020 . Year to date operating time for the autoclaves remains high at 93%. - Operations continued uninterrupted through the period. However, COVID-19 restrictions and diversion of the remaining resources to manage COVID-19, and delayed improvement initiatives had some impact on operational performance. Proactively sending home older staff, and those with existing health conditions, also had an impact on mining operations through a shortfall of mine operators. This contributed to a decision to adopt a revised mine plan to diversify ore sources.
- Consolidated All-In Sustaining Costs per ounce2 sold ("AISC") was
$847 throughJune 30, 2020 , which is above guidance1 of$735 to$785 per ounce primarily due to higher royalty expense from higher gold prices, SSR Mining merger costs, COVID-19 impact, and higher share based compensation expense due to the Company's higher share price. Adjusting for these items, results in the Company's AISC being within guidance, and the Company remains on track to meet its full year 2020 AISC guidance.
Growth
- On
May 11, 2020 ,Alacer and SSR Mining announced an at-market merger of equals to create a free cash flow focused, diversified gold producer. The combined entity will continue as SSR Mining Inc. and will be headquartered inDenver, Colorado with a corporate office inVancouver, British Columbia and will be led byMichael Anglin as Chairman andRod Antal as President and CEO. - 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 15 drill rigs currently active.
- Drilling activities at the Ardich deposit continued in Q2. Ardich has an interim Indicated Mineral Resource 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 Report ("Technical Report") 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 first stage of this heap leach pad expansion is now available.
- The Company continues to actively explore a number of highly prospective exploration targets across
Turkey .
Financial
- YTD attributable earnings were
$57 million and YTD normalized attributable earnings3 were$0.19 per share. - The Company ended the second quarter with consolidated cash4 of
$279 million , debt5 of$245 million , resulting in a net cash position of$34 million . - Gold sales through
June 30, 2020 were 166,220 ounces resulting in revenue of$273.6 million and cash flow from operating activities of$148.4 million .
Conference Call / Webcast Details
You may listen to the call via webcast at http://services.choruscall.ca/links/alacer20200814.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 |
0808-101-2791 | for |
800-930-470 | for |
800-101-2425 | 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
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; 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 Consolidated Total Cash Costs (C2) per ounce sold, consolidated All-in Sustaining Costs (AISC) per ounce sold, All-in Sustaining Costs per ounce sold, Mine site oxide only All-in Sustaining Costs per ounce sold, and Mine site sulfide only All-in Sustaining Costs per ounce sold are Non-GAAP Measures with no standardized definition under IFRS. For further information and a detailed reconciliation to IFRS, please see the "Non-GAAP Measures" section of this MD&A. |
3 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, share-based compensation, realized and unrealized gains and losses on interest rate swap contracts, and impairment/reversal of impairment losses/(gains), M&A costs , and incremental costs incurred to the operations from COVID-19. |
4 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 this MD&A. |
5 Debt and Net debt are Non-GAAP Measures. For further information, please see the "Non-GAAP Measures" section of this MD&A. |
SOURCE
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