Record Quarterly Production at Çöpler
TORONTO, July 30, 2013 /CNW/ - Alacer Gold Corp. ("Alacer" or the "Corporation") [TSX: ASR and ASX: AQG] announced that it has filed its second 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.
Mr. David Quinlivan, President and Chief Executive Officer stated, "Our
flagship Çöpler Mine achieved record quarterly gold production of
68,195 ounces in Q2 2013, which is 10,395 ounces or 18% more than the
previous record. In this challenging gold price environment, Çöpler
provided strong cash flow of $41 million, before taking into account
approximately $14 million in 'one-time' capital expenses for SART, clay
sizer and the agglomerator during the quarter. Çöpler's average Total
Cash Costs were $395 per ounce. The balance sheet remains strong,
finishing the quarter with $268 million in cash, including $50 million
in Australia. The current sale process for our Australian assets is
ongoing and in accordance with international accounting standards we
are reporting these assets as Discontinued Operations. We are
continuing to reduce costs across our business as well as evaluating
how best to optimize gold production going forward."
Second Quarter 2013 Highlights
On June 12, 2013, the Corporation announced the initiation of a process
to pursue divestment of its Australian assets to enable the Corporation
to focus on its high margin operations and exploration activities in
On April 5, 2013, the Corporation completed the sale of its 49% minority
interest in the Frog's Leg joint venture for $149.2 million (of which
$147.5 million has been received to date, with remaining payment due in
the second half of 2013) and recorded a net gain of $8.2 million.
On April 5, 2013 the Corporation repaid in full the AUD$50 million
revolving credit facility held at the Australian Business Unit. The
Corporation's total debt is now $5.4 million at June 30, 2013.
On April 30, 2013, the Corporation paid a special dividend of $0.24 per
share totaling $70.3 million.
The gold price per ounce decreased 25% during the period from $1,598 at
April 1, 2013 to $1,192 on June 30, 2013. To address the decline in
gold prices, the Corporation completed an in-depth review of current
operations and ancillary activities to identify cash generation
opportunities of $60 million. These include a reduction in staffing
levels, including a number of management-level employees.
Total Group cash balance as of June 30, 2013 is $268.7 million, an
increase of $14.1 million over the balance as of March 31, 2013.
On July 29, 2013, the Corporation paid $58 million (AUD$64.4 million) of
Western Australian stamp duty taxes related to the merger in 2011. The
Corporation believes that the assessed stamp duty amount has been
overstated by approximately A$21 million and will be appealing this
The Corporation re-affirms its previously issued production and cost
guidance for 2013.
Continuing Operations - Turkish Business Unit and Corporate
Çöpler achieved record monthly production of 28,178 ounces in June and
record quarterly production of 68,195 ounces for Q2 2013.
Çöpler reached the 500,000 ounces of gold production milestone on July
Attributable gold production1 was 54,556 ounces for Q2 2013.
Total Cash Costs/ounce2 were $395 for Q2 2013.
All-in Sustaining Costs/ounce2 were $885 and All-in Costs/ounce2 were $916 for Q2 2013.
Working capital increased by $94.0 million during the quarter to $258.8
million at June 30, 2013.
Attributable net profit from continuing operations was $18.4 million for
Adjusted Net Profit2 was $24.5 million, or $0.08 per share, for Q2 2013.
Cash flow from continuing operations totaled $30.1 million for Q2 2013.
Discontinued Operations - Australian Business Unit
Total gold production was 41,622 ounces for Q2 2013.
Total Cash Costs/ounce2 were $1,268 for Q2 2013.
Operational and investing cash outflows were $15.3 million in Q2 2013,
excluding Frog's Leg sale proceeds net of related distributions.
In view of the Corporation's decision to pursue the divestment of its
Australian assets and the lower more volatile gold price environment
currently prevailing, the Corporation has recognized a non-cash
impairment loss of $412 million resulting from the re-measurement of
Australian assets to fair value less costs to sell.
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-IFRS financial performance
measures with no standardized definitions under IFRS. For further
information and detailed reconciliations, see the "Non-IFRS Measures" section of the MD&A.
Australian Asset Impairment
In accordance with the applicable accounting standards, the carrying
value of the Australian Business Unit assets on Alacer's balance sheet
were recently reviewed and resulted in an impairment loss of $412
million. The cash flow valuations used are significantly affected by a
number of factors including estimates of production levels, operating
costs, and capital expenditures reflected in our life-of-mine plans, as
well as economic factors beyond management's control, such as gold
prices, discount rates, and observable net asset valuation multiples.
The reduction in the value of the Australian asset has largely been
driven by the significant decrease in the gold price and associated
market sentiment during the first half of 2013.
Conference Call Details
Alacer will host a conference call on Tuesday, July 30, 2013 at 6:00 pm
(North America Eastern Daylight Time) and Wednesday, July 31, 2013 at
8:00 am (Australian Eastern Daylight Time).
You may listen to the call via webcast at http://services.choruscall.ca/links/alacer1307.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:
for U.S. and Canada
for Hong Kong
for United Kingdom
Alacer Gold Call
If you are unable to participate in the call, a webcast will be archived
until October 30, 2013 and a recording of the call will be available on
Alacer's website at www.AlacerGold.com or through replay until Tuesday, August 13, 2013 by using passcode
2651# and calling:
for U.S. and Canada
Alacer Gold Corp. is a leading mid-tier gold mining company with
interests in multiple mines which provide ore to three processing
facilities in Australia and Turkey:
80% interest in the Çöpler Gold Mine;
100% interest in the Higginsville Gold Operations; and
100% interest in the South Kalgoorlie Gold Operations.
Alacer's primary focus is to maximize portfolio value, maximize free
cash flow, minimize project risk, and return value to shareholders.
Alacer has a strong balance sheet and is committed to responsibly
developing its current operations and focused exploration programs
creating value. On June 12, 2013, Alacer Gold announced that it had
initiated a process to pursue a sale of its Australian assets.
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, but is not limited in any manner
to, statements concerning, among other things, matters relating to
Alacer's sale of its Australian assets, including whether Alacer will
be successful in selling one or more of its Australian assets; the
payment of dividends, matters relating to proposed exploration,
communications with local stakeholders and community relations, status
of negotiations of joint ventures, weather conditions at our
operations, 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 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 factors 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 include assumptions
about the legal restrictions regarding the payments of dividends by
Alacer, exploration results and the ability to explore, the ultimate
determination of mineral reserves, availability and final receipt of
required approvals, titles, licenses and permits, sufficient working
capital to develop and operate the mines, access to adequate services
and supplies, commodity prices, ability to meet production targets,
foreign currency exchange rates, interest rates, access to capital
markets and associated cost of funds, availability of a qualified work
force, ability to negotiate, finalize and execute relevant agreements,
lack of social opposition to the mines, lack of legal challenges with
respect to the property of Alacer and the ultimate ability to mine,
process and sell mineral products on economically favorable terms.
While we consider these factors and assumptions to be reasonable based
on information currently available to us, they may prove to be
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.
SOURCE: Alacer Gold Corp.
For further information:
Lisa Maestas - Director of Investor Relations - North America at +1-303-292-1299
Roger Howe - Director of Investor Relations - Australia at +61-2-9953-2470
Candice Sgroi - Director of External Relations +61-8-9226-0625