Alacer Gold Corp
Alacer Gold Corp
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SSR Mining has revised its FY2020 gold equivalent production guidance to 680,000-760,000oz at AISC of $US965-1,040/oz after completing its merger of equals with fellow Canadian Alacer Gold.
With its planned $US1.7B mutually agreed share-swap takeover by Canadian SSR Mining progressing, Alacer Gold has boosted June half-year (H1FY2020) attributable net profit to $US77.8M, up from $17.6M a year earlier.
The result was underpinned by a leap in revenue from its 80%-stake in the Çöpler gold mine in Turkey to $273.6M (H1FY2019: $169.7M).
SSR Mining is buying fellow Canadian Alacer Gold in a mutually agreed, all-stock deal valued at $C2.41B ($US1.72B), with the new SSR to have a market capitalization of about $US4B, operations spanning 4 jurisdictions and an estimated 3-year average annual production profile of ~780,000oz gold equiv at ~$900oz AISC.
SSR Mining $1.72B bid for Alacer gold to create $4B market cap, 780,000oz AuEq pa producer
Alacer Gold has had an excellent Dec 2019 year (FY/CY19) with attributable earnings rocketing to $US116.3M from FY/CY18’s $15.1M and normalized attributable earnings up to $109.9M from $44.4M, with gold sales jumping to 395,046oz generating $552.5M from 167,1724oz for $212M, providing cash flow from operations to $255.2M from $99.3M.
More than doubling FY19 gold production has seen Alacer Gold lift profit, with cash flow jumping to $255.2M from $99.3M
The 2 operating plants at Alacer Gold’s Çöpler Mine in E Turkey have more than doubled Dec 2019 year (FY/CY19) gold production to 391,213oz from the previous year’s 170,865oz at unaudited AISC up to $US710oz from $615oz.
However, the company is flagging a lower 310,000oz-360,000oz for 2020 at AISC up to $735oz-$785oz, albeit with organic growth opportunities to support a sustainable production profile of 300,000oz-400,000oz pa for at least the next 10 years.
Alacer Gold is starting to see the full potential of the Ardich deposit, 6km from its Çöpler gold mine in eastern Turkey, posting significant interim resource increases in the midst of a continuing step-out drilling program.
With 7 diamond drilling rigs still at work, Ardich’s indicated resources have grown 28% to 816,600oz (15.86Mt @ 1.6g/t) and inferred resources 519% to 593,900oz 8.8Mt @ 2.1g/t).
Alacer Gold has declared commercial production at its Çöpler sulfide plant effective May 31 after operating at design and delivering over 22,000oz gold for the month with processing costs in line with expectations.
President-CEO Rod Antal says Alacer is continuing to optimise the plant and expect further improvements quarter-on-quarter over the remainder of 2019, reaffirming FY2019 production guidance of 230,000-270,000oz at AISC of $US600-650/oz.
March qtr (Q1) production of 89,354oz gold at AISC of $US721/oz has Alacer Gold on track for its significantly higher FY2019 guidance of 320,000-380,000oz at $675-725/oz from its Çöpler mine in Turkey. The Q1 result compared to the Dec qtr’s 81,632oz at $1,021/oz.
With the ramp-up of Çöpler’s sulfide plant reaching 36,933oz in Q1, president-CEO Rod Antal says improvements in plant stability, throughput, utilisation and recoveries are expected to improve progressively through the year.