Alacer profit jumps on higher revenue, lower forex losses
Turkey-focused Alacer Gold has reported attributable net profit of $4.8-million in the second quarter, which is a substantial improvement of $24.9-million on that of the same period last year, mainly owing to higher revenue and lower foreign exchange losses.
The lira weakened by 2.3% in the quarter under review, compared with 15.5% in the second quarter of last year.
Revenue surged nearly threefold to $96.2-million in the second quarter, owing to a 70% increase in oxide plant gold ounces sold and from recognising one month of sales revenue from the sulphide plant following the declaration of commercial production in May.
In line with the higher revenue, cost of sales increased by 158% to $53.5-million.
Alacer sold 192 260 oz of gold, resulting in gold sales proceeds of $252-million.
In the first six months of the year, the miner delivered production of 188 853 oz at a consolidated all-in sustaining cost of $692/oz.
“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,” said president and CEO Rod Antal.
He stated that the company’s focus for the balance of the year would continue to be on delivering on its production and cost guidance metrics and the advancement of Ardich – a deposit about 6 km from its operating mine.
The Ccmpany produced 188 853 oz of gold through June 30, 2019 with 95 234 oz produced from the oxide plant and 93 619 oz produced from the sulfide plant.
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