PERTH (miningweekly.com) – Dual listed gold miner Alacer Gold has maintained its production outlook for the 2020 financial year, reporting a strong first quarter in the three months to March.

The ASX- and TSX-listed company produced 87 863 oz of gold during the three months under review, down slightly from the 89 354 oz produced in the previous corresponding period, with 62 800 oz produced from the sulfide plant and a further 25 063 oz from the oxide plant.

The Çöpler gold mine, in eastern Turkey, produced its two millionth ounce during the quarter under review, Alacer said.

“Our operations had a strong start to the year with consolidated production of 88 000 oz and all-inn sustaining cost of A$700/oz, generating A$47-million of unlevered free cash flow, and reducing our net debt to below A$25-million at the end of the quarter,” said president and CEO Rod Antal.

Gold sales in the first quarter reached 89 604 oz, resulting in revenues of A$142.3-million and cash flow from operating activities of A$63.4-million.

“The first planned major shutdown of autoclave two was successfully completed in March and the autoclave was found to be in excellent condition. As a result, we are considering postponing the shutdown of autoclave one until later this year or early next year,” Antal said.

He noted that while the Covid-19 pandemic presented global challenges, Alacer had started preparing early for the potential impacts to business.

“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. This has also allowed us to maintain this year’s production and cost guidance.”

“From a growth prospective, we continue to progress the Çöpler district technical report with an expected issuance later this year, as we continue to march down the path of delineating a production profile of 300 000 oz to 400 000 oz a year for the next ten years.”

For the full 2020, Alacer has targeted a production of between 310 000 oz and 360 000 oz of gold.