February 6, 2017, Toronto: Alacer Gold Corp. (“Alacer” or the “Corporation”) [TSX: ASR and ASX: AQG] announced
today that it has filed its operating and financial results and related management’s discussion and analysis
(“MD&A”) for the full-year ended December 31, 2016. The corresponding financial statements and MD&A are
available on www.AlacerGold.com and on www.SEDAR.com. All currencies referenced herein are denominated in
USD unless otherwise stated.
Rod Antal, Alacer’s President and Chief Executive Officer, stated, “During 2016 we were able to achieve a number
of significant milestones despite operational challenges. We delivered on three important growth initiatives. Firstly,
construction commenced on the Çöpler Sulfide Expansion Project, which when completed next year, will increase
the mine life by over 20 years. Secondly, a maiden Mineral Resource in the Çöpler District was produced reaffirming
our objective of adding oxide production in 2018. Thirdly, a Prefeasibility Study was delivered for the Gediktepe
Project, providing future growth outside of Çöpler.
Gold production for 2017 is driven by the mining schedule and is currently weighted approximately 40% toward the
first half of the year. On the development side, we continue to advance our project portfolio with the ongoing
construction of the Çöpler sulfide plant, which is on budget and on schedule. Work is also progressing on both the
Çöpler District oxide production potential and the Gediktepe Project.”
Highlights
Strategic
On May 12, 2016, the Corporation announced the Board of Directors has approved full construction of the
Sulfide Project.
The Sulfide Project is 21% complete with first gold production on track for third quarter 2018. The Sulfide
Project has incurred costs of $158 million as of the end of 2016 and remains on budget to the capital cost
estimate of $744 million.
On June 9, 2016, the Corporation filed an updated technical report on the Çöpler Mine.1
On June 17, 2016, the Corporation announced that it increased the existing finance facility to $350 million with
a syndicate of lenders (BNP Paribas (Suisse) SA, ING Bank A.S., Societe Generale Corporate & Investment
Banking and UniCredit Bank Austria AG).
On June 24, 2016, the Corporation announced it had initiated a hedge program to forward sell gold to further
de-risk the Sulfide Project while under construction. The program has forward sold 195,783 ounces of gold
production at an average gold price of $1,282.
On September 13, 2016, the Corporation released the prefeasibility study for the Gediktepe Project in western
Turkey in a press release entitled “Alacer Gold Announces a New Reserve for its Gediktepe Project Providing
Future Growth.” In Q4 2016, Alacer completed its previously announced clawback to 50% of the Gediktepe
Project.
On December 19, 2016, the Corporation released its fourth set of drilling results for the Çakmaktepe prospect
in the Çöpler District including an initial Mineral Resource in a press release entitled “Alacer Gold Announces
Additional Exploration Results for Çakmaktepe and an initial Mineral Resource in the Çöpler District.”
Operational
Gold production of 119,036 ounces and attributable gold production2 of 95,229 ounces was within revised
guidance.3
Total Cash Costs (C2) per ounce4 were $738 and All-in Sustaining Costs per ounce3 were $966.
Expansion of the existing heap leach pad to 58 million tonnes continues to advance.
Sulfide stockpiles at year end were 7.1 million tonnes at an average grade of 3.38 g/t gold or approximately
770,000 contained gold ounces.
During 2016, two lost-time injuries (“LTI”) occurred and both individuals are expected to make full recoveries.
Financial
The Corporation ended 2016 with cash of $215 million.
A finance facility of $350 million is undrawn.
Working capital was $270 million at year end.
Cash flow from operating activities total $37 million.
Attributable net profit1 was $6.2 million or $0.02 per share.
1 Detailed information regarding the Technical Report dated June 9, 2016 can be found in the “Technical Report on the Çöpler Mine and Çöpler Sulfide
Exploration Project” available on the Corporation’s website at www.alacergold.com, on www.sedar.com, and on www.asx.com.au. |
