The Sulfide Project is approximately 85% complete, with commissioning underway. The Project is on schedule for start-up in Q3 2018.
The Sulfide Project is under budget, and the capital cost estimate has been reduced from $744 million to $692 million.
On January 15, 2018, the Corporation released 2018 Guidance.1
Pending approval of the revised Çakmaktepe Environmental Impact Assessment and Operating Permits, Alacer plans to commence mining at Çakmaktepe in Q4 2018. Haul road construction from Çakmaktepe to the Çöpler infrastructure is progressing.
On February 26, 2018, the Corporation released an exploration update on the Ardich Project2. Exploration drilling and analysis work at Ardich continues.
The Gediktepe Project DFS is progressing with scheduled completion later in 2018.
Operational
At March 31, 2018, the Çöpler Gold Mine, including the Sulfide Project expansion construction, surpassed 10.8 million man-hours worked and has operated 491 days without a lost-time injury.
Gold production was 37,875 ounces, and attributable gold production3 was 30,300 ounces.
Total Cash Costs (C2) per ounce4 were $552 and All‐in Sustaining Costs per ounce4 were $737.
Expansion of the existing heap leach pad capacity to 58 million tonnes continues.
In-pit exploration at the Çöpler Gold Mine continues with the goal of adding oxide production.
Sulfide stockpiles at March 31, 2018 were 9.6 million tonnes at an average grade of 3.33 g/t gold or over 1 million contained gold ounces.
Financial
The Corporation ended the first quarter with cash of $137 million, debt of $250 million, and $100 million undrawn on the finance facility.
Cash flow from operating activities during the quarter totaled $30 million.
Working capital was $166 million at March 31, 2018.
Attributable net profit3 was $26.7 million or $0.09 per share.
During the quarter, the Corporation hedged an additional 20,000 ounces of gold at an average price of $1,350 with settlements between July and December 2018 to secure the gold price on oxide gold production during the ramp-up of the Sulfide Project.
AQG Price at posting:
$2.23 Sentiment: Hold Disclosure: Held
