A pretty good result from what I can see. 240koz will materially improve the oxide mine life past 2019/2020. An extra 50koz per year once all the permitting is sorted, although Alacer only has a 50% share in these areas.
The Cakmaktepe Far North prospects look good with some decent intersections such as 85m at 1.8g/t from near surface, and 40m at 1.3g/t. The far north holes are on 80% Alacer land.
The below chart is from one of their presentations last year and does not include any Cakmaktepe oxide ounces. It looks like Cakmaktepe should be able to keep total production at 320-350 koz (100% basis) between 2019-2023, and in particular 2019 could be well above 350koz if the sulfide plant performs to expectation.
Gediktepe DFS next year should also be interesting. Original project had an NPV of US$475M but was based on copper of $2.75/lb and zinc at $1/lb (these are the two main products). Copper is trading 10% above this and zinc 40% above.
Gediktepe can hopefully keep Alacer’s production profile high once the Copler sulfide grade drops away post 2023.
AQG Price at posting:
$2.09 Sentiment: Buy Disclosure: Held
