Why this gold producer's shares are on watch today

Alacer Gold Corp. (ASX: AQG) this morning announced its annual results for the year ending 31 December 2019. Here are the highlights.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Alacer Gold Corp. (ASX: AQG) this morning announced its annual results for the year ending 31 December 2019. Over the past 12 months, the Alacer Gold share price on the ASX has increased by an impressive 105.6%

What does Alacer Gold do?

Alacer is a low-cost gold producer, with an 80% interest in the Çöpler Gold Mine in Turkey. The gold producer is a Canadian company with its primary listing on the Toronto Stock Exchange, although the company also has a secondary listing on the ASX.

Alacer continues to pursue opportunities to further expand its current operating base to become a sustainable multi‐mine producer with a focus on Turkey. Its Çöpler Gold Mine is currently processing ore through two producing plants. The company also operates an oxide plant as well as a new sulphide plant which is now in full swing.

Earnings and operational highlights

The company continued to focus on improving and extending oxide gold production in future years beyond the current Çöpler oxide reserves. This was done by accelerating the development of a number of near-mine ore targets within the Çöpler pits and surrounding areas.

Full-year gold production was 391,213 ounces which was within the updated guidance. Çakmaktepe phase one mining was completed with approximately 1.6 million tonnes of oxide ore hauled to the Çöpler oxide plant for processing.

Alacer revealed that full-year attributable earnings to 31 December 2019 were $116.3 million with normalised attributable earnings of $109.9 million. The company ended 2019 with consolidated cash of $233 million and debt of $280 million, which places the miner in a net debt position of $47 million.

Full-year gold sales were 395,046 ounces which resulted in total gold proceeds of $552.5 million and cash flow from operating activities of $255.2 million. However, this excludes the ounces sold that were produced prior to the declaration of commercial production of the sulphide plant.

2020 guidance

Alacer commented that consolidated production is anticipated to be lower in the first half of the calendar year 2020 due to the continued ramp-up of the sulphide plant and timing of scheduled shutdowns for the autoclaves.

In addition, the company noted that the ongoing in-pit exploration programs at Çöpler and Çakmaktepe continue to develop a number of near-term oxide ore targets.

Sustaining capital expenditure is planned to total $33 million ($26.4 million attributable), which includes $17 million for the ongoing construction of the TSF lifts.

The successful commissioning of the sulphide plant and the exploration process have provided Alacer with a number of growth and development opportunities that are being progressed and will continue in 2020.

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Woman in celebratory fist move looking at phone
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Broker Notes

These ASX 200 shares could rise 20% to almost 30%

Analysts are tipping these shares to deliver big returns over the next 12 months.

Read more »

A young woman carefully adds a rock to the top of a pile of balanced river rocks.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

Energy and utilities stocks led the way last week with 4%-plus gains.

Read more »

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Here's when Westpac says the RBA will now cut interest rates

Will borrowers need to wait until the middle of next year for relief? Let's find out.

Read more »

Boys making faces and flexing.
Opinions

3 ASX 300 shares to buy and hold for the long run

I believe these stocks have loads of growth potential.

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

Hands reaching high for a trophy with a sunset in the background.
Record Highs

The ASX 200 Index is on its way to another all-time high today. Here's why

These blue chip stocks are driving the index towards a new record today...

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

3 ASX mining stocks topping the most-traded list in October

Chinese stimulus news and company announcements likely contributed to the higher trading activity.

Read more »