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Alacer Gold: 1Q production on line to meet 2020 guidance

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(Kitco News) - Alacer Gold Corp. (TSX: ASR; ASX: AQG) reported Thursday that first-quarter gold production of  87,863 ounces is on track to meet 2020 guidance, with no major impact on its flagship Çöpler Gold Mine in Turkey due to the global COVID-19 pandemic.

The company reported earnings of $48.6 million, or 16 cents per share, with “normalized” earnings of $28.4 million, or 10 cents.

Gold sales of 89,604 ounces resulted in revenue of $142.3 million and cash flow from operating activities of $63.4 million, the company said.  All-in sustaining costs per ounce $700, which Alacer said was below guidance of $735 to $785 per ounce.

Rod Antal, president and chief executive officer, said the company began preparing early for any potential impacts of the pandemic on its 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,” he said. “This has also allowed us to maintain this year’s production and cost guidance.”

A scheduled shutdown and internal inspection of autoclave 2 was completed in March, showing that the refractory linings and equipment are in excellent condition, the company said. An assessment is taking place to determine if a planned shutdown of autoclave 1, which is currently scheduled for June, should be rescheduled to later in 2020 or 2021.

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