Profits tumble for Alacer

Alacer Gold has posted a large drop in profits for the first quarter of 2013, and outlined plans to cut costs in order to boost margins.

In an investor presentation today Alacer said net profit had dropped to $14.7 million for the quarter, down from $66.7m a year earlier.

 

Gold sales were also down $12.4m for the quarter, and cash costs rose to $932 an ounce, up from $759 the same time last year.

 

In the current environment Alacer said it would focus on high quality ounces, and work to reduce costs and maximise margins.

 

“Against the backdrop of a weaker gold price and challenging first-quarter cost results, Alacer is reviewing its 2013 production goals,” the company said.

 

The bulk of Alacer's operations are located in Turkey, but the company also owns the Higginsville Gold and South Kalgoorlie projects in the WA Goldfields.

 

Outside production results Alacer said development of the underground section of Higginsville was progressing ahead of schedule, and the new work would increase access to higher grade ore.

 

The company said grades at South Kalgoorlie were also expected to increase this year, and the sale of a 49 per cent stake in the Frog's Leg mine would strengthen the balance sheet.

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