The company has declared commercial production at the Copler sulphide plant. 2019 oxide production estimates have also been upgraded and costs lowered. Guidance has been increased to 125-145,000 ounces.
Credit Suisse had already forecast production within the revised guidance range after the strong March quarter. No exploration update was provided.
The broker continues to envisage value in Alacer Gold, with ongoing performance at the sulphide plant driving an equity re-rating. Outperform rating and $5.05 target maintained.
Target price is $5.05.Current Price is $4.38. Difference: $0.67 – (brackets indicate current price is over target). If AQG meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).