Splitting production between assets in Western Australia and Turkey and with growth options from the latter operations in particular, Alacer Gold ((AQG)) is the second largest gold producer listed in the S&P/ASX200 Index.
Alacer Gold ((AQG)) has been among the preferred listed gold plays in Australia, the FNArena database showing the stock had been rated as a Buy by three of the five brokers offering coverage. This has increased to four positive views, as Macquarie has initiated coverage with an Outperform rating.
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.
Costs in the September quarter were lower than expected because of a continued capitalisation of waste. Macquarie calculates that, with sulphide production commencing over the fourth quarter of 2018, the company needs to produce around 70,000 ounces to meet the lower end of the guidance range.