Alacer Gold announces Q1 financial and operating results

TORONTO, April 30, 2013 /CNW/ - Alacer Gold Corp. ("Alacer" or the 
"Corporation") the mid-tier gold producer with mines in Turkey and Australia, 
has released its financial results and related management's discussion and 
analysis ("MD&A") for the first quarter of 2013. 
Against the backdrop of a weaker gold price and challenging Q1 cost results, 
Alacer is reviewing its 2013 production goals on an "all in" cost basis and 
will focus on quality ounces with emphasis on cost reductions and maximizing 
high margin production. 
Accordingly, the Corporation has, over the past two weeks, re-evaluated all 
project work currently in progress, all on-going exploration work, all mine 
development expenditures and all G & A costs to ensure that there is a 
disciplined approach that reflects price risk and the possibility of a further 
decline or lack of recovery in the gold price. 
As a result of the re-evaluation work undertaken, Alacer is targeting 
approximately $60M in cash savings and incremental production revenue for the 
remainder of 2013. 
Key Points from the first quarter are as follows: 

    --  Total gold production of 98,420 ounces down 2% on Q1/12
    --  Attributable gold production 87,499 ounces down 4% on Q1/12
    --  Overall 2013 production guidance of 330,000 to 365,000 ounces
        remains unchanged


    --  Third consecutive increase in quarterly gold production (100%)
        of 54,604 ounces
    --  Heavy snowfall impacted production in January
    --  Çöpler head grades of ore stacked increased 27% over Q1/12


    --  Higginsville gold production of 28,213 ounces in line with
    --  Access to high grade ore bodies Helios, Artemis and Olympus
        achieved ahead of schedule
    --  Heavy rain impacted production at Higginsville in February and

South Kalgoorlie:
    --  South Kalgoorie Operations gold production of 4,836 ounces in
        line with guidance
    --  Commenced toll treatment of La Mancha ore on 16 February at
        Jubilee Mill
    --  Heavy rain impacted operations at South Kalgoorlie in February
        and March

Frog's Leg:
    --  Frog's Leg gold production of 3,917 ounces in line with
    --  Q1 gold production from Frog's Leg derived from carried over Q4
        ROM and crushed stocks

    --  Attributable total cash costs(1 )$932/oz compared to $759/oz in
    --  Attributable net profit of $4.2M compared to $53.9M in Q1/12
    --  Attributable adjusted net profit(1) of $9.1M  compared to $27.0
        M in Q1/12
    --  Working capital decreased by $23.8M to $164.7M during the
        period due to payment of $31.2M dividend to minority interest
        holder of the Çöpler mine and decline in cash at the Australian
        Business Unit
    --  Balance sheet remains strong with $254.6M cash in Q1/13
        compared with $277.3M cash in Q4/12


    --  Processing costs higher due to sharp increase in cyanide cost
        and consumption
    --  Processing costs increased due to higher electricity unit costs
        and consumption
    --  Includes one-off cost of approximately $15/oz due to complete
        2012 business improvement initiatives


    --  Mining costs rose approximately $187/oz due to increased mine
        development focused on gaining access to the new higher grade
        ore bodies
    --  Geology costs increased $21/oz due to additional drilling
    --  Higginsville power consumption costs rose $31/oz due to an
        increase in electricity usage, an increase in electricity unit
        costs and the cost of diesel fuel due to the introduction of
        Australia's carbon tax compared with Q1/12

South Kalgoorlie:
    --  Costs increased approximately $274/oz primarily due to
        disruption from well above average rainfall for the quarter
    --  Lower Q1 gold sold at South Kalgoorlie Operations has resulted
        in a revaluation of stockpiles resulting in a non-cash $576/oz

    --  Executed binding sale agreement with La Mancha Resources Pty
        Ltd for 49% interest of Frog's Leg Mine JV, 24.5% interest in
        Lake Greta JV and 40% interest in Avoca JV plus a 18 month toll
        treatment agreement for a total of A$166M/US$173M (sale
        completion occurred 5 April 2013)
    --  Agreement reached on a new strategic mining agreement with
        current Çöpler mining contractor (Ciftay Group) resulting in
        the reduction of mining costs of approximately $60/oz

(1) Total cash costs/ounce and adjusted net profit are non-IFRS
financial performance measures with no standardized definitions under
IFRS. For further information and detailed reconciliations, see the
"Non-IFRS Measures" section of the MD&A for the three month period
ended March 31, 2013.

While gold production from both Turkey of 43,683/oz (attributable) and 
Australia of 33,049/oz (excluding Frog's Leg) was in accordance with our 
previously advised guidance, costs at Alacer's operations in Turkey and 
Australia were both impacted by adverse weather conditions in the first 
quarter. The adverse weather conditions in Australia were further compounded 
by lower than expected grades at Higginsville and reduced gold sales from 
South Kalgoorlie.

The first quarter was a transition period for our South Kalgoorlie Operations. 
This quarter saw the signing of a binding sale agreement for Alacer's 49% 
share in the Frog's Leg Mine to La Mancha Resources and the signing of an 
interdependent toll treatment agreement to provide 345 days of toll milling 
services at South Kalgoorlie over an 18 month period with La Mancha for a 
combined transaction value of approximately A$166M/US$171 million.

At Higginsville's Trident and Chalice underground mines, development accessing 
the three higher grade Artemis, Helios and Olympus ore zones was achieved 
during the quarter approximately one month ahead of schedule. Management 
remains committed to a turnaround at the Australian operations during the year 
led by a return to higher grades and for the Australian Business Unit to be 
cash positive in 2013.

At Çöpler, in addition to standard operational activities, the first quarter 
saw the progression of site work associated with the construction of the SART 
plant and the clay sizing and materials handling circuit and agglomerator.


In response to the less than acceptable Q1 financial results at the Australian 
operations and the recent volatility in the gold price, the Corporation has 
immediately developed and commenced the implementation of a comprehensive 
strategy to reduce costs across all areas of its operations. Efforts will also 
focus on increasing production of higher margin ounces to maintain previously 
forecast 2013 cost guidance.

As we have stated previously, all options are being considered in respect to 
enhancing value for Alacer shareholders.

Alacer has identified the following key areas where it expects to realize 
approximately $60M in cash savings including incremental production revenue to 
ensure it delivers on production and cost guidance for 2013.
    --  Reduce both mine capital and operating development in 2013 at
        Higginsville Operation without affecting production in 2014 and
    --  Exploration reductions
    --  Increase incremental high margin production at Çöpler
    --  Increase incremental higher margin production from the Artemis
        lode at Trident Mine
    --  Reduce mining costs across all operations
    --  Reduce G&A at both corporate and sites
    --  Eliminate discretionary expenditures

Mr. David Quinlivan, President and Chief Executive Officer stated, "Alacer 
faces the same issues that the gold mining industry globally is experiencing 
due to the recent drop in the gold price. Management is responding quickly to 
address our first quarter performance and ensure cost reductions are 
introduced immediately across all operations while aiming to increase 
production to deliver value for shareholders. While we expect better 
production results in the next quarter as we process higher grade ore, given 
that the outlook globally is uncertain, our approach will be to scrutinize all 
expenditures and take action where necessary."

About Alacer Gold

Alacer is a leading mid-tier gold producer with mines and processing 
facilities in Turkey and Australia.
    --  80% interest in the Çöpler Gold Mine;
    --  100% interest in the Higginsville Gold Operations; and
    --  100% interest in the South Kalgoorlie Gold Operations.

Alacer's primary focus is to maximize portfolio value, maximize free cash 
flow, minimize project risk, and returning value to shareholders. Alacer has a 
strong balance sheet and is committed to responsibly developing its current 
operations and focused exploration programs creating value.

Conference Call Details

Alacer will host a conference call on Tuesday, April 30 at 7:00 pm (North 
America Eastern Daylight Time) and Wednesday, May 1 at 9:00 am (Australian 
Eastern Standard Time).

You may participate in the conference call by dialing:

1-877-723-9523       for U.S. and Canada

1-800-617-345        for Australia

800-968-835          for Hong Kong

800-101-2323         for Singapore

0-808-101-7162       for United Kingdom

1-719-325-4761       for International

9992651              Conference ID

A presentation for the conference call will be available on Alacer's website 
at prior to the call commencing.

If you are unable to participate in the call, a recording of the call will be 
available on Alacer's website at or through replay until 
Tuesday, May 14, 2013 by using passcode 9992651 and calling:

1-888-203-1112       for U.S. and Canada

1-800-154-669        for Australia

800-901-108          for Hong Kong

800-101-2009         for Singapore

0-808-101-1153       for United Kingdom 

1-719-457-0820       for International

The corresponding financial statements and MD&A are available on and on

Cautionary Statements

Except for statements of historical fact relating to Alacer, certain 
statements contained in this press release constitute forward-looking 
information, future oriented financial information, or financial outlooks 
(collectively "forward-looking information") within the meaning of Canadian 
securities laws. Forward-looking information may be contained in this document 
and other public filings of Alacer. Forward-looking information often relates 
to statements concerning Alacer's future outlook and anticipated events or 
results and, in some cases, can be identified by terminology such as "may", 
"will", "could", "should", "expect", "plan", "anticipate", "believe", 
"intend", "estimate", "projects", "predict", "potential", "continue" or other 
similar expressions concerning matters that are not historical facts.

Forward-looking information includes, but is not limited in any manner to, 
statements concerning, among other things, the payment of dividends, matters 
relating to proposed exploration, communications with local stakeholders and 
community relations, status of negotiations of joint ventures, weather 
conditions at our operations, commodity prices, mineral resources, mineral 
reserves, realization of mineral reserves, existence or realization of mineral 
resource estimates, the development approach, the timing and amount of future 
production, timing of studies and analyses, the timing of construction of 
proposed mines and process facilities, capital and operating expenditures, 
economic conditions, availability of sufficient financing, exploration plans 
and any and all other timing, exploration, development, operational, 
financial, budgetary, economic, legal, social, regulatory and political 
factors that may influence, or be influenced by, future events or conditions. 
Such forward-looking information and statements are based on a number of 
material factors and assumptions, including, but not limited in any manner to, 
those disclosed in any other of Alacer's filings, and include assumptions 
about the legal restrictions regarding the payments of dividends by Alacer, 
exploration results and the ability to explore, the ultimate determination of 
mineral reserves, availability and final receipt of required approvals, 
titles, licenses and permits, sufficient working capital to develop and 
operate the mines, access to adequate services and supplies, commodity prices, 
ability to meet production targets, foreign currency exchange rates, interest 
rates, access to capital markets and associated cost of funds, availability of 
a qualified work force, ability to negotiate, finalize and execute relevant 
agreements, lack of social opposition to the mines, lack of legal challenges 
with respect to the property of Alacer and the ultimate ability to mine, 
process and sell mineral products on economically favorable terms. While we 
consider these factors and assumptions to be reasonable based on information 
currently available to us, they may prove to be incorrect.

You should not place undue reliance on forward‐looking information and 
statements. Forward‐looking information and statements are only predictions 
based on our current expectations and our projections about future events. 
Actual results may vary from such forward‐looking information for a variety 
of reasons, including but not limited to risks and uncertainties disclosed in 
Alacer's filings at and other unforeseen events or 
circumstances. Other than as required by law, Alacer does not intend, and 
undertakes no obligation to update any forward‐looking information to 
reflect, among other things, new information or future events.

For further information on Alacer Gold Corp., please contact: Director of 
Investor Relations - North America  Lisa Maestas -  +1-303-292-1299 Director 
of Investor Relations- Australia  Roger Howe - +61-2-9953-2470 Director of 
External Relations- Candice Sgroi - +1-303-681-5365


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-0- Apr/30/2013 11:55 GMT

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