Alacer Gold Corp (TSE:ASR) announced that it has began commercial production at its Çöpler sulfide plant in Turkey and increased its production guidance.
The Toronto-based company upped the plant’s guidance to 125,000-145,000 ounces and lowered all-in sustaining cost levels to around C$700 per ounce.
Investors in Toronto sent Alacer’s shares 13.1% higher on Thursday, reaching C$4.21 by midday.
Alacer’s CEO Rod Antal called the news a “significant milestone” for the Turkish gold producer.
“We continue to tune and optimize the plant and expect quarter-on-quarter improvements over the remainder of 2019,” Antal said in a statement. “Performance to date provides us with the confidence to reaffirm sulfide plant production and cost guidance for 2019.”
During May, the sulfide plant averaged a throughput rate of over 80%. Gold recovery was around 93%, and over 22,000 ounces of gold were recovered with processing costs in line with expectations, Alacer said in a statement.
On Thursday analysts at National Bank Financial upped its price target on Alacer to $5.25 and set an ‘Outperform’ rating on the stock.
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas