Question Of Sustainability Dulls Alacer Gold
-Production solid in Dec quarter
-Questions remain over Copler plans
-Divestment still probable
By Eva Brocklehurst
Mid tier gold producer Alacer Gold ((AQG)) delivered a firm finish to a challenging year. Nevertheless, brokers are divided over what to focus on for this stock. There are concerns around life-of-mine recoveries and the sustainability of production initiatives at Copler, according to JP Morgan. This broker is sticking with a Hold recommendation and doesn't expect that to change until the release of 2013 guidance and a revised sulphide study, in conjunction with Q412 cost data.
Alacer produced 113,900 ounces of gold in the December quarter, up 14.9% on the prior corresponding quarter and 1.5% above JP Morgan's estimate. This was driven by a significant grade bounce at the