Re-rating trigger A realisation of the Copler sulphide production and cash flow means much of the discount in the share price could be closed over the coming weeks. Alacer's advanced exploration comes for free, while global peers are struggling for projects to replace depleting reserves and declining production.
Moreover, the discount is seen exacerbated by perceptions about the country risk in Turkey. This is not being experienced on site, other than through extended permit time frames, and is more than compensated by the tax incentive scheme, which delivers a 5% cash tax rate.
The equity value will ultimately reflect the Sulphide Plant, or a corporate suitor will emerge.
Expecting first gold from Copler Sulphide plant in Q3 2018 which is only weeks away with nameplate production not expected until 2019!
With the plant 85% complete, final capital costs have been significantly de-risked and remain 10% under budget, equating to a US$70 million contingency. Great news for shareholders!
The sulphide project's long life, around 20 years, and low-cost position cannot not be overlooked.
Expect broker reviews to follow…..
AQG Price at posting:
$2.26 Sentiment: Buy Disclosure: Held
