Management change Alacer appoints Antal as CEO, Stevenson as president
Alacer Gold Corp (C:ASR)
Shares Issued 286,874,771
Last Close 8/12/2013 $2.44
Monday August 12 2013 - News Release
ALACER GOLD ANNOUNCES LEADERSHIP CHANGES AND UPDATE ON AUSTRALIAN ASSET SALE PROCESS
Alacer Gold Corp.'s chief financial officer, Rodney P. Antal, will become chief executive officer and join Alacer's board of directors on Aug. 13, 2013. He will succeed David F. Quinlivan, who will step down as president and chief executive officer, and retire from the board of directors at that time. Mr. Antal will continue to be based in the corporation's headquarters in Englewood, Colo.
Howard Stevenson, the corporation's president, Turkish operations, has been appointed president and chief operating officer, effective Aug. 13, 2013, with primary responsibility for operations at all of the corporation's mine sites. Mr. Stevenson will continue to be based in the corporation's headquarters in Englewood, Colo.
Mark Murchison, the corporation's senior vice-president, finance, has been appointed interim chief financial officer, effective Aug. 13, 2013. Mr. Murchison will initially be based in the corporation's Perth office.
Timothy J. Haddon, chairman of the board, commented: "On behalf of the board, and Alacer's shareholders and employees, I would like to thank David for his valuable contribution to Alacer as president and CEO, and prior to that, as a non-executive director of the corporation. In a challenging period for the global gold industry, David has brought increased operational and financial discipline to the business, and he has led from the front on improving all aspects of the corporation's performance. Under David's leadership, Alacer has recently initiated a major operational improvement program and has also successfully concluded the sale of its non-core 49-per-cent minority interest in the Frog's Leg joint venture for $149-million, which resulted in a substantial reduction in the corporation's debt position and payment of a $70-million special dividend to shareholders."
Mr. Haddon continued: "Alacer is also fortunate to have a person of Rod's calibre to take over from David. Rod is a highly experienced mining executive and is the right person to lead the corporation, as it continues to focus on its key strategic objectives of maximizing free cash flow, maximizing portfolio value, minimizing project risk and returning value to shareholders."
Mr. Antal, of Denver, Colo., USA, has been the corporation's chief financial officer since May 21, 2012, and, as mentioned above, has assumed the role of chief executive officer. Mr. Antal has significant international mining experience, having held various senior management positions within Rio Tinto over a 15-year period. Immediately prior to joining the corporation, Mr. Antal served as chief financial officer of Rio Tinto Minerals.
In addition, Stephanie J. Unwin, a non-executive director, has resigned from the board of directors, effective Aug. 13, 2013.
Mr. Haddon said: "On behalf of the board and the corporation, I would also like to thank Stephanie for her contributions to Alacer. She was one of the founding non-executive directors of Avoca Resources Ltd. prior to the merger with Anatolia Minerals Development Ltd. and as such, played an integral role in the formation of Alacer. Since then, she has been a dedicated and highly professional member of the board whose insight and guidance will be missed."
Mr. Antal, as an executive or management director, will not be an independent director and will not sit on any committees of the board of directors. Reconstituted committees will be disclosed in due course on Alacer's website.
Update on Australian asset sale process
Alacer advises that the sales process for its Australian assets is continuing and discussions with a number of interested parties are well advanced. In the meantime, the corporation is implementing an operating strategy for its Australian business unit that focuses on near-term cash maximization. Without a material improvement in the gold price, this operating strategy will lead to the Australian operations being placed into care and maintenance sometime during the next 12 to 18 months.
This operating strategy incorporates:
- No further mine capital development at Higginsville;
- A further reduction in planned mine operating development at Higginsville;
- Other than as required to meet its statutory obligations, the cessation of all exploration activities in Australia;
- The acceleration of initiatives aimed at reducing G&A and discretionary expenditure across the Australian operations.
Alacer believes that at current Australian-dollar gold prices, this strategy will generate positive cash flows until either a sale is completed or the operations are placed into care and maintenance. Production and cost guidance for the Australian operations in 2013 remains unchanged at 168,000 to 187,000 ounces of gold production at cash operating costs of $995 (U.S.) to $1,100 (U.S.) per ounce and total cash costs of $1,140 (U.S.) to $1,250 (U.S.) per ounce.
Mr. Antal commented: "Given the recent volatility in the gold price and the time taken to secure an acceptable binding offer for the Australian operations, we have decided to pursue a strategy aimed at maximizing near-term cash generation from our assets. While this strategy should deliver strong cash generation, it is regrettably also likely to lead to both of our Australian operations being transitioned into care and maintenance during the next 12 to 18 months."
Alacer remains committed to sell all or a portion of its Australian assets on terms that deliver an improvement in risk-adjusted value relative to the short-term cash maximization strategy, and intends to continue to progress some of the non-binding and confidential proposals it has received. Alacer will keep the market informed of any material developments in this regard.
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