Alacer boss goes as miner flags staged closure
UPDATE 2.40pm: Alacer Gold has announced the departure of its chief executive as it flagged the scaled closure of its Goldfields operations ahead of a proposed sale of the assets.
David Quinlivan has stepped down as president and chief executive and will be replaced by the company's chief financial officer and former Rio Tinto executive Rodney Antal, who will continue to be based at the company's Colorado offices.
The move was announced as part of a raft of management changes at the gold miner as it adjusts to a lower gold price environment.
Alacer said it would move to place its Australian operations, including the Higginsville mine and the South Kalgoorlie mine on care and maintenance over the next 12-18 months as it continues with plans to sell the assets.
"Alacer advises that the sales process for its Australian assets is continuing and discussions with a number of interested parties are well-advanced," the company said in a statement.
"In the meantime, the corporation is implementing an operating strategy for its Australian Business Unit that focuses on near-term cash maximisation."
The plan involves a cessation of further development and exploration in Australia as well as accelerated initiatives to reduce general and administrative costs.
"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," the company said.
Mr Antal said given the recent volatility in the gold price and the time taken to secure an acceptable binding offer for the Australian operations, the company had decided to pursue a strategy aimed at maximising near-term cash generation.
The gold miner recently concluded the sale of its 49 per cent stake in the Frog's Leg gold mine, near Kalgoorlie, to joint venture partner La Mancha Resources for $149 million.
A sale of the company's Australian assets will leave Alacer with an 80 per cent interest in the Çöpler gold mine in Turkey as its sole asset.
Alacer shares closed up 16 cents, or 6.38 per cent, at $2.67.
Alacer Gold's Higginsville gold mine.
