Alacer Gold looks like a pretty conservative option when it comes to gold mining stocks.
It’s a low cost producer with an all in cost of production well below the current gold price at $US763 per oz. It also has no debt and $320m in cash reserves.
Alacer’s main asset is an 80% interest in the Copler mine in Turkey and the company is currently pursuing a sulphide project which has potential to extend the mine life by 20 years adding 3.2m oz to reserves.
It’s a Canadian company but it can also be traded on the Australian exchange. The production report released yesterday showed a 27% increase in gold mined to 63,536 oz for the September quarter.
The Alacer chart looks very like the gold chart. Both look as though they may be in a large triangle formation that dates back to the June 2013 low. Like gold, Alacer bounced tentatively off the support of this triangle a few weeks ago but this remains a key level. If Alacer can stay north of this support in the low $1.90 area, then from a chart point of view the prospect of a rally to resistance above $3.00 remains a prospect.
Alacer Gold weekly