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- Alkane Resources (ALK) is pleased with the performance of its Tomingley gold operations over the September quarter
- The NSW-based operations produced nearly 19,500 ounces of gold which, while a slight decrease on the previous quarter, still exceeded the company’s expectations
- Alkane sold over 18,300 ounces of gold which generated $46.7 million in revenue at an average price of $2547 per ounce of gold
- The company is now focused on developing the San Antonio and Roswell deposits as part of the Tomingley Gold Extension Project with approvals expected in the near term
- ALK shares are down 4.55 per cent to close at 63 cents
Alkane Resources (ALK) has reported that its Tomingley gold operations in New South Wales performed well over the September quarter.
Tomingley produced 19,489 ounces of gold in the three-month period and while this represents a 3600-ounce decrease on the previous quarter, September quarterly production still exceeded the company’s expectation.
Site cash costs for the quarter were $1095 per ounce with an all-in sustaining cost (AISC) of $1191 per ounce
In terms of sales, the company sold 18,344 ounces of gold for revenue of $46.7 million at an average price of $2547 per ounce. Alkane also has sales contracts already in place between now and the end of next year.
Following the first quarter of FY23, Alkane has decided to maintain its full-year production guidance of 55,000 to 60,000 ounces from Tomingley at an AISC of $1650 to $1900 per ounce.
Alkane also focused on getting approvals for the Tomingley Gold Extension Project which aligns with its goal to accelerate the development of the Roswell and San Antonio deposits that are located between three and five kilometres south of Tomingley.
The Environmental Impact Statement is currently under consideration by the NSW Department of Planning and Environment and Alkane expects to receive project approval before the end of the year.
Alkane ended the September quarter with $124.6 million in cash, bullion and listed investments which is similar to its cash position at the end of the June quarter.
ALK shares were down 4.55 per cent to close at 63 cents.
