Join our daily newsletter At The Bell to receive exclusive market insights
- Alkane Resources’s (ALK) Tomingley gold operation in NSW has exceeded its production guidance for FY22
- The materials stock expected to produce between 55,000 and 60,000 ounces of gold from Tomingley, however the project produced over 66,800 ounces of gold
- Furthermore, the company ended the financial year in a strong financial position with $124.3 million in unaudited cash, bullion and listed investments
- Alkane is pleased with the strong performance which was reportedly underpinned by above forecast mined grade and resilience in the face of weather conditions and the pandemic
- Company shares are down 1.49 per cent to trade at 66 cents at 10:29 am AEST
Alkane Resources’ (ALK) Tomingley gold operation has exceeded its production guidance for the 2022 financial year.
The company’s full-year guidance for the NSW-based project was between 55,000 and 60,000 ounces of gold, however Tomingley produced 66,804 ounces of gold over the 12-month period.
In terms of costs, Alkane expects preliminary all-in sustaining costs (AISC) to fall slightly below its guidance of $1500 to $1650 per ounce.
Alkane said the strong performance over FY22 was underpinned by above forecast mined grade from several areas and resilience within its team despite impacts of weather conditions and COVID-19.
The materials stock’s unaudited cash, bullion and listed investment position at the end of June totalled $124.3 million.
Managing Director Nic Earner said Tomingley has consistently met or exceeded the company’s guidance.
“Alkane’s board and management acknowledge and thank the employees and contractors for their strong and continued commitment to safety, production and exploration performance,” he said.
“With approvals in progress to extend the life of Tomingley to at least 2031, at increased production rates, and our excellent initial Boda resource, we’re looking forward to the year ahead.”
Alkane expects to outline its production guidance for the 2023 financial year in its upcoming June quarterly report.
Company shares were down 1.49 per cent to trade at 66 cents at 10:29 am AEST.
