Alkane Resources Limited exceeds gold production guidance

Alkane Resources Limited (ASX: ALK) has exceeded FY2022 production guidance of between 55,000 to 60,000 ounces at its Tomingley Gold Operations in Central West New South Wales as the company looks to become Australia’s next multi-mine gold producer.

Tomingley produced 66,804 ounces of gold for the 12 months to June 30, 2022.

Impressively, ALK’s Tomingley operation has met or exceeded guidance in every year of operation and the company remains in a strong financial position with unaudited cash, bullion and listed investments at June 30, 2022, totalling A $ 124.3 million, comprising A $ 77.9 million cash, A $ 8.2 million of bullion in hand and A $ 38.1 million of listed investments.

Preliminary all in sustaining costs (AISC) are expected to fall slightly below guidance ($ 1,500 / ounce to $ 1,650 / ounce) for the same period, however, the overall strong 12-month performance at Tomingley has been underpinned by above forecast mined grade from several areas, as well as the ALK’s team ability to overcome the impact of weather and COVID-19.

Outstanding performance

Alkane managing director Nic Earner said: “Tomingley continues its outstanding performance, consistently meeting or exceeding guidance.

“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’s board and management acknowledge and thank the employees and contractors of the company for their strong and continued commitment to safety, production and exploration performance.”

Alkane is currently expediting a development pathway to extend the mine’s life beyond 2030.