Alkane Resources hit 57.2Kozpa gold production through FY24 – and eyeing 70Ktpa in FY26

Alkane Resources (ASX:ALK) has announced its gold production metrics for full year FY24 coming in at 57,217oz – brushing just short of the upper range of its upgraded guidance of 55Koz – 58Koz.

Preliminary all in costs for the full year are anticipated to be within the updated guidance of A$2.15K – A$2.35K.

Alkane is now sitting on cash, bullion and investments totalling $54.5M as at the last day of June.

Notably, the $295M market cap company expects to produce between 70Koz – 80Koz of gold in FY25 with an all in cost of A$2.4K – A$2.6K.

Under Alkane’s five year plan released in late June, the company anticipates all in costs to fall to A$1.9K – A$2.1K “over the entire five-year plan.”

Management pointed to the productivity of the company’s Tomingley Gold Operations in NSW.

“Tomingley is steadily increasing production from the Roswell underground,” Alkane MD Nic Earner said.

“Tomingley is now performing well, and the paste plant and flotation circuit upgrades remain on schedule.”

During Q4 of FY24, Alkane drew A$42.8M from a Macquarie bank debt facility totalling A$60M. The company also noted its $54M in cash does not include investment positions in Caldius Resources, for which administrators were appointed only last week. Shareholders will know the full impairment in August when the company releases its annual.

Alkane shares were up 3% out of the gate on Thursday trades according to Cboe live pricing.

ALK last traded at 50.5cps.