- Alkane Resources’ (ALK) gold production was in line with expectations, with 11,499 ounces (oz) produced during the September quarter
- The company released its Q1 FY21 report today showing it made $27 million in revenue via the sale of 11,945 oz of gold at $2,261/oz
- The gold producer remains on track to reach its guidance for FY21, which sits unchanged at 45,000 to 50,000 oz
- Alkane ended the quarter with $33.1 million worth of cash in the bank and $4.7 million in gold bullions
- It also began talks for a $20 million working capital facility from Macquarie Bank to further strengthen its balance sheet
- Activities wise, the miner was focused on drilling at its San Antonio and Roswell prospects next to its Tomingley Gold Operations
- Shares in Alkane Resources closed 3.56 per cent in the red at $1.36
Gold producer Alkane Resources’ has released its latest quarterly report and revealed its gold production remains in line with expectations.
Alkane said it produced 11,499 ounces (oz) of gold during the September quarter at an all-in sustaining cost (AISC) of $1,575/oz.
The company sold even more than that — selling 11,945 oz of gold at an average price of $2,261/oz to raise $27 million in revenue.
Pleasingly, ALK advises it remains on track to reach its guidance for FY21, which sits unchanged at 45,000 to 50,000 oz at an AISC of $1,450 to $1,600/oz.
It also ended the quarter with $33.1 million worth of cash in the bank. $4.7 million in gold bullions and over $54.2 million in listed investments.
The company is planning to further strengthen its balance sheet via a $20 million working capital facility from Macquarie Bank.
Alkane said it executed a committed letter of offer relating to the facility in October.
Activities wise, the gold miner was focused on drilling at its San Antonio and Roswell prospects — which are located next to its Tomingley Gold Operations in Central NSW.
Infill drilling at the sites during the quarter returned high-grade results such as 102 metres at 4.07g/t gold from 283 metres, including one metre at 57.8g/t gold from 304 metres.
Further assay results from the drilling program at Roswell are expected but have been delayed due to high demand within the lab processing them.
Meanwhile, drilling at San Antonio continues, as does the drilling at Alkane’s Boda Prospect which is a part of the company’s wider Northern Molong Porphyry Project.
Shares in Alkane Resources (ALK) are currently trading 3.56 per cent in the red at $1.36 at market close.