- Gold producer Alkane Resources (ALK) has smashed its production guidance for the December quarter, with 15,919 ounces produced from Tomingley
- Site operating cash costs at the gold operations in NSW totalled $720 per ounce with an all in sustaining cost (AISC) of $1,201 per ounce
- Alkane’s gold sales over Q2 FY21 brought in $38.2 million in revenue, with 16,613 ounces sold at an average price of $2302 per ounce
- Looking ahead, the gold producer has increased its FY21 guidance to between 47,000 ounces and 52,000 ounces with an AISC of up to $1,600 per ounce
- It’s also focused on further developing the Roswell and San Antonio deposits, which are around 3 kilometres away from Tomingley
- The mining stock ended December 31 with more than $82 million in cash, billions and listed investments
- Alkane Resources is trading up a solid 10.8 per cent at 87 cents per share
Gold producer Alkane Resources (ALK) has released its latest quarterly report, revealing it smashed its production guidance.
Results
The company produced 15,919 ounces from its Tomingley Gold Operations in NSW, smashing the guidance of 11,499 ounces released in November.
The site operating cash costs at Tomingley totalled $720 per ounce while the all in sustaining cost (AISC) totalled $1,201 per ounce.
Along with strong production figures, Alkane’s gold sales over Q2 FY21 brought in $38.2 million in revenue — up from $27 million in Q1 FY21.
The total amount of gold sold between October and December totalled 16,613 ounces, with each ounce averaging a price of $2302.
The increased revenue helped Alkane end the December quarter with more than $82 million in cash, billions and listed investments.
Forecast
Looking ahead, the gold producer has increased its FY21 guidance from Tomingley to between 47,000 ounces and 52,000 ounces, up from 45,000 ounces to 50,000 ounces.
It’s also anticipating an unchanged AISC of between $1450 per ounce to $1,600 per ounce for the gold produced.
Activities wise, Alkane will spend Q3 focused on pursuing the development of the Roswell and San Antonio deposits, which are around 3 kilometres away from Tomingley.
The business is in the process of securing development approvals from the NSW Government for both deposits.
It’s also hoping to have feasibility plans, which include options for both open-cut and underground mines for Roswell and San Antonio, finished this quarter.
Following today’s strong results, Alkane Resources has enjoyed a solid 10.8 per cent increase in its share price.
Shares are now trading for 87 cents each at 2:20 pm AEDT.