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Alkane Resources increases gold production guidance by 8.9%

Higher expected production also brings down average operating costs to $950 per ounce.

growth concept
First ore from the underground mine is expected to be delivered shortly

Alkane Resources Ltd (ASX:ALK) has increased its FY19 gold production to 48,000-49,000 ounces from 42,000-47,000 ounces at its Tomingley Gold Operations (TGO) in New South Wales.

Taking the mid-points of both ranges, the upgrade represents an 8.9% increase in production for the financial year ending June 30 2019.

The increased production means the operating cost guidance has also lowered 9.5% to $950 per ounce from $1,050 per ounce.

With the AUD gold price trading around record highs at $1,900 per ounce, Tomingley is producing solid cash flow.

READ: Alkane Resources makes third new gold discovery at Tomingley

Alkane’s managing director Nic Earner said “The team at Tomingley Gold Operations continues to perform really well, which in turn is providing a solid cash platform for the company to rapidly advance its near mine exploration.

“We look forward to seeing our first underground ore delivered shortly.”

Development of the underground operation at Tomginley continues on budget and ahead of schedule - first stoping ore is expected in August.

Alkane investors exposed to two hot commodity classes

Alkane shares are up over 30% in the past month as the company's Dubbo Project also located in NSW has peaked investor's interest.

Proactive recently caught up with the company to discuss the rising demand for non-China based rare earth projects.

Quick facts: Alkane Resources Ltd

Price: 1.2 AUD

Market: ASX
Market Cap: $714.3 m

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