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Alkane Resources meets upgraded FY2020 guidance for Tomingley Gold Operations

The operations produced 33,507 ounces during the 12 months and the company remains "buoyant about the longer-term prospects at Tomingley".

Alkane Resources Ltd - Alkane Resources meets FY2020 guidance for Tomingley Gold Operations
FY2020 preliminary AISC was $1379 per ounce within guidance of $1,250-$1,400

Alkane Resources Limited (ASX:ALK) has met the FY2020 gold production guidance of between 30,000 ounces to 35,000 ounces.at its Tomingley Gold Operations in Central West New South Wales.

The operations produced 33,507 ounces of gold for the 12 months to June 30, 2020, with preliminary all in sustaining costs (AISC) of $1357 per ounce produced, which also fell within cost guidance of $1,250 to $1,400 per ounce.

Guidance for the 2020 financial year was upgraded following the September 2019 quarter.

“Great potential”

Alkane managing director Nic Earner said: “The team at Tomingley Gold Operations continues to perform very well, consistently meeting or exceeding guidance.

“With an updated mine plan soon to be released and the great potential being shown very close to the mine, through our exploration at Roswell and San Antonio, we remain buoyant about the longer-term prospects at Tomingley.

“The board and management acknowledge and thank the team at Tomingley for their strong and continued safety and production performance.”

The updated Tomingley Gold Operations mine plan is undergoing final review and approval and will be released along with FY2021 guidance.

Strong financial position

The strong 12-month performance at Tomingley has coincided with a 25% appreciation in the gold price and the company’s progress towards a demerger of Australian Strategic Materials Limited (ASM) to become a separate ASX listing, allowing Alkane to focus exclusively on its gold projects.

The group’s unaudited cash, bullion and listed investments position at June 30, 2020, totalled A$98.4 million, comprising $66.9 million cash, $5.8 million of bullion in hand and $25.7 million of listed investments.

Quick facts: Alkane Resources Ltd

Price: 1.185 AUD

ASX:ALK
Market: ASX
Market Cap: $705.37 m
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