Alkane Resources upbeat as Tomingley Gold Operations exceed production and AISC forecasts in FY21

Alkane Resources Ltd‘s (ASX:ALK) (OTCMKTS:ALKEF) (FRA:AK7) Tomingley Gold Operations in central New South Wales have exceeded production guidance for the 2021 financial year.

The gold plant churned out 56,958 gold ounces over FY21, beating previous guidance that it would produce between 50,000 and 55,000 ounces of gold during the financial year.

Tomingley’s all-in sustaining cost (AISC) also trumped forecasts, with the cost to produce one gold ounce tallied at $1,320 compared to the predicted $1,400 to $1,550 per ounce range.

Moving into the new financial year, Alkane anticipates the gold plant will produce between 55,000 and 60,000 gold ounces at an AISC ranging between $1,450 and $1,600 per ounce.

“Continues to meet or exceed expectations”

Alkane managing director Nic Earner said: “Tomingley continues to meet or exceed our expectations, demonstrating why it is a great asset managed by a highly professional and committed operations team.

“With an updated mine plan that extends the life of Tomingley to at least 2031, at increased production rates, we remain buoyant about the longer-term prospects both at Tomingley and at our Boda exploration tenements.

“Alkane’s board and management acknowledge and thank the teams at Tomingley and in exploration for their strong and continued safety, production and discovery performance.”

Production guidance recently revised

Today’s update on FY21 gold production at Tomingley comes just months after the asset’s production forecast was upgraded.

Following the March quarter, Alkane realised the ore being processed at the gold plant was of a higher grade than anticipated, meaning it was on track to produce more gold than previously forecast.

As a result, the gold miner boosted its guidance from between 45,000 and 50,000 gold ounces for FY21 to as much as 55,000 ounces for the full financial year.

Nevertheless, as outlined in today’s ASX announcement, Tomingley even beat those metrics, producing almost 2,000 more gold ounces than the forecast’s highest range.

Alkane says the strong performance across FY21 coincides with the finalisation and release of an updated life of mine plan, which has the gold operation producing to at least 2031.

The group’s unaudited cash, bullion and listed investments position at the end of the 2021 financial year totalled $73.9 million. This included $19 million in cash, $7.7 million worth of bullion on hand and $47.2 million in listed investments.

Alkane also has $20 million in undrawn credit approved facilities.

Story by ProactiveInvestors