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Highlights

  • Alkane Resources is an ASX-listed gold exploration and production firm
  • In 1HFY24, ALK’s gold revenue stood at AUD 89.06 million
  • Gandel (Ian Jeffrey) has the highest stake in the firm with the shareholding of 18.25%

Based in Western Australia, Alkane Resources Ltd (ASX: ALK) is a gold exploration and production company founded in 1969. The company operates its Tomingley Gold Operations along with several highly promising gold and copper assets, including the Boda-Kaiser project in Central West New South Wales.

In the first half of the financial year 2024 (1HFY24), gold revenue of ALK dropped by 5% YoY to AUD 89.06 million, profit after tax decreased by 50% YoY to AUD 12.43 million, and gold sales fell by 15% YoY to 30,597 ounces at an AISC of AUD 2,177 per ounce.

Top 10 shareholders of ALK

The top 10 shareholders of ALK have around 36.46% shareholding in the company, while the top four have 27.08% of the shareholding. Gandel (Ian Jeffrey) and Van Eck Associates Corporation have the highest stake in the firm with a shareholding of ~18.25% and ~3.37%, respectively.

Recent business update

On 4 July 2024, through an ASX update, the company notified that in FY24, the company achieved gold production of 57,217 ounces from the Tomingley Gold Operations in central west NSW, meeting the updated guidance of 55k to 58k ounces. Preliminary AISC is expected to meet the updated expectations of AUD 2,150-2,350 per ounce.

Through an ASX filing dated 24 June 2024, the company shared its Tomingley five-year plan. In five years, ALK intends to boost annual gold production to more than 100k ounces and targets production of 455k-505k ounces from underground and open-cut mining. Over five years, AISC is expected to reach an average of AUD 1,900-2,100 per ounce. AISC is expected to decrease as the requirement for development capital will diminish.

Outlook

In FY25, the company expects to report gold production of 70k-80k ounces from Tomingley at an AISC of AUD 2,400-2,600 per ounce.

Share performance of ALK

ALK shares closed 0.98% higher at AUD 0.515 apiece on 9 July 2024. In the last one year, ALK’s share price has witnessed a fall of nearly 30.87%, and in the last three months, it recorded a decline of 21.37%. The 52-week high of ALK is AUD 0.825, recorded on 19 July 2023, and the 52-week low is AUD 0.46, recorded on 22 February 2024.

ALK Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 09 July 2024. The reference data in this report has been partly sourced from REFINITIV.