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Highlights

  • Alkane Resources is a gold mining, production and exploration company with headquarters in West Perth, Australia
  • In FY24, the company expects to register gold production of 60,000oz to 65,000oz in at an AISC of AUD 1,750-2,100/oz
  • Gandel (Ian Jeffery) has the highest stake in ALK with a shareholding of around 19.75%

Alkane Resources Limited (ASX: ALK) is a gold production firm with development, exploration and investment portfolios. The company owns and operates the Tomingley Gold project, which includes Tomingley Gold Extension Project, Peak Hill Gold Mine and Tomingley Gold Operations. The company also manages Northern Molong Porphyry Project, which includes Boda-Kaiser.

The gold mining firm’s FY23 (financial year 2023) full-year production exceeded guidance. During the year, the company registered gold production of 70,253oz at an AISC of AUD 1,602/oz. FY23 original guidance was 55,000 to 60,000oz at an AISC of AUD 1,650/oz to 1,900/oz.

Full-year gold sales were 70,498oz for a revenue of AUD 190.5 million at an average price of AUD 2,703/oz.

Nic Earner, managing director of ALK, said that the organisation was able to meet full-year production guidance because of the quarterly performance of Tomingley.

1HFY23 results highlights

During the first half of FY23, the company registered total revenue of AUD 93.47 million, a growth of 21.52% over the previous corresponding period. During the stated period, gold production surged by 30%, and the average selling price increased by 4%, resulting in double-digit growth in revenue.

During the six months, the gross profit surged by 49.72% to AUD 41.20 million, driven by an increase in total revenue and only a 5.81% increase in the cost of sales. However, the net profit during the stated period dropped by almost 50% to AUD 24.69 million.

Here’s the historical financial trend of ALK.

Top 10 shareholders of ALK

The top 10 shareholders of ALK have around 38.19% interest in the firm, while the top four shareholders have 28.84% interest in the firm. Gandel (Ian Jeffery) and Van Eck Associates Corporation have the highest stake in the company, with a shareholding of ~19.75% and ~3.62%, respectively.

Recent business update

In the latest update dated 4 August 2023, the company shared further results from its drilling campaign at the Northern Molong Porphyry project located in central New South Wales. The campaign is completed at Boda and Boda 2&3, and the core is being sampled and analysed. The latest results indicate a significant mineralisation down plunge to the northwest of the Boda MRE (mineral resource estimate).

Outlook

The company expects to report gold production of 60,000oz to 65,000oz in FY24 at an AISC of AUD 1,750-2,100/oz. 

The company has received the necessary approvals to extend Tomingley’s mine life past 2030. The company informed that discoveries and exploration drives in the mine area are progressing at Roswell resources, and ventilation rise is underway.

The company shared the belief that the Boda and Kaiser deposits have the potential to transform into long-life copper-gold mines. 

Share performance of ALK

ALK shares closed 3.20% up at AUD 0.645 apiece on 18 August 2023. With this, in the last 12 months, the stock price fell by 13.42% and in the last three months, the stock price declined by 18.87%. In one week, the stock price decreased by 3.00%.

The 52-week high of ALK is AUD 0.955 apiece, recorded on 14 April 2023 and the 52-week low is AUD 0.525 apiece, recorded on 29 December 2022.

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

Note 2: The reference date for all price data, currency, is 18 August 2023. The reference data in this report has been partly sourced from REFINITIV.