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Highlights

  • Alkane Resources is focused on developing its Tomingley Gold operations
  • In FY23, Tomingley achieved its production guidance of 65k – 73k ounces with the production of 70,253 ounces
  • Gandel (Ian Jeffrey) has around 19.69% shareholding in the company

Alkane Resources Limited (ASX: ALK) is an ASX-listed gold production and exploration firm which operates primarily in Central West New South Wales. Established in 1969, the company owns and manages Tomingley Gold Operations.  Tomingley is an open pit and underground gold mine which lies in the Central west region of NSW.

In the financial year 2023 (FY23), the mine registered 70,253 ounces of production, achieving its guidance of 65,000 – 73,000 ounces. In the September quarter, gold production from Tomingley stood at 15,855oz.

In FY23, the company reported 15.5% YoY growth in revenue to AUD 190.5 million and 5.5% YoY surge in gold sales to 70,498 ounces, However, during the stated period, profit after tax dropped by almost 40% to AUD 42.5 million.

Top 10 shareholders of ALK

The top 10 shareholders of ALK have around 38.22% shareholding in the firm, while the top four have nearly 28.84% shareholding. The highest stake is held by Gandel (Ian Jeffrey) followed by Van Eck Associates Corporation, with a shareholding of ~19.69% and ~3.70%, respectively.

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Recent business update

Through an ASX filing dated 28 November 2023, the company informed about the change in interest of Nicholas Paul EARNER with the acquisition of fully paid shares and performance rights. Also, there has been disposal of performance rights.

Through an ASX update dated 25 October 2023, the company shared that in the September quarter, revenue from gold sales stood at AUD 46.6 million and cash, bullion and listed investments position stood at AUD 94.4 million.

Outlook

In FY24, the company expects to see gold production of 60koz – 65koz from Tomingley at an AISC of AUD 1,750 – 2,100/oz.

The company informed that it would be committed to progress operations at Tomingley project, upgrade Boda and Kaiser resources, establish underground mining at Roswell, among other development and exploration activities.

Moreover, the company intends to evaluate partnering opportunities for Boda and actively manage investments.

Share performance of ALK

ALK shares closed 0.80% down at AUD 0.620 apiece on 12 December 2023. With this, ALK’s share price has dropped by 13.89% in the last six months and has virtually remained unchanged in the past one year.

The 52-week high of ALK is AUD 0.955, recorded on 14 April2023, while the 52-week low is AUD 0.525, recorded on 29 December 2023.

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 12 December 2023. The reference data in this report has been partly sourced from REFINITIV.