Alkane Resources Limited (ASX:ALK, the Company) is pleased to report a $38m Half-Year profit after tax, driven by a 90% increase in gold production at Tomingley and the successful demerger of Australian Strategic Materials.
Highlights
- The successful demerger and listing of Australian Strategic Materials (ASX:ASM).
- A company profit after tax of A$38.8 million driven by excellent production and cost performance at Tomingley Gold Operations, and the profit recorded from the successful demerger of Australian Strategic Materials.
- Production of 28,559 ounces of gold at an all-in sustaining cost (AISC) of A$1,358 per ounce.
- Completion of the infill drilling program at Roswell and San Antonio. Feasibility plans that include both open-cut and underground mines at Roswell and San Antonio are expected to be finalised in the coming quarter.
- Progressed the securing of approvals with the NSW Government for the development of the Roswell and San Antonio deposits.
- Continued the Boda drilling program with mobilization of a second rig to site. Results received (see ASX Announcements 11 November and 18 December 2020) show a sub-vertical elliptical zone of significant gold-copper mineralisation, indicative of a large alkalic porphyry system of 400 metres width that is over 1,000 metres of north-south strike length, and more than 1100 metres vertically.
- Execution of facility documentation with Macquarie Bank Limited to provide a A$20,000,000 working capital facility (see ASX Announcement 17 December 2020).
- On 31 December 2020 the company’s cash, bullion, and listed investments totalled A$82.3 million, with A$33.3 million in cash, bullion on hand at a fair value of A$2.7 million and A$46.3 million of listed investments at market value.
- Guidance for FY2021 increased to 47,000 to 52,000 oz at an AISC of A$1,450 to A$1,600 per ounce
