Multi commodity miner and explorer, Alkane Resources (ASX: ALK) has released its quarterly activities report to 30 September 2018.
Production at Tomingley Gold Operations was in line with forecast at 15,634 ounces, with gold sales totalling 6,656 ounces generating revenue of A$11.4M at an average price of A$1,720/ounce.
During the quarter Alkane announced it had made an investment into gold exploration company Calidus Resources Limited (ASX:CAI) and approved an investment into gold exploration company Explaurum Limited (ASX:EXU) subject to Explaurum shareholder approval.
The Group’s cash and bullion position totalled A$82.4M, with A$59.6M in cash and bullion on hand at fair value of A$22.8M, an increase of A$2.4M from the previous quarter.
Highlights are pasted below and the full quarterly can be found here:
Tomingley Gold Operations
- Development of the underground operation has been approved and execution has commenced.
- Quarter Results
- Gold production was in line with forecast at 15,634 ounces.
- Site operating cash costs were A$763/ounce with AISC of A$972/ounce.
- Gold sales were 6,656 ounces for revenue of A$11.4M at an average price of A$1,720/ounces
- Guidance for FY19 is unchanged at production of 30,000 to 35,000 ounces of gold at an AISC of A$1,300 to A$1,400 per ounce. Included in this is budgeted expenditure of $5M on rehabilitation for which provision in Alkane’s accounts has already been made.
Corporate
- The Group’s cash and bullion position totalled A$82.4M, with A$59.6M in cash and bullion on hand at fair value of A$22.8M, an increase of A$2.4M from the previous quarter.
- In accordance with its strategy of investing part of its cash balance in junior gold companies and projects that meet its investment criteria the company has:
- Made an investment into gold exploration company Calidus Resources Limited (ASX:CAI).
- Approved an investment into gold exploration company Explaurum Limited (ASX:EXU) subject to Explaurum shareholder approval.
Dubbo Project
- Financing effort continues as global supply uncertainty remains:
- The United States has imposed tariffs on Chinese zirconium chemicals and powders.
- Ferro-niobium demand is increasing as steel companies are looking to substitute ferro-vanadium, which is facing short supply and rapidly escalating prices.
- China’s rare earth permanent magnet industry continues to forecast increasing demand.
Exploration
- Continued grade and mineralised intercepts in the extensive regional exploration program that is underway around TGO. This program has the objective of defining additional resources that have the potential to be mined either via open pit or underground operations and fed to TGO.