Alkane Resources Ltd (ASX:ALK) has reported a first-half revenue of $93.5 million, a 22% increase from a year earlier, boosted by higher gold production and an increase in the price of the yellow metal.
Net profit after tax attributable to shareholders was $24.7 million, 49% lower than the year-earlier’s $48.5 million, which included a one-off $48.3 million net gain from the reclassification of Alkane's investment in Genesis Minerals (ASX:GMD) Ltd shares.
Excellent production
The company’s Tomingley Gold Operation produced 37,790 ounces of gold at an all in sustaining cost (AISC) of $1,256 per ounce during the six months to December 2022, compared to 29,076 ounces produced in the prior-year period.
Gold recovery of 85.9% was in line with the expectations when compared with the 83.7% reported at the end of June 2022.
The average sales price increased to $2,582 per ounce from $2,472 a year earlier, while gold sales amounted to 36,199 ounces against 31,113 ounces in December 2021.
Gold play
Alkane Resources aims to become Australia’s next multi-mine gold producer.
As of the end of last year, the company had $86.1 million in cash, bullion on hand at fair value of $12.7 million and $20.9 million in listed investments.
It has been operating Tomingley since 2014 and is currently expediting a development pathway to extend the mine’s life beyond 2030.
Its most advanced exploration projects in the tenement area between Tomingley and Peak Hill have the potential to provide additional ore for Tomingley’s operations.
Strong gold-copper results have also been returned from the Northern Molong Porphyry Project, including the Boda discovery, to the northeast of Tomingley.