Nic Earner, Managing Director of Alkane Resources Ltd (ASX:ALK, OTC:ALKEF), provided an overview of the company's operations and financial status at the Proactive One2One Investor Forum.
Alkane, listed in 1981 and incorporated in 1967, operates primarily on the East Coast of Australia. The company has consistently met its production guidance for the past decade and has a solid track record in exploration and production.
Alkane's current projects are concentrated around their gold mine located between Dubbo and Parkes, New South Wales. The mine, which started operations in 2014, employs around 230 people and has a production guidance of 60-65,000 ounces of gold this year. The company has recently expanded its operations to include new gold discoveries to extend the mine's life until 2032 and increase production rates.
Financially, Alkane has a market capitalization of approximately £180 million and had $35 million in cash and bullion at the end of the last quarter, along with a $60 million debt facility. The company uses hedging to manage price risks and ensure debt repayments.
Alkane also invests heavily in exploration, spending about $20 million annually to discover new resources. One of their significant projects is the Northern Molong Porphyry Project, which has a resource estimate of over 8 million ounces of gold and 1.5 million tonnes of copper.