Alkane Resources Ltd (ASX:ALK) has delivered profit after tax of A$55.7 million for the 2021 financial year, a result driven by its Tomingley Gold Operations (TGO) performance and the highly successful demerger of Australian Strategic Metals (TSX-V:SMD) Ltd.
In its latest annual report for the period ending June 30, the company said the “excellent” production and cost performance at the TGO in Central West NSW resulted in 56,958 ounces of gold produced at an all-in sustaining cost (AISC) of A$1,320 per ounce.
The demerger and listing of Australian Strategic Materials resulted in a profit after tax for Alkane of $22.1 million.
ASM’s market capitalisation went on to rise through $1 billion at the end of the financial year and is now in excess of $1.5 billion.
As at June 30, 2021, the company’s cash, bullion and listed investments totalled A$73.9 million, with A$19 million in cash, bullion on hand at fair value of A$7.7 million and A$47.2 million of listed investments at market value.
Tomingley Gold Operations
Tomingley Gold Operations is a wholly owned subsidiary of Alkane and is near the village of Tomingley around 50 kilometres southwest of Dubbo.
The gold processing plant was commissioned in January 2014 and has been operating at the design capacity of 1 million tonnes per annum since late May 2014.
Mining is based on four gold deposits - Wyoming One, Wyoming Three, Caloma One and Caloma Two - and the company is progressing approvals to extend operations to the south at the Roswell and San Antonio deposits.
TGO extension project
The gold stock has started the approval process for this development as consultations with regulators, landholders and other stakeholders, as well as on-ground assessments needed for the Environmental Impact Statement (EIS), continue.
The EIS is being prepared for submission in the current quarter with expected timing of project approval being mid‐2022.
An extensive exploration program focused on the immediate area to the south of the Tomingley mine has also continued as part of the plan to source additional ore feed, either at surface or underground.
Exploration is also ongoing at the Boda gold-copper discovery to the northeast of TGO.