Alkane Resources Ltd (ASX:ALK) has delivered a record A$70.3 million profit after tax and reported A$165 million in revenue in spite of a turbulent year for gold stocks.
The ASX-lister, which is jostling to become Australia’s next multi-mine gold producer, chalked up the win with a strong performance at its Tomingley gold operations in Central West NSW, where it produced nearly 67 million ounces over FY22.
That figure is a near 10-million-ounce improvement on the FY21 figures, meaning Alkane reported a 17% increase in production over the last financial year.
Sales were stronger, too — the gold stock sold just shy of 67,000 ounces: 20% more than it did in FY21.
All in all, a 29% uplift in revenue, as well as stronger gold production and sales metrics, amalgamated in a A$62 million profit before tax at Tomingley — 8% higher than the previous financial year.
This fed into the record A$70.3 million profit after tax, which Is 26% higher than the A$55.7 million notched in FY21.
Alkane’s key financial results:
“Solid production alongside exploration success”
Commenting on the record profit, Alkane managing director Nic Earner said the company was pleased to deliver this strong result for shareholders.
“Delivering solid production alongside exploration success is our goal and we are proud of our achievements in FY22,” Earner explained.
“In particular, the upgrade in the resource at Roswell and the initial Boda resource of over 10 million equivalent gold ounces are standout milestones.
“Alkane’s board and management acknowledge and thank the employees and contractors of the company for their continued commitment to safety, production and exploration performance,” he concluded.
Big picture
Alkane has been operating at Tomingley since 2014 and is currently expediting a development pathway to extend the project’s mine life beyond 2030.
Beyond the flagship gold camp, it also controls several highly prospective gold and copper tenements, the most advanced of which could provide more ore for Tomingley down the line.
As it continues to explore its landmark Boda property, Alkane has one goal in mind: to consolidate Central West New South Wales’ reputation as a major gold production region.