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Alkane profit falls in FY17

30th August 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Alkane Resources has faced a tough year, with the company reporting an after-tax loss of A$28.9-million for the year ended June, compared with a profit of A$4.6-million in the previous financial year.

The loss was reported on the back of a A$39.9-million impairment, which resulted from the significant and prolonged impact of weather conditions on the operations and performance of the Tomingley gold mine, in New South Wales, as well as revisions to the life-of-mine plan.

Despite the severe weather conditions, production at the Tomingley mine exceeded the upgraded guidance at 68 836 oz, with all-in sustaining costs (AISC) reported at A$1 335/oz.

Gold sales reached 69 929 oz, and with the average sales price for the period some A$73/oz higher than 2016, revenue for the full year increased by 7%, to A$117.8-million.

For 2018, the Tomingley operation is expected to produce between 65 000 oz and 70 000 oz, with AISC likely to reach between A$1 100/oz and A$1 200/oz.

Edited by Creamer Media Reporter

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