Tomingley beats full year guidance

23rd July 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – ASX-listed Alkane Resources has exceeded its production guidance for the full year ended June, despite gold production in the fourth quarter declining slightly.

Alkane this week reported that gold production at its Tomingley mine reached 13 500 oz during the June quarter, compared with the 16 040 oz poured in the March quarter, with gold sales declining from 15 844 oz to 11 526 oz, resulting in revenues declining from A$34.9-million to A$27.7-million.

For the full year to June, Alkane produced 56 958 oz of gold, which was above the guidance of between 50 000 oz and 55 000 oz, with all-in sustaining costs (AISC) reaching A$1 320/oz, also below the guidance of between A$1 400/oz and A$1 550/oz.

For the 2022 financial year, Alkane has set a production target of between 55 000 oz and 60 000 oz at Tomingley, at an AISC of between A$1 450/oz and A$1 600/oz.

The company is working on implementing the Tomingley gold extension project, which will incorporate the Roswell and San Antonio resources as part of an expanded Tomingley operation, which will extend the mine’s life until at least 2031.

Between 2022 and 2023, the Tomingley mine is expected to produce some 50 000 oz/y to 60 000 oz/y, with production increasing from 60 000 oz/y through to 2024, and reaching between 100 000 oz/y and 115 000 oz/y for 2025 to 2027. Production between 2028 and 2031 will reach between 55 000 oz/y and 65 000 oz/y.