Alkane cashed up, meets Tomingley guidance and sees rising rare earths prices - Alkane Resources Ltd
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Alkane cashed up, meets Tomingley guidance and sees rising rare earths prices

Multi-commodity miner and producer, Alkane Resources (ASX: ALK), has achieved excellent operational performance at Tomingley Gold Operations (TGO) in the June quarter with 19,1365 ounces of gold produced, taking full year production to 78,533 ounces of gold produced and meeting full year guidance.

TGO continued to generate strong cash flow for the quarter at A$16 million, taking full year cash flow to A$60.1 million. Quarterly gold sales generated revenue of A$33.2 million at an average price of A$1,735 per ounce.

Planning for underground operations continues with the appointment of a project manager to confirm the development economics and prepare a detailed execution plan for an investment decision by December 2018.

Alkane’s Dubbo Project remains construction ready and an update on the engineering, development and financials was released during the quarter. Key points of this update (released 4 June to ASX) can be found in the quarterly.

Alkane continues to work towards securing financing for the project, with the key focus on securing offtake contracts for both its products and a resultant strategic investor in the project.

Trade tensions between the US and China have heightened concerns over China’s monopoly on rare earths and zirconium chemicals. The need for alternative western supplies of these technology metals is playing a central role in Alkane’s discussions with companies regarding offtake and/or investment in the project.

Rare earths magnet prices have continued to strengthen in the past quarter as Chinese authorities continue their efforts to stamp out illegal mining and processing of rare earths across the country.

Alkane’s current cash and bullion position totals A$80 million, with A$72 million in cash. The group is debt free.

Read the Quarterly Activities Report to 30 June 2018