Quarterly Activities Report to 31 December 2017 - Alkane Resources Ltd
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Quarterly Activities Report to 31 December 2017

Dubbo Project (DP)

  • Hafnium oxide exceeding 99.8% HfO2, and 99.9% (Hf+Zr)O2, was produced using a proprietary process to separate hafnium from zirconium at the demonstration pilot plant at ANSTO.
  • The modularised build study output is being reviewed and incorporated into an updated project execution and financial model, expected to be released in February.
  • Upward price movements in the zirconium chemicals and powders have continued.  Rare earth magnet material prices have returned to their medium term upward trend.

Tomingley Gold Operations (TGO)

  • Continued solid performance sees guidance for the full year lifted to 70,000 to 80,000 ounces of gold at a reduced AISC of A$1,000 to A$1,100.
  • Site operating cash flow for the quarter was A$4.6M1 (YTD: $22.9M) excluding increase in bullion on hand at fair value of $5.7M.
  • Quarter Results
    • Gold production was above forecast at 16,641 ounces.
    • Site operating cash costs were A$840/ounce with all in sustaining costs (AISC2) of A$1,058/ounce.
    • Gold sales 13,184 ounces for revenue of A$22.3M at an average price of A$1,694/ounce.
    • There were no open forward contracts at 31 December 2017.

Corporate

  • The Group’s cash position totalled A$57.7M with A$44.8M in cash and bullion on hand at fair value of A$12.9M, an increase of A$4.4M from the previous quarter.
  • Gavin Smith welcomed to the Board on election by shareholders.

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