Tomingley Exceeds FY2021 Production Guidance - Alkane Resources Ltd
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Tomingley Exceeds FY2021 Production Guidance

Alkane is pleased to announce its Tomingley Gold Operations in central west New South Wales has exceeded its FY2021 production guidance of 50,000oz to 55,000oz. This guidance was upgraded in April from original full year guidance of 45,000oz to 50,000oz. The exceedance is primarily due to the grade of material processed being higher than forecast.

Key points

  • Tomingley Gold Operations has exceeded FY2021 production guidance, which was upgraded after the March 2021 quarter.
  • FY2021 gold production was 56,958oz (guidance 50,000oz to 55,000oz).
  • FY2021 preliminary AISC was $1,320/oz (guidance $1,400/oz to $1,550/oz).
  • Group unaudited cash, bullion and listed investments position at 30 June 2021 totalled A$73.9M.
  • FY2022 production guidance for Tomingley is 55,000oz to 60,000oz at an AISC of $A1,450/oz to $1,600/oz.

Tomingley produced 56,958oz of gold for the 12 months to 30 June 2021, with preliminary all in sustaining costs (AISC) of $1,320/oz, which fell below the Company’s cost guidance of $1,400/oz to $1,550/oz, for the same period. The strong 12-month performance at Tomingley has coincided with the finalisation and release of the updated Life Of Mine plan (ASX Announcement 3 June 2021) that extends the Tomingley Gold Operations to at least 2031.

The Group’s unaudited cash, bullion and listed investments position at 30 June 2021 totalled A$73.9M, comprising $19.0M cash, $7.7M of bullion in hand and $47.2M of listed investments. Alkane also has $20M in undrawn credit approved facilities.

Alkane’s guidance for FY2022 gold production from Tomingley is 55,000oz to 60,000oz, at an AISC of A$1,450/oz to A$1,600/oz.

Alkane Managing Director, Nic Earner, said: “Tomingley continues to meet or exceed our expectations, demonstrating why it is a great asset managed by a highly professional and committed Operations team. With an updated mine plan that extends the life of Tomingley to at least 2031, at increased production rates, we remain buoyant about the longer-term prospects both at Tomingley and at our Boda exploration tenements. Alkane’s Board and management acknowledge and thank the teams at Tomingley and in Exploration for their strong and continued safety, production and discovery performance.”