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Australian gold producer Alkane delivers record net profit of A$70.3 million in FY22

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(Kitco News) - Australia-focused gold miner Alkane Resources (ASX: ALK) announced today that for the year ended 30 June 2022 (FY22), the company generated record profit after tax of A$70.3 million, an increase of 26% compared to FY21 (A$55.7 million).

The company said that this record result was driven by a strong performance at the Tomingley Gold Operations, and the change to the accounting classification of the investment of Genesis Minerals Ltd.

Alkane added that the excellent production and cost performance at Tomingley resulted in 66,802 ounces of gold produced (FY21: 56,958 ounces) at an all-in sustaining cost (AISC) of A$1,460 per ounce (FY21: A$1,320 per ounce).

The company also noted that during the year, Genesis Minerals Ltd shares to the value of $53.0M were sold at a substantial gain over Alkane’s cost base, adding that Genesis Minerals Ltd accounting treatment was changed during the period resulting in a one-off $48.3M derecognition gain of equity investment.

As at 30 June 2022, the company’s cash, bullion and listed investments totalled A$124.2 million, which included A$77.9 million in cash, A$8.2 million of bullion on hand at fair value, and A$38.1 million of listed investments at market value.

Managing Director Nic Earner stated, “We’re pleased to deliver this strong result for shareholders. Delivering solid production alongside exploration success is our goal and we are proud of our achievements in FY22. In particular, the upgrade in the resource at Roswell and the initial Boda resource of over 10 million equivalent gold ounces are standout milestones.

“Alkane’s Board and management acknowledge and thank the employees and contractors of the company for their continued commitment to safety, production and exploration performance.”

The company’s current gold production is from the Tomingley Gold Operations in Central West New South Wales, where it has been operating since 2014 and is currently expediting a development pathway to extend the mine’s life beyond 2030. Alkane’s exploration success includes the landmark porphyry gold-copper mineralization discovery at Boda in 2019.

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