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Highlights
- Profit after tax rises 6% to A$13.1 million, driven by higher gold prices and production.
- Gold sales surge 14%, boosting revenue by 36% to A$121.5 million
- Expansion efforts continue at Tomingley and Boda-Kaiser projects with new drilling programs.
Alkane Resources (ASX:ALK) has posted an impressive financial performance for the half-year ending December 31, 2024, with a profit after tax of A$13.1 million, marking a 6% increase compared to the same period last year. The growth was fueled by a rise in gold prices and enhanced production at the Tomingley Gold Operations (TGO) in New South Wales.
Revenue Growth and Operational Performance
Gold revenue surged to A$121.5 million, reflecting a 36% increase, while gold sales rose by 14% to 34,785 ounces. This was supported by a higher average gold price of A$3,498 per ounce, up 20% from the previous period. Additionally, profit before tax at TGO increased by 11% to A$22.6 million.
At the end of the period, Alkane had total cash, bullion, and listed investments valued at A$42.4 million, comprising A$35 million in cash, bullion worth A$4.5 million, and listed investments totaling A$2.9 million.
Tomingley Gold Operations Expanding
TGO, located near Tomingley in Central West New South Wales, has been operational since 2014. During the half-year, mining focused on four key gold deposits: Wyoming One, Caloma One, Caloma Two, and Roswell.
A major milestone was the commissioning of the flotation and fine-grinding circuit in December 2024, which improved gold recovery rates by approximately 5%, reaching 87.3%. This new circuit is expected to enhance future performance as further optimizations take place.
In addition, the paste plant commenced commissioning in December, with the first underground paste delivered in January 2025. This plant plays a crucial role in supporting underground mining operations. Key infrastructure projects were also completed, including an internal access road and pipeline corridor from Caloma Two to Roswell.
Ongoing Exploration at Tomingley and Boda-Kaiser
Exploration efforts continue at Tomingley, particularly south of the existing mine, with drill testing underway at San Antonio. A high-definition drone magnetic survey and aircore drilling covering 17,000 meters were conducted to explore new mineralization zones.
Meanwhile, at the Boda-Kaiser project, part of the Northern Molong Porphyry Project (NMPP), Alkane is advancing studies on mining potential while conducting environmental assessments. A 4,000-meter RC drilling program started in December to explore new targets, with a diamond core drilling program set to follow. The company also completed 16 water bores for groundwater monitoring, providing valuable data for future development.
With strong financial results, increased production efficiency, and ongoing exploration success, Alkane Resources is positioning itself for further growth in the gold sector.
