Page 18 - gmj140-Jul-Sept-mag-web_Neat

COVER

Find, enhance,

deliver:

Alkane Resources

by Mark Andrews

It was April 2014 when Alkane Resources Ltd last featured as the cover story of GMJ.

t the time, Dr Ian Chalmers was managing director because TGO has always been the cash cow for Alkane’s
Aand the company was emerging from the gold mining grander ambitions, namely the integrated Dubbo rare
wilderness, as GMJ was among a group of media, analysts earths project.
and investors invited to see the Tomingley gold operation Alkane had designs on bankrolling part of the $1 billion
(TGO) in full flow. Dubbo project with cash flow from TGO; a 1 mtpa, 7.5-year
Prior to the visit, Alkane had celebrated first gold from TGO operation that was built on the budgeted $116 million capex,
and was guiding production of 50,000 ozpa to generate with no debt legacies.
$20-25 million cash flow at $1,000/oz. A glance at Alkane’s corporate structure today shows the
Since then, open pit production to 2019 from TGO has company is still free of debt and has about $70 million in
totalled 369,000oz gold at AISC of $1,192/oz, with Alkane cash and gold bullion, while its share price of over $1/share
guiding 30,000-35,000oz in FY2020. and market cap of $600 million are reflective of the blue sky
Despite its cash generating credentials, TGO has not been gold potential in its portfolio.
given the external recognition it deserves. This is perhaps “To be honest, I think people started to notice that Tomingley

Page 18