Source: The Gold Report 06/29/2017
With gold production progressing better than expected, this miner has revised its guidance for FY/17.
In a June 27 news release, Alkane Resources Ltd. (ALK:ASX; ANLKY:OTCQX) announced that “the release of higher grade ore, particularly from the Caloma and Caloma Two pits, and generally clear weather” led to “gold production of over 17,000 ounces across April and May” at its Tomingley Gold Operation (TGO). The results allowed Alkane to upgrade its H2 FY/17 guidance from 31,00036,000 ounces to 43,00045,000 ounces and revise its full-year guidance for 2017 “to production of 65,00067,000 ounces at an AISC of A$1,300A$1,400.” In July full details of the revisions will be released with the quarterly report.
Edison Investment Research analyst Tom Hayes stated in a June 27 report that “Alkane’s strong H2 production performance at the TGO has also led the company to revise its full-year FY17 production guidance to 65-67koz Au at all-in sustaining costs of between A$1,300/oz and A$1,400/oz. This is 12% above our TGO gold production estimate for FY17 of 58koz, and slightly ahead of our AISC estimate for FY17 of A$1,469/oz.”
“This positive H217 production performance sees Alkane finishing FY17 with a flourish, after a difficult H117 dominated by intense periods of rainfall, which negatively affected gold mining at the TGO,” Hayes stated. He also highlighted that the higher pit grade reconciliations “bode well for the extensive exploration being undertaken over the TGO to test and increase confidence in underground resource sections.”
“We expect to revise our base case valuation for the TGO, and Alkane’s shares, pending its release of formal revised underground mine plans for the TGO, sometime towards the end of H118 (H2 CY17). This will follow the completion of current drilling activities and a revised resource and reserve statement for the TGO,” Hayes concluded. Alkane is currently trading at $0.24 per share.
Read what other experts are saying about:
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Alkane Resources Ltd. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.
( Companies Mentioned: ALK:ASX; ANLKY:OTCQX,
from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17533