Alkane Resources (ALK) 2024 Precious Metals Summit Beaver Creek summary

Business overview and operations

• Operates a gold mine producing 75,000 ounces annually, with plans to ramp up to 100,000–110,000 ounces over five years.

• Holds a large copper-gold porphyry deposit (Boda-Kaiser) with a 15 million ounce equivalent resource.

• Workforce is residential, with most employees commuting from nearby towns.

• Shareholding is mainly retail, with significant management and director ownership.

• Debt position includes AUD 60 million with Macquarie Bank, hedged through mid-2027.

Gold mine development and expansion

• Gold mine transitioned from open cut to underground, with current all-in sustaining costs at AUD 2,400/oz due to expansion.

• Major capital projects include a paste plant, flotation/regrind circuit, and a highway relocation (AUD 50 million) to enable further open cut mining.

• Production is expected to stabilize at 100,000–110,000 ounces annually, with costs normalizing at AUD 2,000/oz.

• Mining approvals extend to 2032, with potential for further extensions and ongoing regional exploration.

• Capital projects at Tomingley include new processing infrastructure, with major construction and commissioning phases scheduled through 2026.

Boda-Kaiser copper-gold project

• Boda-Kaiser resource includes 8 million ounces of gold and 1.5 million tons of copper, requiring large-scale development.

• Scoping Study projects 159,300 oz gold and 35,600 t copper per year (first 5 years), 17+ year mine life, AUD 1.8B pre-production capex, and AUD 4.3B 10-year pre-tax free cashflow.

• Project economics show a one-to-one NPV to CapEx ratio, with a four-year payback and a 24% IRR at current prices.

• Environmental studies and baseline data collection are underway, with a DFS and environmental impact statement targeted in three years.

• Engaging with potential partners for project development due to the AUD 1.8 billion capital requirement.