Alkane Resources (ALK) H1 2025 earnings summary

Executive summary

• Net profit after tax for the half-year ended 31 December 2024 was $13.16 million, up from $12.43 million year-over-year, driven by higher gold prices and increased production volumes.

• Tomingley Gold Operations produced 33,270 ounces of gold, a 14–15% increase from the prior year, with improved recovery rates and higher-grade ore processed.

• Major capital projects, including a new flotation and fine-grinding circuit and a paste plant, were commissioned, completing the current phase of capital growth.

• Profit growth was driven by higher gold sale prices and increased production at Tomingley.

Financial highlights

• Revenue rose to $121.5 million from $89.1 million year-over-year, reflecting higher gold sales and record-high average gold prices of $3,498/oz.

• All-in sustaining cost (AISC) increased to $2,598/oz from $2,177/oz, mainly due to higher input costs and capital expenditure.

• Operating cash flow was $29.7 million, with net cash used in investing activities of $53.4 million, primarily for property, plant, equipment, and development.

• Cash and cash equivalents at period end were $35.0 million, down from $45.5 million at 30 June 2024; cash, bullion, and listed investments totaled $42.4 million.

• Total assets increased to $488.4 million, with net assets of $184.4 million.

Outlook and guidance

• Commissioning of the paste plant and flotation circuit is expected to further improve gold recovery and operational efficiency in the March 2025 quarter.

• Exploration programs at Tomingley and the Northern Molong Porphyry Project are ongoing, with drilling results anticipated in early to mid-2025.