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 at Tomingley.

• Gold revenue rose 36% to $121.5 million, with gold sales of 34,785 ounces at an average price of $3,498/oz.

• 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.

• No dividends were paid or declared for the period.

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, bullion, and listed investments totaled $42.4 million at period end.

• Net tangible assets per share increased to 35.65 cents from 23.11 cents.

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.

• Capital expenditure phase largely complete, with focus shifting to operational optimisation.