Alkane Resources (ALK) H2 2024 earnings summary

Executive summary

• Delivered profit after tax of A$17.7 million for FY2024, down 58% year-over-year, primarily due to lower gold production and higher costs despite a higher average gold price.

• Gold production was 57,217 ounces, a 19% decrease from the prior year, with sales of 57,592 ounces at an average price of A$3,004/oz, up 11% year-over-year.

• Transitioned to mining the Roswell underground deposit, with the Tomingley Gold Extension Project advancing and new processing infrastructure nearing completion.

Financial highlights

• Revenue from ordinary activities was A$172.99 million, down 9.2% year-over-year.

• Gross profit was A$34.6 million, with a gross margin of 20% (down from 37% in FY2023).

• All-in sustaining cost (AISC) rose to A$2,137/oz from A$1,602/oz year-over-year.

• Cash, bullion, and listed investments totaled A$54.5 million at year-end.

• Net tangible assets per share increased to 34.46 cents from 23.05 cents year-over-year.

Outlook and guidance

• Five-year plan targets production growth from 55,000 oz in FY24 to 100,000–110,000 oz in FY29, with AISC expected between A$1,900–A$2,100/oz.

• Commissioning of new paste plant and fine grinding circuit expected in Q4 2024.

• Ongoing exploration and evaluation to secure additional ore feed and expand the tenement portfolio.