{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Company Interviews","title":"Alkane Resources (ASX:ALK) - Australian Gold Producer Targeting 100,000oz","html":"","width":"100%","height":180,"duration":1971,"description":"Interview with Nic Earner, Managing Director of Alkane Resources Ltd.Our previous interview: https://www.cruxinvestor.com/posts/alkane-resources-asxalk-gold-production-growth-exploration-upside-in-top-mining-jurisdiction-5395Recording date: 28th June 2024Alkane Resources (ASX:ALK), an established Australian gold producer, is embarking on an ambitious expansion of its Tomingley Gold Operations in New South Wales. The company aims to increase annual gold production from its current level of 60,000 ounces to 100,000 ounces by 2026, representing a significant 67% boost in output.The expansion plan, outlined by Managing Director Nic Earner, involves a comprehensive A$132 million investment program. This includes underground development of newly discovered deposits south of the existing mine, new open pit operations, and upgrades to processing facilities. A key component of the expansion is the relocation of a national highway, highlighting the scale and complexity of the project.Financially, Alkane is well-positioned to execute this growth strategy. The company has secured a A$60 million debt facility, which it plans to upsize to A$110 million. Importantly, Alkane expects to fund a significant portion of the expansion through operating cash flows. Earner projects potential free cash flow generation over the next five years at current gold prices, after accounting for expansion costs.From a cost perspective, Alkane anticipates all-in sustaining costs (AISC) to average around A$2,000 per ounce (US$1,300-1,350) over the next five years. While costs are expected to be higher in the initial years due to increased development activities, they are projected to decrease below this average in later years, potentially enhancing profit margins.The current resource base supports a mine life extending to 2032, but Alkane sees potential for further extensions. The company is actively exploring both near-mine and regional targets, allocating A$10 million annually to these efforts....","thumbnail_url":"https://img.transistorcdn.com/1wv-MFlQAgnm-ca64e5kK4984dZB0os8-HJdRVsI74M/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9zaG93/LzEzNTcyLzE2MjM5/NTQyMDctYXJ0d29y/ay5qcGc.webp","thumbnail_width":300,"thumbnail_height":300}