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Image: Alkane Resources

An outstanding performance at Alkane’s Tomingley gold operations in New South Wales has formed the basis of the company’s record profit after tax of $70.3 million for FY22.

The excellent production and cost performance at Tomingley resulted in 66,802 ounces of gold produced, up by 17 per cent, at an all-in sustaining cost of $1460 per ounce.

Also making a difference was the change to the accounting classification of the investment in gold exploration company Genesis Minerals.

During the year Genesis Minerals shares to the value of $53m were sold at a substantial gain over Alkane’s cost base. The accounting treatment was changed during the period, resulting in a one-off $48.3m derecognition gain of equity investment.

As at June 30, the company’s cash, bullion and listed investments totalled $124.2m, which included $77.9m in cash, $8.2m of bullion on hand at fair value, and $38.1m of listed investments at market value.

Alkane managing director Nic Earner said delivering solid production alongside exploration success was the company’s goal and it was proud of its achievements in FY22.

“In particular, upgrades in the resource at Roswell and the initial Boda resource of over 10m equivalent gold ounces are standout milestones,” he said.