Interview with Nic Earner, CEO of Alkane Resources (ASX:ALK)

Recording date: 18th September 2023

Alkane Resources Managing Director, Nic Earner, provided an update on the Australian gold miner in an interview at the Denver Gold Forum conference. Alkane currently operates the Tomingley Gold Mine in New South Wales, which produced around 70,000 ounces in 2021 at an all-in sustaining-cost under A$1,600/oz.

Looking ahead, Earner expects Tomingley production to increase in 2022 and costs to rise to A$1,750-2,100/oz. This reflects inflationary pressures in Australia on items like power, fuel, steel, and reagents. Earner believes cost increases of around 30% represent a new baseline for the Australian gold sector.

Alkane is using cash flow from Tomingley to advance exploration at its Boda-Kaiser copper-gold porphyry project, also in New South Wales. Boda-Kaiser currently hosts about 15 million ounce gold equivalent resources. Upcoming catalysts include a resource upgrade at Boda expected this quarter and initial resources at Kaiser in Q1 2023.

To fully realize Boda-Kaiser’s value, Alkane is considering strategic partnerships, minority investments, or even a potential split into separate gold and copper-focused entities. Earner believes Alkane’s track record of exploration success and experience in project development position it strongly.

The goal remains growing Tomingley’s production profile while advancing Boda-Kaiser to be construction-ready around 2026. This is expected to transform Alkane into a major dividend-paying gold producer. In the interim, Earner stressed profitable gold production and exploration success as key pillars to attracting investors seeking leverage to the upside.