BHP and Alkane Resources have released strong quarterly results.
BHP reports that it is on track to meet 2023 production guidance for iron ore, metallurgical coal and energy coal. Strong performance from Olympic Dam and Pampa Norte are expected to be toward the upper end of their production targets, while BHP Mitsubishi Alliance is expected to be at the bottom of its range.
The Western Australia Iron Ore operation achieved record production of 212.6 million tonnes for the nine-month period, with no significant damage or reported injuries due to Tropical Cyclone Ilsa.
Also in the quarter, OZ Minerals shareholders voted to approve the scheme of arrangement for BHP to acquire 100 per cent of OZ Minerals’ shares. The takeover is expected to be implemented in early May.
Alkane reported steady results from its Tomingley gold operations near Dubbo, NSW. Site operators produced 16,461 ounces of gold to meet the forecast for the quarter, with operating cash costs of $990 per ounce.
These quarterly results bring year to date production to 54,431 ounces of gold at an all-in sustaining cost (AISC) of $1446 per ounce.
Alkane clocked $53.4 million in gold sales for the quarter, sold at an average price of $2,787 per ounce.
Thanks to the strong quarterly results, 2023 targets for Tomingley have increased to 65,000 to 73,000 ounces (up from 62,000 to 70,000).
Alkane also has an extension project in the works for Tomingley, which was approved by the NSW Minister for Planning in February. The approval allows for open cut and underground mining at two additional prospects, Roswell and San Antonio.
The extension underpins the expected lift of gold production rates at Tomingley to roughly 100,000 ounces of gold per annum during 2025.
Alkane has continued exploration of the Kaiser deposit at its Northern Molong porphyry project near Dubbo.
In an ASX announcement in late February, Alkane announced a mineral resource estimate for kaiser of 270 million tonnes grading at 0.54 grams per tonne of gold equivalent, or 2.05 million ounces (Moz) of gold and 0.48 million tonnes of copper.