The Tomingley Gold Operation (TGO) hit its FY15 production target and mining has followed plans with production reconciling well with resource models. Coupled with a significantly weaker Australian dollar and well managed costs, the TGO generated A$23.7m in cash flow in FY15 (after operating and development costs), A$15m of which was invested straight back into the Dubbo Zirconium Project (DZP). In our view, the market’s slight negative reaction to Alkane’s Q4 results relates to a broad pessimism towards commodities and a view on quarterly financials rather than considering the full-year performance data – which shows the TGO to be a solid, profitable gold mine operating in line with expectations.
