ANNUAL REPORT
2022
Company Information
Auditor
PricewaterhouseCoopers
Brookfield Place
125 St Georges Terrace
Perth WA 6000
Securities exchange listings
Ordinary fully paid shares
Australian Securities Exchange (Perth)
ASX code: ALK
Contact
alkane.com.au
mail@alkane.com.au
ACN 000 689 216
ABN 35 000 689 216
Directors
I J Gandel
N P Earner
D I Chalmers
A D Lethlean
G M Smith
(Non-Executive Chairman)
(Managing Director)
(Technical Director)
(Non-Executive Director)
(Non-Executive Director)
Joint Company Secretaries
D Wilkins
J Carter
Registered office
and principal place of business
Level 4
66 Kings Park Road
West Perth WA 6005
Telephone: 61 8 9227 5677
Share register
Automic Pty Ltd
Level 5
126 Phillip Street
Sydney NSW 2000
Disclaimer
This report contains certain forward-looking statements and forecasts, including possible or assumed reserves and resources, production levels
and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth or other trend projections. Such
statements are not a guarantee of future performance and involve unknown risks and uncertainties, as well as other factors which are beyond
the control of Alkane Resources Ltd. Actual results and developments may differ materially from those expressed or implied by these forward-
looking statements depending on a variety of factors. Nothing in this report should be construed as either an offer to sell or a solicitation of an
offer to buy or sell securities.
This document has been prepared in accordance with the requirements of Australian securities laws, which may differ from the requirements
of United States and other country securities laws. Unless otherwise indicated, all Ore Reserve and Mineral Resource estimates included
or incorporated by reference in this document have been, and will be, prepared in accordance with the JORC classification system of the
Australasian Institute of Mining and Metallurgy, and Australian Institute of Geosciences.
Contents
About Alkane
Annual Highlights
Chairman’s Message
Business Review
Tomingley
Boda
Exploration
4
6
8
9
10
12
14
Mineral Resources and Ore Reserves
21
Sustainability Report
Sustainability at Alkane
Governance
Our People
Communities
Environment
27
28
30
33
44
50
Financial Report
Directors’ Report
Auditor’sIndependenceDeclaration
57
58
76
77
FinancialStatements
ConsolidatedFinancialStatements
79
Notes to the Consolidated Financial Statements 83
Directors’Declaration
Independent Auditor’s Report
Additional Information
ShareholderInformation
Corporate Governance Statement
Schedule of Mining Tenements
115
116
121
122
123
124
ANNUAL REPORT ABOUT ALKANE
About Alkane
Boda
Alkane Resources Ltd is the parent
entity of the Alkane group. We are a gold
exploration, development and production
company, with projects and operations
primarily located in the Central West
region of New South Wales.
We own and operate Tomingley Gold
Operations, southwest of Dubbo, and
hold several highly prospective gold and
copper tenements in the region. Our
Boda deposit, east of Dubbo, has the
potential to be a large, tier-one gold-
copper project.
Alkane is listed on the Australian
Securities Exchange (ASX:ALK) and
headquartered in Perth, Western
Australia. Our exploration team is based
in Orange, NSW.
4
N
Perth
Dubbo
Boda
Tomingley
Gold Operations
Orange
Alkane Resources Annual Report 2022 Our Values
Mission Statement
ANNUAL REPORT ABOUT ALKANE
Alkane strives to discover
economic mineral deposits
and release their value
through sustainable
development or transaction.
Our approach is technically
conservative, with any
financial risks carefully
considered.
Integrity
We do what’s right in our
actions and relationships.
Respect
We treat people and the
environment with care.
Transparency
We are proactive in
communicating our intent
and outcomes.
Performance
We plan and execute to
deliver strong business
results.
ANNUAL REPORT ANNUAL HIGHLIGHTS
Annual Highlights
Corporate
Record profit after tax of
$70.3M
(26% increase from FY21)
Cash, Bullion and listed
investments of
$124.2M
at 30 June 2022
6
Gold revenue of
$165M
66,883 ounces
gold sold at
$2,467per ounce
(FY21: 55,929 ounces gold sold at $2,286 per ounce)
Alkane Resources Annual Report 2022 ANNUAL REPORT ANNUAL HIGHLIGHTS
Operations
66,802 ounces
gold poured, exceeding guidance
(FY21: 56,958 ounces gold poured)
AISC of A$1,460 per ounce
(FY21: AISC of A$1,320 per ounce)
Operating cashflow of
$86.4M
Poured
500,000th ounce
of gold at Tomingley since 2014
Exploration and Growth
Tomingley Gold Project resources of
1,748,000 ounces
(25.91Mt @ 2.1g/t Au)
Boda initial resource estimate of
10.1 million ounces
gold equivalent
99,147 metres
drilled at exploration prospects
Tomingley Gold Extension Project
Environmental Impact
Statement
through public exhibition
7
Alkane Resources Annual Report 2022 ANNUAL REPORT CHAIRMAN’S MESSAGE
Chairman's Message
On behalf of the Board of Directors,
I present the Alkane Resources Annual
Report to shareholders for 2022.
Alkane has experienced another excellent year. We have achieved a number of significant milestones for our two
major projects at Boda and Tomingley and delivered a record profit after tax of $70.3 million.
Of particular note, we announced an initial resource estimate for Boda of 10.1 million gold equivalent ounces.
The details of this are elsewhere in the report, but I can confidently say this is just the beginning. A large drilling
program has demonstrated the significant potential of the Boda system, with mineralisation extending over more
than three kilometres. We are well advanced in a shallower drilling program at Kaiser that should enable an initial
resource to be confirmed there soon.
We also announced an upgrade to the Roswell resource this year, bringing the combined San Antonio and Roswell
resources to nearly 1.3 million ounces of gold. We stand on the cusp of approval for development of these deposits,
which should support production at Tomingley for at least another ten years. We look forward to delivering on this
potential for our shareholders, employees and other stakeholders.
Tomingley has performed strongly over the past year, exceeding production guidance and pouring its 500,000th
ounce in May. This milestone is a fitting testament to the extended teams that have worked on the project since
the days of discovery in 2001. On behalf of the Board, I extend thanks to our employees, contractors, strategic
partners, consultants and suppliers for contributing to this achievement. Without their considerable efforts and
support we would not be where we are today.
Finally, I wish to draw attention to our inaugural Sustainability Report embedded within this Annual Report.
While Alkane’s approach to sustainability has not changed in principle, we recognise the global shift towards
more comprehensive sustainability reporting and disclosure. As a first step, we have developed an ‘ESG’ Mission
Statement that aligns with newly refined company values, and both broadens and deepens our sustainability
content. The report is structured around four sustainability pillars encompassing the ESG principles of environment,
social and governance. This is intended to be a stepping stone towards establishing a formal framework in the
future.
We are proud of Alkane’s achievements in FY22 and pleased to deliver this strong result for shareholders. It is
satisfying to have succeeded in our goal of delivering strong and safe production alongside a successful exploration
program that is paving the way for Alkane’s future.
I once again thank our Managing Director, Nic Earner, and the entire extended Alkane team and also extend thanks
to our many shareholders and stakeholders for their ongoing support.
Ian Gandel
Chairman
Alkane Resources Ltd
8
Alkane Resources Annual Report 2022
BUSINESS
REVIEW
Tomingley
Boda
Exploration
10
12
14
Tomingley
9
Alkane Resources Annual Report 2022 BUSINESS REVIEW TOMINGLEY
Tomingley
Gold production at Tomingley exceeded guidance in FY22. We continued
to progress approvals for the extension project, which should extend the
life of the asset until at least 2031.
Mining and Production
Tomingley Gold Mine is an open pit and underground
mining development with a 1Mtpa processing facility.
The operation is located near the village of Tomingley,
approximately 50 kilometres southwest of Dubbo
in the Central West region of New South Wales.
Tomingley Gold Operations Pty Ltd is a wholly owned
subsidiary of Alkane.
Mining at Tomingley has been based on the Wyoming
One, Wyoming Three, Caloma One and Caloma Two
gold deposits.
Underground development continued during FY22,
with performance enhanced by a fleet of new equipment,
including a production drill, four loaders, four trucks
and a jumbo. Activities included development of the
previously approved underground exploration drive,
which extends south from Wyoming One towards the
Roswell deposit. In parallel, we continued to mine a
cutback in the northeast of the Caloma One pit.
Tomingley produced 66,802
ounces of gold at an AISC of
$1,460 per ounce.
Both mining operations and the processing plant
performed very well, with recovery as expected.
Production of 66,802 ounces for the financial year
exceeded the guidance of 55,000-60,000 ounces. The
AISC* of A$1,460 per ounce was also below the cost
guidance of A$1,500 to $1,650 per ounce.
This strong performance was underpinned by above-
forecast grades from several areas, as well as great
flexibility by the team to overcome the impacts of
weather and COVID-19. Since commissioning the
processing plant in 2014, Tomingley has met or
exceeded guidance in every year of operation.
FY23 guidance for Tomingley is 55,000-60,000 ounces
production at an AISC of A$1,650 to $1,900 per
ounce.
Tomingley underground portal
*AISC, or All In Sustaining Cost, comprises all site operating costs, royalties, mine exploration, sustaining capex and mine development and an allocation of corporate costs,
presented on the basis of ounces sold.
10
Alkane Resources Annual Report 2022 Tomingley Gold Extension Project
Alkane intends to extend gold mining operations at
Tomingley to include the San Antonio and Roswell
(SAR) resources immediately south of the existing
mine. The life of mine plan incorporating SAR was
announced in June 2021. This plan extends the life
of the Tomingley asset to at least 2031 and shows
production of approximately 745,000 ounces of gold.
Alkane continued to progress approvals for this
NSW State Significant Development throughout
the year, with the Environmental Impact Statement
(EIS) publicly exhibited in March 2022. The NSW
Department of Planning and Environment received a
handful of submissions, which Alkane has responded
to. Project approval is expected in the near future.
Initial Mineral Resources for San Antonio and Roswell
were announced in FY21. Following a recent update
to the Roswell Mineral Resource (refer to pages 17
and 23 of this report), the total SAR resources now
stand at 1,264,000 ounces of gold (19.9Mt at 1.90g/t
Au) (ASX Announcement 9 September 2022).
BUSINESS REVIEW TOMINGLEY
This resource upgrade upholds the life of mine plan,
which discussed the upside potential to extend
Roswell underground and maintain production at over
100,000 ounces of gold a year – not only from 2025,
but beyond 2028.
Total San Antonio and
Roswell (SAR) resources
now stand at 1,264,000
ounces of gold.
500,000th ounce milestone
General Manager Operations Jason Hughes (centre) celebrates the 500,000th ounce poured with the Tomingley management team.
Tomingley poured its 500,000th ounce of gold in May 2022, eight years after plant
commissioning in January 2014. The initial mine plan was to produce 380,000 ounces
from open cut and underground over seven years.
Managing Director, Nic Earner, said:
“On behalf of the Board, I wish to thank our employees and contractors for their
sustained excellence, and our shareholders and other stakeholders for their continued
support of the company.”
11
Alkane Resources Annual Report 2022
BUSINESS REVIEW BODA
Boda
Alkane’s Boda deposit in NSW has the potential to be a large, tier-one
gold-copper project. We announced an initial Mineral Resource estimate
of 10.1 million gold equivalent ounces in May 2022.
Initial Mineral Resource
The Boda deposit is part of Alkane’s Northern Molong
Porphyry Project (NMPP), located in the Central West
region of New South Wales.
Alkane discovered gold-copper porphyry
mineralisation with significant economic potential
at Boda in late 2019. An extensive drilling campaign
has since revealed a large alkalic porphyry system of
at least 500 metres wide, 1,000 metres north-south
strike length and more than 1,100 metres deep.
The initial Inferred Mineral Resource for the Boda
deposit was announced to the ASX on 30 May 2022.
The resource has been estimated at 624Mt with an
average grading of 0.51g/t AuEq* for 10.1 million gold
equivalent ounces (5.21Moz Au, 0.90Mt Cu).
Initial Boda Mineral Resource estimate
The initial Boda resource
has been estimated
as 10.1 million gold
equivalent ounces.
Resource
Category
Inferred
Inferred
AuEq
Cut-off
Tonnes
(Mt)
0.3g/t
0.4g/t
624
353
Grade
Contained Metal
AuEq
(g/t)
Au
(g/t)
0.51
0.63
0.26
0.33
Cu
(%)
0.14
0.18
Ag
(g/t)
0.47
0.55
AuEq
(Moz)
Au
(Moz)
10.1
7.12
5.21
3.72
Cu
(Mt)
0.90
0.62
Ag
(Moz)
9.49
6.24
Complete Mineral Resource tables on page 26.
*The gold equivalent calculation formula is AuEq(g/t) = Au(g/t) + Cu%/100*31.1035*copper price ($/t)/gold price($/oz). The prices used were US$1,770/oz gold and
US$9,750/t copper, and A$:US$0.70. Recoveries are assumed at 85% per economic element from preliminary metallurgical studies. In Alkane’s opinion all the elements
included in the metal equivalents calculation have reasonable potential to be recovered and sold.
12
Alkane Resources Annual Report 2022 BUSINESS REVIEW BODA
Drilling at Boda
This initial Boda resource estimate was confined
to a surface area of 1,000 metres strike length and
500 metres width and calculated to an average -500
metres Relative Level. It is based on 83 drill holes for
approximately 71,400 metres of drilling (52,390m
diamond core, 19,041m RC), using a nominal drill hole
grid of 100 metres by 50 metres to depths averaging
approximately 1,000 metres.
The Mineral Resource estimate has been calculated
for cut-off grades of 0.3g/t AuEq (for potential open
cut mining) and 0.4g/t AuEq (for potential bulk-
tonnage underground mining). These cut-offs were
deemed reasonable based on a review of feasibility
and existing operating data for similar deposits in
Australia (see ASX Announcement 30 May 2022 for
data sources).
Preliminary metallurgical study indicated potential
for two-stage ore processing. The first stage would
produce a copper-gold concentrate for immediate
sale and the second stage produce gold bullion from a
cyanide leach. Preliminary recoveries are 85% for gold,
copper and silver. Alkane continues to explore mining
and processing options for the future.
Alkane’s ongoing drilling program continues to define
the overall system and infill the initial Boda resource
estimate. The Boda deposit remains open at depth
and along strike to the south and along strike to the
northwest within the Boda corridor.
Refer to page 15 for Alkane’s exploration program and
page 26 for the Mineral Resource tables.
3D model of the Boda mineralisation (3D Wireframe – View South West)
13
Alkane Resources Annual Report 2022 BUSINESS REVIEW EXPLORATION
Exploration
Alkane holds several gold and copper tenements in the Central West
region of New South Wales. Our FY22 exploration efforts focused
on the Northern Molong Porphyry Project (Boda) and the Tomingley
Gold Project.
Northern Molong Porphyry Project
Alkane Resources Ltd 100%
The Northern Molong Porphyry Project (NMPP) is
located in the Central West region of New South
Wales, centred about 20 kilometres north of
Wellington and about 35 kilometres east of Dubbo.
It covers an area of 115 square kilometres at the
northern end of the Molong Volcanic Belt of the
Macquarie Arc, which is considered highly prospective
for large-scale porphyry and epithermal gold-copper
deposits.
Alkane’s exploration activity has established a
geological and geochemical framework for the
project area. A sequence of five discrete magnetic/
intrusive complexes (Kaiser, Boda, Comobella, Driell
Creek and Finns Crossing) has been identified within
a 15-kilometre northwest trending corridor. The
corridor is defined by intermediate intrusives, lavas
and breccias, extensive alteration and widespread,
low-grade, gold-copper mineralisation.
Alkane has a number of exploration targets located
adjacent to these magnetic/intrusive complexes,
encompassed by four exploration licences (Bodangora,
Boda South, Kaiser and Finns Crossing).
Boda
14
Alkane Resources Annual Report 2022 BUSINESS REVIEW EXPLORATION
Map of the Northern Molong Porphyry Project regional geology
Boda corridor
In late 2019, Alkane discovered significant gold-
copper porphyry mineralisation at the Boda prospect,
positioned at the western margin of the Boda
Intrusive Complex. This prompted a significant
campaign of reverse circulation (RC) and diamond core
drilling to test the dimensions and extensions of the
Boda system.
In parallel, Alkane extended the exploration program
beyond Boda, which lies in a highly prospective
corridor. Drilling over the past two years has occurred
at a number of nearby prospects – including Kaiser
(1.5 kilometres northwest of Boda), Korridor (between
Kaiser and Boda), Boda Two and Boda Three (two
kilometres south of Boda).
This exploration program has defined a 3.5-kilometre
corridor of extensive calc-potassic alteration
associated with gold-copper porphyry mineralisation.
The corridor trends north from Boda Three to Boda,
where it rotates to head northwest from Boda to
Kaiser.
All Alkane’s drilling to the end of FY22 in the Boda
corridor is illustrated in the long section on page 16.
15
Alkane Resources Annual Report 2022 BUSINESS REVIEW EXPLORATION
Korridor
Alkane has commenced a drill program that will test
the continuity of gold-copper porphyry mineralisation
between the Boda and Kaiser prospects. This
800-metre Korridor prospect is largely untested by
drilling.
Other exploration activities
Other NMPP exploration focused on delineating
additional intrusive and mineralising centres within
the longer 15-kilometre corridor from Boda Three to
Finns Crossing.
Alkane completed induced polarisation (IP) and
magnetotellurics (MT) geophysical surveys within a
five-kilometre section encompassing the Driell Creek
Magnetic Complex, northwest of Kaiser. Additionally,
a drone aero-magnetic survey was completed over a
similar area to improve the structural interpretation of
the Boda corridor.
Boda corridor long section (340° Azimuth ±600m window)
Drill program
Alkane’s FY22 drill program in the Boda corridor
comprised over 70,000 metres of RC and diamond
core drilling for the purpose of:
• estimating an initial Inferred Mineral Resource at
Boda
• estimating an initial shallow resource at Kaiser
• continued definition of the overall system.
Boda Two and Three
Drill results at Boda Two and Three demonstrate
many encouraging similarities to Boda, including
the existence of low-grade gold-copper mineralised
breccias as defined at Boda. Drilling in the second half
of 2022 will aim to identify higher-grade zones.
Kaiser-Duke
The parallel Kaiser and Duke systems lie northwest
of Boda. In January 2022, Alkane commenced a
13,000-metre RC drilling program at Kaiser for the
purpose of estimating an initial shallow resource.
A resource estimation is expected in the first quarter
of 2023.
16
Alkane Resources Annual Report 2022 Tomingley Gold Project
Alkane Resources Ltd 100%
Alkane’s Tomingley Gold Project covers an area of
approximately 440 square kilometres, stretching
60 kilometres north-south along the Newell Highway
in the Central West region of New South Wales. The
prospective belt extends from near the village of Tomingley
in the north (about 50 kilometres southwest of Dubbo),
through Peak Hill and almost to Parkes in the south.
The project incorporates Alkane’s currently active
Tomingley Gold Operations, the Tomingley Gold
Extension Project, and the inactive Peak Hill Gold Mine.
Near-mine exploration
Alkane continued exploration of the gold corridor
between Tomingley and Peak Hill during FY22. The
long-term objective remains to define additional
resources to feed the Tomingley processing facility
and extend the life of the asset.
Key exploration targets included additional
mineralisation outside the existing resource models at
Roswell and San Antonio, as well as the McLeans,
El Paso and Plains prospects.
To support surface exploration activities, Alkane
continued development of an underground
exploration drive that starts at the Wyoming One
underground mine and heads south towards Roswell.
At the end of the financial year it had reached
approximately 1,600 metres south of Wyoming One,
and 1,050 metres north of the Roswell deposit.
San Antonio and Roswell (SAR) deposits
The San Antonio and Roswell (SAR) deposits are the
foundation of the Tomingley Gold Extension Project.
The gold mineralisation is characterised as similar to
the Tomingley mineralisation.
Alkane updated the Roswell Mineral Resource
(Indicated and Inferred) estimate in FY22. The initial
upgraded estimate of 904,000 ounces of gold (14.1Mt
at 2.00g/t Au) was based on an underground cut-off of
BUSINESS REVIEW EXPLORATION
Updated 3D model of the Roswell mineralisation
1.3g/t Au (ASX Announcement 2 May 2022). This was
recalculated for the annual Resources and Reserves
statement using an underground cut-off of 1.6g/t
Au to account for additional costs in moving the ore
from Roswell to the Tomingley processing plant (ASX
Announcement 9 September 2022). The upgraded
resource, reflecting an increase of around 35 percent,
was largely the result of deeper holes drilled in the
7,000-metre program, extending the inferred resource
from -200 to -300 metres Relative Level.
The Roswell Mineral Resource remains open to the
north and at depth. Alkane intends further infill and
extensional drilling from the exploration drive, with a
view to improving confidence in the estimation and
defining the continuity of the mineralisation to the
north and high-grade zones at depth.
The Mineral Resource for the San Antonio deposit was
previously estimated at 406,000 ounces (7.32Mt at
1.72g/t Au) (ASX Announcement 16 February 2021).
The Roswell resource upgrade means the total SAR
resources now stand at approximately 1,264,000
ounces of gold (19.9Mt at 1.90g/t Au).
Refer to page 23 for the complete Mineral
Resource tables.
Summary* of SAR Mineral Resource estimates (Indicated and Inferred) at 30 June 2022
Roswell (open cut and underground)
San Antonio
Total SAR
*Complete Mineral Resource tables on page 23.
Tonnes
(Mt)
Grade Au
(g/t)
Contained Au
(koz)
12.55
7.32
19.87
2.00
1.72
1.90
858
406
1,264
17
Alkane Resources Annual Report 2022 BUSINESS REVIEW EXPLORATION
Map of the gold corridor between Tomingley and Peak Hill
18
Alkane Resources Annual Report 2022 McLeans prospect
Peak Hill Gold Mine
BUSINESS REVIEW EXPLORATION
The McLeans prospect lies two kilometres south of
Tomingley, 600 metres north of the Roswell deposit
and close to the trajectory of Alkane’s exploration
drive.
Drilling at McLeans intersected significant high-
grade gold mineralisation hosted within a feldspar
phyric andesite (ASX Announcement 29 October
2021). A strike length of at least 300 metres has been
estimated from the magnetics, with further drilling
planned to determine its underground resource
potential.
The newly defined andesite at McLeans correlates
with the andesites that host the majority of the gold
resources at the Roswell and San Antonio deposits.
Exploration drilling will continue at McLeans, as well
as the nearby El Paso (south of San Antonio) and
Plains (east of Roswell) prospects.
Located 15 kilometres south of Tomingley, Alkane’s
Peak Hill Gold Mine operated from 1996 to 2005 as
an open cut heap leach. While the site is substantially
rehabilitated, it remains an active Mining Lease.
Technological advances and gold price increases in
the last two decades led Alkane to re-evaluate the
economics of further development. A metallurgical
test program has shown that recoveries in excess of
95 percent are possible with bio-oxidation, and above
90 percent using a modified Albion process. We plan
to conduct a geotechnical assessment of the deposit
to facilitate evaluation for underground mining.
Alkane retains its Mining Lease and Environment
Protection Licence for Peak Hill Gold Mine, but any
further mine development would require further
environmental assessment and government approval.
Refer to page 23 for the Mineral Resource table.
Other projects
Due to the extensive effort on the Tomingley Gold
and Northern Molong Porphyry Projects, exploration
activity on other projects was largely limited to
airborne electromagnetic surveys for target definition.
Alkane’s other exploration projects in central western
New South Wales are: Glen Isla – Gundong (gold);
Armstrongs (gold); Elsienora (gold); Cudal (gold-zinc);
Rockley (gold); Trangie (nickel-copper+); Mt Conqueror
(gold). (All Alkane Resources Ltd 100%).
19
Alkane Resources Annual Report 2022 BUSINESS REVIEW EXPLORATION
Alkane’s projects and operations are primarily located near Dubbo in the Central West region of New South Wales.
20
Alkane Resources Annual Report 2022 MINERAL
RESOURCES AND
ORE RESERVES
Tomingley underground
21
Alkane Resources Annual Report 2022 MINERAL RESOURCES AND ORE RESERVES
Mineral Resources and Ore Reserves
Alkane reports Mineral Resources and Ore Reserves for the Tomingley
Gold Project and the Northern Molong Porphyry Project (Boda deposit)
as at 30 June 2022.
These Ore Reserves and Mineral Resources are reported in accordance with the Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC 2012).
They were reported to the ASX on 9 September 2022. Any differences to those tables are
corrections to typographical errors; the assumptions and parameters detailed in that report are
unchanged. Mineral Resources are wholly inclusive of Ore Reserves.
22
MINERAL RESOURCES AND ORE RESERVES
Tomingley Gold Project
Mineral Resources and Ore Reserves for the Tomingley Gold Project include Tomingley Gold Operations (Wyoming
One, Wyoming Three, Caloma One and Caloma Two deposits), the San Antonio and Roswell (SAR) deposits and the
Peak Hill Gold Project. These estimates take into account ore depleted by mining during the 2022 financial year and
are set out in the tables below.
Mineral Resources
Tomingley Gold Operations Mineral Resources (as at 30 June 2022)
MEASURED
INDICATED
INFERRED
TOTAL
DEPOSIT
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Total Gold
(koz)
Open Pittable Resources (cut-off 0.4g/t Au)
Caloma One
Sub Total
106
106
2.0
2.0
Underground Resources (cut-off 1.3g/t Au)
Wyoming One
1,050
Wyoming Three
Caloma One
Caloma Two
Sub Total
TOTAL
46
162
167
1,425
1,531
2.8
2.2
2.5
2.6
2.7
2.7
Apparent arithmetic inconsistencies are due to rounding
16
16
916
24
501
1,098
2,539
2,555
SAR Mineral Resources (as at 30 June 2022)
1.8
1.8
2.5
2.0
2.1
2.2
2.3
3.6
0
0
232
20
507
181
940
940
0.0
0.0
1.8
1.9
2.0
1.8
1.9
3.4
122
122
2,198
90
1,170
1,446
4,904
5,026
2.0
2.0
2.6
2.1
2.1
2.2
2.3
2.3
8
8
181
6
79
103
369
377
MEASURED
INDICATED
INFERRED
TOTAL
DEPOSIT
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Total Gold
(koz)
Total Resources (cut-off 0.4g/t Au Roswell and 0.5g/t Au San Antonio)
Roswell
San Antonio
Sub Total
Underground Resources (cut-off 1.6g/t Au)
Roswell
Sub Total
TOTAL
5,615
5,930
11,545
1,897
1,897
13,443
1.78
1.82
1.80
2.67
2.67
1.92
791
1,389
2,180
4,244
4,244
6,424
0.96
1.32
1.19
2.56
2.56
2.09
6,406
7,319
13,725
6,141
6,141
19,867
1.68
1.73
1.70
2.59
2.59
1.98
346
406
752
512
512
1,264
Apparent arithmetic inconsistencies are due to rounding
Peak Hill Mineral Resources (as at 30 June 2022)
DEPOSIT
Resource
Category
Cut-Off
Tonnes
(Mt)
Gold Grade
(g/t)
Gold Metal
(koz)
Copper Metal
(%)
Proprietary U/G
Inferred
2g/t Au
TOTAL
Apparent arithmetic inconsistencies are due to rounding
1.02
1.02
3.29
3.29
108
108
0.15
0.15
23
Alkane Resources Annual Report 2022 MINERAL RESOURCES AND ORE RESERVES
Ore Reserves
Tomingley Gold Operations Ore Reserves (as at 30 June 2022)
PROVED
PROBABLE
TOTAL
DEPOSIT
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Total Gold
(koz)
Open Pittable Reserves (cut-off 0.4g/t Au)
Caloma
Stockpiles
Sub Total
106
384
490
Underground Reserves (cut-off 1.3g/t Au)
Wyoming One
Caloma One
Caloma Two
Sub Total
TOTAL
366
68
137
571
1,061
Apparent arithmetic inconsistencies are due to rounding
2.0
1.3
1.5
2.1
1.8
1.6
1.9
1.7
SAR Ore Reserves (as at 30 June 2022)
16
0
16
304
315
628
1,247
1,263
1.8
0
1.8
2.2
1.6
1.5
1.7
1.7
122
384
506
670
383
765
1,818
2,324
2.0
1.3
1.5
2.1
1.6
1.6
1.8
1.7
8
16
24
46
20
38
104
127
PROVED
PROBABLE
TOTAL
DEPOSIT
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Total Gold
(koz)
Open Pittable Reserves (cut-off 0.4g/t Au)
Roswell
San Antonio
Sub Total
0
0
0
Underground Reserves (cut-off 1.6g/t Au)
Roswell
San Antonio*
Sub Total
TOTAL
0
0
0
0
0
0
0
0
0
0
Apparent arithmetic inconsistencies are due to rounding
* San Antonio underground reserves not determined at this time
3,900
4,100
8,000
1,456
0
1,456
9,456
1.7
1.6
1.6
2.6
0
2.6
1.8
3,900
4,100
8,000
1,456
0
1,456
9,456
1.7
1.6
1.6
2.6
0
2.6
1.8
213
214
427
119
0
119
547
Mineral Resource and Ore Reserve Governance and Internal Controls
Alkane has governance arrangements and internal controls in place with respect to its estimates of Mineral
Resources and Ore Reserves and the estimation process within the Tomingley Gold Operations and
evaluation projects, such as the Peak Hill Gold Project, including:
• oversight and approval of each annual statement by the Technical Director;
• establishment of internal procedures and controls to meet JORC Code 2012 compliance in all external
reporting;
• independent review of new and materially changed estimates;
• annual reconciliation with internal planning to validate reserve estimates for operating mines; and
• Board approval of new and materially changed estimates.
24
Alkane Resources Annual Report 2022 Comparative Resources and Reserves
MINERAL RESOURCES AND ORE RESERVES
Tomingley Gold Operations Comparative Mineral Resources (30 June 2021 to 30 June 2022)
DEPOSIT
Open Pit
Wyoming One
Wyoming Three
Caloma One
Caloma Two
Sub Total
Underground
Wyoming One
Wyoming Three
Caloma One
Caloma Two
Sub Total
TOTAL
Tonnage
(kt)
2021
Grade
(g/t Au)
Gold
(koz)
Tonnage
(kt)
2022
Grade
(g/t Au)
Gold
(koz)
1,120
135
2,450
962
4,667
2,238
90
765
854
3,947
8,614
1.4
1.7
1.3
1.9
1.5
2.8
2.1
2.2
2.4
2.6
2.0
52
8
105
58
223
201
6
54
67
328
551
0
0
122
0
122
2,198
90
1,170
1,446
4,904
5,026
0
0
2
0
2.0
2.6
2.1
2.1
2.2
2.4
2.3
Apparent arithmetic inconsistencies are due to rounding
Tomingley Gold Operations Comparative Ore Reserves (30 June 2021 to 30 June 2022)
DEPOSIT
Open Pit
Wyoming One
Wyoming Three
Caloma One
Caloma Two
Stockpiles
Sub Total
Underground (source)
Proven
Probable
Sub Total
TOTAL
Tonnage
(kt)
2021
Grade
(g/t Au)
Gold
(koz)
Tonnage
(kt)
2022
Grade
(g/t Au)
Gold
(koz)
476
72
548
783
1,042
1,825
2,373
1.6
1.2
1.6
2.1
1.9
2.0
1.9
25
3
28
54
63
117
145
122
384
506
571
1,247
1,818
2,324
2.0
1.3
1.5
1.9
1.7
1.8
1.7
0
0
8
0
8
181
6
79
103
369
377
8
16
24
35
68
104
128
Apparent arithmetic inconsistencies are due to rounding
The primary differences from 2021 to 2022 are:
• Residual open pit resources for Wyoming One, Wyoming Three and Caloma Two were reduced to zero due to
practical limits to surface mining;
• Caloma One cut-back reserves depleted;
• Underground reserves added by development grade control drilling; and
• Underground reserves depleted by mining.
25
Alkane Resources Annual Report 2022 MINERAL RESOURCES AND ORE RESERVES
Northern Molong Porphyry Project
Extensive RC and core drilling at Boda within the Northern Molong Porphyry Project (NMPP) facilitated an initial
estimated Inferred Resource.
NMPP Mineral Resources (as at 30 June 2022)
DEPOSIT
MEASURED
INDICATED
INFERRED
TOTAL
Mt
Grade
Mt
Grade
Mt
Grade
Mt
Grade
Total Metal
Au (Moz) / Cu (Mt)
Resources (cut-off 0.3g/t AuEq)
Boda Au g/t
Boda Cu %
AuEq
Resources (cut-off 0.4g/t AuEq)
Boda Au g/t
Boda Cu %
AuEq
624
624
624
353
353
353
0.26
0.14
0.51
0.33
0.18
0.63
624
624
624
353
353
353
0.26
0.14
0.51
0.33
0.18
0.63
5.20
0.90
10.1 Moz AuEq
3.71
0.62
7.1 Moz AuEq
The equivalent calculation formula is AuEq(g/t) = Au(g/t) + Cu%/100*31.1035*copper price ($/t)/gold price($/oz).
Apparent arithmetic inconsistencies are due to rounding
Competent Persons
The information in this report relating to Mineral Resource and Ore Reserve estimates has been approved by individuals having
sufficient experience to qualify as a Competent Person, as defined in the 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’ (JORC 2012). Such experience relates to the style of mineralisation and type
of deposit under consideration, and the activity undertaken. All Competent Persons named below have provided prior written consent
to the inclusion of the matters based on their information in this report, in the form and context in which it appears.
Information relating to
Competent Person
Mineral Resources and Ore Reserves Statement as a whole
Tomingley Gold Operations Mineral Resource estimate
Peak Hill Mineral Resource estimate
Mr D Ian Chalmers (FAusIMM, FAIG), who is an Executive
Director of Alkane Resources Ltd.
Mr Craig Pridmore (MAusIMM), who is Geology Manager
Tomingley Gold Operations and an employee of Alkane
Resources Ltd.
Tomingley Gold Operations Open Pit Ore Reserve estimate
San Antonio and Roswell Open Pit Ore Reserve estimate
Mr John Millbank (MAusIMM), an independent consultant
(Proactive Mining Solutions).
Tomingley Gold Operations Underground Ore Reserve estimate
Roswell Underground Ore Reserve estimate
San Antonio and Roswell Mineral Resource estimate
Boda Mineral Resource estimate
Mr Christopher Hiller (MAusIMM), an independent consultant
(Hiller Enterprises Pty Ltd).
Mr David Meates (MAIG), who is Exploration Manager NSW and
an employee of Alkane Resources Ltd.
Previously reported information
All information in this report that relates to Mineral Resource or Ore Reserve estimates has been extracted from Alkane’s ASX
announcement dated 9 September 2022. Additional exploration results have been extracted from ASX announcements noted in the
text of the report.
The relevant ASX announcements are available to view on Alkane’s website. Alkane confirms that, other than mining depletion, it is
not aware of any new information or data that materially affects the information included in the relevant market announcement(s); in
the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the
estimates in the relevant market announcement continue to apply and have not materially changed; and that the form and context in
which the Competent Person’s findings are presented have not been materially altered.
26
Alkane Resources Annual Report 2022 SUSTAINABILITY
REPORT
Sustainability at Alkane 28
Governance
Our People
Communities
Environment
30
33
44
50
27
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT SUSTAINABILITY AT ALKANE
Sustainability at Alkane
Alkane strives to uphold high environmental, social and governance (ESG)
standards across all our activities. These sustainability foundations are
embedded in our business; they underpin our social licence to operate
and are integral to our ability to deliver value to all stakeholders.
Our Approach
Key Achievements
While Alkane’s approach to sustainability has not
changed in principle, the Board recognises the global
shift towards more comprehensive sustainability
reporting and disclosure. In light of this we have
broadened and deepened our Sustainability Report
in 2022 as a stepping stone towards establishing a
formal framework in the future.
As a first step, we have encapsulated our approach
into an ESG Mission Statement that aligns with our
company values. This Mission Statement represents
our pledge to all stakeholders – including investors,
host communities, employees, government bodies and
the people of Australia.
This Sustainability Report summarises Alkane’s
sustainability performance in FY22 – the measures
we have in place, the actions we have taken and the
outcomes we have achieved. The report has been
structured around four sustainability pillars spanning
ESG: Governance, Our People, Communities, and
Environment.
One of Alkane’s goals for FY23 is to progress
development of a formal sustainability framework,
potentially aligned with one or more established
frameworks – such as the United Nations Sustainable
Development Goals, International Council on Mining
and Metals (ICMM) ‘10 mining principles’, World
Gold Council’s ‘Responsible Gold Mining Principles’,
Minerals Council Australia’s ‘Enduring Value Principles’,
and guidance from the NSW Minerals Council.
1
2
3
4
5
6
7
Prepared first Modern Slavery
Statement
Celebrated Women in Mining
Awards for one of our team
Progressed Social Psychology of
Risk principles at Tomingley
Attended first informal
community gathering to discuss
Boda
Sponsored community
organisations, projects and events
totalling $170k
Reported one incident due to
unprecedented rainfall
Planted 850 Fuzzy Box seedlings
south of Tomingley
28
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT SUSTAINABILITY AT ALKANE
Company Values
ESG Mission Statement
Integrity
We do what’s right in our
actions and relationships.
=
• Ensure our choices and behaviours
align with our values.
• Maintain good environmental
governance.
• Be responsive to the needs of all
stakeholders.
Respect
We treat people and the
environment with care.
• Minimise impacts from our operations.
• Stay positively engaged with host
=
communities.
• Value the safety and wellbeing of our
workforce.
Transparency
We are proactive in
communicating our intent
and outcomes.
Performance
We plan and execute to
deliver strong business
results.
=
=
• Expand sustainability reporting and disclosures.
• Communicate openly with stakeholders about our
activities.
• Actively seek sustainable solutions that have a
strong business case.
Four Sustainability Pillars
Governance
Our People
Communities
Environment
Adhering to a corporate
governance framework
Operating with
integrity, respect and
transparency
Managing risks across
operations, finance and
sustainability
Ensuring a rewarding
and equal-opportunity
workplace
Valuing the safety
and wellbeing of our
workforce
Responding to the
needs of stakeholders
Working with host
communities to build
resilience
Respecting Aboriginal
and Torres Strait
Islander culture and
traditions
Managing water,
emissions and waste
responsibly
Rehabilitating the land
we disturb
Enhancing biodiversity
and land capability to
offset our impact
29
Alkane Resources Annual Report 2022
SUSTAINABILITY REPORT GOVERNANCE
Governance
Alkane administers corporate governance with openness and integrity,
employing comprehensive systems of control and accountability.
Organisational governance
Alkane’s corporate governance framework is based
on the principles and recommendations of the ASX
Corporate Governance Council (Corporate Governance
Principles and Recommendations 4th edition). The key
features of this framework are set out in our annual
Corporate Governance Statement, available on the
Alkane website.
Board and sub-committees
The Alkane Board comprises five directors and two
joint company secretaries with skills and experience
across technical, operational, finance, broking and
general business:
• Ian Gandel – Non-Executive Chairman
• Nic Earner – Managing Director
• Ian Chalmers – Technical Director
• Tony Lethlean – Non-Executive Director
• Gavin Smith – Non-Executive Director
• Dennis Wilkins – Joint Company Secretary
• James Carter – Joint Company Secretary
Two of the non-executive directors, Mr Lethlean and
Mr Smith, are considered independent. The Board
continues to seek additional independent members
who will bring complementary skill sets and diversity
to Alkane’s leadership. Details of directors are
presented on page 58 of this report.
30
The Board has four established sub-committees, each
with its own charter:
• Audit Committee
• Nomination Committee
• Remuneration Committee
• Risk Management Committee
Alkane’s Board has added ESG considerations to
the work of the Risk Management Committee,
which comprises members of the Board, including
the Managing Director, plus key senior managers
responsible for operations, finance and administration.
This committee assists the Board with matters
pertaining to sustainability – setting sustainability
strategy, guiding sustainability governance, business
and social performance, and managing sustainability
risks and opportunities.
Corporate policies and procedures
Alkane’s corporate governance practices are
underpinned by a suite of corporate policies and
procedures, including Appointment and Independence
of Directors, Diversity, Code of Conduct, Risk
Management, and Anti-bribery and Corruption.
During the FY22 reporting period, Alkane commenced
development of additional policies related to
sustainability. ‘Modern Slavery’ and ‘Safety, Health
and Sustainability’ policies were approved by the
Board in September 2022.
Alkane Resources Annual Report 2022
SUSTAINABILITY REPORT GOVERNANCE
The Alkane Board (L to R): Tony Lethlean, Ian Gandel, Gavin Smith, Nic Earner, Ian Chalmers
Ethical business practices
In keeping with our core values, Alkane operates with
integrity, respect and transparency across the business
and our supply chain. The following policies (available
on our website) guide the actions of our leaders,
employees, contractors, suppliers and customers:
Code of Conduct – Alkane is committed to
conducting itself with integrity, honesty and
fairness in all business practices and to observing
the rule and spirit of the legal and regulatory
environment in which the group operates.
Anti-Bribery and Corruption (ABC) Policy – Alkane
is committed to maintaining a high standard of
ethical conduct in all business dealings, compliance
with international ABC regulations, and an open
and transparent management approach to avoid
exposing ourselves to potential conflicts of
interest.
Whistleblower Policy – Alkane is committed to
supporting a confidential and anonymous process
whereby persons can report any matter deemed to
be illegal, contrary to the policies of the company
or in some other manner not right or proper.
Modern Slavery Policy – Alkane is committed to
implementing and enforcing effective systems and
controls to minimise the risk of modern slavery
taking place anywhere in our business or in any of
our supply chains.
Corporate Governance Statement
Alkane’s Corporate Governance Statement is
available on our website, along with the Board
charter and details of Board sub-committees.
Also listed are key policies and procedures,
including those pertaining to appointment and
independence of directors, diversity, code of
conduct, risk management, and anti-bribery and
corruption.
alkane.com.au/company/governance/
Modern Slavery Statement
Alkane’s first Modern Slavery Statement under the
Australian Government’s Modern Slavery Act 2018 has
been submitted for the reporting period 1 July 2021
to 30 June 2022.
The statement acknowledges that Alkane does not
have full visibility of our supply chain and the origin of
many of the goods procured from Australian suppliers.
The risk of substantial exposure to modern slavery is
considered low, with only minor components of the
supply chain exposed to at-risk industries (such as
clothing/apparel and electronics) and locations.
Our Modern Slavery Statement outlines the steps
Alkane is taking to assess and address these risks. We
will report the outcomes of our assessments and any
measures implemented in future annual statements.
31
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT GOVERNANCE
Tomingley biodiversity offset area
Rehabilitation Management Plans and Forward
Programs have been prepared for both the
Tomingley and Peak Hill mine sites, as per the NSW
Government’s new standard rehabilitation conditions
on mining leases (in compliance with the Mining
Amendment (Standard Conditions of Mining Leases –
Rehabilitation) Regulation 2021). The new mining lease
conditions will support leading-practice mine site
rehabilitation and cement Alkane’s role in ensuring
New South Wales has a sustainable minerals industry.
Alkane strives to maintain our social licence to
operate, and minimise reputational and social
sustainability risks, by committing resources and
actions to positive stakeholder engagement.
The Audit Committee is tasked with overseeing
the evaluation and improvement of Alkane’s risk
management (including assessment, monitoring and
management of financial risks) and internal control
processes. Periodically Alkane commissions external
consultants to perform diagnostics and reviews of
internal controls and IT maturity and cyber security.
Risk management
Alkane is committed to the active management
of risks to operations via the Risk Management
Committee, which routinely reviews Alkane’s risk
management framework to ensure it is fit for purpose.
The committee has recently engaged an external
provider to review material risks to the company
at a corporate level in the categories of financial,
operational and strategic risks.
The company’s Risk Management Coordinator is
tasked with the responsibility of keeping the risk
management policy, framework and registers updated,
subject to formal approval of policy amendments by
the Board.
Tomingley Gold Operations continues to monitor
and audit critical controls as part of its ongoing risk
management process. A specialised software package
assists with the management of the complexities for
the high-level risks.
The Peak Hill Gold Mine completed a review of its
Safety and Health Management System in 2022,
including a review of critical risks.
To minimise environmental risks, Alkane strives
to conduct activities to the highest standard of
environmental obligation, including compliance with
all environmental laws and regulations.
32
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT OUR PEOPLE
Our People
Alkane is committed to providing a safe, rewarding and equal-opportunity
workplace.
Workforce
Alkane is headquartered in Perth, Western Australia,
where many of our centralised services and executive
and senior managers are located. The remainder
of Alkane’s workforce is in New South Wales, with
the largest number (approximately 85 percent) at
Tomingley Gold Operations southwest of Dubbo.
Tomingley has over 200 employees (almost 300 with
contractors and subcontractors) across geology,
mining, processing, finance and administration,
maintenance, work health and safety (WHS), and
environment. Since Tomingley is a residential
operation and does not support a ‘fly-in/fly-out’
scheme, the majority of our workforce lives in the
local area.
Alkane workforce by location (30 June 2022)
Alkane also has an office in Dubbo and an experienced
exploration team largely based in Orange, with
associated field facilities and core yard at Peak Hill
Gold Mine. Also at Peak Hill Gold Mine is a full-time
site supervisor who maintains the mining leases
and infrastructure while the site is under care and
maintenance.
At financial year end, Alkane had 269 personnel
engaged in the business, plus an additional 75
contractors and subcontractors at Tomingley.
298
Tomingley
including contractors/subcontractors
26
Exploration
including contractors and casuals
15
Head Office/Perth
5
Dubbo and Peak Hill
33
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT OUR PEOPLE
Diversity and inclusion
Alkane is committed to actively managing diversity
at all levels of the company, where diversity may
result from a range of factors including age, gender,
disability, ethnicity, marital or family status, religious
or cultural background, sexual orientation and gender
identity. We value the unique contributions made
by people from all backgrounds, experiences and
perspectives.
Alkane’s commitments are outlined in our Diversity
Policy, which addresses equal opportunities in the
hiring, training, flexible working practices and career
advancement of directors, officers and employees.
We recognise the particular importance of attracting
women to join the company and the mining industry
more generally.
In support of improving overall female representation
across the company, the Board set the following
objectives in FY21, as outlined in the 2021 Corporate
Governance Statement:
• By 30 June 2024, at least 30 percent of directors
on the Board will be female.
• By 30 June 2024, women will represent greater
than 18 percent at all levels of the organisation.
To arrive at this figure, we considered the average
percentage of women working in ‘Metal Ore
Mining’ according to Australia’s Workplace Gender
Equality Agency for companies of different sizes.
• Hiring practices will continue to target female
candidate representation.
As stated in the Diversity Policy, Alkane does not
tolerate any form of discrimination, harassment,
vilification and victimisation.
“Working with great people
you can have a laugh with
when the pressure is on is
always good for the soul.”
- Maddie, Underground
Maintenance Planner,
Tomingley
34
Alkane Resources Annual Report 2022
SUSTAINABILITY REPORT OUR PEOPLE
Diversity performance
The table below indicates the number and percentage of female and Aboriginal and Torres Strait Islander (ATSI)
employees at Alkane (excluding Tomingley contractors/subcontractors) at year-end for the past three years.
Alkane female and ATSI employees
30 June 2020
30 June 2021
30 June 2022
Women
Aboriginal and Torres Strait
Islander
25 (12%)
27 (13%)
29 (11%)
35 (13%)
25 (9%)
35 (13%)
The percentage of Alkane’s workforce identifying as
Aboriginal and Torres Strait Islander is consistent with
the population in Dubbo (14%), where the majority of
the Tomingley workforce (representing approximately
85% of Alkane’s total workforce) comes from.
Since Tomingley is a residential mine, we are reliant on
our workforce being local or willing to relocate to the
Central West region of New South Wales. This affects
our ability to attract candidates, including women, of
appropriate technical expertise or mining experience.
To improve female representation at Tomingley, we
have adopted recruitment and training strategies
involving our female employees as role models. In
particular, one of our underground operators, Casey
Martin, recently won Outstanding Trade, Operator or
Technician of the year at the 2022 NSW Women in
Mining Awards (see case study).
Other strategies to encourage diverse candidates
to apply for all roles include using gender-neutral or
female-positive language in recruitment material, and
creating career profiles of Tomingley employees with
diverse backgrounds.
Tomingley women by role (30 June 2022)
Manager
Supervisors
Professionals
geologists, environmental and planner
Finance/Administration
Operators
35
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT OUR PEOPLE
Casey Martin wins Women in Mining Awards
Casey joined our team in June 2021 and was the first female underground operator
at Tomingley. Since entering the mining industry as a truck driver in 2005, she has
worked her way up through a number of roles to her current job as bogger operator.
Throughout her 17-year mining career, Casey has navigated the challenge of being a
woman in mining with determination and resilience. While her career progression may
have been impeded due to lack of opportunity, Casey’s commitment to excellence and
focus on professional development means her skillset is extensive. She is licensed for a
variety of heavy machinery, with experience spanning mine development, production,
safety, health and environment.
Casey is one of Tomingley’s most skilled and versatile operators, able to be utilised
across the crew in various positions to maintain productivity. She takes pride in ‘doing
the job once and doing it right’ and ‘working smart, not just hard’.
Casey is an excellent role model at Tomingley – for all newcomers, not just young
women. Keen for younger miners to benefit from her hard-won experience and
maximise their safety and effectiveness, she is open with advice, training and
mentorship. She also advocates for more flexible work arrangements that empower
new parents to return to work sooner and more smoothly.
Alkane was proud to nominate Casey for the 2022 NSW Women in Mining Awards.
We congratulate her win in the Outstanding Trade, Operator or Technician category,
announced 23 June 2022.
Casey went on to win the Thiess Outstanding Australian Tradeswoman, Operator
or Technician Award at the Women in Resources National Awards in Canberra on 8
September 2022.
36
Alkane Resources Annual Report 2022 Health, Safety and Wellbeing
Gold pouring at Tomingley
SUSTAINABILITY REPORT OUR PEOPLE
Alkane takes protecting our employees seriously.
Safety is entrenched in every decision and action
at our main operation at Tomingley, where the
philosophy is to ‘entertain doubt’ and consider what
could go wrong. We value safe production and
celebrate the successes of meeting and exceeding
targets and budget safely.
The Tomingley work health and safety (WHS) team
comprises a dedicated WHS manager, an underground
trainer, an open cut and processing trainer, an
underground safety and training coordinator, and a
risk and compliance coordinator.
The WHS team works across the business to ensure
employees are trained appropriately, identify hazards,
implement safety systems and controls, and monitor
compliance with the site’s safety management and
operations management systems.
In addition to Tomingley, Alkane has health and safety
management systems in place for Peak Hill Gold Mine
and our exploration team, based in Orange. In FY22,
we engaged a consultant to review and update these
systems, along with key policies and procedures.
“Tomingley is a very friendly
environment, with great
trust and respect amongst
all employees. Everyone is
well-aligned to the company
goals and is self-motivated
to achieve them. It’s very
rewarding being part of such
a successful team.”
- Goddie, Mining Engineer,
Tomingley
37
Alkane Resources Annual Report 2022
SUSTAINABILITY REPORT OUR PEOPLE
Our safety approach – the Social
Psychology of Risk
The management team at Tomingley has adopted the
Social Psychology of Risk (SPoR) approach to guide
safety culture and actions onsite.
SPoR considers how social arrangements affect
decision making in risk. It seeks to understand how
people really tackle risk by accounting for human
fallibility, mortality and subjectivity, rather than
ignoring them. As such, the approach considers
culture and meaning behind actions as being more
important than measures of safety activity (which
often lack context).
Tomingley worked with Human Dymensions (led by
Dr Robert Long, founder of SPoR) to develop a SPoR
program in 2016. The program incorporated the
key findings of an organisational risk culture survey
conducted onsite. The ‘Mi-Profile’ survey assessed the
organisational culture, values and beliefs of employees
by capturing ‘gut’ (implicit) knowledge. This led to
development of practical interventions to help shape
workplace culture. The survey, initially conducted in
2016, was repeated in April 2021.
Tomingley has rolled out training introducing SPoR
concepts to employees since 2017. In January 2022,
an updated program introducing SPoR as it applies
to the Tomingley site, was added to the compulsory
employee and contractor induction.
Since SPoR challenges traditional thinking around
work health and safety, the Tomingley management
and WHS teams are working hard to embed the
philosophy into traditional WHS culture and systems.
Tomingley underground
The Tomingley SPoR program covers new approaches
to awareness, perception, motivation, engagement,
communication and culture change. In practical terms,
it guides safety culture and actions by:
• Challenging excessive confidence placed on
‘common sense’, self-perception, ‘myths’ of
carefulness and a range of measures that tend to
paralyse leadership thinking and practice.
• Generating a new awareness that accepts the
importance of observing self and others in a
supportive and non-punishing way, through
conducting skilled and non-defensive approaches
to safety engagement.
• Emphasising that the SPoR approach is about
understanding risk through the lens of WorkSpace
(physical environment), HeadSpace (how workers
think and make decisions) and GroupSpace
(what is the cultural understanding of the critical
control).
• Developing skills in identifying and addressing
complex social psychological hazards and risks.
• Highlighting how humans make decisions and
what to do about them.
• Enhancing understanding of the nature of risk
and awareness with regard to the WHS Act,
AS/NZS ISO 31000:2009 ‘Risk Management –
Principles and Guidelines’, and companion HB 327
‘Communicating and Consulting About Risk’.
• Teaching how to observe and engage others for
influence through effective conversations and
observations.
• Re-shaping and reframing language as a tool to
change culture and organisational discourse.
• Building capacity in organisational sensemaking.
38
Alkane Resources Annual Report 2022 Embedding SPoR culture in mining crews
SUSTAINABILITY REPORT OUR PEOPLE
Andrew is the Leading Hand for one of Tomingley’s open cut mining crews. He is
enthusiastic about the Social Psychology of Risk (SPoR) methodology, which seeks to
instil context and reason behind actions. SPoR is founded on the understanding that
people all think and see things differently.
Andrew says the SPoR methodology has opened his eyes to the fact his crew members
all have different ‘HeadSpace’ – that is, different mindsets and perceived pressures
influencing their decision-making. It has changed the way he deals with people, having
greater understanding of the various ways they think and receive instructions. For
instance, some people can work from a drawing, whereas others respond better to
being shown in the physical environment.
The SPoR methodology also helps Andrew and his crew identify how the ‘GroupSpace’
affects actions – for example, whether a particular risky behaviour was considered
acceptable because everyone was doing it. These days, the daily 10-minute pre-start
meetings for the open cut crews finish with a risk topic that encourages people to
‘entertain doubt’ – that is, think about why something is done. The meetings also
discuss any recent incidents – including those that occur at other mines – to identify
why something happened and how to prevent it.
Most operators, supervisors and managers at Tomingley have undertaken SPoR
training, and it’s part of the induction for all new employees. As everyone becomes
more mindful of each other’s differences, the site culture is evolving. According to
Andrew, it can be a challenge to think in this new way, but awareness is growing and
people are more likely to speak up about risk.
39
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT OUR PEOPLE
Tomingley Safety Action Plan
A key focus of FY22 was continued implementation of
the Tomingley safety action plan developed in FY21.
This safety action plan is founded on the principles
of the Social Psychology of Risk. It identified five key
target areas, with actions in FY22 described below.
Improving communications and employee
inductions
Tomingley management overhauled the employee
induction process to incorporate key aspects of SPoR:
• The induction now includes an introduction to
SPoR, embedding the principles from the first day
of employment.
• The induction summarises the key components
of the Tomingley safety and risk management
systems in the context of SPoR.
• The induction format has been reshaped into a
workshop that utilises key aspects from SPoR,
such as priming, framing and anchoring.
• Induction videos have been developed for key
departments and aligned with critical risk areas.
• The General Manager attends all inductions to
provide insight into the operation for employees.
Maturing the Safety Management System
To ensure the Tomingley safety management system
remains compliant and fit for purpose, the WHS
team developed an internal audit and critical control
verification (CCV) system. Activities are scheduled to
occur on a monthly basis.
• Internal audits review site activities against
the documented safety management system,
determining the level of compliance.
• The CCV system is a process for checking that
critical controls (those deemed critical for the safe
operation of the site) are in place and functioning,
and that employee knowledge around the critical
controls is well understood.
• Both these processes identify any non-
conformances or weaknesses in the existing
system and permit them to be rectified in a ‘no
blame’ environment.
The CCV system follows the principles of SPoR;
questions target the WorkSpace (physical
environment), HeadSpace (how workers think and
make decisions) and GroupSpace (what is the cultural
understanding of the critical control).
“We have a very supportive
management team at
Tomingley. All employees are
encouraged to speak openly
about safety and know they
will be heard. Adhering to
site safety processes is never
considered a road block or
hindrance – it’s simply how
we do business.”
- Jason, Systems and Compliance
Coordinator, Tomingley
40
Alkane Resources Annual Report 2022
SUSTAINABILITY REPORT OUR PEOPLE
Other Tomingley programs and initiatives
Review of the Safety Management System
Training program
In parallel, Tomingley engaged an external consultant
to review the key elements of the site’s safety
management system. This consisted of predominantly
desktop-based verification, with some in-field
verification of the safety management system against
relevant practices and standards. As a result of the
review, a suite of actions was developed to close
identified gaps in the safety management system.
Mental Health and Wellbeing – Creating a
Psychologically Safe Workplace
In 2021, Tomingley launched a revamped Employee
Assistance Program (EAP) in partnership with the site’s
rehabilitation provider, Altius. The relaunch includes
improved access to the EAP via AltiusLife, a digital
platform and app designed to support employees
with a range of health and wellbeing information.
The platform offers articles across different health
topics, recipes to inspire healthy eating and cooking,
health tracking options, and guidance for employees
to monitor their own mental health and wellbeing and
provide self-care if needed.
High Risk Manual Tasks – Participative
Ergonomics
To support injury prevention, Tomingley commenced
a High-Risk Manual Tasks – Participative Ergonomics
program throughout the year. Aligned with SPoR
principles, the program involved using wearable
technology to identify high-risk tasks, then training
employees on how to better manage these tasks –
either through improved ergonomics, redesigning
work or the use of lifting aids and equipment.
Tomingley takes a risk-based approach to training,
with training activities occurring on a daily basis. The
site’s employee onboarding program and day-one
induction leads into role-specific training, according to
a schedule determined by a training needs analysis for
each role.
Throughout the year, Tomingley also conducted
external training for shotfirers, underground
supervisors and emergency response training. The site
is currently developing role-based training plans.
Culture and risk workshops for managers
Tomingley’s management team completed a two-day
cultural and risk leadership workshop. This program
touched on aspects of strategic thinking, decision
making, personality types and how these can be
utilised better to work together. It also covered key
concepts of leadership, leadership models and the
SPoR approach.
Document usability mapping
During the year, the WHS team progressed a project
targeting more efficient and user-centred document
authoring and understanding. This complements the
SPoR methodology applied to risk on site.
The team adopted an approach based on ‘usability
mapping’ methodology, which applies the rules of
human cognition and behaviour to communications.
It aims to use the most appropriate level of language
in essential documentation (such as procedures,
safety management systems, and other safety-related
documentation) to enhance understanding by the
end-user. The benefits include streamlining safety
documentation and reducing comprehension errors.
Tomingley safety performance
In FY22 there were five recordable injuries at the Tomingley site: one Lost Time Injury, two Restricted Work
Injuries and two Medical Treated Injuries. The total recordable injury frequency rate (TRIFR) was 3.54, a 32
percent reduction on FY21 (TRIFR of 5.21). There were also 15 first aid injuries.
Source data
Tomingley TRIFR
FY 2020
FY 2021
FY 2022
1.83
5.21
3.54
41
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT OUR PEOPLE
“We have great mentorship
and collaboration across
the teams at Tomingley. I’ve
made friends for life already.”
- Crystal, Geologist,
Tomingley
Occupational hygiene monitoring program
The occupational hygiene monitoring program
monitors key occupational hazards, including noise,
silica dust and diesel particulate matter. During the
year, Tomingley finalised the baseline measurement.
The program led to the development of ‘similar
exposure groups’ (SEG) and purchase of the first
portable real-time silica dust monitoring device. This
device will be utilised across the site to gain better
understanding of where silica dust is a hazard and to
monitor effectiveness of controls.
Site hazard reporting system
Utilising SPoR concepts, Tomingley revamped the
site hazard reporting system to include greater
transparency and accountability. Completed hazard
report forms are now discussed at department
handover meetings and pinned to a hazard report
board placed in work areas. The hazard remains visual
and on the board until the identified issue is rectified.
42
Global Minerals Industry Risk Management
Program (G-MIRM)
To further enhance the Tomingley risk management
approach, four key site personnel completed the
Global Minerals Industry Risk Management Program
(G-MIRM) via the University of Queensland’s
Sustainable Minerals Institute. G-MIRM is a
professional development program that develops
managers’ understanding, appreciation and application
of risk management policy and procedures.
Projects for FY23
In the coming year, the WHS team intends to progress
the following projects:
• Tomingley document management and control
system – Continue to enhance functionality,
including usability mapping.
• High-Risk Manual Tasks – Participative Ergonomics
program – Stage 2 implementation will aim to
develop site-based capability and workgroup-
based ‘champions’ to support the ongoing
implementation of the process.
• Embedding Social Psychology of Risk culture –
Get back to the basics of WHS and embed the
current systems. This project will also identify
ways to further incorporate the SPoR concepts
into site systems.
Alkane Resources Annual Report 2022
COVID-19 Impact
Alkane continues to follow COVID-19 health and
safety protocols according to government guidelines.
At times during FY22, the various Australian states
had different border and quarantine rules, which
impacted the movements of some of our employees.
The travel restrictions also restricted the ability of the
Alkane Board to travel from other states to our sites in
New South Wales and meet face to face.
Alkane supported Tomingley employees through the
pandemic period when government rules required
close contacts of positive COVID-19 cases to isolate
for 14 days. Those affected received an ex-gratia
payment to isolate and test until they were clear to
come out of isolation. We also allowed employees to
take annual leave and personal leave up to one week
in advance where needed.
Many of our operators worked additional shifts over
the past year to cover for their teammates at different
times. Thanks to their tremendous efforts, production
results at Tomingley were mainly unaffected. To
protect our employees and minimise transmission
of COVID-19 onsite at Tomingley, we enacted strict
workforce protocols and limited the number of visitors
to the site.
SUSTAINABILITY REPORT OUR PEOPLE
“Alkane provides excellent
support to develop my
professional and scientific
skills. There is easy
communication across the
company, and I’m always
free to suggest new ideas.
I feel like I’m valued and
contributing to Alkane’s
success.”
- Alex, Senior Exploration Geologist
43
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT COMMUNITIES
Communities
Alkane respects and strives to respond to the needs of all our
stakeholders. We communicate with openness and integrity and aim to
leave a lasting positive legacy for our host communities.
Stakeholder Engagement
Alkane engages regularly with a range of stakeholders
to communicate about our activities and listens
to needs and concerns. We aim to stay positively
engaged with our host communities and nurture
positive relationships with all stakeholders as part of
our social licence to operate.
Host communities
Alkane is an active and engaged member of the
communities in which we live and operate – in
particular the Narromine Shire, Parkes Shire and
Dubbo Regional Council local government areas in the
Central West region of New South Wales.
We take a long-term and respectful approach to
building and nurturing community and landholder
relationships. From the earliest stages of exploration,
we seek to lay the foundations of a positive
relationship with the landholder by listening to and
responding to their needs. This approach continues
through project development and finally into
operations, when we become part of the community.
Alkane has a number of established engagement
activities with the communities around Tomingley
village and Narromine Shire, where our main mine
and processing facility is located. These include
participation on the Community Consultative
Committee, publication of dedicated community
newsletters (approximately three per year), and a
number of sponsorship programs. In addition, we
participate regularly at community events to discuss
our projects and support community development.
44
In FY22, consultants working with and on behalf
of Alkane continued extensive consultations with
the community and other stakeholders about
the Tomingley Gold Extension Project. These
consultations were important for development of the
Environmental Impact Statement (EIS), which was
publicly exhibited in March 2022. The Social Impact
Assessment assessed both the positive and negative
social impacts of the project. Alkane has committed to
working closely with potentially affected landholders
to ensure we minimise our impacts on them and their
lifestyle.
Alkane also participated in the following community
activities during FY22:
• Clontarf Foundation Employment Forums in
Dubbo (27 July 2021 and 24 May 2022)
• Bodangora village community information session
(17 January 2022)
• Tomingley Picnic Races (2 April 2022)
• Wellington Show – platinum sponsor (21 May
2022)
• NSW Mining Careers Dinner in Dubbo (25 May
2022)
• Dubbo Show (27-29 May 2022)
• Presentations to the South Dubbo Rotary Club
and NSW Conference of the Australian Property
Institute (27 May 2022), Parkes Combined Probus
Club (10 June 2022).
Alkane Resources Annual Report 2022 Founding a positive community relationship at Boda
SUSTAINABILITY REPORT COMMUNITIES
The Boda deposit is located 15 kilometres northeast of the town of Wellington in the
Central West region of New South Wales. Although gold was first discovered in this
area back in the 1840s, there has been limited mining for the past century.
Alkane recognises the introduction of mining into this highly productive agricultural
environment would involve change. We intend to work hard to establish and maintain
a mutually cooperative relationship with the community. The Boda discovery has the
potential to bring a long-term viable industry to Wellington that would create large-
scale employment and generate a significant boost to the local and state economy.
For the duration of our exploration activities in the Wellington area, Alkane has
maintained a presence within the community. For the past several years, we have
maintained an information booth at the Wellington show and sponsored the yard
dog trials. Alkane was a platinum sponsor of the 2022 Wellington Show (Saturday 21
May 2022).
We have also taken care to lay the foundations of a long-term positive relationship
with landholders during our exploration activities, working under fair and respectful
land access agreements. Our tenements are distributed over several properties, some
of which host the Bodangora Wind Farm.
In January 2022, Alkane attended an informal gathering of approximately 25 local
farmers to explain about the exploration program they’d seen in action across the
fields. It gave our team the opportunity to discuss the project and answer questions
about what development of Boda could mean for their community.
As the project progresses, we anticipate holding further community meetings. We
have also commenced conversations with local Aboriginal community representatives,
including the Wellington Local Aboriginal Land Council.
45
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT COMMUNITIES
Other stakeholders
Government and industry
Investors
Alkane communicates openly with investors through
ASX Announcements and investor presentations
– all available on our website. Following major
announcements, Alkane’s Managing Director often
discusses the development with investment media
portal, Proactive.
Alkane’s formal investor communications are
complemented by a series of explanatory videos
and presentations published on our website, where
aspects of projects are discussed in greater detail.
In FY22, the following videos were published:
• Alkane talks about open pit potential at the Boda
prospect (18 August 2021)
• Boda update with Alkane Managing Director and
Technical Director (30 August 2021)
• Alkane Technical Director and Exploration
Manager discuss the geology of Boda (30 May
2022)
• Alkane Managing Director and Technical Director
discuss the initial Boda resource (30 May 2022)
• Boda Initial Resource – webinar with Q&A (31
May 2022).
Alkane is actively engaged with key government and
industry bodies that have oversight of mining and
related activities in New South Wales.
Alkane advocates for the metalliferous mining and
exploration sectors via participation in the following
organisations:
• NSW Minerals Council – Alkane personnel
represent the company on most of the special
interest committees and working groups (including
Executive, Environment & Community, Exploration
and OH&S Committees; and ESG, Rehabilitation
and Mine Closure, Communications and Water
Working Groups).
• Association of Mining and Exploration Companies –
Alkane is a member of this peak industry body for
the Australian resources sector.
• Water NSW Macquarie-Cudgegong Customer
Advisory Group – Alkane is represented in this
CAG, which provides a forum for Water NSW to
consult with a broad cross-section of customers
on issues relevant to performance and delivery of
services.
Alkane also shares knowledge through papers and
participation in selected industry forums:
• Central West Minerals Exploration Discussion
Group (CMEDG)
• Mines & Wines Conference Orange; Alkane
gave two presentations and hosted a visit to our
exploration facility to inspect Boda and Tomingley
cores. (10-13 May 2022)
In November 2021, Tomingley was pleased to host
a communications and video production team from
the NSW Environment Protection Authority (EPA) to
shoot footage for an EPA recruitment video.
Alkane is a sponsor of Australian Earth Science
Education (AusEarthEd), an organisation that aims
to grow awareness of career opportunities in earth
sciences and provide real-world context and resources
for teachers and students.
46
Alkane Resources Annual Report 2022 Summary of stakeholder engagement activities
SUSTAINABILITY REPORT COMMUNITIES
Stakeholder groups
How we engage
Key topics
Shareholders and investors
Employees and contractors
Government and regulators
(federal, state and local)
Mining and related industries
Host communities
• ASX announcements and quarterly reports
• Proactive interviews and investor briefings
• Video presentations
• Annual Report and Annual General Meeting
• Website
• Operating performance
• Exploration results
• Balance sheet
• Mineral Resources and Ore Reserves
• Sustainability performance
• Corporate governance
• Induction and training
• Meetings/briefings/toolboxes
• BBQ/pizza/food van days
• Internal social interactions (outside of work)
• Volunteer efforts
• Focus on residential employment
• Health and safety performance
• Monthly site performance
• COVID-19 management
• Employee and contractor recognition
• Employee share scheme
• Meetings, site visits, briefings
• NSW Minerals Council committees and
working groups (participation)
• Association of Mining and Exploration
Companies (participation)
• Water NSW Macquarie-Cudgegong
Customer Advisory Group (participation)
• Regulatory and legal compliance
• Environmental performance and
management
• Community investment
• Project approvals and licences
• Metalliferous mining advocacy and feedback
• Participation at industry forums
• Partnerships with educational institutions
• Sponsorship and participation with
Australian Earth Science Education
(AusEarthEd)
• Community Consultative Committee
(Tomingley)
• Community newsletters
• Direct engagement and briefings
• Investment in community infrastructure
• Sponsorship of community projects and
events
• Participation in community events
• Metalliferous mining advocacy
• Technical methodologies
• Environmental performance and
management
• Project development
• Social and economic impact
• Economic contributions
• Career opportunities
Aboriginal and Torres Strait
Islander Peoples
• Meetings, site visits, briefings
• Investment and partnerships
• Sponsorship of Clontarf Foundation
• Project development
• Culture and heritage management
NGOs and special interest groups
• Presentations (South Dubbo Rotary
Club, Australian Property Institute, Parkes
Combined Probus Club)
• Project development
• Social and economic impact
Landholders
• Meetings, contractual agreements
• Direct engagement and briefings
Suppliers
• Meetings, contractual agreements
• Local procurement where feasible
• Land access and compensation
agreements
• Infrastructure improvements
• Project development
• Social and economic impact
• Health and safety requirements
• Modern slavery requirements
• Contract conditions
47
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT COMMUNITIES
Contributions to the Economy
Alkane practises safe and sustained economic development for the long-term benefit of our shareholders,
employees, contractors, suppliers and host communities.
Following is a summary of key Alkane economic contributions in FY22:
Government
payments
$7M
(including $5.4M in
royalties)
Local council
payments
$0.5M
(rates and planning
agreement)
Suppliers
$126.7M
(45% NSW)
Community
contributions
$170,000
Clontarf Foundation
($100K)
Tomingley Gold
Project Community
Fund
(approx. $43K)
Narromine Star
newspaper
($11K)
Australian Earth
Science Education
(AusEarthEd)
($9K)
Dubbo Golf Club
Narromine Rotary
Club
Peak Hill PH&A
Association
Wellington Show
Narromine Jets
($5K)
Wellington
Community
Christmas Party
Developing resilient regional communities
Alkane supports the development of more resilient
regional communities through the establishment of
permanent infrastructure, sponsorship of local events
and organisations, provision of training and career
opportunities to local students and residents, and the
engagement of local suppliers and service providers.
Since 2014, when Tomingley Gold Operations
commenced production, Alkane has supported the
Tomingley and broader Narromine communities. We
have funded several local infrastructure projects
through the Tomingley Gold Project Community Fund.
We also established a side branch to Alkane’s bore
water pipeline to supply the Tomingley village dam
with non-potable water. This has increased water
security for the village during times of drought.
48
The community fund continues to fund local projects
and events on a submissions basis. In FY22, approximately
$43,000 was awarded to a number of different projects,
including the annual sponsorship of the Tomingley
Picnic Races (traditionally held in April), equipment for
the Narromine rugby clubhouse, medical equipment
for the Narromine Hospital Auxiliary, and sponsorship
of two Narromine High School events.
In the reporting period, Alkane became a foundation
supporter of the Narromine Star, a new independent
local newspaper launched on 4 November 2021.
Our year-long sponsorship helped provide a solid
launchpad to get the paper off the ground.
Alkane Resources Annual Report 2022
Alkane also supports the Narromine Rotary Club by
bringing its food van to site 12 times per year and
buying lunch for the Tomingley workforce. According
to the club, this was its largest fundraising program
during the height of the pandemic.
Approval of the Tomingley Gold Extension Project
would see the operation continue until at least
2031. This would benefit the wider community in
terms of continuation of employment, workforce and
supplier expenditure, and community investment.
The economic impact assessment estimated that 50
percent of operation costs over the life of the project
are expected to be spent within the local area and 80
percent within New South Wales.
Aboriginal Engagement and
Cultural Heritage
Alkane respects the traditions and culture of the
Aboriginal and Torres Strait Islander Peoples of
Australia. We ensure traditional custodians are
engaged and consulted on heritage issues, as per the
codes and guidelines established by Heritage New
South Wales.
Our main operation at Tomingley lies on the traditional
lands of the Upper Bogan River clan group, members
of the Wiradjuri Nation. Today the operation lies
within the boundaries of the Peak Hill Local Aboriginal
Land Council (PHLALC).
The Tomingley Cultural Heritage Management Plan,
which guides the management of Aboriginal heritage
sites identified during the initial environmental
assessment in 2009, was developed in close
consultation with several Wiradjuri Aboriginal
stakeholder groups, including PHLALC.
In 2021, as part of the environmental impact
assessment for the Tomingley Gold Extension Project,
consultants working on behalf of Alkane surveyed
the new project site in conjunction with the local
Aboriginal community. A total of 39 sites of Aboriginal
heritage significance were identified, of which 12
would be disturbed by the extension project. To
manage the proposed disturbance and protect the
balance, the Tomingley Cultural Heritage Management
Plan will be updated in consultation with the
Aboriginal community.
Alkane has recently commenced conversations with
local Aboriginal community representatives of the
Wellington area, where the Boda project is located.
This included a meeting in August 2022 with the
Wellington Local Aboriginal Land Council.
SUSTAINABILITY REPORT COMMUNITIES
Sponsorship of the Clontarf Foundation
In September 2020, Alkane established a major new
sponsorship of the Clontarf Foundation’s Narromine
Academy for $300,000 over three years. The
sponsorship represents Alkane’s long-term investment
in capacity building for young Aboriginal and Torres
Strait Islander men, and includes an annual program
of student interaction, celebrations of achievements,
employment pathway support, and visits between the
Tomingley gold mine and the Narromine Academy.
Supporting local Aboriginal businesses
Alkane has a history of supporting local Aboriginal
businesses. Six years ago, natural oils distiller, Native
Secrets, began extracting oils from White Cypress
Pine (Callitris glaucophylla) trees being thinned from
the property managed by our former subsidiary,
Toongi Pastoral Company. We are currently exploring
new partnering opportunities with Aboriginal
organisations around Tomingley.
49
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT ENVIRONMENT
Environment
Alkane’s exploration, mining, processing and rehabilitation activities are
carefully designed to minimise our environmental footprint and enhance
biodiversity.
Environmental Management
Alkane takes environmental stewardship seriously
– not simply as a legislative requirement, but as a
demonstration of integrity and the respect we have
for the land and our host communities. Environmental
responsibility is embedded into the design of our
activities and normal business practices.
At Tomingley Gold Operations, a comprehensive
Environmental Management Strategy (EMS) is
underpinned by a series of site-specific Environmental
Management Plans available on our website. The
management plans are reviewed regularly, most
recently following the approval of Modification 5
(April 2021). Updated biodiversity management and
water management plans were approved by the NSW
Department of Planning and Environment (DPE) in
FY22. Approval of the Tomingley Gold Extension
Project will result in the EMS and all management
plans being extensively reviewed and updated for
approval by DPE.
A dedicated Environmental Management team
undertakes regular monitoring of air, water, noise
and blasting to ensure site compliance with project
approvals, licences and permits. Annual environmental
reporting includes:
• Annual Review (NSW DPE)
• Annual Return (NSW EPA)
• National Pollutant Inventory (NPI)
• National Emissions and Energy Report (NGER)
50
The report resulting from the three-yearly
independent environmental audit (for the period
March 2018 to May 2021) was submitted to DPE in
September 2021. We are working through the action
plan to address minor administrative non-compliances.
Environmental performance in FY22
One reportable incident occurred on site during
the period. During a heavy rainfall event on 26
November 2021, ‘dirty’ water was discharged from
one of Tomingley’s sediment ponds via a spillway
(licensed discharge point) into Gundong Creek. With
186mm of rain falling in 48 hours, the dual pumping
system couldn’t keep up with the extreme volumes of
water. Water samples were taken at several locations
during and after the discharge; testing revealed the
discharged water contained elevated levels of ‘total
suspended solids’ (sediment), but no raised levels of
metals or significant changes in pH. The TSS levels
recorded at a downstream monitoring point were well
within acceptable limits. The incident was reported
to the NSW Environment Protection Authority (EPA),
which advised no further action was required.
No noise, dust or vibration exceedances were
recorded at Tomingley during the reporting period,
and no complaints were received. Details of
Tomingley’s environmental performance can be found
on Alkane’s website.
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT ENVIRONMENT
Boda
Water
Alkane recognises that water is a valuable resource
we share with our communities, including towns
and agricultural enterprises near our operations and
projects. Our activities are carefully designed to use
water responsibly and efficiently.
Our approach to water management at Tomingley
is comprehensively described in the site’s Water
Management Plan, which was updated in FY22 to
accommodate the approved construction of a second
residue storage facility (Modification 5). The plan also
contains details of the New South Wales regulatory
environment and water licences.
The main water supply at Tomingley Gold Operations
is raw water from the Woodlands Borefield, piped
approximately 46 kilometres from east of Narromine.
The entitlement of 1000ML is sufficient for the site’s
net requirements, where water is primarily lost by
entrainment in processing residue.
Tomingley employs a range of measures to optimise
water management and minimise consumption of
clean (raw) water. For example, surface runoff due
Water use efficiency and consumption
to rainfall is contained in sediment ponds, then used
for dust suppression. The process water system
preferentially uses water from an internal recycling
circuit, with new bore water used to top up the
process water only as required. Water is recovered
and recycled multiple times before it evaporates out
of the process water system.
The table below shows the continual improvement in
raw water use efficiency (per ounce of gold poured)
and consumption at Tomingley over the past three
years. It indicates the site is drawing only 50-70
percent of its 1000ML entitlement.
The water management system at Tomingley includes
infrastructure (drains, dams, pumps and pipelines)
to manage clean, raw, dirty, mine and process
(contaminated) water. These systems are rigorously
maintained to protect the integrity of natural surface
and groundwater flows. High annual rainfall (around
double the average) presented a challenge in FY22
and resulted in a reportable discharge of dirty water
from one of the sediment ponds (see preceding
section).
Water consumption
FY20
FY21
FY22
Total water drawn from bore (ML)
- per tonne of ore processed (L/t)
- per ounce of gold poured (L/oz)
559
665
16,683
629
676
11,043
573
556
8,577
51
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT ENVIRONMENT
Emissions and energy
Alkane acknowledges the need for the mining sector
to transition towards renewable energy sources and
reduce greenhouse gas (GHG) emissions to combat
climate change.
We continue to explore renewable energy solutions
to provide an effective proportion of the power
requirements for the Tomingley processing plant
and other site infrastructure. Feasibility of a solar
installation on Alkane’s land around Tomingley remains
under consideration. For future project developments,
we intend to comprehensively evaluate renewable and
low-emission power sources and incorporate them
where feasible.
Alkane collates and reports annual GHG emissions
and energy consumption data for Tomingley Gold
Operations in line with the National Greenhouse and
Energy Reporting (NGER) scheme and the National
Pollutant Inventory (NPI).
• Scope 1 GHG emissions are predominantly
associated with the mining fleet. In FY22, we
introduced a new underground fleet with higher-
performance engines that reduce diesel emissions.
• Scope 2 GHG emissions relate to electricity
purchased from the grid.
Tomingley Gold Operations emissions and energy data
Greenhouse gas emissions
Total emissions
Scope 1 & Scope 2 (t CO2-e)
GHG intensity (t CO2-e/oz)
Energy
Total consumed (GJ)
Energy intensity (GJ/oz)
* FY22 data is estimated
FY20
FY21
FY22
36,742
1.1
222,526
6.64
46,844
0.82
312,541
5.49
51,528*
0.77*
359,422*
5.38*
Waste management and recycling
Alkane takes care to manage the waste generated
by our operations responsibly and securely. Through
careful design, construction and maintenance, we
preserve the structural integrity of our waste storage
facilities and ensure they are fit for purpose.
Wherever it is practical, we seek opportunities to
re-purpose and recycle consumables to recapture key
materials and minimise our impact on landfill.
52
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT ENVIRONMENT
Waste rock management
Residue management
Only a very small percentage of rock mined at
Tomingley is classified as ‘potential acid forming’
(PAF). This PAF material is managed through a site
Waste Management Plan and contained so that it
cannot leach acid.
Where practical, waste rock from the open cuts has
been used for construction projects around the site
– such as construction of amenity bunds and walls of
the residue storage facility. The balance was initially
stored in two purpose-built waste rock emplacements
(WREs) that have been rehabilitated. Upon the
resumption of open cut mining in the Caloma cutback,
the waste rock is being used to backfill the Caloma
Two pit.
Some of the underground mining waste rock is
being temporarily stored on the surface, prior to
backfilling empty stope voids. It is also used to
backfill the Wyoming Three pit and other general site
constructions.
Processing residues at Tomingley are treated in a
cyanide destruction circuit, then stored in the site’s
purpose-built residue storage facility (RSF1). RSF1 is
a ‘High A’ consequence category upstream dam with
perimeter deposition. It is designed as a non-release
facility capable of storing a ‘probable maximum
precipitation’ event. This dam has also undergone
extensive buttressing over the last 12 months to
maintain appropriate factors of safety.
A second RSF to support extended operations at
Tomingley has been approved. Currently under
construction, RSF2 will be a ‘Significant’ consequence
category dam, following a centre-line lift methodology
with perimeter deposition. It will be a non-release
facility with emergency spillways.
Both RSFs are designed and constructed according
to ANCOLD guidelines and Dams Safety NSW
Regulations. They are operated according to the
site’s compressive Dam Safety Management Plan,
which incorporates an ‘operations, maintenance and
surveillance’ manual and an emergency response plan.
Tomingley
53
Alkane Resources Annual Report 2022
SUSTAINABILITY REPORT ENVIRONMENT
Designing landforms for visual amenity
The Tomingley Gold Extension Project will require a new waste rock emplacement
(WRE) to be constructed in the vicinity of the open cut. This new landform has been
designed with more ‘natural’ contours (instead of stepped batters) to blend in more
sympathetically with the landscape.
Soil experts were engaged to assess soil ‘erodibility’ and model WRE designs based
on the volume of waste rock to be moved, the quality of available topsoil (which is
highly variable), and local climate. Soil samples were collected from across the site and
subjected to simulated rainfall and erosion stresses in a specialised laboratory.
The results have indicated the gradient and form of the batters able to be
accommodated by the available soils for the local climate. The amount of rainfall and
its distribution greatly influence vegetation growth and the potential for erosion.
The proposed WRE will be constructed and the outer section progressively
rehabilitated, providing a visual shield for ongoing mining activities. Similar principles
will be used to construct and revegetate an amenity bund to shield observers to the
south, west and north of the project site from the majority of mining-related activities.
Recycling of containers used for liquid chemicals
Tomingley has a number of recycling programs in place for key consumables –
including scrap metal, oil and grease. A project in FY22 involved establishing a system
to allow intermediate bulk containers (IBCs) to be added to the mix.
IBCs are industrial-grade containers utilised across site for bulk handling and storage
of liquid chemicals and lubricants. Typically featuring significant quantities of metal
and plastic in their construction, IBCs are eminently recyclable – providing they are
first rinsed free of potentially hazardous materials.
When the volume of empty IBCs was starting to build up, the Tomingley team devised
an appropriate and safe process for cleaning the containers. They are now rinsed within
the bunded area at the mill, where runoff goes through the water recycling circuit.
Any IBCs that contained hydrocarbons (e.g. grease) go to a different wash bay that has
an oil/water separator. Empty IBCs are also used as receptacles for waste products –
such as oily rags, used filters and other contaminated waste types – which are then
collected by a licensed waste contractor and disposed at a licensed waste facility.
The cleaned IBCs are now collected in batches by Tomingley’s scrap metal recycling
provider. Approximately 150 IBCs were cleaned and collected in the first instance.
They will be washed and recycled on an ongoing basis.
54
Alkane Resources Annual Report 2022
Rehabilitation and Land
Management
Alkane abates the impact of our operations to
the landscape through sensitive project design,
progressive rehabilitation and sustainable farming
practices. We aim to minimise the project footprint
and improve the productivity of residual agricultural
lands that are not disturbed.
Rehabilitation
We understand the importance of returning sites
to stable and productive ecosystems once mining is
finished. At Peak Hill Gold Mine, where operations
ceased in 2005, the rehabilitated site is enjoying the
natural regeneration of trees and shrubs. Landscape
function analyses across parts of the mining lease
indicate the site is in better condition than when
mining commenced.
Rehabilitation of the original waste rock
emplacements at Tomingley is progressing well, as
per the Rehabilitation Management Plan. Contouring
and drainage works were completed in 2018, and
high levels of rainfall in recent years have resulted in
good vegetation growth, including planted acacias and
eucalypts. These landforms continue to be monitored
as part of Tomingley’s Biodiversity Management Plan,
with results reported in the Annual Rehabilitation and
Biodiversity Assessment report supplied to the NSW
Department of Planning and Environment.
SUSTAINABILITY REPORT ENVIRONMENT
Agriculture
In the Environmental Impact Statement (EIS) for
the Tomingley Gold Extension Project, Alkane
has committed to improving the overall land and
soil capability of the agricultural land that will not
be disturbed by the project (approximately 1450
hectares). This would yield a net gain in long-term
agricultural productivity to offset the land that will
be either temporarily or permanently removed from
agricultural production.
To achieve this we have partnered with the Toongi
Pastoral Company (TPC), a sustainable farming
enterprise founded by Alkane in 2016 to manage
the agricultural land associated with the polymetallic
Dubbo Project (now owned by our former subsidiary,
Australian Strategic Materials).
Over the past year, TPC assisted with preparation of
the agricultural impact statement for the EIS, and is
tasked with developing and enacting the long-term
land management and farm plan. The ultimate goal is
to establish a profitable mixed agricultural enterprise
that demonstrates leading practice sustainable
farming technologies – including genetics, soil and
pasture management, pest and weed management,
and carbon sequestration solutions.
In so doing, we propose to increase the carrying
capacity by approximately 5% per year to improve the
average agricultural carrying capacity of approximately
3.1 dry sheep equivalent (DSE) to approximately
6.0DSE by 2035.
In FY22, the team focused on amalgamating the
properties, taking stock of inherited infrastructure and
learning about the natural aspects of the landscape
– such as soil, water and vegetation. At year-end, the
consolidated property supported about 2000 ewes
on either spring or autumn lambing cycles, and about
200 yearling cattle. Approximately 500 hectares were
sown with winter cereals and forage crops.
Rehabilitated waste rock emplacement at Tomingley
55
Alkane Resources Annual Report 2022 SUSTAINABILITY REPORT ENVIRONMENT
Biodiversity
Alkane works hard to protect and nurture the wide
variety of native species that live in and around
our projects. Through careful management of
rehabilitation and biodiversity offset areas, we aim to
restore wildlife habitats and enhance native flora and
fauna populations.
At Peak Hill Gold Mine, our rehabilitation efforts
have resulted in an increasingly species-rich site,
with several native and woodland bird and mammal
species, not present pre-mining, now thriving. The
original tree plantings from 1996 are now around 20
metres tall. They have led to natural regeneration of
the woodland species on site.
For the current operation at Tomingley, designated
biodiversity offset areas totalling 157 hectares
are protected by a binding Conservation Property
Vegetation Plan, signed in agreement with Central
West Local Land Services. These areas comprise a
mix of native grassy woodlands being conserved
(80ha) and extensions to these woodlands through
ameliorative re-vegetation (77ha). Management
activities include re-vegetation (endemic trees, shrubs,
herbs and grasses), weed control, feral animal control
and protection of native species from introduced
predators.
To demonstrate progressive biodiversity and
rehabilitation targets are being met, an Annual
Rehabilitation and Biodiversity Assessment report is
completed and submitted to the NSW Department
of Planning and Environment. Each report measures
and compares the ecological recovery of conservation
and mine rehabilitation areas against reference sites
(remnant woodland and native grasslands). The 2021
Annual Rehabilitation and Biodiversity Assessment
report was submitted October 2021 and the 2022
report will be submitted October 2022.
A biannual fauna monitoring report is also prepared
by external ecological consultants with data obtained
from an extensive field assessment program. This
report guides the ongoing management of native
fauna around the Tomingley operations.
Biodiversity assessment for the Tomingley Gold
Extension Project
Biodiversity surveys for the Tomingley Gold Extension Project began in September
2019, and were completed in early 2022. Most of the area is cleared agricultural land.
However, the surveys identified four types of native vegetation. One of these is Fuzzy
Box (Eucalyptus Conica) woodland, which is a locally uncommon species and classified
as a Threatened Ecological Community.
Alkane has already started planting Fuzzy Box outside the projected disturbance
footprint. In August 2021, members of Alkane’s exploration and Tomingley teams, as
well as Toongi Pastoral Company, planted 850 Fuzzy Box seedlings grown by local
nursery, Narromine Transplants. The seedlings have mostly survived in defiance of
soggy ground due to excessive rainfall, and have grown to double their planted height.
The biodiversity assessment also identified three threatened bird species, namely the
Grey-crowned Babbler (Pomatostomus temporalis), Superb Parrot (Polytelis swainsonii)
and Glossy Black Cockatoo (Calyptorhynchus lathami). While the Superb Parrot is a
seasonal visitor and the Glossy Black Cockatoo was likely present only because habitat
further east had been impacted by bushfire, the Grey-crowned Babbler is local to the
area. We are already managing and enhancing remnant habitats for this species.
Overall, approximately 78 hectares of native vegetation would be disturbed by the
project, with no significant habitat to be cleared. While the biodiversity impacts
would be small, we will offset those that would occur in accordance with the NSW
Government’s requirements.
56
Alkane Resources Annual Report 2022 FINANCIAL
REPORT
Directors’ Report
Auditor’s Independence
Declaration
FinancialStatements
Consolidated
FinancialStatements
Notes to the
Consolidated
Financial Statements
58
76
77
79
83
Directors’Declaration 115
Independent
Auditor’s Report
116
Alkane Resources Annual Report 2022
57
FINANCIAL REPORT DIRECTORS’ REPORT
Directors’ Report
The directors present their report, together with the financial statements,
on the consolidated entity (referred to hereafter as the ‘consolidated
entity’ or the ‘group’) consisting of Alkane Resources Ltd (referred to
hereafter as the ‘company’ or ‘parent entity’) and the entities it controlled
at the end of, or during, the year ended 30 June 2022.
Directors
The following persons were directors of Alkane Resources Ltd (Alkane) during the whole of the financial year and up
to the date of this report, unless otherwise stated:
I J Gandel
N P Earner
D I Chalmers
A D Lethlean
G M Smith
The Board continues its efforts to seek to appoint additional independent members who will bring complementary
skill sets and diversity to the group’s leadership.
Information on Directors and Company Secretaries
Ian Jeffrey Gandel – Non-Executive Chairman
LLB, BEc, FCPA, FAICD
Appointed Director 24 July 2006 and Chairman 1 September 2017.
Mr Gandel is a successful Melbourne-based businessman with extensive experience in retail management and retail
property. He has been a director of the Gandel Retail Trust and has had an involvement in the construction and
leasing of Gandel shopping centres. He has previously been involved in the Priceline retail chain and the CEO chain
of serviced offices.
Mr Gandel has been an investor in the mining industry since 1994. Mr Gandel is currently a substantial holder
in a number of publicly listed Australian companies and, through his private investment vehicles, now holds and
explores tenements in his own right in Western Australia. Mr Gandel is currently non-executive chairman of
Alliance Resources Ltd (appointed as a director on 15 October 2003 and in June 2016 was appointed non-executive
chairman). Mr Gandel is currently non-executive chairman of Australian Strategic Materials Limited (appointed
18 March 2014). He is also non-executive chairman of Octagonal Resources Ltd (appointed 10 November 2010)
(this company sought delisting from the ASX in February 2016 and converted to Pty Ltd status in April 2016).
Mr Gandel is a member of the Audit Committee and a member of the Remuneration and Nomination Committees.
58
Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ REPORT
Nicolas Paul Earner – Managing Director
BEng (hons)
Appointed Managing Director 1 September 2017.
Mr Earner is a chemical engineer and a graduate of the University of Queensland with over 25 years’ experience in
technical and operational optimisation and management, and has held a number of executive roles in mining and
processing.
Mr Earner joined Alkane Resources Ltd as Chief Operations Officer in August 2013, with responsibility for the
safe and efficient management of the company’s operations at Tomingley Gold Operations (TGO) and Dubbo
(Dubbo Project). Under his supervision, the successful development of TGO transitioned to profitable and efficient
operations. His guidance also drove the engineering and metallurgical aspects of the Dubbo Project, prior to its
transition into the separately listed Australian Strategic Materials.
Prior to his appointment as the group’s Chief Operations Officer in August 2013, he had roles at Straits Resources
Ltd, Rio Tinto Coal Australia’s Mount Thorley Warkworth coal mine and BHP/WMC Olympic Dam copper-uranium-
gold operations.
Mr Earner is currently a non-executive director of Australian Strategic Materials Limited (appointed 1 September 2017).
David Ian Chalmers – Technical Director
MSc, FAusIMM, FAIG, FIMM, FSEG, MSGA, MGSA, FAICD
Appointed Technical Director 1 September 2017. Resigned as Managing Director 31 August 2017.
Mr Chalmers, Alkane Resources Ltd’s Technical Director, is a geologist and graduate of the Western Australia
Institute of Technology (Curtin University) and has a Master of Science degree from the University of Leicester in
the United Kingdom. He has worked in the mining and exploration industry for over 50 years, during which time he
has had experience in all facets of exploration and mining through feasibility and development to the production
phase. Mr Chalmers was Technical Director of Alkane until his appointment as Managing Director in 2006,
overseeing the group’s minerals exploration efforts across Australia and the development and operations of the
Peak Hill Gold Mine (NSW). During his time as Chief Executive he steered Alkane through the discovery, feasibility,
construction and development of the now fully operational Tomingley Gold Operations; the discovery and ultimate
sale of the McPhillamys gold deposit; the recent discovery of the gold deposits immediately south of Tomingley and
the porphyry gold-copper discovery at Boda.
Mr Chalmers is a member of the Nomination Committee.
Anthony Dean Lethlean – Non-Executive Director
BAppSc (Geology)
Appointed Director 30 May 2002.
Mr Lethlean is a geologist with over 10 years’ mining experience, including four years underground on the Golden
Mile in Kalgoorlie. In later years, he has worked as a resource analyst with various stockbrokers and investment
banks, including CIBC World Markets. He was a founding director of Helmsec Global Capital Limited, which seeded,
listed and funded a number of companies in a range of commodities. He retired from the Helmsec group in 2014.
He is also a director of corporate advisory Rawson Lewis and a non-executive director of Alliance Resources Ltd
(appointed 15 October 2003).
Mr Lethlean is the senior independent Director, Chairman of the Audit Committee and Risk Committee and a
member of the Remuneration and Nomination Committee.
59
Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ REPORT
Gavin Murray Smith – Non-Executive Director
B.Com, MBA, MAICD
Appointed Director 29 November 2017.
Mr Smith is an accomplished senior executive and non-executive director within multinational business
environments. He has more than 35 years’ experience in Information Technology, Business Development, and
General Management in a wide range of industries and sectors. Mr Smith has worked for the Bosch group for the
past 29 years in Australia and Germany and is current chair and president of Robert Bosch Australia. In this role
Mr Smith has led the restructuring and transformation of the local Bosch subsidiary. Concurrent with this role, he
is a non-executive director of the various Bosch subsidiaries, joint ventures, and direct investment companies in
Australia and New Zealand.
Mr Smith is currently a non-executive director of Australian Strategic Materials Limited (appointed 12 December 2017).
Mr Smith is a member of the Audit Committee, Risk Committee and Chair of Remuneration and Nomination
Committees.
Dennis Wilkins – Joint Company Secretary
B.Bus, ACIS, AICD
Appointed Company Secretary 29 March 2018.
Mr Wilkins is the founder and principal of DWCorporate Pty Ltd, a corporate advisory firm servicing the natural
resources industry.
Since 1994 he has been a director of, and involved in the executive management of, several publicly listed resource
companies with operations in Australia, PNG, Scandinavia and Africa. Since July 2001 Mr Wilkins has been running
DWCorporate Pty Ltd, where he advises on the formation of, and capital raising for, emerging companies in the
Australian resources sector.
Mr Wilkins is currently a director of Key Petroleum Limited.
James Carter – Joint Company Secretary
Appointed Company Secretary 20 May 2020.
Mr Carter is a CPA and Chartered Company Secretary with over 25 years’ international experience in the resources
industry. He has held senior finance positions across listed resources companies since 2001.
Principal activities
During the financial year the principal activities of the consolidated entity consisted of:
• mining operations at the Tomingley Gold Operations;
• exploration and evaluation activities on tenements held by the group; and
• pursuing strategic investments in gold exploration companies.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
60
Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ REPORT
Result for the year
The profit for the consolidated entity after providing for income tax amounted to $70,251,000 (30 June 2021:
$55,701,000).
This result included a profit before tax of $62,165,000 (30 June 2021: $57,791,000) in relation to Tomingley Gold
Operations.
Review of operations
Tomingley Gold Operations
Tomingley Gold Operations (TGO) is a wholly owned subsidiary of Alkane, located near the village of Tomingley,
approximately 50km southwest of Dubbo in the Central West region of New South Wales. The gold processing
plant was commissioned in January 2014 and has been operating at the design capacity of 1Mtpa since late May
2014. Mining is based on four gold deposits (Wyoming One, Wyoming Three, Caloma One and Caloma Two).
TGO had an excellent year with both the underground and open cut operations performing well. Full year
production exceeded guidance, with all in sustaining cost (AISC) below guidance.
Gold recovery of 83.7% for the period was in line with expectations (2021: 88.8%). Average grade milled increased
to 2.44g/t in the current year (2021: 2.14g/t).
Production for the period was 66,802 ounces of gold (2021: 56,958 ounces of gold) with all in sustaining costs of
$1,460 per ounce (2021: $1,320 per ounce). The average sales price achieved for the year increased to $2,467 per
ounce (2021: $2,286 per ounce). Gold sales of 66,883 ounces (2021: 55,929 ounces) resulted in sales revenue of
$165,010,000 (2021: $127,833,000).
Bullion on hand decreased by 97 ounces from 30 June 2021 to 3,149 ounces (fair value of $8,244,000 at year end).
Alkane’s intention is to develop the Roswell and San Antonio deposits, which are located 3 – 5km south of
Tomingley, as soon as possible.
61
Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ REPORT
The table below summarises the key operational information:
TGO Production
Unit
September
Quarter
2021
December
Quarter
2021
March
Quarter
2022
June
Quarter
2022
FY
2022
FY
2021
Open cut
Waste mined
Ore mined
Strip Ratio
Ore mined
Grade(2)
Underground
Ore mined
Grade
Ore Milled
Head Grade
Gold Recovery
Gold poured(3)
Revenue summary
Gold sold
Average price realised
Gold revenue
Cost summary
Surface works
Mining
Processing
Site support
C1 cash cost(1)
Royalties
Sustaining capital
Gold in circuit movement
Rehabilitation
Corporate
All in sustaining cost(1)
Bullion on hand
Stockpiles
BCM's
BCM’s
Ratio
290,371
233,937
184,013
140,590
848,911
1,218,779
36,225
32,450
52,276
74,641
195,592
37,166
8.0
7.2
3.5
1.9
4.3
32.8
Tonnes
93,118
91,185
146,895
209,741
540,939
71,347
g/t
0.63
0.83
1.34
1.77
1.30
0.64
Tonnes
226,054
208,534
151,976
213,019
799,584
706,889
g/t
1.87
2.42
3.18
3.44
2.76
2.63
Tonnes
247,884
257,384
261,675
262,264
1,029,207
928,531
g/t
%
1.79
85.1
2.42
85.4
2.27
79.3
3.23
84.9
2.44
83.7
2.14
88.8
Ounces
12,141
16,935
14,635
23,091
66,802
56,958
Ounces
13,359
17,754
14,635
21,135
66,883
55,929
A$/oz
A$M
A$/oz
A$/oz
A$/oz
A$/oz
A$/oz
A$/oz
A$/oz
A$/oz
A$/oz
A$/oz
A$/oz
Ounces
2,467
33.0
263
709
406
154
2,475
43.9
199
431
321
138
2,437
35.7
237
400
393
163
1,531
1,089
1,192
65
268
16
20
61
1,961
2,025
78
114
(6)
20
42
1,338
1,203
83
264
(10)
21
46
1,598
1,235
2,481
52.4
170
369
295
106
940
91
334
(268)
22
31
1,150
3,149
2,467
165.0
211
460
346
136
1,153
81
247
(85)
21
43
1,460
3,149
2,286
127.8
17
452
347
125
940
73
296
(58)
20
49
1,320
3,246
Ore for immediate milling
Tonnes
143,535
185,869
223,066
383,563
383,563
71,938
Stockpile grade(2)
Contained gold
g/t
Ounces
0.92
4,246
0.85
5,114
1.10
7,918
1.31
1.31
16,167
16,167
0.95
2,856
(1)
All in Sustaining Cost (AISC) comprises all site operating costs, royalties, mine exploration, sustaining capex, sustaining mine development and an allocation of corporate
costs on the basis of ounces sold. AISC does not include share-based payments, production incentives or net realisable value provision for product inventory.
(2) Based on the resource models.
(3)
Represents gold sold at site, not adjusted for refining adjustments which results in minor differences between the movements in bullion on hand and the difference between
production and sales.
62
Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ REPORT
Tomingley Gold Extension Project
An extensive exploration program focused on the immediate area to the south of the Tomingley mine has continued
as part of the plan to source additional ore feed, either at surface or underground. On the back of strong results
from exploration and resource drilling to the immediate south of Tomingley, the company is expediting the process
to move to mine development.
Alkane continues to progress approvals for this development. The expected timing of Project Approval is in the
current September quarter.
Feasibility plans that include both open cut and underground mines at Roswell and San Antonio have been prepared
and released as part of a Tomingley Life of Mine Plan, that shows extension of the mine life beyond 2030 (on
approval).
Near-mine exploration
The extensive exploration program focused on the immediate area to the south of the TGO mine has continued
as part of the plan to source additional ore feed, either at surface or underground. During the year the program
continued to focus on both increasing the drilling density within the Roswell and San Antonio prospects as well as
testing strike and depth extensions.
This increase in the Roswell resource during the period gives further support to the company’s plans to develop the
deposit. Exploration drilling is ongoing at the recently discovered McLeans and Plains prospects.
Regional drilling of the San Antonio to Peak Hill corridor focused on stratigraphy south of the El Paso target where
earlier exploration had returned encouraging results.
Northern Molong Porphyry Project (gold-copper)
The initial Inferred Mineral Resource estimation for the Boda deposit was confined to a surface area of 1,000m
strike length and 500m width.
A review of feasibility and existing operating data for similar deposits in Australia was considered in determining
cut-off grades of 0.3g/t AuEq and 0.4g/t AuEq as reasonable for the prospect of eventual extraction with the use of
bulk tonnage mining methods of open cut or underground respectively.
The Mineral Resource will be subject to further resource infill and extension drilling with a view to define the
continuity of the mineralisation at depth and to improve the confidence in the Mineral Resource.
Other exploration targets include areas immediately along strike northwest of Boda towards and including the
Korridor prospect. The Boda Two prospect is adjacent and south of Boda, where the mineralisation appears to
rotate from a northwest trend at Boda to a northerly trend at Boda Two.
Other exploration is focused on defining higher grading centres within the 3.5km intrusive corridor as well as
extending the known alteration northwest of Kaiser.
Corporate
In accordance with its strategy of investing part of its cash balance in junior gold mining companies and projects
that meet its investment criteria, namely potential investments that have high exploration potential and/or
require near term development funding, the company continues to hold its investment in gold exploration and
development companies Calidus Resources Ltd (ASX:CAI) and Genesis Minerals Ltd (ASX:GMD).
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Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ REPORT
Significant changes in the state of affairs
In early 2020 with the outbreak of Coronavirus Disease 2019 (‘COVID-19’ or ‘the coronavirus’), unprecedented
measures put in place by the Australian Government, as well as governments across the globe, to contain the
coronavirus have had a significant impact on the economy.
Management continues to maintain high vigilance around COVID-19.
As at the date these financial statements were authorised, Management was not aware of any material adverse
effects on the financial statements as a result of the coronavirus.
Matters subsequent to the end of the financial year
No matter or circumstance has arisen since 30 June 2022 that has significantly affected, or may significantly affect,
the consolidated entity’s operations, the results of those operations, or the consolidated entity’s state of affairs in
future financial years.
Likely developments and expected results of operations
The group intends to continue efforts at TGO to be focused on continued safe operation of the underground mine,
and exploration, evaluation and project approval of several of its other tenements to secure additional ore feed.
Exploration and evaluation activities will continue on existing tenements, and opportunities to expand the group’s
tenement portfolio will be pursued with a view to ensuring there is a pipeline of development opportunities for
consideration.
Refer to the Review of Operations for further detail on planned developments.
Environmental regulation
The group is subject to significant environmental regulation in respect of its exploration and evaluation,
development and mining activities.
The group aspires to the highest standards of environmental management and insists its staff and contractors
maintain that standard. A significant environmental incident is considered to be one that causes a major impact or
impacts to land biodiversity, ecosystem services, water resources or air, with effects lasting greater than one year.
There were no significant environmental incidents reported at any of the group’s operations.
64
Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') and of each board committee held during
the year ended 30 June 2022, and the number of meetings attended by each director, were:
Meetings of committees
Meetings of directors
Audit Committee
Risk Committee
Remuneration and
Nomination Committee
Attended
Held
Attended
Held
Attended
Held
Attended
Held
I J Gandel
A D Lethlean
D I Chalmers
G Smith
N Earner
11
11
11
10
11
11
11
11
11
11
2
2
2*
2
2*
2
2
2*
2
2*
1*
1
1*
1
1
1*
1
1*
1
1
1
1
1
1
1*
1
1
1
1
1*
Held: represents the number of meetings held during the time the director held office or was a member of the committee during the year.
* Not a member of this committee. Non-members may attend the relevant committee meetings by invitation.
Remuneration report
The directors are pleased to present Alkane Resources Ltd’s remuneration report which sets out remuneration
information for the company’s Non-Executive Directors, Executive Directors and other Key Management Personnel
(‘KMP’).
The report contains the following sections:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
Key Management Personnel (‘KMP’) disclosed in this report
Remuneration governance
Use of remuneration consultants
Executive remuneration policy and framework
Statutory performance indicators
Non-Executive Director remuneration policy
Voting and comments made at the company’s 2021 Annual General Meeting
Details of remuneration
Service agreements
Details of share-based payments and performance against key metrics
Shareholdings and share rights held by Key Management Personnel
Other transactions with Key Management Personnel
65
Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
(a) Key Management Personnel ('KMP') disclosed in this report
Non-Executive Directors
I J Gandel
G M Smith
A D Lethlean
Executive Directors
D I Chalmers
N P Earner
Other Key Management Personnel
J Carter
S Parsons
A MacDonald*
D Woodall *
Chief Financial Officer/ Joint Company Secretary
Executive General Manager – Operations
General Manager – Marketing
Managing Director – Australian Strategic Materials
* D Woodall and A MacDonald ceased to be KMP after the demerger of Australian Strategic Materials from Alkane Resources on 20 July 2020.
(b) Remuneration governance
The company has established a Remuneration Committee to assist the Board in fulfilling its corporate governance
responsibilities with respect to remuneration by reviewing and making appropriate recommendations to the Board on:
• the overall remuneration strategy and framework for the company;
• the operation of the incentive plans which apply to the executive team, including the appropriateness of key
performance indicators and performance hurdles; and
• the assessment of performance and remuneration of the Executive Directors, Non-Executive Directors and
other Key Management Personnel.
The Remuneration Committee is a committee of the Board and at the date of this report the members were
I J Gandel, A D Lethlean and G M Smith, all of whom were non-executive (with Mr Smith and Mr Lethlean being
independent).
Their objective is to ensure that remuneration policies and structures are fair, competitive and aligned with the
long-term interests of the company and its shareholders.
The company’s annual Corporate Governance Statement provides further information on the role of this
committee, and the full statement is available at URL: alkane.com.au/company/governance.
(c) Use of remuneration consultants
No remuneration consultants were engaged in the financial year to provide remuneration advice.
(d) Executive remuneration policy and framework
In determining executive remuneration, the Board (or the Remuneration Committee as its delegate) aims to ensure
that remuneration practices:
• are competitive and reasonable, enabling the company to attract and retain key talent, while building a diverse,
sustainable and high-achieving workforce;
• are aligned to the company’s strategic and business objectives and the creation of shareholder value;
• promote a high-performance culture, recognising that leadership at all levels is a critical element in this regard;
• are transparent; and
• are acceptable to shareholders.
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Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
The executive remuneration framework has three components:
• Total Fixed Remuneration (TFR);
• Short-Term Incentives (STI); and
• Long-Term Incentives (LTI).
(i) Executive remuneration mix
The company has in place executive incentive programs, which provide the mechanism to place a material portion
of executive pay ‘at risk’.
(ii) Total fixed remuneration
A review is conducted of remuneration for all employees and executives on an annual basis, or as required.
The Remuneration Committee is responsible for determining executive TFR.
(iii) Incentive arrangements
The company may utilise both short-term and long-term incentive programs to balance the short and long-term
aspects of business performance, to reflect market practice, to attract and retain key talent and to ensure a strong
alignment between the incentive arrangements of executives and the creation and delivery of shareholder return.
Performance rights have been used in the current period to incentivise the company’s executive and KMP.
The performance rights plan was approved by shareholders at the 2016 Annual General Meeting.
Short-term incentives
The executives have the opportunity to earn an annual Short-Term Incentive (STI) if predefined targets are
achieved.
The executive STI is provided in the form of rights to ordinary shares in the company that vest at the end of
the 12-month period provided the predefined targets are met. On vesting, the rights automatically convert into
one ordinary share each. The executives do not receive any dividends and are not entitled to vote in relation to
the rights to shares during the vesting period. If an executive ceases to be employed by the group within the
performance period (the service condition), the rights will be forfeited, except in limited circumstances that are
approved by the Board on a case-by-case basis.
STI awards for the executive team in the 2022 financial year were based on the scorecard measures and weighting
as disclosed below. Targets were approved by the Remuneration Committee through a rigorous process to align to
the company’s strategic and business objectives.
Performance metrics
Production performance at TGO
Cost performance at TGO
Safety Performance, Environment & Social Licence
SAR planning approval
Boda Resource Growth
Weighting
25%
25%
25%
10%
15%
The committee has the discretion to adjust short-term incentives downwards in light of unexpected or unintended
circumstances.
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Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
Long-term incentives
The LTI is designed to focus executives on delivering long-term shareholder returns. Eligibility for the plan is
restricted to executives and nominated senior managers, being the employees who are most able to influence
shareholder value. Under the plan, participants have an opportunity to earn up to 100% of their total fixed
remuneration (calculated at the time of approval by the Remuneration Committee) comprised of performance
rights. In previous periods, performance rights were granted in two tranches each year. Each tranche of
performance rights has separate vesting conditions, being share price growth and company milestone events, with
the executives’ LTI weighted more heavily to the share price growth tranche. The LTI vesting period is three years.
In FY2022 LTIs were issued with vesting conditions linked to total shareholder return (‘TSR’) with a vesting period
of three years.
The performance rights will be provided in the form of rights to ordinary shares in Alkane Resources Ltd that will
vest at the end of the three-year vesting period provided the predefined targets are met. On vesting, the rights
automatically convert into one ordinary share each. Participants do not receive any dividends and are not entitled
to vote in relation to the rights to shares prior to the vesting period. If a participant ceases to be employed by the
group within this period, the rights will be forfeited, except in limited circumstances that are approved by the Board
on a case-by-case basis.
Participation in the plan is at the Board’s discretion and no individual has a contractual right to participate in the plan.
Targets are generally reviewed annually and set for a forward three-year period. Performance related targets reflect
factors such as the expectations of the group’s business plans, the stage of development of the group’s projects and
the industry business cycle. The most appropriate target benchmark will be reviewed each year prior to the granting
of rights.
The Remuneration Committee is responsible for determining the LTI to vest based on an assessment of whether the
predefined targets are met. To assist in this assessment, the committee receives detailed reports on performance
from management. The committee has the discretion to adjust LTIs downwards in light of unexpected or
unintended circumstances.
(iv) Clawback policy for incentives
Under the terms and conditions of the company’s incentive plan offer and the plan rules, the Board (or the
Remuneration Committee as its delegate) has discretion to determine forfeiture of unvested equity awards
in certain circumstances (e.g. unlawful, fraudulent or dishonest behaviour or serious breach of obligations to
the company). All incentive offers and final outcomes are subject to the full discretion of the Board (or the
Remuneration Committee as its delegate).
(v) Share trading policy
The trading of shares issued to participants under any of the company’s employee share plans is subject to, and
conditional upon, compliance with the company’s employee share trading policy. Executives are prohibited from
entering into any hedging arrangements over unvested rights under the company’s employee incentive plans. The
company would consider a breach of this policy as gross misconduct which may lead to disciplinary action and
potentially dismissal.
(e) Statutory performance indicators
The company aims to align executive remuneration to the company’s strategic and business objectives and the
creation of shareholder wealth. The table below shows measures of the group’s financial performance over the
last five years as required by the Corporations Act 2001. However, these are not necessarily consistent with the
specific measures in determining the variable amounts of remuneration to be awarded to KMP. As a consequence,
there may not always be a direct correlation between the statutory key performance measures and the variable
remuneration rewarded.
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Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
Revenue ($'000)
Profit/(loss) for the year attributable to owners ($'000)
Basic earnings/(loss) per share (cents)
Dividend payments ($'000)
Share price at period end ($)
Total KMP incentives as a percentage of profit/(loss) for the year (%)
(f) Non-Executive Director remuneration policy
30 June
2022
30 June
2021
30 June
2020
30 June
2019
30 June
2018
165,010
127,833
70,251
55,701
74,397
12,762
95,852
129,974
23,293
24,471
11.8
-
0.62
1.8%
5.6
-
1.15
2.1%
2.4
-
1.21
8.3%
4.6
-
0.46
3.3%
4.8
-
0.23
3.0%
On appointment to the Board, all Non-Executive Directors enter into a service agreement with the company in
the form of a letter of appointment. The letter summarises the Board policies and terms, including remuneration,
relevant to the office of Director.
Non-Executive Directors receive a Board fee and fees for chairing or participating on Board Committees.
Non-Executive Directors appointed do not receive retirement allowances. Fees provided are inclusive of
superannuation and the Non-Executive Directors do not receive performance-based pay.
Fees are reviewed annually by the Remuneration Committee taking into account comparable roles and market data
obtained from independent data providers.
The maximum annual aggregate Directors’ fee pool limit (inclusive of applicable superannuation) is $950,000 and
was approved by shareholders at the Annual General Meeting on 17 November 2021.
Details of Non-Executive Director fees in the year ended 30 June 2022 are as follows:
Base fees
Chair
Other Non-Executive Directors
Additional fees
Audit Committee – chair
Audit Committee – member
Remuneration Committee – chair
Remuneration Committee – member
$ per annum
191,000
95,000
12,500
7,500
12,500
7,500
For services in addition to ordinary services, Non-Executive Directors may charge per diem consulting fees at the
rate specified by the Board from time to time for a maximum of four days per month over a 12-month rolling basis.
Any fees in excess of this limit are to be approved by the Board.
(g) Voting and comments made at the company’s 2021 Annual General Meeting
The company received 98.7% of ‘yes’ votes on its remuneration report for the financial year ended 30 June 2021.
The company did not receive any specific feedback at the AGM or throughout the year on its remuneration
practices.
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Alkane Resources Annual Report 2022
Executive Directors
N P Earner
D I Chalmers
Other KMP
J Carter
S Parsons(f)
Total Executive
Directors and other
KMP
Total NED
remuneration(e)
Total KMP
remuneration expense
30 June 2021
Executive Directors
N P Earner
D I Chalmers
Other KMP
D Woodall(g)
A MacDonald(g)
J Carter
S Parsons(f)
FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
(h) Details of remuneration
The following table shows details of the remuneration expense recognised for the directors and the KMP of the group for
the current and previous financial year measured in accordance with the requirements of the accounting standards.
Fixed remuneration
Variable
Remuneration
30 June 2022
Cash
Salary(a)
Annual and
long service
leave(b)
Post-
employment
benefits(c)
Cash
bonus(a) (h)
Bonus
Employee
Share Plan(i)
Rights to
deferred
shares(d)
Total
$
$
$
$
$
$
624,812
307,232
434,500
418,000
(8,052)
39,981
5,317
38,508
25,188
23,568
27,500
27,500
-
-
-
87,503
-
-
716,484
1,358,432
165,078
535,859
1,000
1,000
233,847
124,900
702,164
697,411
1,784,544
75,754
103,756
87,503
2,000
1,240,309
3,293,866
400,682
-
27,818
-
-
-
428,500
2,185,226
75,754
131,574
87,503
2,000
1,240,309
3,722,366
Fixed remuneration
Cash Salary(a)
Annual and
long service
leave(b)
Post-
employment
benefits(c)
$
$
$
Variable
Remuneration
Rights to
deferred
shares(d)
$
576,942
309,105
26,344
28,769
362,300
87,586
1,391,046
376,661
1,767,707
28,234
142,783
-
-
17,546
11,105
199,668
-
23,058
21,694
2,503
2,660
25,000
5,065
79,980
24,965
707,441
148,333
-
29,438
244,604
39,866
Total
$
1,335,675
621,915
28,847
60,867
649,450
143,622
Total Executive Directors and other KMP
Total NED remuneration(e)
Total KMP remuneration expense
199,668
104,945
1,169,682
3,242,002
1,169,682
2,840,376
-
401,626
(a) Short-term benefits as per Corporations Regulation 2M.3.03(1) Item 6.
(b)
Other long-term benefits as per Corporations Regulation 2M.3.03(1) Item 8. The amounts disclosed in this column represent the movements in the associated provisions.
They may be negative where a KMP has taken more leave than accrued during the year.
(c) Post-employment benefits are provided through superannuation contributions.
(d)
Performance rights granted under the executive STI and LTI schemes are expensed over the performance period, which includes the year to which the incentive relates
and the subsequent vesting period of the rights. Performance rights are equity-settled share-based payments as per the Corporations Regulations 2M.3.03(1) Item11.
These include negative amounts for the rights forfeited during the year. Details of each grant of share right are provided in the table in section (j). Shareholder approval was
received in advance to the grant of share rights where required.
(e) Refer below for details of Non-Executive Directors’ (NED) remuneration.
(f)
Mr Parsons was appointed an Executive General Manager - Operations on 19 April 2021. Before this appointment he was the group’s General Manager Operations.
(g) D Woodall and A MacDonald ceased to be KMP after the demerger of ASM from Alkane Resources on 20 July 2020.
(h)
The cash bonus includes a paid short-term incentive for FY2021 ($44,278) and short term incentive for FY2022 ($43,225) that will be paid subject to final determination.
(i)
Recipients of shares issued under the Bonus Employee Share Plan will not be able to deal with the new shares until the earlier of the third anniversary of the issue date and
the date on which they cease to be an employee of the company.
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Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
Cash salary and
fees
$
Superannuation
$
Total
$
173,636
104,546
122,500
400,682
163,333
99,452
113,876
376,661
17,364
10,454
-
27,818
15,517
9,448
-
24,965
191,000
115,000
122,500
428,500
178,850
108,900
113,876
401,626
30 June 2022
Non-Executive Directors
I J Gandel
A D Lethlean
G M Smith
Total Non-Executive Directors
30 June 2021
Non-Executive Directors
I J Gandel
A D Lethlean
G M Smith
Total Non-Executive Directors
The relative proportions of remuneration expense recognised during the year that are linked to performance and
those that are fixed are as follows:
Fixed remuneration
At risk - LTI
At risk - STI
2022
%
2021
%
2022
%
2021
%
2022
%
2021
%
47%
69%
66%
70%
47%
76%
62%
72%
39%
19%
21%
17%
40%
14%
26%
11%
14%
12%
13%
13%
13%
10%
12%
17%
Executive Directors of Alkane Resources Ltd
N P Earner
D I Chalmers
Other Key Management Personnel
J Carter
S Parsons
(i)
Service agreements
Remuneration and other terms of employment for KMP are formalised in service agreements. Details of these
agreements are as follows:
Name and Position
Term of agreement
TFR(1)
Termination payment(2)
N Earner – Managing Director
Ongoing commencing 1 September 2017
$650,000
see note 2 below
D I Chalmers – Technical Director
Ongoing commencing 1 September 2017
$330,800
J Carter – Chief Financial Officer
Ongoing commencing 1 October 2018
$462,000
S Parsons – Executive General Manager -
Operations
Ongoing commencing 1 October 2015
$445,500
6 months
3 months
1 month
(1)
(2)
Total Fixed Remuneration (TFR) is for the year ended 30 June 2022 and is inclusive of superannuation but does not include long service leave accruals. TFR is reviewed
annually by the Remuneration Committee.
Specified termination payments are within the limits set by the Corporations Act 2001. The termination benefit provision for the Managing Director was approved at the
Annual General Meeting on 29 November 2017.
Mr Earner may resign with three months’ notice; or
Alkane may terminate the Executive Employment agreement with three months’ notice; or
Where Mr Earner resigns as a result of a material diminution in the position, Mr Earner will be entitled to payment in lieu of 12 months’ notice and short-term incentives
and long-term incentives granted or issued but not yet vested.
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Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
(j) Details of share-based payments and performance against key metrics
Details of each grant of share rights affecting remuneration in the current or future reporting period are set out below.
Date of
grant
Number
of rights
granted
Fair value
of
share
rights at
the date of
grant
$
Share
rights at
fair value
$
Performance
period end
Name
D I Chalmers
FY2020 LTI – Performance Rights – Tranche 1
22/11/2019
198,624
FY2021 LTI – Performance Rights
11/11/2020
174,903
FY2021 STI – Performance Rights
17/11/2021
67,833
FY2022 LTI – Performance Rights
17/11/2021
193,809
0.419
0.748
0.915
0.598
83,223
30/06/2022
130,827
31/08/2023
62,067
15/10/2021
115,898
31/08/2024
FY2022 STI – Performance Rights
-
-
69,468
31/07/2022
N Earner
Share-
based
payment
expense
current
year
$
27,741
43,490
(2,310)
31,964
64,193
FY2020 LTI – Performance Rights – Tranche 1
22/11/2019
1,622,252
FY2021 LTI – Performance Rights
11/11/2020
687,346
FY2021 STI – Performance Rights
17/11/2021
184,552
FY2022 LTI – Performance Rights
17/11/2021
825,115
0.419
0.748
0.915
0.598
679,724
30/06/2022
226,575
514,135
31/08/2023
170,909
168,865
15/10/2021
(6,284)
493,419
31/08/2024
136,084
FY2022 STI – Performance Rights
Other Key Management Personnel
J Carter
-
-
204,750
31/07/2022
189,200
FY2020 LTI – Performance Rights – Tranche 1
02/09/2019
604,146
FY2021 LTI – Performance Rights
11/11/2020
205,530
FY2021 STI – Performance Rights
15/10/2021
79,711
FY2022 LTI – Performance Rights
26/10/2021
270,677
0.236
0.748
0.955
0.604
142,578
30/06/2022
153,736
31/08/2023
76,124
15/10/2021
163,489
31/08/2024
FY2022 STI – Performance Rights
-
-
97,020
31/07/2022
S Parsons
FY2020 LTI – Performance Rights – Tranche 1
02/09/2019
306,451
FY2021 LTI – Performance Rights
11/11/2020
214,214
FY2021 STI – Performance Rights
15/10/2021
41,539
FY2022 LTI – Performance Rights
26/10/2021
261,010
0.236
0.748
0.955
0.604
72,322
30/06/2022
160,232
31/08/2023
39,670
15/10/2021
(39,176)
157,650
31/08/2024
FY2022 STI – Performance Rights
-
-
46,777
31/07/2022
(a)
The value at grant date for share rights granted during the year as part of remuneration is calculated in accordance with AASB 2 Share Based Payments. Differences will
arise between the number of share rights at fair value in the table above and the STI and LTI percentages mentioned in section (d) due to different timing of valuation of
rights as approved by the Remuneration Committee and at grant. Refer to note 30 for details of the valuation techniques used for the rights plan.
(b)
Share rights only vest if performance and service targets are achieved. The determination is usually made at the conclusion of the statutory audit.
The determination of the number of rights that are to vest or be forfeited during a financial year is made by
the Remuneration Committee after the statutory audit has been substantially completed. As such, the actual
determination is made after the balance sheet date. Where there are rights that have vested or been forfeited,
details will be included in the Remuneration Report as the relevant performance period will conclude at the end of
the relevant financial year.
72
47,526
51,106
474
45,090
89,651
24,107
53,264
43,480
43,225
Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
Performance against key metrics
The remaining FY2020 LTI Tranche 1 performance targets relate to share price performance growth as per below:
TSR compound annual growth rate (CAGR)
% Performance rights vesting
Less than 10% CAGR
Nil
Above 10% CAGR up to 15% CAGR
Pro rata vesting from 0% - 50%
At 15% CAGR
50%
Above 15% CAGR up to 30% CAGR
Pro rata vesting from 50% - 100%
At 30% CAGR
100%
The STI performance metrics for the year are detailed in section (d)(iii) of the Remuneration Report.
The company’s TSR for FY2021 and FY2022 will be compared to the S&P/ASX All Ordinaries Gold (Sub industry)
XGD (Gold Index). TSR and number of performance rights will vest as follows:
Shareholder return comparison
TSR is less than Gold Index TSR
TSR is equal to Gold Index TSR
TSR is >5% and <10% to Gold Index TSR
TSR is equal to or >10% to Gold Index TSR
Proportion of performance rights that vest %
-
25%
50%
100%
(k) Shareholdings and share rights held by Key Management Personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members of Key
Management Personnel of the consolidated entity, including their personally related parties, is set out below:
Ordinary shares
I J Gandel
A D Lethlean
D I Chalmers
N P Earner
G M Smith
J Carter
S Parsons
Balance at
the start of
the year
Received
as part of
remuneration
Additions
Disposals/
other
Balance at
the end of
the year
150,792,506
720,086
5,687,885
3,627,496
331,875
869
250,869
161,411,586
-
-
-
-
-
1,052
1,052
2,104
-
-
-
-
-
-
-
-
(19,000,000)
131,792,506
-
-
-
-
-
-
720,086
5,687,885
3,627,496
331,875
1,921
251,921
(19,000,000)
142,413,690
73
Alkane Resources Annual Report 2022
FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
Performance rights holding
The number of performance rights over ordinary shares in the company held during the financial year by each
director and other members of Key Management Personnel of the consolidated entity, including their personally
related parties, is set out below:
Performance rights over ordinary shares
D I Chalmers – Performance rights
N P Earner – Performance rights
J Carter – Performance rights
S Parsons – Performance rights
Balance at
the start of
the year
Granted
Vested
Expired/
forfeited/
other
Balance at
the end of
the year
373,527
261,642
2,309,598
1,009,667
809,676
520,665
350,388
302,549
4,013,466
1,924,246
-
-
-
-
-
-
-
-
-
-
635,169
3,319,265
1,160,064
823,214
5,937,712
(l) Other transactions with Key Management Personnel
There were no other transactions with KMPs during the financial year ended 30 June 2022.
There were no unissued ordinary shares of Alkane Resources Ltd under performance rights outstanding at the date
of this report.
This concludes the remuneration report, which has been audited.
Indemnity and insurance of officers
Alkane Resources Ltd has entered into deeds of indemnity, access and insurance with each of the directors. These
deeds remain in effect as at the date of this report. Under the deeds, the company indemnifies each director to the
maximum extent permitted by law against legal proceedings or claims made against or incurred by the directors in
connection with being a director of the company, or breach by the group of its obligations under the deed.
The liability insured is the indemnification of the group against any legal liability to third parties arising out of any
directors’ or officers’ duties in their capacity as a director or officer, other than indemnification not permitted by law.
No liability has arisen under this indemnity as at the date of this report.
The group has not otherwise, during or since the financial year, indemnified nor agreed to indemnify an officer
of the group or of any related body corporate, against a liability incurred as such by an officer.
During the year the company has paid premiums in respect of directors’ and executive officers’ insurance.
The contracts contain prohibitions on disclosure of the amount of the premiums and the nature of the liabilities
under the policies.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings
on behalf of the company, or to intervene in any proceedings to which the company is a party, for the purpose of
taking responsibility on behalf of the company for all or part of those proceedings.
74
Alkane Resources Annual Report 2022
FINANCIAL REPORT DIRECTORS’ REPORT
Non-audit services
The company may decide to employ the auditor on assignments additional to their statutory audit duties, where the
auditor’s expertise and experience with the group is important.
The directors, in accordance with advice provided by the audit committee, are satisfied that the provision of
non-audit services during the financial year, by the auditor (or by another person or firm on the auditor’s behalf),
iscompatible with the general standard of independence for auditors imposed by the Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 24 to the financial statements do not
compromise the external auditor’s independence requirements of the Corporations Act 2001 for the following
reasons:
• all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and
objectivity of the auditor; and
• none of the services undermine the general principles relating to auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants.
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001
is set out immediately after this directors’ report.
Rounding of amounts
The company is of a kind referred to in ASIC Legislative Instrument 2016/191, issued by the Australian Securities
and Investments Commission, relating to the ‘rounding-off’ of amounts in the directors’ report and financial report.
Amounts in this report have been rounded off in accordance with that ASIC Legislative Instrument to the nearest
thousand dollars, or in certain cases, to the nearest dollar.
This report is made in accordance with a resolution of directors.
On behalf of the directors
N P Earner
Managing Director
29 August 2022
Perth
75
Alkane Resources Annual Report 2022
Auditor’s Independence Declaration
As lead auditor for the audit of Alkane Resources Ltd for the year ended 30 June 2022, I declare that
to the best of my knowledge and belief, there have been:
(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Alkane Resources Limited and the entities it controlled during the
period.
Helen Bathurst
Partner
PricewaterhouseCoopers
Perth
29 August 2022
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
76
Alkane Resources Annual Report 2022 FINANCIAL REPORT FINANCIAL STATEMENTS
Financial Statements
Consolidated Financial Statements
Consolidated statement of profit or loss and other comprehensive income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the Consolidated Financial Statements
Note 1. Segment information
Note 2. Revenue
Note 3. Expenses
Note 4. Income tax
Note 5. Discontinued operations
Note 6. Cash and cash equivalents
Note 7. Trade and other receivables
Note 8. Inventories
Note 9. Financial assets at fair value through other comprehensive income
Note 10. Other financial assets
Note 11. Property, plant and equipment
Note 12. Exploration and evaluation
Note 13. Investments accounted for using the equity method
Note 14. Trade and other payables
Note 15. External borrowings
Note 16. Provisions
Note 17. Issued capital
Note 18. Reserves
Note 19. Retained profits
Note 20. Critical accounting judgements, estimates and assumptions
Note 21. Financial risk management
Note 22. Capital risk management
Note 23. Key management personnel disclosures
Note 24. Remuneration of auditors
Note 25. Contingent assets
Note 26. Contingent liabilities
Note 27. Commitments
Note 28. Events after the reporting period
Note 29. Related party transactions
Note 30. Share-based payments
Note 31. Earnings per share
Note 32. Parent entity information
Note 33. Interests in subsidiaries
Note 34. Deed of cross guarantee
Note 35. Reconciliation of profit after income tax to net cash from operating activities
Note 36. Significant accounting policies
79
80
81
82
83
84
84
85
89
90
90
90
91
92
92
94
95
95
96
96
98
98
99
99
101
103
103
103
104
104
104
105
105
105
108
108
109
110
110
111
77
Alkane Resources Annual Report 2022
FINANCIAL REPORT FINANCIAL STATEMENTS
These financial statements are consolidated financial statements for the group consisting of Alkane Resources Ltd and
its subsidiaries.
The financial statements are presented in the Australian currency.
Alkane Resources Ltd is a company limited by shares, incorporated and domiciled in Australia. Its registered office and
principal place of business is:
Alkane Resources Ltd
Level 4, 66 Kings Park Road
West Perth WA 6005
The financial statements were authorised for issue by directors on 29 August 2022. The directors have the power to
amend and reissue the financial statements.
All press releases, financial reports and other information are available at the Shareholders’ Centre on our website:
alkane.com.au
78
Alkane Resources Annual Report 2022 FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2022
Note
2022
$'000
2021
$'000
Continuing operations
Revenue
Cost of sales
Gross profit
Other income
Interest income
Net gain on derecognition of equity accounted investments
Expenses
Other expenses
Finance costs
Share of loss of associates accounted for using the equity method
Net (loss)/gain on disposal of property, plant and equipment
Profit before income tax expense from continuing operations
Income tax expense
Profit after income tax expense from continuing operations
Profit after income tax expense from discontinued operations
Profit after income tax expense for the year attributable to the
owners of Alkane Resources Ltd
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Changes in the fair value of equity investments at fair value
through other comprehensive income, net of tax
Items that may be reclassified subsequently to profit or loss
Cash flow hedges transferred to profit or loss, net of tax
Net change in the fair value of cash flow hedges taken to equity,
net of tax
Other comprehensive income for the year, net of tax
Total comprehensive income for the year attributable to the
owners of Alkane Resources Ltd
Total comprehensive income for the year is attributable to:
Continuing operations
Discontinued operations
Earnings per share for profit from continuing operations attributable to the
owners of Alkane Resources Ltd
Basic earnings per share
Diluted earnings per share
Earnings per share for profit from discontinued operations attributable to the
owners of Alkane Resources Ltd
Basic earnings per share
Diluted earnings per share
Earnings per share for profit attributable to the owners of Alkane Resources Ltd
Basic earnings per share
Diluted earnings per share
2
3
13
3
3
13
4
5
19
9
21
21
31
31
31
31
31
31
165,010
(102,201)
62,809
1,119
69
48,334
(10,424)
(1,731)
(20)
317
100,473
(30,222)
70,251
-
70,251
127,833
(66,341)
61,492
667
94
2,698
(12,219)
(2,835)
(870)
(957)
48,070
(14,503)
33,567
22,134
55,701
4,902
2,045
712
(578)
5,036
75,287
75,287
-
75,287
Cents
Cents
11.80
11.64
-
-
11.80
11.64
1,017
(459)
2,603
58,304
36,170
22,134
58,304
5.64
5.60
3.72
3.69
9.37
9.28
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
79
Alkane Resources Annual Report 2022
FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated balance sheet
As at 30 June 2022
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Derivative financial instruments
Total current assets
Non-current assets
Property, plant and equipment
Exploration and evaluation
Investments accounted for using the equity method
Financial assets at fair value through other comprehensive income
Other financial assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
External borrowings
Current tax liabilities
Provisions
Other liabilities
Total current liabilities
Non-current liabilities
External borrowings
Provisions
Deferred tax
Other liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained profits
Total equity
Note
2022
$'000
2021
$'000
6
7
8
11
12
13
9
10
14
15
4
16
15
16
4
17
18
19
77,894
2,344
17,952
-
98,190
107,386
98,498
-
38,116
13,497
257,497
355,687
13,708
5,930
1,001
4,457
201
25,297
9,116
15,806
36,189
405
61,516
86,813
18,991
1,894
11,648
521
33,054
99,411
57,794
15,944
18,471
11,541
203,161
236,215
11,082
3,294
-
3,660
143
18,179
5,922
15,363
4,737
449
26,471
44,650
268,874
191,565
218,185
(60,640)
111,329
268,874
218,079
(65,178)
38,664
191,565
The above consolidated balance sheet should be read in conjunction with the accompanying notes
80
Alkane Resources Annual Report 2022 FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of changes in equity
For the year ended 30 June 2022
Balance at 1 July 2020
258,876
4,206
(793)
5,097
267,386
Share
capital
$'000
Share-
based
payments
reserve
$'000
Other
reserves
$'000
Retained
profits
$'000
Total equity
$'000
Profit after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Share issue transaction costs (note 17)
Share-based payments (note 30)
Capital distribution and demerger dividend (note 5)
Transfer of gain on demerger (note 5)
Deferred tax recognised in equity
Balance at 30 June 2021
-
-
-
(31)
2,577
(43,237)
-
(106)
218,079
Share
capital
$'000
-
-
-
-
(893)
-
-
-
3,313
-
3,676
3,676
-
-
(92,435)
22,134
(1,073)
(68,491)
55,701
-
55,701
-
-
-
(22,134)
-
38,664
55,701
3,676
59,377
(31)
1,684
(135,672)
-
(1,179)
191,565
Share-
based
payments
reserve
$'000
Other
reserves
$'000
Retained
profits
$'000
Total equity
$'000
Balance at 1 July 2021
218,079
3,313
(68,491)
38,664
191,565
Profit after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Share issue transaction costs (note 17)
Share-based payments (note 30)
Deferred tax recognised in equity
Transfer of gain on disposal of equity investments at fair
value through other comprehensive income to retained
earnings
Balance at 30 June 2022
-
-
-
(4)
184
(74)
-
-
-
-
-
1,916
-
-
5,036
5,036
-
-
-
70,251
-
70,251
-
-
-
70,251
5,036
75,287
(4)
2,100
(74)
-
(2,414)
2,414
-
218,185
5,229
(65,869)
111,329
268,874
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
81
Alkane Resources Annual Report 2022 FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of cash flows
For the year ended 30 June 2022
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers (inclusive of GST)
Interest received
Finance costs paid
Royalties and selling costs
Other receipts
Net cash from operating activities
Cash flows from investing activities
Payments for investments
Payments for property, plant and equipment and development expenditure
Proceeds from disposal of property, plant and equipment
Payments for exploration expenditure
Payments for security deposits
Receipts from security deposits
Transaction costs relating to ASM demerger
Proceeds from disposal of investments
Net cash used in investing activities
Cash flows from financing activities
Cost of share issue
Proceeds from borrowings
Repayment of borrowings
Principal elements of lease payment
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Less cash classified as held for distribution to owners at the beginning of the
period
Cash and cash equivalents at the end of the financial year
Note
2022
$'000
2021
$'000
35
17
165,010
(73,567)
91,443
75
(1,368)
(4,504)
830
86,476
(1,420)
(42,581)
619
(40,935)
(2,208)
253
-
53,034
(33,238)
(4)
35,846
(30,018)
(159)
5,665
58,903
18,991
128,035
(51,879)
76,156
99
(1,614)
(4,047)
522
71,116
(14,664)
(59,477)
1,522
(26,642)
(2,927)
-
(538)
-
(102,726)
(31)
8,150
(5,783)
(72)
2,264
(29,346)
66,881
-
(18,544)
6
77,894
18,991
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
82
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 1
Note 1. Segment information
The consolidated entity is currently with one operating segment: gold operations. The operating segments are
based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the chief
operating decision makers) in assessing performance and in determining the allocation of resources.
Costs that do not relate to the gold operating segment have been identified as unallocated costs. Corporate assets
and liabilities that do not relate to the gold operating segment have been identified as unallocated. The group
has formed a tax consolidation group and therefore tax balances are disclosed under the unallocated grouping.
The group utilises a central treasury function resulting in cash balances being included in the unallocated segment.
Gold
Operations
$'000
Unallocated
$'000
Total
$'000
30 June 2022
Gold sales to external customers
Interest income
Segment net profit/(loss) before income tax
Segment net profit includes the following non-cash adjustments:
Depreciation and amortisation
Exploration expenditure written off or provided for
Inventory product movement and provision
Income tax expense
Derecognition of Equity Accounted Investment
Total adjustments
Total segment assets
Total segment liabilities
Net segment assets
30 June 2021
Gold sales to external customers
Interest income
Segment net profit/(loss) before income tax
Segment net profit includes the following non-cash adjustments:
Depreciation and amortisation
Exploration expenditure written off or provided for
Inventory product movement and provision
Income tax expense
Derecognition of Equity Accounted Investment
Total adjustments
Total segment assets
Total segment liabilities
Net segment assets
165,010
37
165,047
62,165
(34,674)
-
5,702
-
-
(28,972)
157,894
(45,140)
112,754
127,833
-
127,833
57,791
(21,028)
-
3,226
-
-
(17,802)
122,856
(35,618)
87,238
-
32
32
38,308
(439)
(3)
-
(30,222)
48,334
17,670
197,793
(41,673)
156,120
-
94
94
12,413
(226)
(1,331)
-
(14,503)
2,698
(13,362)
113,359
(9,032)
104,327
165,010
69
165,079
100,473
(35,113)
(3)
5,702
(30,222)
48,334
(11,302)
355,687
(86,813)
268,874
127,833
94
127,927
70,204
(21,254)
(1,331)
3,226
(14,503)
2,698
(31,164)
236,215
(44,650)
191,565
83
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 2
Note 2. Revenue
Revenue from continuing operations
Gold sales
(a) Revenue
2022
$'000
2021
$'000
165,010
127,833
Revenue is recognised when the group satisfies its performance obligation and transfers control to a customer.
Control is generally determined to be when the customer has the ability to direct the use of and obtain substantially
all of the remaining benefits from that good or service.
(b) Gold sales
Bullion revenue is recognised at a point in time upon transfer of control to the customer and is measured at the
amount to which the group expects to be entitled which is based on the deal agreement.
Note 3. Expenses
Cost of sales
Cash costs of production
Inventory product movement
Depreciation and amortisation
Royalties and selling costs
(a) Cash costs of production
2022
$'000
2021
$'000
67,758
(5,702)
34,674
5,471
102,201
44,393
(3,226)
21,028
4,146
66,341
Cash costs of production include ore and waste mining costs, processing costs and site administration and
support costs.
(b) Inventory product movement
Inventory product movement represents the movement in the balance sheet inventory ore stockpile, gold in circuit
and bullion on hand.
Refer to note 8 for further details on the group’s accounting policy for inventory.
(c) Inventory product provision for net realisable value
Inventory must be carried at the lower of cost and net realisable value. Net realisable value is the estimated selling
price in the ordinary course of business less estimated costs to complete processing and to make a sale. The net
realisable value provision equals the decrement between the net realisable value and the carrying value before
provision.
Refer to note 8 for further details on the group’s accounting policy for inventory.
84
Alkane Resources Annual Report 2022
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 4
Other expenses
Corporate administration
Employee remuneration and benefits expensed
Share-based payments
Professional fees and consulting services
Exploration expenditure provided for or written off
Directors' fees and salaries expensed
Depreciation
Non-core project expenses
(d) Finance Costs
Finance costs
Interest Expense
Put Options
Other
Note 4. Income tax
(a) Income tax expense
Current tax
Current tax on profits for the year
Total current tax expense
Deferred income tax
Decrease/(increase) in deferred tax asset
Increase in deferred tax liabilities
Total deferred tax expense
Income tax expense
Income tax expense is attributable to:
Profit from continuing operations
2022
$'000
2021
$'000
2,638
2,849
2,108
1,434
3
789
439
164
10,424
2022
$'000
2021
$'000
795
712
224
1,731
2022
$'000
2021
$'000
1,001
1,001
13,518
15,703
29,221
30,222
2,363
3,836
1,684
1,881
1,331
751
226
147
12,219
408
1,906
521
2,835
-
-
(171)
14,674
14,503
14,503
30,222
14,503
85
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 4
(b) Reconciliation of income tax expense/(benefit) to prima facie tax payable
2022
$'000
2021
$'000
Profit from continued operations before income tax expense
Profit/(loss) from discontinued operations before income tax expense
Profit before income tax expense
Tax at the Australian tax rate of 30% (2021 - 30%)
Tax benefits of deductible equity raising costs
Non-deductible share based payments
Non-deductible expenses
Non-assessable income
Non-assessable gain on disposal of subsidiaries
Other deductible expenses
Movement in unrecognised temporary differences
Over/(under) Provision for Prior Year
Utilisation of previously unrecognised tax losses
(c) Deferred tax assets
100,473
-
100,473
30,142
(76)
575
12
-
-
-
-
(103)
(328)
30,222
48,070
22,134
70,204
21,061
(116)
505
8
(8)
(6,801)
(4)
(126)
(16)
-
14,503
Tax losses
$'000
Rehabilitation
Provision and
assets
$'000
Property,
plant and
equipment
$'000
R&D Tax
incentive
credits
$'000
Other
$'000
Total
$'000
Movements
At 1 July 2020
- to profit or loss
- direct to equity
- demerger of
subsidiaries
7,065
2,343
-
-
3,321
331
-
-
At 30 June 2021
9,408
3,652
Movements
At 1 July 2021
- to profit or loss
- direct to equity
At 30 June 2022
9,408
(9,408)
-
-
3,652
418
-
4,070
13,463
(3,227)
-
(1,044)
9,192
9,192
(3,369)
-
5,823
1,251
180
-
-
1,431
1,431
(1,431)
-
-
2,050
544
(346)
(115)
2,133
2,133
272
(131)
2,274
27,150
171
(346)
(1,159)
25,816
25,816
(13,518)
(131)
12,167
86
Alkane Resources Annual Report 2022
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 4
(d) Deferred tax liabilities
The balance comprises temporary differences attributable to:
Exploration expenditure
Property, plant & equipment
Other
Gross recognised deferred tax liabilities
Set-off of deferred tax assets
2022
$'000
2021
$'000
(29,528)
(12,282)
(6,546)
(48,356)
12,167
(36,189)
(17,314)
(11,440)
(1,799)
(30,553)
25,816
(4,737)
Net recognised deferred tax assets/(liabilities) are attributable to:
Losses and temporary differences carried forward for continued operations
(36,189)
(4,737)
Movements
At 1 July 2020
Charged/(credited)
- to profit or loss
- directly to equity
- demerger of subsidiaries
At 30 June 2021
At 1 July 2021
Charged/(credited)
- to profit or loss
- directly to equity
- directly to retained earnings
At 30 June 2022
(e) Deferred tax recognised directly in equity
Relating to equity raising costs
Relating to revaluations of investments/financial instruments
Relating to realised gains posted directly to retained earnings
Exploration
Expenditure
$'000
Property, plant
and equipment
$'000
Other
$'000
Total
$'000
36,995
-
7,518
-
(27,200)
17,313
17,313
-
12,215
-
-
29,528
4,744
-
6,697
-
-
11,441
11,441
-
841
-
-
12,282
2022
$'000
507
-
459
836
(3)
1,799
1,799
-
2,647
1,066
1,034
6,546
42,246
-
14,674
836
(27,203)
30,553
30,553
-
15,703
1,066
1,034
48,356
2021
$'000
106
1,073
-
1,179
75
1,123
1,034
2,232
87
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 4
(f) Unrecognised temporary differences and tax losses
Unrecognised tax losses
Potential tax benefit at 30% (2021: 30%)
2022
$'000
2021
$'000
17,284
5,185
18,378
5,513
The potential benefit of carried forward tax losses will only be obtained if taxable income is derived of a nature and
amount sufficient to enable the benefit from the deductions to be realised. In accordance with the group’s policies
for deferred taxes, a deferred tax asset is recognised only if it is probable that sufficient future taxable income will
be generated to offset against the asset.
Determination of future taxable profits requires estimates and assumptions as to future events and circumstances
including commodity prices, ore resources, exchange rates, future capital requirements, future operational
performance, the timing of estimated cash flows, and the ability to successfully develop and commercially exploit
resources.
Tax legislation prescribes the rate at which tax losses transferred from entities joining a tax consolidation group
can be applied to taxable incomes and this rate is diluted by changes in ownership, including capital raisings. As a
result the reduction in the rate at which the losses can be applied to future taxable incomes, the period of time
over which it is forecast that these losses may be utilised has extended beyond that which management considers
prudent to support their continued recognition for accounting purposes. Accordingly, no deferred tax asset has
been recognised for certain tax losses. Recognition for accounting purposes does not impact the ability of the group
to utilise the losses to reduce future taxable profits.
Alkane Resources Ltd and its wholly owned Australian controlled entities have implemented the tax consolidation
legislation. As a consequence, these entities are taxed as a single entity and the deferred tax assets and liabilities of
these entities are set off in the consolidated financial statements.
Deferred tax assets relating to deductible temporary differences can only be recognised to the extent that it is
probable that future taxable profits will be available against which the deductible temporary difference can be
utilised. Recognition for accounting purposes does not impact the ability of the group to utilise the deductible
temporary differences to reduce future taxable profits.
Current tax liabilities
Current tax liabilities
2022
$'000
2021
$'000
1,001
-
88
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 5
Note 5. Discontinued operations
(a) Demerger – ASM
ASM Group
In the previous year, on 17 June 2020, the group publicly announced the demerger of Alkane’s critical metals and
materials business and assets (the ASM Business) from the remainder of Alkane’s business.
Australian Strategic Materials Ltd (ASM) was admitted to the ASX on 29 July 2020 and operates the ASM Business;
and Alkane continues to own and operate the remainder of Alkane’s business being, principally, its Australian gold
business.
The group recognised a net fair gain on demerger as follows:
Fair value of ASM demerger(i)
Carrying value of net assets of ASM
Less transaction costs
30 June 2021
$'000
135,672
(113,000)
22,672
(538)
22,134
(i)
Based on the first five trading days after the demerger date volume weighted average price (‘VWAP’) of ASM ($1.14) multiplied by the number of ASM shares (119,049,778
ordinary shares). The demerger distribution is accounted for a reduction in equity, split between share capital $43,237,000 and demerger reserve of $92,435,000. The
amount treated as a reduction in share capital was calculated by reference to the market value of Alkane’s shares and the market value of ASM’s shares post demerger. The
difference between the fair value of the distribution and the capital reduction amount is the demerger dividend.
(b) Discontinued operation – ASM
Financial performance information
Gain on demerger
Transaction costs
Profit before income tax expense
Income tax expense
Profit after income tax expense from discontinued operations
2022
$'000
2021
$'000
-
-
-
-
-
22,672
(538)
22,134
-
22,134
89
Alkane Resources Annual Report 2022
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 6
Note 6. Cash and cash equivalents
Current assets
Cash at bank
2022
$'000
2021
$'000
77,894
18,991
Cash at bank at balance date weighted average interest rate was 0.48% (2021: 0.01%).
Cash and cash equivalents include cash on hand and deposits held at call with financial institutions and other short-
term, highly liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
Note 7. Trade and other receivables
Current assets
Trade receivables
Prepayments
GST and fuel tax credit receivable
(i) Classification as receivables
2022
$'000
2021
$'000
121
1,144
1,079
2,344
43
963
888
1,894
Receivables are recognised initially at fair value and then subsequently measured at amortised cost, less provision
for credit losses. As at 30 June 2022 the group has determined that the expected provision for credit losses is not
material (30 June 2021: provision for credit losses was not material).
In determining the recoverability of a trade or other receivables using the expected credit loss model, the group
performs a risk analysis considering the type and age of outstanding receivables, the creditworthiness of the
counterparty, contract provisions, letter of credit and timing of payment.
(ii) Fair value of receivables
Due to the short-term nature of the current receivables, their carrying amount is assumed to be the same as their
fair value.
(iii) Impairment and risk exposure
Information about the impairment of receivables, their credit quality and the group’s exposure to credit risk, foreign
currency risk and interest rate risk can be found in note 21.
Note 8. Inventories
Current assets
Ore stockpiles
Gold in circuit
Bullion on hand
Consumable stores
90
2022
$'000
2021
$'000
8,101
2,628
3,480
3,743
17,952
1,571
2,398
4,537
3,142
11,648
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 9
(i) Assigning costs to inventories
Costs are assigned to ore stockpiles, gold in circuit and bullion on hand on the basis of weighted average costs.
Inventories must be carried at the lower of cost and net realisable value. Cost comprises direct materials, direct
labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the
basis of normal operating capacity. At balance date ore stockpiles, gold in circuit, bullion on hand and consumable
stores were carried at cost.
No provision was recorded at 30 June 2022 to write down inventories to their recoverable value (2021: $nil).
Consumable stores include diesel, explosives and other consumables items. These items are carried at cost.
(ii) Amounts recognised in profit or loss
Consumable inventories recognised as an expense during the year ended 30 June 2022 amounted to $2,928,000
(2021: $2,240,000). These were included in costs of production.
Product inventory movement during the year ended 30 June 2022 amounted to an expense of $5,702,000
(2021: $3,226,000) and is disclosed as part of cost of sales in note 3.
Note 9. Financial assets at fair value through other comprehensive income
Non-current assets
Listed securities
Calidus Resources Ltd (ASX: CAI)
Sky Metals Ltd (ASX: SKY)
Genesis Minerals Ltd (ASX: GMD)
2022
$'000
2021
$'000
22,790
436
14,890
38,116
17,811
660
-
18,471
During the year, the following gains/(losses) were recognised in profit or loss
and other comprehensive income
Gains/(losses) recognised in other comprehensive income
4,902
2,045
Genesis Minerals Ltd was reclassified from Investments accounted for using the equity method during the period.
Refer to note 13 for further information.
In mid-November, the company sold 126,000,000 shares in Genesis Minerals Limited for sale proceeds of
$18,806,000 (after costs).
During the process of preparing the 30 June 2022 annual report, the group discovered that the accounting for this
transaction reflected in the interim financial statements for the six-month period ended 31 December 2021 was
incorrect. The error has been subsequently corrected in the second half of the financial year ended 30 June 2022.
Comparative figures in the 31 December 2022 interim financial report will be corrected by restating each of the
affected financial statement line items as set out in the table below. No adjustments were required for the 30 June
2021 balances.
91
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 10
Statement of profit or loss and other comprehensive income (extract)
Other gains/(losses)
Income tax expense
Profit after income tax expense for the half-year
Changes in fair value of financial assets at fair value through other
comprehensive income
Retained profits
Consolidated
31 December
2021
(As reported)
$
Increase/
(Decrease)
Consolidated
31 December
2021
(Restated)
$
13,909
(25,295)
58,231
(1,341)
96,895
(13,909)
4,173
(9,736)
10,095
(359)
-
(21,122)
48,495
11,436
96,536
In Mid-February, the company sold 20,000,000 shares in Genesis Minerals Limited for sale proceeds of
$34,228,000 (after cost).
Note 10. Other financial assets
Non-current assets
Security deposits
2022
$'000
2021
$'000
13,497
11,541
The above deposits are held by financial institutions or regulatory bodies as security for rehabilitation obligations as
required under the respective exploration and mining leases or as required under agreement totalling $13,497,000
for the current period (2021: $11,541,000 backed by security deposits).
All interest-bearing deposits are held in Australian dollars and therefore there is no exposure to foreign currency
risk. Please refer to note 21 for the group’s exposure to interest rate risk. The fair value of other financial assets is
equal to its carrying value.
Note 11. Property, plant and equipment
Year ended 30 June 2022
Opening cost
Additions
Transfers between classes
Disposals
Net movement
Closing cost
Opening accumulated depreciation and
impairment
To profit or loss
Disposals
Net movement
Closing accumulated depreciation and
impairment
Closing net carrying value
Land and
buildings
$'000
Plant and
equipment
$'000
Capital
WIP
$'000
Mine
properties
$'000
Total
$'000
33,829
-
3,250
-
3,250
37,079
(13,076)
(333)
-
(333)
(13,409)
23,670
100,559
175
20,412
(5,958)
14,629
115,188
(81,649)
(16,166)
5,655
(10,511)
(92,160)
23,028
2,211
22,085
(23,662)
-
(1,577)
634
240,645
21,132
-
-
21,132
261,777
377,244
43,392
-
(5,958)
37,434
414,678
-
-
-
-
-
(183,108)
(277,833)
(18,615)
-
(18,615)
(35,114)
5,655
(29,459)
(201,723)
(307,292)
634
60,054
107,386
92
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 11
Year ended 30 June 2021
Opening cost
Additions
Transfers between classes
Disposals
Net movement
Closing cost
Land and
buildings
$'000
Plant and
equipment
$'000
Capital
WIP
$'000
Mine
properties
$'000
Total
$'000
22,326
-
12,206
(703)
11,503
33,829
90,060
468
11,932
(1,901)
10,499
100,559
1,687
24,662
(24,138)
-
524
2,211
205,682
34,963
-
-
34,963
240,645
319,755
60,093
-
(2,604)
57,489
377,244
Opening accumulated depreciation and
impairment
(12,787)
(75,908)
To profit or loss
Disposals
Net movement
Closing accumulated depreciation and
impairment
Closing net carrying value
(289)
-
(289)
(13,076)
20,753
(6,595)
854
(5,741)
(81,649)
18,910
-
-
-
-
-
(168,738)
(257,433)
(14,370)
-
(14,370)
(21,254)
854
(20,400)
(183,108)
(277,833)
2,211
57,537
99,411
All property, plant and equipment are stated at historical cost less accumulated depreciation and impairment
charges. Historical cost includes:
• expenditure that is directly attributable to the acquisition of the items;
• direct costs associated with the commissioning of plant and equipment including pre-commissioning costs in
testing the processing plant;
• where the asset has been constructed by the group, the cost of all materials used in construction, direct labour
on the project and project management costs associated with the asset; and
• the present value of the estimated costs of dismantling and removing the asset and restoring the site on which
it is located.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the group and the cost
of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is
derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting
period in which they are incurred. Depreciation is calculated using the straight-line method to allocate their cost
over their estimated useful lives as follows:
Buildings
Plant and equipment
Mining properties
Office equipment
Furniture and fittings
Motor vehicles
Software
units of production
units of production
units of production
3-5 years
4 years
4-5 years
2-3 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included
in the statement of profit or loss and other comprehensive income.
93
Alkane Resources Annual Report 2022
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 12
Mine properties
Mine properties represent the accumulation of all exploration, evaluation and development expenditure incurred by
the group in relation to areas of interest for which the technical feasibility and commercial viability of the extraction
of mineral resources are demonstrable.
When further development expenditure is incurred in respect of a mine property after the commencement of
production, such expenditure is carried forward as part of the mine property only when it is probable that the
additional future economic benefits associated with the expenditure will flow to the group. Otherwise, such
expenditure is classified as part of the cost of production. Mine properties are amortised on a units of production
basis over the economically recoverable resources of the mine concerned.
Note 12. Exploration and evaluation
Opening balance
Expenditure during the year
Amounts provided for or written off
2022
$'000
2021
$'000
57,794
40,707
(3)
98,498
32,745
27,040
(1,991)
57,794
Exploration and evaluation costs are carried forward on an area of interest basis. Costs are recognised and carried
forward where rights to tenure of the area of interest are current and either:
• the expenditures are expected to be recouped through successful development and exploitation of the area of
interest; or
• activities in the area of interest have not at the reporting date reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves, and active and significant
exploration and evaluation activities in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are tested for impairment when reclassified to development tangible or intangible
assets, or whenever facts or circumstances indicate impairment. An impairment loss is recognised for the amount
by which the exploration and evaluation assets carrying amount exceeds their recoverable amount. The recoverable
amount is the higher of the exploration and evaluation assets fair value less costs of disposal and their value in use.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest
are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for
impairment and then reclassified to mine properties under development. No amortisation is charged during the
exploration and evaluation phase.
Recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest.
There may exist, on the group’s exploration properties, areas subject to claim under native title or containing sacred
sites or sites of significance to Aboriginal people. As a result, exploration properties or areas within tenements may
be subject to exploration or mining restrictions.
94
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 13
Note 13. Investments accounted for using the equity method
Non-current assets
Investment in associates
Reconciliation
Reconciliation of the carrying amounts at the beginning and end of the current
and previous financial year are set out below:
Opening carrying amount
Additions
OCI
Share of loss*
Reclassification
Closing carrying amount
2022
$'000
2021
$'000
-
15,944
15,944
-
-
(20)
(15,924)
-
14,385
14,663
761
(870)
(12,995)
15,944
* Share of loss relating to Genesis Minerals Ltd is for the period 1 July 2021 to 19 November 2021, being the date when Alkane lost significant influence.
Interests in associates
Interests in associates and joint venture are accounted for using the equity method of accounting. Information
relating to the investments that are material to the consolidated entity are set out below:
Name
Principal place of business /
Country of incorporation
Ownership interest
2022
2021
Genesis Minerals Ltd (GMD)
Australia
4.67%
19.84%
On 19 November 2021, at the Genesis AGM Nic Earner ceased to be a non-executive director of the Genesis
Board, therefore Alkane no longer has significant influence over Genesis. Genesis was reclassified to financial assets
at fair value through other comprehensive income, a $48,334,000 derecognition gain resulted with the revaluation
of the investment to fair value.
During the year GMD shares to the value of $53,034,000 (after cost) were sold. Refer to note 9 for further
information.
Note 14. Trade and other payables
Current liabilities
Trade payables
Other payables
2022
$'000
2021
$'000
1,111
12,597
13,708
2,760
8,322
11,082
Trade and other payables represent liabilities for goods and services provided to the group prior to the end of the
financial period which are unpaid. Current trade and other payables are unsecured and are usually paid within 30
days of recognition. Trade and other payables are presented in current liabilities unless payment is not due within
12 months from the reporting date.
The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their
short-term nature.
95
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 15
Note 15. External borrowings
Hire purchase liabilities are secured over the assets to which they relate, the carrying value of which exceeds the
value of the hire purchase liability. The group does not hold title to the equipment under the hire purchase pledged
as security.
Current liabilities
External borrowings
Non-current liabilities
External borrowings
2022
$'000
2021
$'000
5,930
9,116
3,294
5,922
Refer to note 21 for further information on financial risk management.
On 14 December 2020, $20 million facility for general corporate expenditures and working capital with Macquarie
Bank Ltd was Executed. The company drew down the $20 million working capital facility with Macquarie Bank in
the first quarter of the financial year and repaid in full in December 2021.
Accounting policy for borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction
costs. They are subsequently measured at amortised cost using the effective interest method.
Note 16. Provisions
Current liabilities
Employee benefits
Non-current liabilities
Employee benefits
Rehabilitation
(i) Provisions
2022
$'000
2021
$'000
4,457
3,660
553
15,253
15,806
232
15,131
15,363
Provisions are recognised when the group has a present legal or constructive obligation, it is probable that an
outflow of resources will be required to settle the obligation, and the amount can be reliably estimated.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value
is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the
liability. The increase in the provision due to the passage of time is recognised in finance charges.
(ii) Information about individual provisions and significant estimates
Employee benefits
The provision for employee benefits relates to the group’s liability for long service leave and annual leave.
The current portion of this liability includes all of the accrued annual leave. The entire amount of the provision of
$3,027,000 (2021: $1,833,000) is presented as current, since the group does not have an unconditional right to
defer settlement for any of these obligations. However, based on past experience, the group does not expect all
employees to take the full amount of accrued leave or require payment within the next 12 months. The following
amounts reflect leave that is not expected to be taken or paid within the next 12 months.
96
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 16
2022
$'000
2021
$'000
Current leave obligations expected to be settled after 12 months
1,255
973
The liability for long service leave not expected to vest within 12 months after the end of the period in which
the employees render the related service is recognised in the non-current provision for employee benefits and
measured at the present value of expected future payments to be made in respect of services provided up to
the end of the reporting period. Consideration is given to expected future wage and salary levels, experience of
employee departures and periods of service. Expected future payments are discounted using market yields at the
end of the reporting period on corporate bonds with terms and currencies that match as closely as possible, the
estimated future cash outflows. Where the group does not have an unconditional right to defer settlement for any
annual or long service leave owed, it is classified as a current provision regardless of when the group expects to
realise the provision.
Rehabilitation and mine closure
The group has obligations to dismantle and remove certain items of property, plant and equipment and to restore
and rehabilitate the land on which they sit.
A provision is raised for the estimated cost of settling the rehabilitation and restoration obligations existing at
balance date, discounted to present value using an appropriate pre-tax discount rate.
Where the obligation is related to an item of property, plant and equipment, its cost includes the present value of
the estimated costs of dismantling and removing the asset and restoring the site on which it is located. Costs that
relate to obligations arising from waste created by the production process are recognised as production costs in the
period in which they arise.
The discounted value reflects a combination of management’s assessment of the nature and extent of the work
required, the future cost of performing the work required, the timing of cash flows and the discount rate. An
increase in the provision due to the passage of time of was recognised in finance charges in the statement of profit
or loss and other comprehensive income of $110,000 (2021: $59,000).
The provisions are reassessed at least annually. A change in any of the assumptions used to determine the
provisions could have a material impact on the carrying value of the provision.
Movements in rehabilitation and mine closure provision during the financial year are set out below:
Rehabilitation and mine closure
Opening balance
Additional provision incurred
Unwinding of discount
Change in estimate
2022
$'000
2021
$'000
15,131
533
110
(522)
15,252
14,751
321
59
-
15,131
97
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 17
Note 17. Issued capital
Ordinary shares – fully paid
595,583,420
595,388,800
218,185
218,079
2022
Shares
2021
Shares
2022
$'000
2021
$'000
Movements in ordinary share capital
Details
Balance
Demerger capital distribution
Shares issued on vesting of performance rights
Share issue
Share issue costs
Less: Deferred tax credit recognised directly into equity
Balance
Share issue
Share issue costs
Less: Deferred tax credit recognised directly into equity
Balance
Ordinary shares
Date
1 July 2020
30 June 2021
30 June 2022
Shares
$'000
580,033,307
-
15,215,584
139,909
-
-
595,388,800
194,620
-
-
595,583,420
258,876
(43,237)
2,416
161
(31)
(106)
218,079
184
(4)
(74)
218,185
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in
proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value
and the company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll
each share shall have one vote.
Note 18. Reserves
The following table shows a breakdown of the balance sheet line item ‘Reserves’ and the movements in these
reserves during the year. A description of the nature and purpose of each reserve is provided below the table.
Financial assets at fair value through other comprehensive income reserve
Hedging reserve – cash flow hedges
Share-based payments reserve
Demerger reserve
2022
$'000
2021
$'000
4,431
-
5,229
(70,300)
(60,640)
1,943
(134)
3,313
(70,300)
(65,178)
Financial assets at fair value through other comprehensive income reserve
This reserve is used to recognise changes in the fair value of certain investments in equity securities in other
comprehensive income.
Hedging reserve – cash flow hedges
The reserve is used to recognise the effective portion of the gain or loss of cash flow hedge instruments that is
determined to be an effective hedge.
98
Alkane Resources Annual Report 2022
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 19
Share-based payments reserve
The reserve is used to recognise the grant date fair value of shares issued to directors and KMP, as well as the grant
date fair value of deferred rights granted but not yet vested.
Demerger reserve
The demerger reserve is used to recognise the gain on ASM demerger and demerger dividend. Refer to note 5 for
further details.
Note 19. Retained profits
Retained profits at the beginning of the financial year
Transfer gain on demerger
Retained profits/(accumulated losses) at the beginning of the financial year -
restated
Profit after income tax expense for the year
Transfer from other reserves
Retained profits at the end of the financial year
2022
$'000
2021
$'000
38,664
-
38,664
70,251
2,414
111,329
5,097
(22,134)
(17,037)
55,701
-
38,664
Note 20. Critical accounting judgements, estimates and assumptions
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. Management also needs to exercise judgement in applying the group’s accounting policies.
Carrying value of non-current assets
Non-current assets include capitalised exploration and evaluation expenditures and mine properties. The group has
capitalised significant exploration and evaluation expenditure on the basis either that such expenditure is expected
to be recouped through future successful development (or alternatively sale) of the areas of interest concerned or
on the basis that it is not yet possible to assess whether it will be recouped and activities are planned to enable that
determination.
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of
factors, including whether the group decides to exploit the related lease itself, or, if not, whether it successfully
recovers the related exploration asset through sale. The future recoverability of mine properties is dependent on
the generation of sufficient future cash flows from operations (or alternately sale). Factors that could impact the
future recoverability of exploration and evaluation and mine properties include the level of reserves and resources,
future technological changes, costs of drilling and production, production rates, future legal changes (including
changes to environmental restoration obligations) and changes to commodity prices and exchange rates.
Estimates of recoverable quantities of resources and reserves also include assumptions requiring significant
judgment as detailed in the resource and reserve statements.
An impairment review is undertaken to determine whether any indicators of impairment are present. The group
has not recorded an impairment charge or reversal against either the gold operations cash generating units in the
current financial year.
The group recognises the physical and transitional impacts of climate change may affect its assets, productivity, the
markets in which it sells its products, and the jurisdictions it which it operates. The group continues to develop its
assessment of the potential impacts of climate change and the transition to low-carbon economy.
99
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 20
Depreciation of property, plant and equipment
Non-current assets include property, plant and equipment. The group reviews the useful lives of depreciable asset
at each reporting date or when there is a change in the pattern in which the asset’s future economic benefits are
expected to be consumed, based on the expected utilisation of the assets. Depreciation and amortisation are
calculated using the units of production method based on ounces of gold produced.
Rehabilitation and mine closure provisions
These provisions represent the discounted value of the present obligation to restore, dismantle and rehabilitate
certain items of property, plant and equipment and to rehabilitate exploration and mining leases. The discounted
value reflects a combination of management’s assessment of the nature and extent of the work required, the future
cost of performing the work required, the timing of cash flows and the discount rate. Changes to one or more of
these assumptions is likely to result in a change to the carrying value of the provision and the related asset or a
change to profit and loss in accordance with the group’s accounting policy stated in note 16.
Net realisable value and classification of inventory
The group’s assessment of the net realisable value and classification of its inventory requires the use of estimates,
including the estimation of the relevant future commodity or product price, future processing costs and the likely
timing of sale.
Share-based payments
The group measures the cost of equity settled transactions with employees by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value for share appreciation rights and
performance rights component tranche 1 is determined with the assistance of an external valuer. The number
of performance rights issued under the long-term incentive plan tranche 2 component are adjusted to reflect
management’s assessment of the probability of meeting the targets and service condition. The related assumptions
are set out in note 30. The accounting estimates and assumptions relating to equity settled share based payments
would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but
may impact expenses and equity.
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement
is required in determining the provision for income tax. There are many transactions and calculations undertaken
during the ordinary course of business for which the ultimate tax determination is uncertain. The consolidated
entity recognises liabilities for anticipated tax audit issues based on the consolidated entity’s current understanding
of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such
differences will impact the current and deferred tax provisions in the period in which such determination is made.
In addition, the group has recognised deferred tax assets relating to carried forward tax losses to the extent there
are sufficient taxable temporary differences (deferred tax liabilities) relating to the same taxation authority against
which the unused tax losses can be utilised. Utilisation of the tax losses also depends on the ability of the entity to
satisfy certain tests at the time the losses are recouped. Refer to note 4 for the current recognition of tax losses.
100
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 21
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence
commercial production in the future, from which time the costs will be amortised in proportion to the depletion of
the mineral resources. Key judgements are applied in considering costs to be capitalised which includes determining
expenditures directly related to these activities and allocating overheads between those that are expensed and
capitalised. In addition, costs are only capitalised that are expected to be recovered either through successful
development or sale of the relevant mining interest. Factors that could impact the future commercial production
at the mine include the level of reserves and resources, future technology changes, which could impact the cost of
mining, future legal changes and changes in commodity prices.
Where economic recoverable reserves for an area of interest have been identified, and a decision to develop has
occurred, capitalised expenditure is classified as mine development.
To the extent that capitalised costs are determined not to be recoverable in the future, they will be written off in
the period in which the determination is made.
Note 21. Financial risk management
Financial risk management objectives
The group’s activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk
and interest rate risk), credit risk and liquidity risk. The consolidated entity’s overall risk management program
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial
performance of the consolidated entity. The group uses derivative financial instruments including gold forward and
gold put option contracts to mitigate certain risk exposures.
This note presents information about the group’s exposure to each of the above risks, their objectives, policies and
processes for measuring and managing risk, and the management of capital.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. Management monitors and manages the financial risks relating to the operations of the group through
regular reviews of the risks and mitigating strategies.
(a) Market risk
(i) Foreign currency risk
The group’s sales revenue for gold are largely denominated in Australian dollars, the revenues are generated using
a gold price denominated in US Dollars, hence the group’s cash flow is significantly exposed to movement in the
A$:US$ exchange rate. The group mitigates this risk through the use of derivative instruments, including but not
limited to a combination of Australian dollar denominated gold forward contracts and put options to hedge a
portion of future gold sales.
The Australian dollar denominated gold forward contracts are entered into and continue to be held for the purpose
of physical delivery of gold bullion. As a result, the contracts are not recorded in the financial statements. Refer to
note 27 for further information.
(ii) Commodity price risk
The group’s sales revenues are generated from the sale of gold. Accordingly, the group’s revenues are exposed
to commodity price fluctuations, primarily gold. The group mitigates this risk through the use of derivative
instruments, including but not limited to Australian dollar denominated gold forward contracts.
(iii) Interest rate risk
The group’s main interest rate risk arises through its cash and cash equivalents and other financial assets held
within financial institutions. The group minimises this risk by utilising fixed rate instruments where appropriate.
101
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 21
Summarised market risk sensitivity analysis:
Interest rate risk
Impact on profit/(loss) after tax
30 June 2022
30 June 2021
Carrying
amount
$000
+100BP
$000
-100BP
$000
Carrying
amount
$000
+100BP
$000
-100BP
$000
77,894
122
13,497
28,955
-
545
-
93
-
638
(545)
18,991
-
(93)
43
11,541
-
(19,956)
(638)
-
133
-
79
-
212
(133)
-
(79)
-
(212)
Financial assets
Cash and cash equivalents
Receivables*
Other financial assets
Financial liabilities
Trade and other payables
Total increase/(decrease) in profit
* The receivables balance excludes prepayments and tax balances which do not meet the definition of financial assets and liabilities.
There is no exposure to foreign exchange risk or commodity price risk for the above financial assets and liabilities.
(b) Credit risk
The consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses
to trade receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These
provisions are considered representative across all customers of the consolidated entity based on recent sales
experience, historical collection rates and forward-looking information that is available.
In determining the recoverability of a trade or other receivable using the expected credit loss model, the group
performs a risk analysis considering the type and age of the outstanding receivables, the creditworthiness of the
counterparty, contract provisions, letter of credit and timing of payment.
Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, as well as credit
exposure to customers, including outstanding receivables and committed transactions.
(i) Risk management
The group limits its exposure to credit risk in relation to cash and cash equivalents and other financial assets by only
utilising banks and financial institutions with acceptable credit ratings.
(ii) Credit quality
Tax receivables and prepayments do not meet the definition of financial assets. The group assesses the credit
quality of the customer, taking into account its financial position, past experience and other factors.
(c) Liquidity risk
Liquidity risk is the risk that the group will not be able to meet its financial liabilities as they fall due. The group’s
approach to managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to
meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the group’s reputation. The Board of Directors monitors liquidity levels on an ongoing basis.
The group’s financial liabilities generally mature within three months, therefore the carrying amount equals the cash
flow required to settle the liability.
102
Alkane Resources Annual Report 2022
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 22
Hedge accounting
Movements in hedging reserves during the current and previous financial year are set out below:
Balance at 1 July 2020
Change in fair value of hedging instrument recognised in other comprehensive income
Reclassified from other comprehensive income to profit or loss
Deferred tax
Balance at 30 June 2021
Change in fair value of hedging instrument recognised in other comprehensive income
Reclassified from other comprehensive income to profit or loss
Deferred tax
Balance at 30 June 2022
Cashflow hedges
$'000
692
220
(1,017)
239
134
520
(712)
58
-
Note 22. Capital risk management
The group’s objectives when managing capital are to safeguard the ability to continue as a going concern, so that
it can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the group may
return capital to shareholders, pay dividends to shareholders, issue new shares or sell assets.
Note 23. Key Management Personnel disclosures
The aggregate compensation made to directors and other members of KMP of the consolidated entity is set out below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
2022
$
2021
$
2,274,729
131,574
75,754
1,240,309
3,722,366
1,767,707
104,945
199,668
1,169,682
3,242,002
Note 24. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by PricewaterhouseCoopers,
the auditor of the company:
Audit services – PricewaterhouseCoopers
Audit or review of the financial statements
Other services – PricewaterhouseCoopers
Other advisory services
Other assurance services
2022
$
2021
$
179,000
139,000
-
-
-
179,000
153,000
35,000
188,000
327,000
103
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 25
Note 25. Contingent assets
The group has entered into forward gold sales contracts which are not accounted for on the balance sheet. A
contingent asset of $1,076,000 (2021: asset $537,000) existed at the balance date in the event that the contracts
are not settled by the physical delivery of gold. Refer to the commitment’s disclosure note 27 for more information.
Note 26. Contingent liabilities
The group has contingent liabilities estimated up to the value of $nil (2021: $3,223,000 relates to land acquisitions)
for the potential acquisition of several parcels.
Note 27. Commitments
(a) Exploration and mining lease commitments
In order to maintain current rights of tenure to exploration and mining tenements, the group will be required to
outlay the amounts disclosed in the below table. These amounts are discretionary, however if the expenditure
commitments are not met then the associated exploration and mining leases may be relinquished.
Within one year
(b) Physical gold delivery commitments
2022
$'000
2021
$'000
1,314
941
As part of its risk management policy, the group enters into derivatives including gold forward contracts and gold
put options to manage the gold price of a proportion of anticipated gold sales.
Alkane purchased gold forward sales and put options as part of a risk mitigation strategy on any potential
downward price pressure while Tomingley was processing the low grade stockpiles during the year.
The gold forward sales contracts disclosed below did not meet the criteria of financial instruments for accounting
purposes on the basis that they met the normal purchase/sale exemption because physical gold would be delivered
into the contract. Accordingly, the contracts were accounted for as sale contracts with revenue recognised in the
period in which the gold commitment was met. The balances in the table below relate to the value of the contracts
to be delivered into by transfer of physical gold.
30 June 2022
Fixed forward contracts
Within one year
30 June 2021
Fixed forward contracts
Within one year
(c) Capital commitments
Gold for
physical
delivery
Ounces
Contracted
gold sale price
per ounce ($)
Value of
committed
sales
$'000
36,800
2,716
99,949
24,000
2,307
55,368
Capital commitments committed for the year at the end of the reporting period but not recognised as liabilities
amounted to $11,830,000 (2021: $11,462,000).
104
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 28
Note 28. Events after the reporting period
No matter or circumstance has arisen since 30 June 2022 that has significantly affected, or may significantly affect
the consolidated entity’s operations, the results of those operations, or the consolidated entity’s state of affairs in
future financial years.
Note 29. Related party transactions
Parent entity
Alkane Resources Ltd is the parent entity of the group.
Associates
Interests in associates are set out in note 13.
Joint operations
Interests in joint operations are set out in note 33.
Key Management Personnel
Disclosures relating to Key Management Personnel are set out in note 23 and the remuneration report included in
the directors’ report.
Transactions with other related parties
Nuclear IT, a director-related entity, provides information technology consulting services to the group which
includes the coordination of the purchase of information technology hardware and software. These terms are
documented in a service level agreement and represent normal commercial terms.
Purchase of computer hardware and software
Consulting fees and services
Total
Note 30. Share-based payments
2022
$
2021
$
179,156
223,455
402,611
126,391
303,908
430,299
Share-based compensation benefits are provided to employees via the group’s incentive plans. The incentive plans
consist of short-term and long-term incentive plans for executive directors and other executives and the employee
share scheme for all other employees. Information relating to these plans is set out in the remuneration report and
below.
The fair value of rights granted under the short-term and long-term incentive plans is recognised as an employee
benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by
reference to the fair value of the rights granted, which includes any market performance conditions and the
impact of any non-vesting conditions but excludes the impact of any service and non-market performance vesting
conditions.
Non-market vesting conditions and the impact of service conditions are included in assumptions about the number
of rights that are expected to vest. The total expense is recognised over the vesting period, which is the period
over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises
its estimates of the number of rights that are expected to vest based on the non-market vesting and service
conditions. It recognises the impact of the revision to original estimates, if any, in the statement of profit or loss and
other comprehensive income, with a corresponding adjustment to equity.
105
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 30
The initial estimate of fair value for market based and non-vesting conditions is not subsequently adjusted for
differences between the number of rights granted and number of rights that vest.
When the rights are exercised, the appropriate number of shares are transferred to the employee. The proceeds
received net of any directly attributable transaction costs are credited directly to equity.
Under the employee share scheme, shares issued by the group to employees for no cash consideration vest
immediately on grant date. On this date, the market value of the shares issued is recognised as an employee
benefits expense with a corresponding increase in equity.
The fair value of deferred shares granted to employees for nil consideration under the employee share scheme is
recognised as an expense over the relevant service period, being the year to which the incentive relates and the
vesting period of the shares. The fair value is measured using the Monte Carlo valuation method for long-term
incentive plans and Black-Scholes valuation method for short-term incentive plans at the grant date of the shares
and is recognised in equity in the share-based payment reserve. The number of shares expected to vest is estimated
based on the non-market vesting conditions. The estimates are revised at the end of each reporting period and
adjustments are recognised in profit or loss and the share-based payment reserve.
Executive directors and other executives
The company’s remuneration framework is set out in the remuneration report, including all details of the
performance rights and share appreciation rights plans, the associated performance hurdles and vesting criteria.
Participation in the plans is at the discretion of the Board of Directors and no individual has a contractual right
to participate in the plans or to receive any guaranteed benefits. Participation is currently restricted to senior
executives within the group.
The following tables illustrate the number and weighted average fair value of, and movements in, share rights
during the year.
Performance Rights
Outstanding at the beginning of the year
Issued during the year
Vested during the year
Lapsed/Cancelled during the year
Outstanding at the end of the year
2022
2021
Number of
performance
rights
Weighted
average
fair value
Number of
performance
rights
Weighted
average
fair value
4,666,264
2,439,898
-
-
7,106,162
$0.47
$0.67
$0.00
$0.00
$0.54
12,092,879
1,492,626
(6,785,208)
(2,134,033)
4,666,264
$0.18
$0.75
$0.06
$0.32
$0.47
The number of performance rights to be granted is determined by the Remuneration Committee with reference
to the fair value of each performance right which is generally the volume weighted average price for the month
preceding the start of the performance period. This will differ from the fair value reported in the table above which
is determined at the time of grant.
106
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 30
Long term incentive scheme (LTI)
The following table lists the inputs to the models used.
Grant date
Expiry Date
Performance hurdle
02/09/2019
30/09/2022 Market condition
22/11/2019
30/09/2022 Market condition
11/11/2020
01/09/2023 Market condition
26/10/2021
01/09/2024 Market condition
17/11/2021
01/09/2024 Market condition
Dividend
yield
Expected
stock
volatility
Risk free
rate
Expected
life
years
-
-
-
-
-
67%
65%
72%
72%
72%
0.69%
0.73%
0.19%
0.61%
0.87%
2.8
2.6
3.0
2.8
2.7
Weighted
average
share price
at grant
date
$0.40
$0.63
$1.08
$0.90
$0.92
The expected volatility is based on the historic market price over a historical period aligned to the life of the rights,
immediately prior to the valuation date.
The Total Shareholder Return (‘TSR’) Performance Condition attached to the performance rights granted under the
FY22 LTI is considered a market-based hurdle under AASB 2 and should be considered when estimating the fair
value. The service conditions attached to the awards are deemed non-market-based hurdles. Accordingly, a Monte
Carlo simulation-based model has been used to test the likelihood of achieving the TSR hurdle when estimating the
fair value.
Short-term incentive scheme (STI)
Under the group’s short-term incentive (STI) scheme, executives and senior management receive rights to deferred
shares based on the annual STI achieved. The rights are granted at the end of the performance period and vest
one year after the grant date. They automatically convert into one ordinary share each on vesting at an exercise
price of nil. There is no entitlement to dividends or voting in relation to the deferred shares during the restricted
period. If employment ceases during this period, the rights will be forfeited, except in limited circumstances that are
approved by the board. The number of rights to be granted is determined based on the share price at the date of
grant.
The vested portion of FY21 STI were accounted for in the prior year based on the estimated value at the reporting
date. The value was adjusted based on the final value determined in the current year.
STI awards for the executive team in the 2022 financial year FY22 STI were based on the scorecard measures and
weighting as disclosed, with the estimated value of the grant determined at the reporting date.
Plan
Offer
Hurdle
Valuation Model
Grant Date
FY21 STI
FY21 STI
Executive Directors
Service
Other Executives
Service
Black-Scholes
Black-Scholes
17/11/2021
15/10/2021
Fair Value
$
$0.92
$0.96
Expenses arising from share-based payment transactions
Performance rights
Employee share scheme
2022
$'000
2021
$'000
1,916
184
2,100
1,523
161
1,684
107
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 31
Note 31. Earnings per share
Earnings per share for profit from continuing operations
Profit after income tax attributable to the owners of Alkane Resources Ltd
70,251
33,567
2022
$'000
2021
$'000
Basic earnings per share
Diluted earnings per share
Earnings per share for profit from discontinued operations
Profit after income tax attributable to the owners of Alkane Resources Ltd
Basic earnings per share
Diluted earnings per share
Earnings per share for profit
Cents
Cents
11.80
11.64
5.64
5.60
2022
$'000
Cents
2022
$'000
-
-
-
2021
$'000
Cents
2021
$'000
22,134
3.72
3.69
Profit after income tax attributable to the owners of Alkane Resources Ltd
70,251
55,701
Basic earnings per share
Diluted earnings per share
Weighted average number of ordinary shares
Weighted average number of ordinary shares used in calculating basic earnings
per share
Adjustments for calculation of diluted earnings per share:
Performance rights
Weighted average number of ordinary shares used in calculating diluted
earnings per share
Cents
Cents
11.80
11.64
9.37
9.28
Number
Number
595,526,745
594,734,110
8,102,048
5,201,943
603,628,793
599,936,053
Note 32. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
2022
$'000
2021
$'000
26,565
26,565
15,195
15,195
Profit after income tax
Total comprehensive income
108
Alkane Resources Annual Report 2022
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 33
Balance sheet
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Financial assets at fair value through other comprehensive income reserve
Share-based payments reserve
Demerger reserve
Retained profits/(accumulated losses)
Total equity
Determining the parent entity financial information
Parent
2022
$'000
2021
$'000
81,536
50,669
200,790
144,462
4,996
32,615
218,185
4,431
5,229
(70,300)
10,630
168,175
3,875
9,776
218,077
1,945
3,313
(70,300)
(18,349)
134,686
The financial information for the parent entity has been prepared on the same basis as the consolidated financial
statements, except as set out below.
(i) Tax consolidation legislation
Alkane Resources Ltd and its wholly owned Australian controlled entities have implemented the tax consolidation
legislation. Refer to note 4 for further details.
(ii) Share-based payments rights
The grant by the company of rights to equity instruments to the employees of subsidiary undertakings in the
group is treated as a capital contribution to that subsidiary undertaking. The fair value of employee services
received, measured by reference to the grant date fair value, is recognised over the vesting period as an increase to
investment in subsidiary undertakings, with a corresponding credit to equity.
(iii) Investment in subsidiaries
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Capital commitments – Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2022 (2021: $nil).
Note 33. Interests in subsidiaries
The group’s subsidiaries at 30 June 2022 are set out below. Unless otherwise stated, they have share capital
consisting solely of ordinary shares that are held directly by the group, and the proportion of ownership interests
held equals the voting rights held by the group. The state of incorporation or registration is also their principal place
of business.
Name of entity
Tomingley Holdings Pty Ltd
Tomingley Gold Operations Pty Ltd
Mitchell Creek Mining Holdings Pty Ltd
Mitchell Creek Mining Pty Ltd
Principal place of business /
Country of incorporation
Ownership interest
2022
2021
New South Wales
New South Wales
New South Wales
New South Wales
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
-
-
109
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 34
Note 34. Deed of cross-guarantee
The following group entities have entered into a deed of cross-guarantee. Under the deed of cross-guarantee, each
body has guaranteed that the debts to each creditor of each other body which is a party to the deed will be paid in
full in accordance with the deed:
• Alkane Resources Limited (the Holding Entity)
• Tomingley Holdings Pty Ltd and Tomingley Gold Operations Pty Ltd (the wholly-owned subsidiaries, which are
eligible for the benefit of the ASIC Instrument)
By entering into the deed, the wholly owned entities have been relieved from the requirement to prepare financial
statements and directors’ report under Corporations Instrument 2016/785 issued by the Australian Securities and
Investments Commission.
The above companies represent a ‘Closed Group’ for the purposes of the Corporations Instrument, and as there are
no other parties to the deed of cross-guarantee that are controlled by Alkane Resources Ltd, they also represent the
‘Extended Closed Group’.
The statement of profit or loss and other comprehensive income and balance sheet are substantially the same as
the consolidated entity as stated in the Consolidated Statement of Profit or Loss and Other Comprehensive Income
and therefore have not been separately disclosed.
Note 35. Reconciliation of profit after income tax to net cash from operating
activities
Profit after income tax expense for the year
70,251
55,701
2022
$'000
2021
$'000
Adjustments for:
Depreciation and amortisation
Net loss on disposal of property, plant and equipment
Share of loss – associates
Share-based payments
Investment paid for by tenement transfer
Exploration costs provided for or written off
Gain from demerger of ASM Group
Finance charges
Realised loss on expiry put option derivatives
Demerger costs reclassified
Gain on derecognition of equity investment
Profit on sale of asset
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Increase in inventories
Movement in provision
Increase in trade and other payables
Increase in deferred tax liabilities
Increase/(decrease) in fair value of biological assets
Net cash from operating activities
110
35,113
-
20
2,100
-
3
-
324
-
-
(48,334)
(317)
(453)
(6,304)
1,112
2,739
30,222
-
86,476
21,254
957
870
1,684
(660)
1,991
(22,672)
51
938
538
(2,698)
-
301
(4,002)
-
1,217
14,503
1,143
71,116
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 36
Net debt reconciliation
This section sets out an analysis of net debt and the movements in net debt for each of the periods presented.
Cash and cash equivalents
Borrowings – repayable within one year
Borrowings – repayable after one year
Net cash
Opening net cash
Cash flows
Transfer between categories
Closing net cash
2022
$'000
2021
$'000
77,894
(5,930)
(9,116)
62,848
18,991
(3,778)
(5,922)
9,291
Cash
$’000
18,991
58,903
-
77,894
Borrowings
repayable
within one year
$’000
Borrowings
repayable after
one year
$’000
Net cash
$’000
(3,778)
3,778
(5,930)
(5,930)
(5,922)
(9,124)
5,930
(9,116)
9,291
53,557
-
62,848
Note 36. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out either in
the respective notes or below. These policies have been consistently applied to all the years presented, unless
otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial
performance or position of the Consolidated Entity.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) and the Corporations
Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International
Financial Reporting Standards as issued by the International Accounting Standards Board (‘IASB’).
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for certain financial
assets and liabilities which are measured at fair value.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity’s accounting policies.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the financial statements, are disclosed in note 20.
111
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 36
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated
entity only. Supplementary information about the parent entity is disclosed in note 32.
Tax consolidated legislation
Alkane Resources Ltd and its wholly owned Australian controlled entities have implemented the tax consolidation
legislation.
The head entity, Alkane Resources Ltd, and the controlled entities in the Tax Consolidated Group account for their
own current and deferred tax amounts. These tax amounts are measured as if each entity in the Tax Consolidated
Group continues to be a standalone taxpayer in its own right.
In addition to its own current and deferred tax amounts, Alkane Resources Ltd also recognises the current tax
liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed
from controlled entities in the Tax Consolidated Group.
The entities have also entered into a tax funding agreement under which the wholly owned entities fully
compensate Alkane Resources Ltd for any current tax payable assumed and are compensated by Alkane Resources
Ltd for any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits
that are transferred to Alkane Resources Ltd under the tax consolidation legislation. The funding amounts are
determined by reference to the amounts recognised in the wholly-owned entities financial statements.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as
current amounts receivable from or payable to other entities in the group.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Alkane Resources
Ltd (‘company’ or ‘parent entity’) as at 30 June 2022 and the results of all subsidiaries for the year then ended.
Alkane Resources Ltd and its subsidiaries together are referred to in these financial statements as the ‘consolidated
entity’ or the ‘group’.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls
an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries
are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-
consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated
entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the consolidated entity.
The financial statements are presented in Australian dollars, which is Alkane Resources Ltd’s functional and
presentation currency.
112
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 36
Accounting policy for lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the
present value of the lease payments to be made over the term of the lease, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined, the consolidated entity’s incremental borrowing
rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments
that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of
a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination
penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which
they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability
is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying
amount of the right-of-use asset is fully written down.
Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights
to the assets, and obligations for the liabilities, relating to the arrangement. The consolidated entity has recognised
its share of jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated
in the financial statements under the appropriate classifications.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of
the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently
measured at either amortised cost or fair value depending on their classification. Classification is determined based
on both the business model within which such assets are held and the contractual cash flow characteristics of the
financial asset unless an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred
and the consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no
reasonable expectation of recovering part or all of a financial asset, its carrying value is written off.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as such
upon initial recognition.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the loss
allowance depends upon the consolidated entity’s assessment at the end of each reporting period as to whether
the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and
supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses
that is attributable to a default event that is possible within the next 12 months. Where a financial asset has
become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is
based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognised is measured
on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument
discounted at the original effective interest rate.
For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is
recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases,
the loss allowance reduces the asset’s carrying value with a corresponding expense through profit or loss.
113
Alkane Resources Annual Report 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 36
Impairment of non-financial assets
The group assesses at the end of each reporting period whether there is any indication that an asset, or a group
of assets is impaired (excluding exploration and evaluation assets, refer to note 12 for impairment policy for
exploration and evaluation assets). An asset or a group of assets is impaired and impairment losses are incurred
only if there is objective evidence of impairment as a result of one or more events that occurred after the initial
recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash
flows of the asset or group of assets that can be reliably estimated.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are
expensed in the period in which they are incurred.
Goods and Services Tax (‘GST’) and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or
as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the balance
sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax
authority.
Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
• the profit attributable to owners of the company, excluding any costs of servicing equity other than ordinary
shares; by
• the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus
elements in ordinary shares issued during the year and excluding treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account:
• the profit attributable to owners of the company, excluding any costs of servicing equity, and
• the weighted average number of additional ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to ‘rounding-off’. Amounts in this report have been roun ded off in accordance
with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
114
Alkane Resources Annual Report 2022 FINANCIAL REPORT DIRECTORS’ DECLARATION
In the directors’ opinion:
• the financial statements and notes set out on pages 79 to 114 are in accordance with the Corporations Act 2001
including:
(a)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
(b)
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2022 and of its
performance for the financial year ended on that date; and
• the financial statements and notes also comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board as described in note 36 to the financial statements;
• there are reasonable grounds to believe that Alkane Resources Limited will be able to pay its debts as and
when they become due and payable;
• at the date of this declaration, there are reasonable grounds to believe that the members of the Extended
Closed Group will be able to meet any obligations or liabilities to which they are, or may become, subject by
virtue of the deed of cross-guarantee described in note 34 to the financial statements.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors.
On behalf of the directors
N P Earner
Managing Director
29 August 2022
Perth
115
Alkane Resources Annual Report 2022
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
116
Alkane Resources Annual Report 2022 FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
117
Alkane Resources Annual Report 2022 FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
118
Alkane Resources Annual Report 2022 FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
119
Alkane Resources Annual Report 2022 FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
120
Alkane Resources Annual Report 2022 ADDITIONAL
INFORMATION
Boda
Alkane Resources Annual Report 2022
121
ADDITIONAL INFORMATION SHAREHOLDER INFORMATION
Shareholder Information
Additional information required by Australian Securities Exchange Ltd and not shown elsewhere in this report is as
follows. The information is current as at 12 September 2022.
Distribution of Equity Securities
Analysis of numbers of equity security holders by size of holding:
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
The number of equity security holders holding less than a marketable parcel of securities are:
Twenty Largest Shareholders
The names of the 20 largest holders of quoted ordinary shares are:
IJ GANDEL
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
MAGNABAY PTY LTD
LILYCREEK PTY LTD
AUBURNVALLEY PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
BNP PARIBAS NOMS PTY LTD
FYVIE PTY LTD
HOME IDEAS SHOW PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
LEEFAB PTY LTD
GARDENWAY PROPRIETARY LIMITED
BNP PARIBAS NOMINEES PTY LTD
GARRETT SMYTHE LTD
ED-NE PTY LTD
S MAAS HOLDINGS PTY LIMITED
BRAZIL FARMING PTY LTD
MS JILLANNE HOMEWOOD
BERNE NO 132 NOMINEES PTY LTD <152417 A/C>
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
122
Ordinary shares
Number of holders
Number of shares
1,703
3,309
1,562
2,655
413
9,642
837
990,682
9,175,672
12,205,216
84,018,629
489,689,061
596,079,260
229,581
Listed ordinary shares
Number of shares
Percentage of
ordinary shares
131,792,506
73,558,256
37,431,550
16,466,667
16,466,667
16,466,666
16,292,334
8,118,180
6,650,000
5,802,629
5,323,671
5,306,091
5,180,918
4,717,225
4,498,125
3,812,048
2,776,232
2,612,500
2,405,636
2,207,000
367,884,901
22.11
12.34
6.28
2.76
2.76
2.76
2.73
1.36
1.12
0.97
0.89
0.89
0.87
0.79
0.75
0.64
0.47
0.44
0.40
0.37
61.72
Alkane Resources Annual Report 2022 ADDITIONAL INFORMATION SHAREHOLDER INFORMATION
Substantial Shareholders
The names of substantial shareholders who have notified the Company in accordance with section 671B of the
Corporations Act 2001 are:
Ian Jeffrey Gandel
Chapelgreen Pty Ltd
Voting Rights
Number of Shares
131,792,506
53,746,000
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
Unquoted Securities
At 12 September 2022, the company had the following unlisted securities on issue:
Class
Number of
Securities
Number of
Holders
Holder Name
Number of
Securities
Employee Performance Rights LTI FY2020
Employee Performance Rights LTI FY2021
Employee Performance Rights LTI FY2022
Employee Performance Rights STI FY2022
3,173,638
1,492,626
1,944,058
1,230,511
6
7
8
18
Nicholas Paul Earner
1,622,252
Nicholas Paul Earner
ED-NE Pty Ltd
N/A
687,346
825,115
N/A
Holders of 20% or more of the class
Corporate Governance Statement
Alkane’s Corporate Governance Statement is available on our website, along with the Board charter and
details of Board sub-committees. Also listed are key policies and procedures, including those pertaining to
appointment and independence of directors, diversity, code of conduct, risk management, and anti-bribery
and corruption.
alkane.com.au/company/governance/
123
Alkane Resources Annual Report 2022 ADDITIONAL INFORMATION SCHEDULE OF MINING TENEMENTS
Mining Tenements
Schedule of mining tenements – as at 30 June 2022
Project/Location
Peak Hill, NSW
Tomingley, NSW
Cudal, NSW
Rockley NSW
Apsley
Northern Molong Porphyry Project, NSW
Bodangora
Kaiser
Boda South
Finns Crossing
Tenement
Interest
Nature of interest
GL 5884 (Act 1904)
ML 6036
ML 6042
ML 6277
ML 6310
ML 6389
ML 6406
ML 1351
ML 1364
ML 1479
EL 6319
ML 1684
EL 5675
EL 5830
EL 5942
EL 6085
EL 8676
EL 8794
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity through subsidiary
Equity
Equity
Equity
Equity
Equity
Equity
EL 7020
100%
Equity
EL 8194
EL 8527
EL 4022
EL 6209
EL 8887
EL 8261
100%
100%
Equity
Equity
100%
100%
100%
100%
Equity
Equity (subject to royalty of 2% net smelter return)
Equity
Equity
Elsienora, NSW
EL 8550
100%
Equity
Trangie, NSW
EL 8765
100%
Equity
Armstrongs (near Parkes), NSW
EL 8784
EL 9178
100%
100%
Equity
Equity
Mt Conqueror, NSW
EL 9107
100%
Equity
Nullagine, WA
E 46/522-I & 523-I
0%
M 46/515, 522 & 523
0%
60% retained interest in diamond potential – FMGN
(FMG Nullagine Pty Ltd)
60% retained interest in diamond potential – FMGN
(FMG Nullagine Pty Ltd)
124
Alkane Resources Annual Report 2022