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Southern GoldANNUAL REPORT
2023
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 Non-Executive Director
Non-Executive Director
G M Smith
Non-Executive Chairman
Managing Director
Technical 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 & Kaiser
Exploration
4
6
8
9
10
12
14
Mineral Resources and Ore Reserves 21
Sustainability Report
Sustainability at Alkane
Governance
Our People
Communities
Environment
29
30
32
35
46
58
Financial Report
Directors’ Report
Auditor’s Independence Declaration
67
68
88
89
Financial Statements
Consolidated Financial Statements
91
Notes to the Consolidated Financial Statements 95
Directors’ Declaration
Independent Auditor’s Report
Additional Information
Shareholder Information
Corporate Governance Statement
Schedule of Mining Tenements
125
126
131
132
133
134
ANNUAL REPORT ABOUT ALKANE
About Alkane
We are a gold exploration, development and production company with
projects and operations located in Central West New South Wales.
Alkane Resources Ltd is the parent
entity of the Alkane group. We own and
operate Tomingley Gold Operations, an
open pit and underground gold mining
development southwest of Dubbo.
We also hold several highly prospective
gold and copper tenements in the region,
including the Boda and Kaiser deposits
east of Dubbo. Boda and Kaiser are a
genuine prospect for a large-tonnage
gold-copper development.
Alkane is headquartered in Perth,
Western Australia. Our exploration team
is based in Orange, New South Wales.
The company was incorporated in 1969
and is listed on the Australian Securities
Exchange (ASX:ALK).
N
Perth
Dubbo
Boda
Tomingley
Gold Operations
Orange
Tomingley
4
Alkane Resources Annual Report 2023
ANNUAL REPORT ABOUT ALKANE
Our Values
Mission Statement
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.
Tomingley
5
Alkane Resources Annual Report 2023 ANNUAL REPORT ANNUAL HIGHLIGHTS
Annual Highlights
Corporate
Profit after tax of
$42.5M
(FY22: $70.3M)
Gold revenue of
$190.5M
(FY22: $165M)
Cash, Bullion and listed
investments of
$107.2M
at 30 June 2023
(FY22: $124.2M)
6
70,498 ounces
gold sold at
$2,703 per ounce
(FY22: 66,883 ounces gold sold at $2,467 per ounce)
Alkane Resources Annual Report 2023 ANNUAL REPORT ANNUAL HIGHLIGHTS
AISC of A$1,602 per ounce
(FY22: AISC of A$1,460 per ounce)
Tomingley Gold Extension Project
Approved
Operations
70,253 ounces
gold poured
(FY22: 66,802 ounces gold poured)
Operating cashflow of
$80.3M
at 30 June 2023
(FY22: $86.4M)
Exploration and Growth
Initial Kaiser Inferred Mineral
Resource of
4.7Moz AuEq
270Mt @ 0.54g/t AuEq
(0.3g/t AuEq cut-off)
Combined Boda-Kaiser resources of
7.3Moz Au and
1.4Mt Cu
(0.3g/t AuEq cut-off)
85,423 metres
drilled at exploration prospects
Acquired the
Southern Junee
Porphyry Project
(gold-copper)
7
Alkane Resources Annual Report 2023 ANNUAL REPORT CHAIRMAN’S MESSAGE
Chairman's Message
Welcome to the Alkane Resources
Annual Report to shareholders
for 2023.
It has once more been a year of strong results and significant milestones for Alkane. Excellent production and
cost performance at Tomingley Gold Operations drove a profit of $42.5M, while we continued to progress major
projects at Tomingley and Boda.
We were pleased to receive approval for the Tomingley Gold Extension Project in February this year, followed by
the Mining Lease in July. This marks the start of a new journey at Tomingley, as we prepare to develop the San
Antonio and Roswell resources a few kilometres to the south. The current Life of Mine Plan extends beyond 2030,
and the operation is approved to the end of 2032. While aboveground preparations for the project get underway,
we expect to be extracting ore from Roswell underground (accessed from the exploration drive) before the end of
this year.
Our other major focus for the year was the large drilling program at Boda-Kaiser, within our Northern Molong
Porphyry Project. Following the initial Boda resource announcement in May 2022, we released the initial Kaiser
Mineral Resource estimate in February this year, declaring 4.7 million gold equivalent ounces. We were delighted to
receive the ‘Explorer of the Year 2023’ award from NSW Mining in recognition of the significance of the Kaiser resource.
We are now working to upgrade both these resource estimates to Indicated status over the next several months.
As things stand, the combined Boda-Kaiser resources represent a total metal inventory of 7.3 million ounces of
gold and 1.4 million tonnes of copper. We remain confident in their potential for a large-tonnage gold-copper
development.
Finally I extend sincere congratulations to our Technical Director, Ian Chalmers, for winning the Gavin Thomas Mining
Award at the recent Gold Industry Awards in Sydney. Ian’s dedication, innovation and leadership has steered Alkane
to numerous milestones and discoveries over the past three decades, and this industry recognition is highly deserved.
Our results for the year could not have been achieved without the considerable efforts and support of a great many
people. On behalf of the Board, I extend thanks to our employees, contractors, strategic partners and consultants
for their strong and continued commitment to safety, production, development and exploration performance.
Thank you also to our many shareholders and stakeholders for their ongoing support of Alkane.
Ian Gandel
Chairman
Alkane Resources Ltd
8
Alkane Resources Annual Report 2023
BUSINESS
REVIEW
Tomingley underground
Alkane Resources Annual Report 2023
9
BUSINESS REVIEW TOMINGLEY
Tomingley
An excellent year at Tomingley saw production exceeding guidance,
approval of the Tomingley Gold Extension Project and the underground
exploration drive reaching the Roswell deposit.
65,000-73,000 ounces. Since commissioning the
processing plant in 2014, Tomingley has met or
exceeded guidance in every year of operation.
The AISC* of A$1,602 per ounce fell within the
revised cost guidance of A$1,550 to $1,750 per ounce.
FY24 guidance for Tomingley is 60,000 to 65,000
ounces production at an AISC of A$1,750 to $2,100
per ounce. The increase in costs is primarily due to
movements in wages and the rising prices of electricity,
fuel and reagents.
Tomingley
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 Central West 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. Throughout FY23, mining occurred
underground at Wyoming One, Caloma One and
Caloma Two. We completed mining of a cutback in the
northeast of the Caloma One pit in May 2023.
Both mining operations and the processing plant
performed very well, with recovery as expected.
Production of 70,253 ounces for the financial year
exceeded FY23 production guidance (initially 55,000-
60,000 ounces), which in April was upgraded to
Tomingley produced
70,253 ounces of gold at an
AISC of $1,602 per ounce.
*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 2023 BUSINESS REVIEW TOMINGLEY
Tomingley open cut
Exploration drive
In May 2023, the underground exploration drive reached
the Roswell ore body. The drive extends some 2,750
metres south from Wyoming One and is now being
used for exploration drilling at the McLeans deposit
and infill drilling at the Roswell deposit.
Second residue storage facility (RSF2)
In FY23 we progressed construction of the site’s
second residue storage facility. RSF2 will safely store
processing residue for the next phase of underground
development at Wyoming One and Caloma, as well as
mining of the San Antonio and Roswell resources.
Tomingley Gold Extension
Project
The New South Wales Minister for Planning granted
development consent for the Tomingley Gold
Extension Project on 21 February 2023. This permits
Alkane to extend gold mining operations to the San
Antonio and Roswell (SAR) resources immediately
south of the existing mine (SAR resources currently
stand at 1,264,000 ounces of gold). The operation is
now approved until end-2032.
Tomingley is now
approved until end-2032.
We have approval to develop an underground mine
at Roswell and one large open cut (comprising three
stages of pit development within its footprint).
The consent also permits realignment of the Newell
Highway and another local road, a higher processing
rate of 1.75Mtpa, paste-filling of underground stopes
at Roswell, and further wall-lifts to RSF2.
At 30 June 2023, the Environment Protection Licence
had been varied by the NSW Environment Protection
Authority to include the additional land and activities
associated with the project. Post year-end, the new
Mining Lease was granted from 19 July 2023.
Progression of the Tomingley Gold Extension Project
during FY24 will include detailed engineering for
the pastefill plant, construction of ancillary surface
infrastructure, tenders for the highway realignment
and orders of long lead items. We intend to commence
underground mining at Roswell before the end of 2023.
11
Alkane Resources Annual Report 2023 BUSINESS REVIEW BODA & KAISER
Boda & Kaiser
Alkane announced an initial Mineral Resource Estimation for the Kaiser
deposit in February 2023, following release of the Boda resource in
May 2022. The combined Boda and Kaiser resources represent a metal
inventory of almost 15 million gold equivalent ounces.
Initial Mineral Resources
The Boda and Kaiser deposits are part of Alkane’s
Northern Molong Porphyry Project (NMPP) in Central
West New South Wales. They are located near the
village of Bodangora, about 20 kilometres north of
Wellington.
Alkane discovered gold-copper porphyry
mineralisation with significant economic potential
at Boda in late 2019. An extensive drilling campaign
has since revealed a mineralised corridor some 3.5
kilometres in length, also incorporating the Kaiser
deposit centred 500 metres northwest of Boda and
the Boda 2-3 prospect to the south.
The initial Inferred Mineral Resource Estimation for
the Boda deposit was announced on 30 May 2022.
The resource has been estimated at 5.21 million
ounces of gold and 0.9 million tonnes of copper
(0.3g/t AuEq* cut-off). Boda is a large, low-grade
resource with a surface projection approximately one
kilometre long and 500 metres wide. It is classified to
a depth of approximately 1,000 metres below surface
and is open at depth and along strike.
Initial Kaiser Resource
Alkane released the initial Inferred Mineral Resource
Estimation for the Kaiser deposit on 27 February
2023. Kaiser is a shallow resource estimated at
2.05 million ounces of gold and 0.48 million tonnes
of copper (0.3g/t AuEq* cut-off). Alkane considers
0.3g/t AuEq a reasonable cut-off for the prospect of
eventual extraction using open cut mining methods.
The surface projection of the Kaiser resource is
approximately 1.1 kilometres long and 700 metres
wide. It is classified to a depth of -140mRL (or 630
metres below surface) and remains open at depth and
along strike.
Kaiser Inferred Mineral Resource (as at 24 February 2023)
Resource
Category
Inferred
Inferred
AuEq*
Cut-off
0.3g/t
0.4g/t
AuEq
(g/t)
Au
(g/t)
270
164
0.54
0.67
0.24
0.28
Cu
(%)
0.18
0.22
Ag
(g/t)
0.46
0.55
AuEq
(Moz)
Au
(Moz)
4.72
3.58
2.05
1.48
Cu
(Mt)
0.48
0.36
Ag
(Moz)
3.97
2.94
Grade
Contained Metal
Ore
Tonnes
(Mt)
*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 the same for Au and Cu at 85% from preliminary metallurgical studies. Alkane considers the elements included in
the metal equivalents calculation have a reasonable potential to be recovered and sold.
12
Alkane Resources Annual Report 2023 To prepare the Kaiser resource estimate, we used a
nominal drill hole grid of 100 by 100 metres to depths
averaging 400 metres and up to 800 metres below
surface. The estimate utilises a total of 130 drill holes
for a combined 49,398 metres, including an historical
assay component (for the period 1995 – 2003)
captured by Rio Tinto and Newcrest. Refer to Alkane’s
ASX Announcement of 27 February 2023 for full
details of the Kaiser initial Inferred Mineral Resource
Estimation.
Further resource infill drilling at Kaiser will define the
continuity of the mineralisation at depth and improve
confidence in the Mineral Resource. A 3D model of
the Kaiser mineralisation is displayed below.
KKAAIISSEERR
K
a
i
s
e
r
F
a
u
l
t
ult
a
F
olar
S
Drill hole trace
0.2 AuEq g/t Kaiser West Zone
0.2 g/t Au Kaiser Main Zone
0.2 AuEq g/t Kaiser East Zone
February 2023
AAllkkaannee
RReessoouurrcceess LLttdd
3D model of the Kaiser mineralisation (3D Wireframe – view northwest)
BUSINESS REVIEW BODA & KAISER
The Boda-Kaiser resources
represent a total metal
inventory of 7.3Moz gold
and 1.4Mt copper.
Combined Boda-Kaiser Resources
The combined Boda-Kaiser Mineral Resource
Estimations so far represent a total metal inventory
of 7.3 million ounces of gold and 1.4 million tonnes of
copper (0.3g/t AuEq cut-off). The average grade for
Kaiser is slightly higher than Boda, largely due to the
higher copper grade of Kaiser. Overall, the value of the
contained copper in the combined resources exceeds
the value of gold.
Alkane is working towards upgrading both the Boda
and Kaiser Mineral Resource Estimations to Indicated
status. We also continue to test mineralised zones
extending northwest of the Boda resource envelope
towards Kaiser and south to Boda 2-3, with the view
to growing the resource envelope. An updated Mineral
Resource Estimation for Boda, expected to include
Boda 2-3, is anticipated in the fourth quarter of 2023.
We’re aiming for an updated estimate for Kaiser in the
first quarter of 2024.
In parallel, Alkane is continuing the preliminary work
required to further understand mining and processing
options for the future. We hope to wrap these into a
concept study when the Indicated Mineral Resources
are released.
Refer to page 16 for information about Alkane’s
exploration program and page 27 for the complete
Mineral Resource Estimation table.
Drilling at Kaiser, August 2023
Alkane Resources Annual Report 2023
13
BUSINESS REVIEW EXPLORATION
Exploration
Alkane holds several gold and copper tenements in Central West New
South Wales. Our FY23 exploration efforts focused on the Northern
Molong Porphyry Project (Boda and Kaiser) and the Tomingley Gold
Project.
Northern Molong Porphyry
Project (gold-copper)
Alkane Resources Ltd 100%
The Northern Molong Porphyry Project (NMPP) is
located in Central West New South Wales, centred
about 20 kilometres north of Wellington and about
35 kilometres east of Dubbo. It covers an area of
180 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 six discrete magnetic/
intrusive complexes (Kaiser, Boda, Boda South,
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 the magnetic/intrusive complexes.
The project is encompassed by five exploration
licences. These include the Comobella North tenement,
acquired in the June 2023 quarter from Sandfire
Resources Ltd, inclusive of all data and free from
encumbrances. Comobella North (EL8338) is located
immediately north and adjacent to the Bodangora
(EL4022) and Finns Crossing (EL8261) tenements.
Alkane now owns tenure covering the entire 15
kilometres of prospective corridor extending from Boda
to Finns Crossing. We have defined two significant gold-
copper resources within this corridor at Boda and Kaiser.
14
Explorer of the Year
Caption xxxxxx
David Meates, Alkane Exploration Manager (left), and Ian Chalmers,
Alkane Technical Director
NSW Mining named Alkane Explorer
of the Year 2023 for the Kaiser deposit
on 8 May. The Explorer of the Year
award recognises excellence within the
mining industry and acknowledges the
significant contribution of exploration
to the sector. We won the same award
for the Boda discovery in 2021. Boda
and Kaiser combined are among the
most significant gold-copper resources
defined in NSW in the last 10 years.
Alkane Resources Annual Report 2023 BUSINESS REVIEW EXPLORATION
1 4 9 ° 0 0 'E
G o lla n N o rth
G o lla n
G o lla n So u th
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KAISER INTRUSIVE
K a ise r
G re a t A u stra lia n B a sin
C a rb o n ife ro u s g ra n ite
D e v o n ia n ‐ S ilu ria n se d im e n ts a n d
v o lca n ics
O rd o v icia n v o lcan ics a n d se d im e n ts
‐ In tru sive co m p le xe s
5 k m
0
A u g u st 2 0 2 3
Alkane’s NMPP tenements, showing regional geology
BODA INTRUSIVE
BODA SOUTH INTRUSIVE
E L 8 8 8 7
W ellin g to n
1 0 k m
B o d a n g o ra
G o o l m a
B o d a
B o d a 2 ‐3
B o d a 4
R o a d
15
Alkane Resources Annual Report 2023 BUSINESS REVIEW EXPLORATION
Exploration program
Since the discovery of Boda in 2019, Alkane’s
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 2-3 to Boda,
where it rotates northwest from Boda to Kaiser.
Alkane operated four drilling rigs in parallel at the NMPP
during much of FY23. We undertook approximately
63,000 metres of reverse-circulation (RC) and
diamond core drilling during the reporting period.
Kaiser deposit
Gold-copper porphyry mineralisation at the Kaiser
deposit is associated with calc-potassic alteration that
appears more siliceous than the Boda alteration and
with higher concentrations of copper.
Drilling comprising 130 RC and diamond core drill holes,
for a combined 49,398 metres, was used to
calculate a shallow initial Inferred Mineral Resource
Estimation. (Refer to page 12 of this report for further
information.) Drilling continues at Kaiser to improve
confidence in the estimate, with the view to upgrading
to Indicated status in the first quarter of 2024.
Boda deposit
Since the Boda Inferred Mineral Resource Estimation
was announced in May 2022, our drilling program
has continued to infill areas around high-grade
mineralisation to improve confidence in the estimate.
We intend to upgrade the Inferred Mineral Resource
to Indicated status in the fourth quarter of 2023.
Boda 2-3 prospect
Drill results at Boda 2-3 demonstrate many
encouraging similarities to Boda, including the
existence of high-grade gold-copper mineralised
breccias within extensive and continuous zones of
low-grade gold-copper porphyry mineralisation. The
Boda 2-3 prospect is located immediately south and
on-strike of the Boda resource envelope. Further
drilling will combine Boda 2-3 mineralisation into the
Boda resource estimation.
During the past year, an RC and diamond core drilling
program at Boda 2-3 targeted extensions to high-
grading gold-copper mineralised breccias and infilled
areas of poorly defined gold-copper mineralisation.
Assay results for Boda 2-3 were announced to the
ASX on 28 March, 20 June and 4 August 2023.
16
Drilling at Kaiser, August 2023
Boda northwest extension
The Boda deposit is truncated to the northwest by
the north-striking Solar Fault, which has displaced
some mineralisation outside the Boda resource
envelope. A drilling program to test the continuity of
mineralisation in this zone (which lies between Boda
and Kaiser) has intersected extensive gold-copper
porphyry mineralisation (ASX announcements 20 June
and 4 August 2023).
Planned exploration in FY24
Drilling the resource area at Kaiser is expected to be
completed by end-2023. Further drilling at the Boda 2-3,
Boda 4, Finns Crossing and Konigin prospects is
planned for 2024. We have planned a high-resolution
airborne gravity survey for the Northern Molong
Porphyry Project area for October 2023; this will
assist with future drill targeting.
Alkane Resources Annual Report 2023 BUSINESS REVIEW EXPLORATION
McLeans deposit
The McLeans deposit lies two kilometres south of
Tomingley, 500 metres northeast of the Roswell
deposit and adjacent to the exploration drive from
Wyoming One. Previous drilling intersected a
mineralised andesite that correlates with the andesites
that host the majority of the San Antonio and Roswell
gold resources (ASX Announcement 16 September
2021).
Two stages of surface drilling at McLeans during FY23
targeted the strike of mineralisation between the
historic Myalls United underground workings and the
Roswell deposit. Results have defined mineralisation
over 200 metres strike and 500 metres down dip that
remains open.
The surface results were combined with a number of
holes drilled from the underground exploration drive
to enable an Inferred Resource to be estimated.
El Paso prospect
The El Paso prospect lies approximately two
kilometres south of the San Antonio deposit.
The drilling program in FY23 continued to define
a northeast strike of strong gold mineralisation,
approximately 230 metres by 50 metres, hosted
in andesite similar to Roswell and San Antonio.
Significant mineralisation was intersected with RC
drill hole EPP046 (42m grading 1.68g/t Au from 42m)
(ASX Announcement 10 July 2023).
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 Central West 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.
The Tomingley Gold Extension Project is founded on
the San Antonio and Roswell (SAR) resources, which
lie to the south of Tomingley. (Refer to page 11 for
project information and pages 22-26 for Mineral
Resources and Ore Reserves.)
Exploration program
Alkane continues to explore the gold corridor
between Tomingley and Peak Hill, with the view to
defining additional resources to extend the life of
the Tomingley asset. Key exploration targets include
additional mineralisation outside the existing SAR
resource models, as well as the McLeans, El Paso and
Plains prospects.
In FY23, we undertook exploration at several
prospects located within seven kilometres of the
Tomingley processing facility. Assay results were
ultimately received from 290 air-core drill holes for a
total of 26,727 metres, 31 reverse-circulation (RC) drill
holes for a total of 8,908 metres, and 12 diamond core
for a total of 4,743 metres. Results were announced to
ASX 17 November 2022 and 10 July 2023.
Exploration centre, Orange
Alkane Resources Annual Report 2023
17
BUSINESS REVIEW EXPLORATION
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Tomingley Gold Operations
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D o le rite d yk e s (E a st ‐ W e st tre n d in g )
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H o rn b le n d e + p la g io cla se p h y ric d io rite
M o n zo d io rite sill (P la g io cla se ‐a u g ite )
M o n zo d io rite sill (F e ld sp a r‐h o rn b le n d e )
V o lca n icla stic se d im e n ts
V o lca n icla stic co n g lo m e ra te
Fe ld sp a r p h y ric A n d e site (e le v a te d P )
B a sa ltic A n d e site
in te rm e d ia te v o lca n ics
U n d iff
a n d vo lca n icla stics
F e lsic o r co n tin e n ta l se d im e n ts
M a fic se d im e n ts
A n d e site 1
A n d e site 2
U n d iff se d im e n ts a n d a n d e site
0
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Se p te m b e r 2 0 2 3
Northern section of Tomingley Gold Project, showing regional geology
18
g
n
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d
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G
M L1 6 8 4
W y o m in g
P o rta l
M L1 8 2 1
M L1 8 5 8
M y a lls U n ite d
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M c L e a n s
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8 k m
Alkane Resources Annual Report 2023
Plains prospect
The Plains prospect lies approximately one kilometre
southeast of the Roswell deposit. Drilling in FY23
mapped a zone of anomalous gold mineralisation,
striking northeast with dimensions approximately
500 metres by 200 metres.
Allendale prospect (gold-copper)
The Allendale prospect lies approximately five
kilometres northwest of Tomingley on the western
side of a structural feature known as the Parkes
Thrust. The prospect is a gold-copper porphyry target
within the buried Junee-Narromine Volcanic Belt,
which also hosts Northparkes 40 kilometres to the
south.
Historical drilling is limited, comprising air-core
drilling and three diamond core tails. In FY23 Alkane
conducted a 95-hole air-core drilling program along
seven traverses spaced nominally one kilometre
apart. Numerous zones of anomalous gold and copper
intersected by the drilling were mostly hosted in
volcanics, with significant mineralisation intersected
by drill hole ALAC176 (13m grading 0.99g/t Au,
0.03% Cu from 127m to end of hole, including 3m
grading 3.03g/t Au, 0.02% Cu from 133m) (ASX
Announcement 10 July 2023).
Peak Hill Gold Mine
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. 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.
Planned exploration in FY24
Alkane has planned high-resolution airborne magnetic
and gravity surveys for the greater Tomingley Gold
Project area in November 2023. The results of
these geophysical surveys will assist with future drill
targeting. We’re planning further drilling at McLeans,
El Paso, Plains and Allendale during 2024.
BUSINESS REVIEW EXPLORATION
Southern Junee Porphyry
Project (SJPP)
Alkane Resources Ltd 100%
The Southern Junee Porphyry Project (SJPP) is
located in the Riverina region of New South Wales,
centred about 40 kilometres east of West Wyalong.
It covers an area of 235 square kilometres at the
southern extension of the Junee-Narromine Volcanic
Belt (J-NVB), which is considered highly prospective
for world-class gold-copper porphyry deposits. (The
J-NVB hosts Cowal (Evolution ~14.3 Moz gold) and
Northparkes (China Molybdenum Co. ~4.5Mt copper,
5.5Moz gold).)
The SJPP comprises three exploration licences
(EL5792, EL7982 and EL8025), which Alkane acquired
inclusive of all data from Sandfire Resources Ltd in
the June 2023 quarter. The project is 100% owned by
Alkane with no underlying royalties or liabilities.
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 soil
sampling and ground electromagnetic surveying over
the previously generated airborne electromagnetic
targets.
Alkane’s other exploration projects in New South
Wales are: Armstrongs (gold); Cudal (gold-zinc);
Rockley (gold); Trangie (nickel-copper+); Mt Conqueror
(gold). (All Alkane Resources Ltd 100%).
Alkane Resources Annual Report 2023
Alkane Resources Annual Report 2023
19
19
BUSINESS REVIEW EXPLORATION
N
148°E
150°E
W
E
S
Tritton
Nyngan
NSW
Central West of
NSW
inset
Sydney
0
100
kilometres
Trangie
Trangie
Tottenham
Dubbo
32°S
Mineral Hill
Northern
Northern
Molong
Molong
Porphyry
Porphyry
Wellington
TGOTGO
TTGGOO
Peak Hill
Peak Hill
Sunrise
Tomingley
Tomingley
Burrendong
Dam
Northparkes
Parkes
Armstrongs
Armstrongs
Forbes
Mount
Mount
Conqueror
Conqueror
Orange
Cudal
Cudal
Bathurst
Cowal
Cadia Valley
West
Wyalong
34°S
Southern Junee
Southern Junee
Porphyry
Porphyry
McPhillamys
To Sydney
Rockley
Rockley
September 2023
September 2023
AAllkkaannee
RReessoouurrcceess LLttdd
Alkane’s projects and operations in Central West New South Wales
20
Alkane Resources Annual Report 2023 MINERAL
RESOURCES AND
ORE RESERVES
Gold pouring, Tomingley
Alkane Resources Annual Report 2023
21
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 and Kaiser
deposits) as at 30 June 2023.
The Mineral Resources and Ore Reserves for the Tomingley Gold Project and the Northern Molong Porphyry
Project 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 13 September 2023. 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.
Tomingley Gold Project
Identified Mineral Resources and Ore Reserves for the Tomingley Gold Project have been updated for 30 June 2023.
The project includes:
• Tomingley Gold Operations production facility (Wyoming One, Wyoming Three, Caloma One and
Caloma Two deposits)
• Tomingley Gold Extension Project (San Antonio, Roswell and McLeans deposits), and the
• Peak Hill Gold Project.
Mineral Resources and Ore Reserves have been re-estimated to account for additional resources, mining depletion,
changes in gold price and operating costs during the 2023 financial year. They include the initial Inferred Mineral
Resource Estimate for the McLeans deposit, announced post year-end (ASX Announcement 13 September 2023).
The detailed estimates are set out in the tables on the following pages.
Tomingley Gold Project
Total Mineral Resources: 27.26Mt grading 2.02g/t Au (1,775,000oz)
Total Ore Reserves: 10.96Mt grading 1.77g/t Au (622,000oz)
22
Alkane Resources Annual Report 2023
MINERAL RESOURCES AND ORE RESERVES
Mineral Resources
Tomingley Gold Operations Mineral Resources (as at 30 June 2023)
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
0
0
0
0
Underground Resources (cut-off 1.3g/t Au)
Wyoming One
Wyoming Three
Caloma One
Caloma Two
Sub Total
TOTAL
988
46
359
115
1,508
1,508
2.8
2.2
2.5
2.5
2.7
2.7
0
0
725
24
1,113
1,066
2,928
2,928
0
0
2.2
2.0
2.0
2.3
2.2
2.2
0
0
375
20
328
360
1,083
1,083
0
0
1.8
1.9
2.0
2.2
2.0
2.0
0
0
2,088
90
1,800
1,541
5,519
5,519
0
0
2.4
2.1
2.1
2.3
2.3
2.3
0
0
163
6
123
115
407
407
Apparent arithmetic inconsistencies are due to rounding.
Open cut mining ceased at Tomingley during the year and the operation transitioned to fully underground mining at Wyoming One, Caloma One and Caloma Two.
Tomingley Gold Extension Project Mineral Resources (as at 30 June 2023)
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 Roswell and 0.5g/t Au San Antonio)
Roswell
San Antonio
Sub Total
5,615
5,930
0
0.0
11,545
1.78
1.82
1.80
791
1,389
2,180
Underground Resources (cut-off 1.6g/t Au and 1.3g/t Au McLeans)
Roswell
McLeans
Sub Total
TOTAL
1,897
2.67
4,244
1,897
13,443
2.67
1.92
870
5,114
7,294
Apparent arithmetic inconsistencies are due to rounding
Peak Hill Mineral Resources (as at 30 June 2023)
0.96
1.32
1.19
2.56
2.51
2.56
1.85
6,406
7,319
13,725
6,141
870
7,011
20,737
1.68
1.73
1.70
2.59
2.51
2.59
1.90
346
406
752
512
70
584
1,336
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
Caption
Alkane Resources Annual Report 2023
23
MINERAL RESOURCES AND ORE RESERVES
Ore Reserves
Tomingley Gold Operations Ore Reserves (as at 30 June 2023)
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
0
329
329
Underground Reserves (cut-off 1.3g/t Au)
Wyoming One
Caloma One
Caloma Two
Sub Total
TOTAL
260
156
26
442
771
0
1.0
1.0
2.1
1.7
1.5
1.9
1.5
0
0
0
85
392
252
729
729
0
0
0
1.8
1.7
1.8
1.7
1.7
0
329
329
345
548
278
1,171
1,500
0
1.0
1.0
2.0
1.7
1.8
1.8
1.6
0
11
11
22
29
16
68
79
Apparent arithmetic inconsistencies are due to rounding.
Open cut mining ceased at Tomingley during the year and the operation transitioned to fully underground mining at Wyoming One, Caloma One and Caloma Two.
Tomingley Gold Extension Project Ore Reserves (as at 30 June 2023)
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
24
Alkane Resources Annual Report 2023
MINERAL RESOURCES AND ORE RESERVES
Comparative Resources and Reserves
Tomingley Gold Operations Comparative Mineral Resources (30 June 2022 to 30 June 2023)
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)
2022
Grade
(g/t Au)
Gold
(koz)
Tonnage
(kt)
2023
Grade
(g/t Au)
Gold
(koz)
0
0
122
0
122
2198
90
1170
1446
4904
5,026
0
0
2
0
2.0
2.6
2.1
2.1
2.2
2.3
2.3
0
0
8
0
8
181
6
79
103
369
377
0
0
0
0
0
2088
90
1800
1541
5519
5,519
0
0
0
0
0
2.4
2.1
2.1
2.3
2.3
2.3
Apparent arithmetic inconsistencies are due to rounding
Tomingley Gold Operations Comparative Ore Reserves (30 June 2022 to 30 June 2023)
DEPOSIT
Open Pit
Wyoming One
Wyoming Three
Caloma One
Caloma Two
Stockpiles
Sub Total
Underground (source)
Proven
Probable
Sub Total
TOTAL
Tonnage
(kt)
2022
Grade
(g/t Au)
Gold
(koz)
Tonnage
(kt)
2023
Grade
(g/t Au)
Gold
(koz)
122
384
506
571
1,247
1,818
2,324
2.0
1.3
1.5
1.9
1.7
1.8
1.7
8
16
24
35
68
104
128
0
329
329
442
729
1,171
1,500
0.0
1.0
1.0
1.9
1.7
1.8
1.6
0
0
0
0
0
163
6
123
115
407
407
0
11
11
27
40
68
79
Apparent arithmetic inconsistencies are due to rounding
The primary differences from 2022 to 2023 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.
Caption
Alkane Resources Annual Report 2023
25
MINERAL RESOURCES AND ORE RESERVES
Tomingley Gold Extension Project Comparative Mineral Resources (30 June 2022 to 30 June 2023)
DEPOSIT
Open Pit
Roswell
San Antonio
McLeans
Sub Total
Underground
Roswell
San Antonio
McLeans
Sub Total
TOTAL
Tonnage
(kt)
2022
Grade
(g/t Au)
Gold
(koz)
Tonnage
(kt)
2023
Grade
(g/t Au)
Gold
(koz)
6,406
7,319
0
13,725
6,141
0
0
6141
19,866
1.68
1.73
0
1.71
2.59
0
0
2.59
1.98
346
407
0
753
512
0
0
512
1,265
6,406
7,319
0
13,725
6,141
0
870
7011
20,736
1.68
1.73
0
1.70
2.59
0
2.51
2.58
2.0
346
407
0
752
512
0
70
584
1,336
Apparent arithmetic inconsistencies are due to rounding
The primary difference from 2022 to 2023 is the addition of the McLeans Resource.
There was no change in Ore Reserves for the Tomingley Gold Extension Project. Full details for Roswell and
San Antonio were reported in the 2022 Annual Resource and Reserves Statement (ASX Announcement
9 September 2022).
There was no change in Mineral Resources or Ore Reserves for the Peak Hill Gold Project. The recent history of the
Project was summarised in the 2021 Annual Resource and Reserve Statement (ASX Announcement 7 September
2021) and the JORC Tables documented in ASX Announcement 18 October 2018.
26
Alkane Resources Annual Report 2023
MINERAL RESOURCES AND ORE RESERVES
Northern Molong Porphyry Project
Alkane has announced initial Inferred Mineral Resource Estimations for the Boda and Kaiser deposits in the past 18
months. The Boda resource was fully documented with accompanying JORC Table in ASX Announcement 30 May
2022, and Kaiser fully reported in ASX Announcement 27 February 2023.
Boda and Kaiser Mineral Resources (as at 30 June 2023)
MEASURED
INDICATED
INFERRED
CONTAINED METAL
Ore
(Mt)
AuEq
(g/t)
Au
(g/t)
Cu
(%)
Ore
(Mt)
AuEq
(g/t)
Au
(g/t)
Cu
(%)
Boda
Kaiser
TOTAL
Apparent arithmetic inconsistencies are due to rounding
Ore
(Mt)
624
270
AuEq
(g/t)
0.51
0.54
Au
(g/t)
0.26
0.24
894
0.52
0.25
Cu
(%)
0.14
0.18
0.15
AuEq
(Moz)
Au
(Moz)
Cu
(Mt)
10.1
4.72
14.8
5.21
2.05
7.26
0.90
0.48
1.38
Northern Molong Porphyry Project
Total Mineral Resources: 894Mt grading 0.52g/t AuEq (14.8 Moz AuEq)
Boda-Kaiser core
Caption
Alkane Resources Annual Report 2023
27
MINERAL RESOURCES AND ORE RESERVES
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.
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
Mr D Ian Chalmers (FAusIMM, FAIG), who is Executive Director
of Alkane Resources Ltd.
Tomingley Gold Operations Mineral Resource estimate
Peak Hill Mineral Resource estimate
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
Tomingley Gold Extension Project (San Antonio and Roswell)
Open Pit Ore Reserve estimate
Tomingley Gold Operations Underground Ore Reserve estimate
Roswell Underground Ore Reserve estimate
Tomingley Gold Extension Project (San Antonio, Roswell and
McLeans) Mineral Resource estimates
Boda and Kaiser Mineral Resource estimates
Mr John Millbank (MAusIMM), an independent consultant
(Proactive Mining Solutions).
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 13 September 2023. 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.
28
Alkane Resources Annual Report 2023 SUSTAINABILITY
REPORT
Boda and Kaiser
Alkane Resources Annual Report 2023
29
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 FY23
This Sustainability Report summarises Alkane’s
sustainability performance in FY23. The report is
structured around four sustainability pillars spanning
ESG: Governance, Our People, Communities, and
Environment.
Underpinning Alkane’s approach to sustainability
is our ESG Mission Statement, which aligns with
our company values. This ESG Mission Statement
represents our pledge to all stakeholders – including
investors, host communities, employees, government
bodies and the people of Australia.
While Alkane’s approach to sustainability has been
consistent for many years, this report represents
our renewed commitment to more comprehensive
sustainability reporting and disclosure. We published
our first Sustainability Report in this format in October
2022 (for the year spanning 1 July 2021 to 30 June
2022).
In FY23, Alkane contributed to development of
the NSW Minerals Council’s Guiding Principles for
Responsible Mining in NSW, launched at the annual
HSEC (Health, Safety, Environment and Community)
Conference in August 2023.
30
Alkane Resources Annual Report 2023
1
2
3
4
5
6
7
8
Grew women in our workforce
from 9% to 12%
Conducted SPoR (safety) training
for 140 workers
Improved processing water
efficiency at Tomingley by 33%
Invested in the Back to Peak Hill
Weekend (community festival)
Launched the Bodangora
community newsletter
Third year of major Clontarf
Foundation sponsorship
Submitted first Modern Slavery
Statement
Zero environmental exceedances,
complaints and reportable
incidents at Tomingley
SUSTAINABILITY REPORT SUSTAINABILITY AT ALKANE
Company Values
ESG Mission Statement
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.
=
=
=
=
• Ensure our choices and behaviours align with
our values.
• Maintain good environmental governance.
• Be responsive to the needs of all stakeholders.
• Minimise impacts from our operations.
• Stay positively engaged with host communities.
• Value the safety and wellbeing of our workforce.
• 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
Ensuring a rewarding
and equal-opportunity
workplace
Operating with
integrity, respect and
transparency
Valuing the safety
and wellbeing of our
workforce
Managing risks across
operations, finance
and sustainability
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
Alkane Resources Annual Report 2023
31
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 Chair
• 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 68
of this report.
32
Alkane Resources Annual Report 2023
The Board has four established sub-committees, each
with its own charter:
• Audit Committee
• Nomination Committee
• Remuneration Committee
• Risk Management Committee
ESG considerations are governed by 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.
Additional ‘Modern Slavery’ and ‘Safety, Health and
Sustainability’ policies were approved by the Board in
September 2022.
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.
https://www.alkane.com.au/company/
governance/
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.
SUSTAINABILITY REPORT GOVERNANCE
Modern Slavery Statement
Alkane’s first Modern Slavery Statement under the
Australian Government’s Modern Slavery Act 2018 was
submitted in October 2022.
The risk of substantial exposure to modern slavery is
considered low, with only minor components of Alkane’s
supply chain exposed to at-risk locations and industries
(such as clothing/apparel and electronics). However,
the statement (for 1 July 2021 to 30 June 2022)
acknowledged that Alkane did not have full visibility of
our supply chain and the origin of many of the goods
procured from Australian suppliers.
In the past year we have undertaken the following
actions to address the risks identified:
• Incorporated modern slavery clauses into all
contracts. These require suppliers to comply with
modern slavery legislation and provide Alkane
with audit rights to confirm.
• Updated our market approach documentation
(invitations to tender, requests for proposals and
supplier application forms) to require prospective
suppliers to identify the location of manufacture
of any goods supplied.
• Sought and received demonstrations of best
practice and the absence of modern slavery in
the supply chains of existing suppliers in at-risk
industries (clothing and apparel).
We will continue to report the steps Alkane is taking to
assess and address modern slavery risks in future annual
statements.
Tomingley
Alkane Resources Annual Report 2023
33
SUSTAINABILITY REPORT GOVERNANCE
Regulatory and Compliance
Risk Management
Alkane complies with the regulations of the
Corporations Act 2001, Australian Accounting
Standards, and other mandatory professional reporting
requirements (refer to the Financial Report).
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.
Some of the key ESG-themed reports submitted
annually include:
• Modern Slavery Statement
• Workplace Gender Equality Agency
• National Pollutant Inventory
• National Greenhouse and Energy Reporting
• Annual return to the NSW Environment
Protection Authority
• Annual rehabilitation management plans
Submission to Parliamentary Inquiry
Alkane submitted a response to the Parliamentary
Inquiry into current and potential impacts of gold, silver,
lead and zinc mining on human health, land, air and
water quality in New South Wales (announced in
July 2023).
Dust suppression at Tomingley
As outlined in Alkane’s risk management policy,
our risk management framework considers both
strategic and organisational 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.
The Audit Committee is responsible for assessment,
monitoring and management of financial risks, which
include IT. Periodically Alkane commissions external
consultants to perform diagnostics and reviews of
internal controls and IT maturity and cyber security.
In FY23, following an external evaluation of material
risks, Alkane reviewed and updated the corporate
risk register, focusing on the resourcing required to
manage key risks.
The company’s primary material risks are described
in the Directors Report (see page 74). They include:
Mineral Resource and Ore Reserve estimates;
production, cost and capital estimates; operating risks;
exploration risks; gold prices; taxation; community
relations; cyber security risks; government regulation;
debt and hedging covenants; government policy and
permits; climate-related risks.
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.
To minimise environmental risks, Alkane strives
to conduct activities to the highest standard of
environmental obligation, including compliance with
all environmental laws and regulations.
34
Alkane Resources Annual Report 2023
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 230 employees (over 270 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.
Over the past few years, Tomingley has maintained
two open cut mining crews (dayshift only). With the
completion of the cut-back to the Caloma One pit in
May 2023, these crews are now constructing a new
surface access ramp for the Wyoming One pit (and
underground portal).
They will move into surface-based civil works when
the Tomingley Gold Extension Project gets underway
in the coming months.
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
site supervisor who maintains the mining leases
and infrastructure while the site is under care and
maintenance.
At financial year end, Alkane had 275 personnel
engaged in the business, plus an additional 43
contractors and subcontractors at Tomingley.
Alkane Resources Annual Report 2023
35
SUSTAINABILITY REPORT OUR PEOPLE
Alkane workforce by location (30 June 2023)
318 in total
275 employees and casuals
43 contractors
Some of the Tomingley workforce
277
Tomingley
including contractors and casuals
15
Head Office/Perth
5
Dubbo and Peak Hill
21
Exploration
including contractors and casuals
36
Alkane Resources Annual Report 2023
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.
SUSTAINABILITY REPORT OUR PEOPLE
In support of improving overall female representation
across the company, the Board has the following
objectives, as outlined in the 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.
“As a woman working in underground
mining, I love the culture at Tomingley.
There’s a great sense of teamwork and
camaraderie, and we all work hard
together to produce positive outcomes
for the site. It’s very professionally
rewarding.”
- Giverny, Mine Geologist
37
Alkane Resources Annual Report 2023
SUSTAINABILITY REPORT OUR PEOPLE
Our People in Focus
Karina,
Exploration Geologist
“Working on the Boda discovery is
exciting. Right now, I’m analysing
and logging core samples extracted
by Alkane’s drilling program. I hope
to see the project move from
exploration to development in
the future.”
Karina is a geologist with Alkane’s exploration team. She began her 18-year career in
Peru, working in exploration since women were prohibited from working underground.
Since moving to the NSW Central West in 2008, she has worked on various
underground, near mine and exploration projects throughout the region.
The prospect of working on the Boda discovery lured Karina to Alkane in 2021. She
brought with her a wealth of knowledge and experience in gold-copper porphyry
mineralisation, gained from her role as an underground production geologist at
Newcrest’s Cadia East Mine.
According to Karina, there is little more professionally rewarding than witnessing
an exploration project transition into development, then working as a production
geologist to see it all come together. She has already experienced this once in her
career at Aurelia’s Hera mine. Now her ambition is to see Alkane’s Boda and Kaiser
resources move into production.
Interspersed with her career achievements, Karina has raised three children and
gained further qualifications in economic geology from the University of Queensland.
She is also an active member of the committee for the Central West Exploration
Discussion Group.
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Alkane Resources Annual Report 2023
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 2021
30 June 2022
30 June 2023
Women
Aboriginal and Torres Strait
Islander
Numbers include casuals but not contractors/subcontractors
29 (11%)
35 (13%)
25 (9%)
35 (13%)
32 (12%)
32 (12%)
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.
Female representation at Tomingley has grown by 36%
in the reporting period (from 19 at year-end FY22 to
26 at year-end FY23). The highest growth occurred
in operations (from seven to 13) – with growth of
women on underground crews growing from one
to four. (Since year-end, the number of women
underground has grown further.)
Overall, this demonstrates a positive growth trend for
female employees at Tomingley.
We believe this to be the result of a recruitment
campaign involving our female employees as role
models – attending careers events and sharing their
stories in our 2022 careers brochure.
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.
We have also undertaken to employ some women
with less mining experience, with the view to training
them in the desired skills. In a number of cases
these women have relocated to the Tomingley area
with their more industry experienced partners, also
employed by Alkane.
Numbers of Tomingley women by role
Manager
Supervisors
FY22
FY23
Professionals (geologists, environmental and planner)
Finance/Administration
Operators
Trades
TOTAL
Numbers include casuals but not contractors/subcontractors. One position reported in FY22 has been recategorized.
0
5
10
15
20
25
30
Alkane Resources Annual Report 2023
39
SUSTAINABILITY REPORT OUR PEOPLE
Our People in Focus
Cosmin,
Graduate Mining Engineer
“I’ve really enjoyed my first year
of the graduate program, getting
my hands dirty and having a go at
everything. My underground crew
has been great. They’ve really got
around me to help me succeed.”
Cosmin, who grew up in Orange, first got a labour hire job on the Tomingley site after
finishing high school back in 2018. After spending the summer working on our open
cuts, he studied Mining and Mechanical Engineering at the University of Wollongong.
Then, at the end of his fourth year, he returned to Tomingley in the summer of 2021-
2022 for a 12-week stint as an engineering vacation student.
Now, Cosmin is about halfway through the two-year graduate program at Tomingley,
having re-joined us in October 2022. He has spent his first year working on-roster
with one of our underground mining crews, cycling through the different roles to gain
an intimate understanding of the real-world mining environment. Alkane considers
underground experience essential for all our graduate mining engineers.
Cosmin says his crew, whose members come from many different backgrounds, are
a great bunch to work with; they have been supportive from the start and made him
feel part of the team. The whole crew has focused on equipping him with the skills and
knowledge he will need as a mining engineer in the future.
After a year with the underground crew, Cosmin will spend his second graduate year
working closely with Tomingley’s team of mining engineers on mine scheduling and
drill and blast design. Overall, Cosmin says he really appreciates the fact everyone,
including management, is behind him. The Tomingley graduate program is particularly
flexible, allowing Cosmin to have input and try different activities.
40
Alkane Resources Annual Report 2023
Health, Safety and Wellbeing
Alkane takes protecting our employees seriously.
Safety is entrenched in every decision and action at
our main operation at Tomingley, where employees
are encouraged 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.
Tomingley has a dedicated work health and safety
(WHS) team that works across the business. The
WHS team ensures employees are appropriately
trained, develops hazard identification skills within the
workforce, implements safety systems and controls,
and monitors compliance with the site’s safety
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.
Safety approach at Tomingley –
the Social Psychology of Risk
The management team at Tomingley have 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.
SUSTAINABILITY REPORT OUR PEOPLE
As such, the approach considers culture and meaning
behind actions as being more important than
measures of safety activity (which often lack context).
The Tomingley SPoR program covers new approaches
to awareness, perception, motivation, engagement,
communication and culture change.
The philosophy targets the concepts of Workspace
(physical environment), Headspace (how workers think
and make decisions) and Groupspace (what is the
cultural understanding of the critical control).
Since SPoR challenges traditional thinking around
work health and safety, the Tomingley management
and WHS teams are working hard to embed the
philosophy into all aspects of safety onsite. The SPoR
philosophy underpins:
• All employee and site inductions
• The critical control verification (CCV) system for
the Tomingley safety management system
• LEAP – an informal risk identification process
• Site incident investigation system
• Site document and authoring process
“A lot of SPoR comes down to entertaining
doubt. Like making sure operators are
comfortable to approach us to discuss
the way we are doing something.
We all get along well and have
different backgrounds and experiences.”
- Mac, Drill & Blast Engineer
Alkane Resources Annual Report 2023
41
SUSTAINABILITY REPORT OUR PEOPLE
Tomingley safety programs and
initiatives
A key focus of FY23 was further embedding Social
Psychology of Risk concepts in Tomingley workplace
culture, site systems and work procedures.
Site induction training
During FY23, 170 new staff, consultants and
contractors completed the Tomingley induction
training, which introduces the SPoR philosophy and
methodology. A key element of this is LEAP (Look,
Engage, Assess, Proceed), which is an informal risk
identification tool. LEAP helps people think about the
work they are about to perform and the controls that
are in place to manage the risks.
SPoR training
During FY23, Tomingley held formal ‘Introduction
to SPoR’ training for 140 employees who had either
commenced at Tomingley prior to the updated site
induction or not completed the training due to Covid
restrictions. This one-day training session provides a
more in-depth introduction to the key concepts and
processes related to SPoR, including the concepts of
decision making, 1 brain 3 minds, and Workspace,
Headspace, Groupspace.
Tomingley
42
Alkane Resources Annual Report 2023
Updating the incident management process
During FY23, Tomingley reviewed and updated the
incident management plan in conjunction with an
external consultant. We also conducted training
for 16 employees who would typically play a role in
the Incident Management Team. This training also
included a scenario related to failure of a residue
storage facility, held with the Narromine Local
Emergency Management Committee.
Refining the incident investigation process
Tomingley is heading towards a bespoke incident
investigation process that incorporates both important
traditional investigation methods and SPoR principles
focused on human and group decision-making.
During FY23, we incorporated the SPoR concepts
of Workspace, Headspace and Groupspace into the
process.
‘Risky Engagement’ training for supervisors
Under SPoR, all Tomingley employees are encouraged to
talk to each other about risk in work they are undertaking.
We use the term ‘Risky Engagement’ to describe such
dialogue and the courage it can take to raise potentially
difficult issues. Tomingley considers risk to be a social
experience, where all members of a group actively
participate in management of the risks identified.
During the reporting period, 40 Tomingley supervisors
and managers completed training in how to facilitate
Risky Engagement using the iCue listening tool.
The principles of iCue involve understanding risk by
listening to critical cues and asking the right questions
to facilitate conversation (hear, listen, think, respond).
Tomingley document management and control
The WHS team continued implementation of a more
efficient and user-centred management system for
all essential documentation – such as procedures,
safety management systems, and other safety-related
documentation.
The new approach is based on ‘usability mapping’
methodology, which applies the rules of human
cognition and behaviour to communications (as per
the SPoR philosophy). The aim is to streamline safety
documentation and improve overall comprehension.
In FY23 Tomingley employed a dedicated person to
oversee implementation and ongoing management of the
improved document management and control system.
SUSTAINABILITY REPORT OUR PEOPLE
“SPoR is a conversation starter in our
work area. We all have a voice and feel
confident to raise questions. As a group
we agree how to reduce or eliminate
hazards. Good communications reflects a
great safety culture.”
- Dee, Supply Officer
Role-based training
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.
During FY23, Tomingley laid groundwork for
transitioning to the Cloud Assess training platform,
which will be rolled out in FY24. This electronic
platform will manage and facilitate role-specific
training and remove most of the administrative
paperwork burden.
Throughout the year, Tomingley also conducted
external role-specific training for shotfirers,
underground supervisors, emergency response, first
aid, confined space and working at height.
The Tomingley WHS training team also conducted
internal role-based equipment-specific training to
ensure workers have the requisite competencies for
safe equipment operation. This amounted to 451
employee-training events over the year.
Equipment-specific training ranges from two hours
to three or more days, depending on the level of
competency and difficulty of equipment to operate.
Safe 2 Handle program
During the year, Tomingley implemented the second
stage of the High-Risk Manual Tasks – Participative
Ergonomics (Safe 2 Handle) program initiated in
FY22. The program uses wearable technology to
identify tasks involving high physical strain, then trains
employees on how to better manage these tasks or
redesign the task.
In FY23 we continued to embed the key principles
of Safe 2 Handle through quarterly presentations
and site interventions with a Safe 2 Handle exercise
physiologist.
Tomingley safety performance
In FY23 there were 15 recordable injuries at the Tomingley site: six Lost Time Injuries, seven Restricted Work
Injuries and two Medical Treated Injuries. The total recordable injury frequency rate (TRIFR) was 6.06,
a 71 percent increase on FY22 (TRIFR of 3.54). There were also 38 first aid injuries.
Source data
FY 2021
FY 2022
FY 2023
Tomingley TRIFR
5.21
3.54
6.06
43
Alkane Resources Annual Report 2023
SUSTAINABILITY REPORT OUR PEOPLE
Positive impact of manual handling training
Danny,
Service Operator
“The Safe 2 Handle program has
been very beneficial. No one had
ever told me how I should be doing
things – right down to holding my
elbow when driving. We’ve all taken
something positive away from it.”
Danny is one of Tomingley’s service operators. He supports both the open cut and
underground mining crews with a wide range of manual tasks – basically anything
involved in moving consumables around the mine site, including loading/unloading,
unspooling, installing and clean-up.
Over the past year, the Safe 2 Handle program has made a massive difference to the
way Danny does his job. Whereas before he focused on completing tasks as quickly
as possible with no regard to his body, he now follows new guidelines for better body
positioning during a wide range of manual labour tasks.
The Safe 2 Handle program, overseen by an external exercise physiologist, was rolled
out in stages at Tomingley. The first stage analysed the repetitive and high-strain
movements associated with many physical jobs onsite using wearable technology.
Based on this data, the consultant gave general training on the best body positions
and remedial stretches for common activities onsite – such as reaching, bending,
overhead work and general ‘wear and tear’ from using heavy vibrating equipment.
In FY23 the consultant returned to site on a quarterly basis to provide follow up
training and voluntary one-on-one consultations with the workforce.
Danny says the Safe 2 Handle group training, followed by a one-on-one coaching
session, has helped him immensely. After altering his body position for manual tasks,
he has noticed a huge reduction in body fatigue and soreness.
44
Alkane Resources Annual Report 2023
SUSTAINABILITY REPORT OUR PEOPLE
Exploration team safety
In November 2022, Alkane engaged an external
consultant to thoroughly review the safety
management system used by our exploration team.
The purpose of this project was to make sure the
system, policies and procedures are fit for purpose, up
to date and in line with modern technologies.
The exploration team has implemented a number of
recommendations coming out of that project, including
a cloud-based management system that includes a
mobile app for field-based risk assessments and incident
reporting – making these processes more efficient.
In FY23, the exploration team had zero recordable
injuries and two minor injuries requiring first aid.
We undertake an annual review of the exploration
safety management system, safe work practices, and
annual safety targets. Our targets for the coming
financial year are to maintain a negligible rate of
recordable injuries and to have updated all our safety
work procedures, following the safety management
system review.
Field exploration
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 FY24
In the coming year, the WHS team intends to progress
the following projects:
• Safe 2 Handle program (targeting prevention
of injury from manual handling) – Stage 3
implementation will increase the frequency of
site-based training and use tele-health consulting
and the Safe 2 Handle mobile app.
• Incident investigation process – Ongoing
refinement of the process to incorporate SPoR
and provision of training to further enhance
understanding of incident causal factors.
• Embedding SPoR – This ongoing project will
include further training around ‘Introduction
to SPoR’ and ‘Risky Engagement’; in addition,
the WHS team will continue working with
departments to further embed SPoR concepts
and identify opportunities to integrate SPoR into
current work practices.
• Incident management and emergency response –
This ongoing training project will further develop
the capabilities of the incident management
team, emergency response team, and on-scene
commanders. It will also incorporate the review
and updating of the Underground Evacuation Plan.
Alkane Resources Annual Report 2023
45
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
Parkes Shire, Peak Hill Gold Mine
Alkane engages regularly with a range of stakeholders.
Our social licence to operate relies upon sustained
positive relationships with our employees, contractors,
neighbours, local Aboriginal and host communities,
government and industry bodies, and investors.
Host communities
Alkane is an active and engaged member of the
communities in which we live and operate – in
particular Narromine Shire, Parkes Shire and the
Dubbo Regional Local Government Area in Central
West New South Wales.
We take a long-term and respectful approach to
building and nurturing community relationships. This
begins from the earliest stages of exploration and
continues through project development, operations,
and ultimately full site rehabilitation.
Alkane has been part of the Peak Hill and Parkes
Shire communities since operating Peak Hill Gold
Mine from 1996 to 2005. We still use the site to
host our western exploration base and core yard.
Three decades later, we continue to nurture positive
relationships and remain active in the community.
The rehabilitated Peak Hill Gold Mine open cut
landscape is open to the public, providing a unique
opportunity for visitors to learn about modern mining
and land rehabilitation. We also own historic buildings
in Peak Hill that are leased for very low rents to
community organisations and contributed funds used
to refurbish the historic Carrington Hotel.
Alkane sponsored the Glenn McGrath statue at Tom Perry Park, Narromine.
(Photo: Narromine Shire Council)
Caption
46
Alkane Resources Annual Report 2023
SUSTAINABILITY REPORT COMMUNITIES
Narromine Shire, Tomingley Gold Mine
Over more than 20 years, Alkane has earned our
social licence to operate at Tomingley. We have
established positive cooperative relationships with
the communities around Tomingley village, Dubbo and
the broader Narromine Shire. Our regular engagement
activities include participation on the Community
Consultative Committee, publication of community
newsletters, sponsorship programs and participation
in community events.
In February 2023, we obtained approval for the
Tomingley Gold Extension Project with only
one objection. The project is a State Significant
Development that will see our operations extend for
another ten years to mine ore bodies three kilometres
south of the current operation. We consider the
community acceptance of the project to be evidence
of our social licence.
Alkane was a major sponsor of the Narromine
International Legends of League (ILOL) event on 28-
29 April 2023. ILOL is a community organisation that
raises funds for charities in regional NSW, Queensland
and Papua New Guinea by staging a rugby league
game between an Australian Legends team (featuring
ex-State of Origin and Australian representative
players) and a local Allstars Legends team. Some
of Alkane’s employees played on both the ‘Alkane
Australian Legends’ and ‘Narromine Allstars’ teams.
Refer to page 48 for information about other
community engagement activities.
Dubbo Regional Local Government Area,
Boda-Kaiser resources
Alkane has been embedded in the Dubbo Regional
Local Government Area for more than 20 years. Over
that time, our Dubbo office has provided technical
and administrative support for all our activities across
tenements in NSW. Our deep relationships with the
Dubbo community provide a strong foundation for our
ongoing exploration and potential development activities.
Our Boda-Kaiser resources (part of the Northern
Molong Porphyry Project) lie near the village of
Bodangora, some 15 kilometres northeast of
Wellington. Since focusing our exploration efforts on
this project, we have strengthened our long-standing
relationships with both these communities.
Development of Boda-Kaiser would bring a long-term
viable industry to Wellington, accompanied by large
economic benefits and significant change to this highly
productive agricultural environment.
In FY23, we continued to have discussions with various
community groups about the project. These included a
second informal gathering of local farmers at Bodangora
on 1 November 2022. This was attended by Alkane’s
Managing Director, who provided further information
about what would be involved with development of
Boda-Kaiser and what it could mean for the community.
Alkane was once again a platinum sponsor of the
2023 Wellington Show (13 May 2023) and staffed
a well-trafficked information booth. We launched
an introductory community newsletter at this event
and intend to update the community about Alkane’s
activities in the region via newsletter every six
months. Other community groups we talked to include
the Wellington Probus group (4 November 2022) and
the Wellington Men’s Shed (28 June 2023).
47
Alkane Resources Annual Report 2023 SUSTAINABILITY REPORT COMMUNITIES
Key community engagement activities in FY23
Alkane activities
• Launched new Alkane website and Community
• Bodangora community newsletter (Boda-Kaiser) –
Hubs – April 2023
first issue May 2023
• Tomingley Community Consultative Committee
• Tomingley community consultation for Tomingley
meetings – August 2022, November 2022,
February 2023, May 2023
Gold Extension Project (Modification 1) –
May-June 2023
• Back to Peak Hill festival (17-19 March 2023)
• Wellington Vintage Fair (3-5 May 2023)
• Wellington Show – platinum sponsor and yard dog
trials (13 May 2023)
• Dubbo Show (19-21 May 2023)
• Bodangora informal community meeting
(1 November 2022), where Alkane’s Managing
Director talked about Boda-Kaiser
• Fielded players and was a major sponsor of the
Narromine International Legends of League event
(28-29 April 2023)
• Presentations to community organisations,
including:
װ Wellington Probus group about Boda-Kaiser
(4 November 2022)
װ Various interest groups about Alkane’s projects
(13 November 2022)
װ Peak Hill community about future of Peak Hill
Gold Mine (6 January 2023)
װ Wellington Men’s Shed about Boda-Kaiser and
the Northern Molong Porphyry Project
(28 June 2023)
• Tomingley community newsletters –
September 2022, December 2022, March 2023
Community activities and events
• Attended:
װ Independent schools years 7-9 careers
information event in Dubbo (2 December 2022)
װ Western Plains Science and Engineering
Challenge Dinner (4 April 2023)
װ Dubbo Secondary College careers day
(4 May 2023)
װ Western Plains Careers Information Day at
Dubbo Secondary College (11 May 2023)
װ Clontarf Employment Forum (18 May 2023)
װ NSW Mining Careers Dinners in Dubbo
(30 May 2023)
װ Orange (31 May 2023)
• Supported year 9 Peak Hill Central School student
to represent NSW combined high schools team in
School Sports Australia Bowls Championships (12-
16 September 2022)
• Hosted and supervised year 9 work experience
student from Kinross Wolaroi School in Orange
(3-5 April 2023)
• Hosted visits by Dubbo College senior campus to
Peak Hill (30 March 2023) and Clontarf Narromine
Academy to Tomingley Gold Mine (June 2023)
Dubbo Show, May 2023
48
Alkane Resources Annual Report 2023
Back to Peak Hill weekend
SUSTAINABILITY REPORT COMMUNITIES
Alkane senior geologist explaining the differences between Peak Hill and Tomingley geology.
Alkane was delighted to get deeply involved in the Back to Peak Hill community
festival, a celebration of people who have lived and worked in Peak Hill, held 17-19
March 2023. The whole town participated in this huge three-day event, which
featured a range of free activities – including school and sporting reunions, and tours
to Alkane’s Peak Hill Gold Mine.
Several of our team participated in the festival across the weekend, and Alkane’s
Managing Director made the trip from Perth to speak at the opening ceremony and
join the mine tours. Our General Manager NSW, whose family were pioneers in the
Peak Hill area, assisted the organising committee and shared some family history
during a cemetery walk.
We ran free mine tours to Peak Hill Gold Mine on the Saturday and Sunday. The Open
Cut Experience at Peak Hill Gold Mine is already a free tourist attraction run by Parkes
Shire Council on our Mining Lease. Featuring a walk with interpretive signboards, it
provides insights into the history and practice of gold mining from 1889-1917 and
1996-2005. In the lead-up to this event, Alkane updated and replaced 17 interpretive
signs dotted around the hill.
For the festival weekend, we hired two local Parkers’ buses to transport people to the
site, and provided gold mining talks from senior members of our team. The tours also
included a visit to Alkane’s core yard at Peak Hill (not usually open to the public) and a
geology talk from one of our senior exploration geologists.
Alkane Resources Annual Report 2023
49
SUSTAINABILITY REPORT COMMUNITIES
Other stakeholders
Government and industry
Alkane is actively engaged with key government and
industry bodies that have oversight of mining and
related activities in New South Wales. This included
discussions with Dubbo Regional Councillors and the
NSW Member for Dubbo in May 2023.
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.
AusEarthEd visit to Tomingley underground,
August 2022
50
Alkane Resources Annual Report 2023
Alkane also shares knowledge through papers,
participation in selected industry forums, and hosting
site visits by educational institutions:
• Central West Exploration Discussion Group
(CWEDG)
• Australian Earth Science Education (AusEarthEd) –
Alkane is a sponsor of 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.
We hosted an AusEarthEd visit in August 2022.
• NSW Mining and Exploration Conference (Orange)
– Alkane representatives, including the Chairman,
attended this conference (12-13 October 2022).
• Resources and Industry Innovation Forum –
Alkane’s senior exploration geologists spoke about
our projects (7 June 2023).
• University of Tasmania Society of Economic
Geologists (SEG) student chapter field trip – Some
12 students and 11 industry participants visited
Peak Hill, Tomingley and our exploration centre in
Orange (September 2022).
• Visits to Peak Hill Gold Mine by Sydney Earth
Education Teacher (11 December 2022) and
Chatswood High School students (4 April 2023)
• AusIMM Student Meets Industry events (Sydney,
Wollongong) – Alkane representatives presented
an overview of graduate opportunities at
Tomingley Gold Mine (4 March and 20 April 2023).
• Careers in the Resources Industry evening
(Sydney) – One of Alkane’s senior project
geologists attended and presented at this student
forum hosted by UNSW (13 June 2023).
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.
UTAS student models Peak Hill mineralisation
SUSTAINABILITY REPORT COMMUNITIES
Millie (left) with colleague at Alkane’s Peak Hill core yard
Alkane is delighted to be supporting University of Tasmania (UTAS) geology student,
Millie Young, to complete her Honours project in 2023. Millie’s project will examine
the deep mineral profile at Peak Hill Gold Mine, using specialist materials analysis
techniques developed by the UTAS Centre for Ore Deposits and Earth Sciences
(CODES).
Millie hopes to generate a 3D model of flow direction during formation of the Peak
Hill deposits. By improving our understanding of how the deposits formed, Alkane
hopes to gain a better idea of whether there are any further mineralised zones at Peak
Hill and how deep they could theoretically extend.
The project was conceptualised during the UTAS Society of Economic Geologists
(SEG) student chapter field trip to the Macquarie Arc in September 2022. Some 12
students and 11 industry participants visited Peak Hill, Tomingley and our exploration
centre in Orange.
To kick off her project, Millie spent a couple of weeks on site at Peak Hill Gold Mine in
February 2023, collecting samples within the existing open cuts and drill holes. Alkane
assisted with project design and sampling, and has funded laboratory assessments at
CODES and assays for an extended range of minerals (approximately $18K).
According to Millie’s supervisor, UTAS relies upon industry collaborations to provide
real-world context for students, along with student research projects that have
practical application and benefit for industry. Alkane looks forward to the outcomes
of Millie’s project, which could help us determine if there is any economic potential at
depth at Peak Hill.
Alkane Resources Annual Report 2023
51
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.
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 via
a planning agreement with Narromine Shire Council.
We signed a new planning agreement in September
2022, prior to the approval of the Tomingley Gold
Extension Project. This increased our annual funding
contribution towards community projects (via the
Tomingley Community Fund), council environmental
projects and shire road works (separate from the road
realignments we will undertake as part of the project)
to $160,000 in FY23. Under the planning agreement,
we contributed an additional $50,000 towards a
public mining monument for Tomingley village.
In FY23, a total of $84,900 was awarded to a number
of different projects under the Tomingley Community
Fund, doubling the FY22 allocation. Projects and
events supported included new infrastructure at the
Tomingley Recreation Ground, the annual sponsorship
of the Tomingley Picnic Races (traditionally held in
April), and funding for the Narromine Dolly Parton
Festival, various Narromine sports clubs (netball,
soccer, rugby union, clay targets) and the Narromine
Hospital Auxiliary.
Approval of the Tomingley Gold Extension Project in
February 2023 will see the operation continue until
at least 2032. This will 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.
Alkane has funded upgrades to the Tomingley Hall and diverts water to the village water supply dam (back right).
52
Alkane Resources Annual Report 2023
SUSTAINABILITY REPORT COMMUNITIES
Key Alkane economic contributions in FY23
Government
payments
$8.8M
(including $6.5M in
royalties)
Local council
payments
$0.6M
(rates and planning
agreement)
Suppliers
$152.8M
(52% NSW)
Community
sponsorships
$187.5K
Funds received by host communities
$84.9K
Tomingley community
fund recipients
$21.4K
Open Cut Experience
(Peak Hill Gold Mine)
interpretive signs
$100K
Clontarf Foundation
sponsorship
$87.5K
Other community
sponsorships
TOTAL $293.8K
Alkane Resources Annual Report 2023
53
SUSTAINABILITY REPORT COMMUNITIES
Aboriginal scar tree near the Tomingley mine access road
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, who are
members of the Wiradjuri Nation. Today the operation
lies within the boundaries of the Peak Hill Local
Aboriginal Land Council (PHLALC).
An Aboriginal Cultural Heritage Management Plan
guides the management of Aboriginal heritage sites
identified within Alkane’s Mining Leases at Tomingley.
The plan was developed in close consultation with
several Wiradjuri Aboriginal stakeholder groups,
including PHLALC.
The Aboriginal Cultural Heritage Management Plan
has been reviewed and updated to cover the new
Mining Lease and disturbance footprint associated
with the Tomingley Gold Extension Project. A
total of 39 sites of Aboriginal heritage significance
were identified during the Environmental Impact
Assessment in 2021, of which 12 will be disturbed by
the project. We will continue to work with the local
Aboriginal community to manage disturbances and
protect the balance.
Alkane has commenced conversations with local
Aboriginal community representatives of the Wellington
area, where the Boda-Kaiser project is located.
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Alkane Resources Annual Report 2023
Sponsorship of the Clontarf Foundation
SUSTAINABILITY REPORT COMMUNITIES
Clontarf students visit to Tomingley, June 2023
In September 2020, Alkane established a major three-year sponsorship of the Clontarf
Foundation’s Narromine Academy.
The Clontarf Foundation exists to improve the education, discipline, life skills, self-
esteem and employment prospects of young Aboriginal and Torres Strait Islander men.
Since its foundation in 2000, the foundation has grown to operate 148 academies
across six Australian states and territories. This year it has equipped more than 11,500
young Aboriginal and Torres Strait Islander men with the skills to participate more
meaningfully in society.
The Narromine Academy was established in 2019, based at Narromine High School.
Alkane’s sponsorship of $300,000 over three years included an annual program of
student interaction, celebrations of achievements, employment pathway support, and
visits between the Tomingley Gold Mine and the Narromine Academy.
One of the first events Alkane participated in under the program was a Rugby League
Super Training Session at Narromine High School in March 2021. The event was
attended by more than 80 Aboriginal and Torres Strait Islander students from five local
Clontarf Academies – Narromine, Wellington, and three from Dubbo. We attended a
similar event in March 2023.
We have also hosted site visits from Clontarf students to Tomingley Gold Mine, most
recently in June 2023. The visits provided an overview of the many activities involved
in a mining operation. During the recent visit, we were delighted to see students
express interest in mining jobs and potential work experience.
Alkane is proud to have invested in long-term capacity building for young Aboriginal
and Torres Strait Islander men over the past three years. We look forward to further
strengthening our relationship with the Clontarf Foundation in the future.
55
Alkane Resources Annual Report 2023 SUSTAINABILITY REPORT COMMUNITIES
Archaeological recording of old McPhail area
Excavation at former village of McPhail
In December 2022, a team of archaeologists from OzArk Environment & Heritage
(OzArk) undertook test excavations of the former historic village of McPhail. This
follows the recommendations of the Historic Heritage Assessment Report for the
Tomingley Gold Extension Project, which will disturb the site.
McPhail was a gold mining village from 1883-1918. The village lay west of the Myall
United Mine (south of Tomingley) and included a hotel, McGaw’s store, church and
school. Today, the only remaining evidence at the surface is scattered fragments of
bricks, glass and ceramics.
The OzArk team excavated a number of test trenches to determine whether there were
any hidden items of historical note for preservation and archival documentation. All
they found were fragments similar to the surface scatter. Had they found anything more
significant, such items would have been cleaned, photographed, analysed and recorded.
56
Caption
Alkane Resources Annual Report 2023 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 and talks to community
organisations
• 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
57
Alkane Resources Annual Report 2023
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
Tomingley
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.
With the approval of the Tomingley Gold Extension
Project in February 2023, we are currently modifying
the EMS and all environmental management plans to
incorporate the project. These will be submitted for
approval by the NSW Department of Planning and
Environment (DPE) as they are completed.
58
Alkane Resources Annual Report 2023
Water monitoring at Tomingley
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)
• Annual Rehabilitation and Biodiversity
Assessment Report (NSW DPE)
• Annual Rehabilitation Report
(NSW Resources Regulator)
• National Pollutant Inventory Reporting (NPI)
• National Emissions and Energy Report (NGER)
No noise, dust or vibration
exceedances were recorded at
Tomingley during FY23.
Environmental performance in FY23
No noise, dust or vibration exceedances were
recorded at Tomingley during the reporting period,
and no complaints were received. There were zero
reportable incidents.
Details of Tomingley’s environmental performance can
be found on Alkane’s website.
Peak Hill Gold Mine
Although Peak Hill Gold Mine ceased operating in
2005 and the site is largely rehabilitated, it remains
an active mining lease. Alkane continues to submit
an annual Environmental Management Report to
the NSW DPE, as well as the Resources Regulator
and Parkes Shire Council. This report describes the
annual rehabilitation, environmental management
and community engagement activities undertaken by
Alkane at Peak Hill Gold Mine each year. The most
recent report was submitted in February 2023.
Alkane also maintains a Pollution Incident Response
Plan for Peak Hill Gold Mine, and established a
Rehabilitation Management Plan and Forward
Program in November 2022. We are now required to
prepare an annual Rehabilitation Management Report,
the first of which was submitted to the Resources
Regulator in August 2023.
SUSTAINABILITY REPORT ENVIRONMENT
Air monitoring near Tomingley
Exploration
Alkane adheres to strict environmental protocols
during all exploration activities. For surface-
disturbing drilling campaigns, such as those at Boda
and Kaiser, we complete a comprehensive 'review
of environmental factors' (REF) report as part of the
approval process.
The REF evaluates potential impacts across categories
including air, water, soil and stability, noise and
vibration, hazardous substances, waste and emissions,
vegetation, threatened species, biodiversity, social,
Aboriginal heritage, and land use (agricultural) impacts.
In obtaining approval to undertake exploration
activities, Alkane commits to courses of action in
compliance with the information supplied.
For each drilling program, we are also required to
submit rehabilitation plans and later provide evidence
that the rehabilitation was successful.
Alkane undertook major drilling programs in FY23
at the Northern Molong Porphyry Project and the
Tomingley Gold Project. All activities were undertaken
according to the approval criteria.
Alkane Resources Annual Report 2023
59
SUSTAINABILITY REPORT ENVIRONMENT
Water storage in Wyoming Three, Tomingley
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.
Tomingley employs a range of measures to optimise
water management and minimise consumption of
clean (raw) water. For example, surface runoff due to
rainfall is contained in sediment ponds, then used for
dust suppression.
Our approach to water management at Tomingley
is comprehensively described in the site’s Water
Management Plan, which contains details of the
New South Wales regulatory environment and
water licences. The Water Management Plan is
currently being updated by an external consultant to
incorporate the Tomingley Gold Extension Project.
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.
We’ve achieved continual
improvement in bore water
consumption and efficiency
at Tomingley over the past
three years.
60
Alkane Resources Annual Report 2023
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.
In FY23, Tomingley made changes in the gravity
circuit and thickener circuits to preferentially use
recycled process water in place of fresh bore water.
Some of these changes were temporary for managing
water levels onsite. In cases where cleaner water is
preferred, the changes have been reversed.
The table on page 61 shows the continual improvement
in bore water consumption and efficiency at Tomingley
over the past three years. In FY23, the site drew only
40 percent of its 1000ML entitlement. Although
some of the water saving measures were temporary,
this reflects an improvement in water efficiency
(consumption of bore water per tonne of ore
processed) by approximately 33 percent.
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.
SUSTAINABILITY REPORT ENVIRONMENT
High annual rainfall again presented a challenge in
FY23. With our sediment ponds nearing capacity, we
were obliged to request approval for an emergency
controlled release of collected storm water from site
via a licensed discharge point on Gundong Creek.
This resulted in 300ML of stored water being pumped
out of the Wyoming Three storage dam over a five-
week period during October to November 2022.
In May 2023 Tomingley sealed the two-kilometre mine
site entrance road, providing additional water savings
by removing the need for wetting down to control dust.
Tomingley water use consumption and efficiency
FY21
FY22
FY23
Total water drawn from bore (ML)
Per tonne of ore processed (L/t)
Per ounce of gold poured (L/oz)
629
676
11,043
573
556
8,577
401
375
5,709
Caption
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.
Consent conditions for the Tomingley Gold Extension
Project require Tomingley to prepare an Air Quality
and Greenhouse Gas Management Plan that includes
measures taken to minimise Scope 1 and 2 GHG
emissions, and improve energy efficiency.
This plan is currently being developed and will be
updated every three years to describe progress and set
goals around abating Scope 1 and 2 GHG emissions.
Towards this, Tomingley continues to explore
renewable energy solutions to provide an effective
proportion of the power requirements for the
Tomingley processing plant and other site infrastructure.
Tomingley emissions and energy data
Alkane is aware approval of future project
developments are likely to require substantial
commitments to renewable energy solutions. We
continue to evaluate the feasibility of renewable and
low-emission power sources for incorporation in our
projects.
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.
• Scope 2 GHG emissions relate to electricity
purchased from the grid.
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)
* FY23 data is estimated
FY21
FY22
FY23
46,844
0.82
312,541
5.49
55,823
0.83
375,626
5.62
58,619*
0.83*
394,442*
5.61*
Alkane Resources Annual Report 2023
61
Residue management
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 undergone extensive
buttressing to maintain appropriate factors of safety.
A second RSF to support extended operations at
Tomingley is 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. Construction of the first cell of
RSF2 is almost complete.
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.
SUSTAINABILITY REPORT ENVIRONMENT
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.
A goal for FY24 is to tender for a new waste
management contract that streamlines collection and
maximises recycling – especially of scrap metal, which
is used in large quantities underground.
Waste rock 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.
Where practical, waste rock from the open cuts has
been used for construction projects around the site –
such as construction of amenity bunds and buttresses
of the residue storage facility. The balance was initially
stored in two purpose-built waste rock emplacements
that have been rehabilitated.
In FY23, suitable waste material was used in the
construction of the second residue storage facility. We
also commenced backfilling the Caloma Two open cut
and underground voids with waste rock.
Residue storage facilities at Tomingley
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Alkane Resources Annual Report 2023
Rehabilitated waste rock emplacement at Tomingley
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 our footprint and
improve the productivity of residual agricultural lands
that are not disturbed.
Rehabilitation of mine sites
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.
Alkane undertakes progressive rehabilitation of our
disturbances at Tomingley Gold Operations – and will
continue this practice when mining is extended to
new resources nearby. The two original waste rock
emplacements at Tomingley have been rehabilitated.
High levels of rainfall in recent years have generated
good vegetation growth, including acacias and eucalypts.
In FY23, Tomingley rehabilitated the northern and
western buttresses of the original residue storage
facility.
SUSTAINABILITY REPORT ENVIRONMENT
The project used some of the site’s stored topsoil,
which was seeded with ‘hydromulch’, an advanced
growth media that controls erosion and promotes
vegetation growth.
All rehabilitated landforms continue to be monitored,
with results reported in Tomingley’s Annual
Rehabilitation and Biodiversity Assessment report
and the Peak Hill Annual Environmental Management
Report. Both reports are supplied to the NSW
Department of Planning and Environment and
published on our website.
Rehabilitation Management Plans and Reports
In 2022, the New South Wales Resources Regulator
issued new standard rehabilitation conditions
on mining leases, in compliance with the Mining
Amendment Regulation 2021 (Standard Conditions of
Mining Leases – Rehabilitation).
In accordance with the new requirements, Alkane
produced a Rehabilitation Management Plan and
Forward Program for each of Peak Hill Gold Mine
(November 2022) and Tomingley Gold Operations
(December 2022). Rehabilitation Management Plans
are available on Alkane’s website. We also submitted
the first annual Rehabilitation Management Report for
Peak Hill Gold Mine, with Tomingley to follow soon.
Natural regeneration of vegetation at Peak Hill Gold Mine
Alkane Resources Annual Report 2023
63
SUSTAINABILITY REPORT ENVIRONMENT
Rehabilitation of exploration prospects
Rehabilitation app in use at Boda-Kaiser
Alkane’s exploration team also rehabilitates the land disturbed by drilling activities. This is
managed via a rehabilitation plan created with the input of the landowner, with all stages
carefully documented. Once rehabilitation of an exploration site is completed, we submit a
report to the NSW Department of Planning and Environment.
In FY23, Alkane launched a mobile app developed inhouse to streamline management
and documentation of our rehabilitation activities, which were undertaken at all eight
prospects where drilling occurred.
Agriculture
Alkane has committed to improving the overall land
and soil capability of the agricultural land that will not
be disturbed by the Tomingley Gold Extension Project
(approximately 1450 hectares). This will 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).
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.
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Alkane Resources Annual Report 2023
In so doing, we intend 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 FY23, TPC commenced a major water infrastructure
and fencing project. Over the next few years this
will involve upgrading some of the dams and
installing water tanks, pipes and troughs across the
amalgamated properties. Fencing will segregate
pasture and revegetation areas from the impending
construction works.
The consolidated property currently supports
around 30 rams and 2000 ewes, on either spring or
autumn lambing cycles, and cattle (depending on
feed availability) for growing out. Approximately 500
hectares are on rotation for sowing with grain and
forage crops.
SUSTAINABILITY REPORT ENVIRONMENT
Tomingley Land Management Plan
Biodiversity
Following approval of the Tomingley Gold Extension
Project, Alkane is working with our agriculture
partner, Toongi Pastoral Company, to prepare a Land
Management Plan. This plan lays out the strategy for
managing all the lands associated with the project –
both during and post-mining.
The Land Management Plan will encompass:
• Agricultural land outside the mining lease, to be
managed by TPC for grazing and/or cropping
during the life of the operation
• Allocated revegetation zones, where we will focus
on enhancing the biodiversity of flora and fauna
• Land that will be rehabilitated after mining has
finished and returned to agricultural productivity,
and
• Land that will not be returned to agriculture (open
cut voids and waste rock emplacements).
To develop this plan, TPC is evaluating the
consolidated property to determine on a paddock-by-
paddock basis how we can best enhance ecological
value while maintaining a viable and productive farm.
Enhancing agricultural productivity is one of the
project’s consent conditions.
Tomingley, August 2023
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 157Ha 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 revegetation
(77Ha). Management activities include revegetation
(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 2022
Annual Rehabilitation and Biodiversity Assessment
report was submitted October 2022 and the 2023
report will be submitted October 2023.
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.
Alkane Resources Annual Report 2023
65
SUSTAINABILITY REPORT ENVIRONMENT
Tomingley Gold Extension Project
Alkane’s Land Management Plan for the Tomingley
Gold Extension Project will include a number of
allocated revegetation zones, where we will focus on
enhancing the biodiversity of flora and fauna.
The revegetation zones will include the riparian
zones along Gundong and Bulldog Creeks, as well
as water drainage lines that provide ideal habitat for
Fuzzy Box (Eucalyptus Conica) woodland. Some of
the revegetation zones are category 2 ‘vulnerable’
or ‘sensitive’ regulated land, where clearing of native
vegetation is either limited or prohibited.
Toongi Pastoral Company is exploring whether we
can restore some of the landscape to approximate its
original 1850s condition. This may involve maintaining
and/or seeding native grasslands to enhance
biodiversity where paddocks are currently dominated
by annual species.
Alkane will focus on restoring
Fuzzy Box woodland near
Tomingley.
A major focus will be restoring open Fuzzy Box
woodlands. Fuzzy Box is a locally uncommon species
and classified as a Threatened Ecological Community.
However, seedlings are difficult to come by; in 2021,
Alkane planted 850 Fuzzy Box seedlings specially
grown for us by local nursery, Narromine Transplants.
Overall, approximately 76 hectares of native
vegetation will be disturbed by the project, with no
significant habitat to be cleared. Most of the area
is cleared agricultural land with isolated paddock
trees. While the biodiversity impacts will be small,
we will offset them in accordance with the NSW
Government’s requirements – including paying into
the NSW Biodiversity Conservation Trust.
66
66
Alkane Resources Annual Report 2023
Alkane Resources Annual Report 2023
Fuzzy Box in flower
We also hope to use the revegetation zones to
relieve future biodiversity credits. We have engaged
an environmental consultant to assess 336 hectares
of the land that could potentially be designated as
official biodiversity offset areas. If this proceeds,
Alkane would establish an in-perpetuity biodiversity
stewardship agreement.
All the biodiversity activities associated with the
extension project will be included in Tomingley’s
updated Biodiversity Management Plan, Annual
Rehabilitation and Biodiversity Assessment Report, as
well as other relevant documentation.
FINANCIAL
REPORT
Alkane Resources Annual Report 2023
67
67
BUSINESS REVIEW GROUP OVERVIEWAlkane Resources Annual Report 2023 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 2023.
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.
Through his private investment vehicles, 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 South Australia and Western Australia.
Mr Gandel is also the non-executive chair of Australian Strategic Materials Ltd.
Mr Gandel is a member of the Audit, Remuneration and Nomination Committees.
68
Alkane Resources Annual Report 2023FINANCIAL 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). Mr Earner has been a director of Genesis Minerals Limited in the last three years (resigned 19 November
2021).
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 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 evaluation, recovery flowsheet, marketing and feasibility for the Dubbo Project (rare metals and rare earths),
advancing the project towards development; and 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. He is the co-chair of the Toronto-based Critical Minerals
Institute.
Anthony Dean Lethlean – Non-Executive Director
BAppSc (Geology)
Appointed Director 30 May 2002.
Mr Lethlean is a geologist with over ten 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 and Risk Committees, and a member of the
Remuneration and Nomination Committees.
69
Alkane Resources Annual Report 2023FINANCIAL 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 33 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 and Risk Committees, and Chair of the Remuneration and Nomination
Committees.
Dennis Wilkins – Joint Company Secretary
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 many publicly listed resource
companies with operations in Australia, PNG, Scandinavia and Africa. Mr Wilkins is the principal of DWCorporate
Pty Ltd, where he advises on governance, compliance and corporate secretarial matters to 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 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.
70
Alkane Resources Annual Report 2023FINANCIAL REPORT DIRECTORS’ REPORT Result for the year
The profit for the consolidated entity, after providing for income tax, amounted to $42,450,000 (30 June 2022:
$70,251,000).
This result included a profit before tax of $71,157,000 (30 June 2022: $62,165,000) 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 Central Western New South Wales. Tomingley has been operating
since 2014. Mining is based on three gold deposits (Wyoming One, Caloma One and Caloma Two).
TGO delivered on its forecast production for the year, with the underground operations performing well. Open cut
operations in Caloma have now finished. FY2023 full year production exceeded guidance, with all in sustaining cost
(AISC) below guidance.
Gold recovery of 84.3% for the period was in line with expectations (2022: 83.7%). Average grade milled decreased
to 2.42g/t in the current year (2022: 2.44g/t).
Production for the period was 70,253 ounces of gold (2022: 66,802 ounces of gold) with all in sustaining costs of
$1,602 per ounce (2022: $1,460 per ounce). The average sales price achieved for the year increased to $2,703 per
ounce (2022: $2,467 per ounce). Gold sales of 70,498 ounces (2022: 66,883 ounces) resulted in sales revenue of
$190,527,000 (2022: $165,010,000).
Bullion on hand decreased by 259 ounces from 30 June 2022 to 2,890 ounces (fair value of $8,323,000 at year end).
71
Alkane Resources Annual Report 2023FINANCIAL REPORT DIRECTORS’ REPORT The table below summarises the key operational information:
TGO Production
Unit
September
Quarter
2022
December
Quarter
2022
March
Quarter
2023
June
Quarter
2023
FY
2023
FY
2022
Open cut
Waste mined
Ore mined
Strip Ratio
Ore mined
Grade(2)
Underground
Ore mined
Grade
Ore Milled
Head Grade
Gold Recovery
Gold poured(3)
Revenue summary
Gold sold
Average price realised
Gold revenue
Cost summary
Surface works
Mining
Processing
Site support
C1 Cash Cost(1)
Royalties
Sustaining capital
Gold in circuit movement
Rehabilitation
Corporate
All-in sustaining cost(1)
Bullion on hand
Stockpiles
BCM's
BCM's
Ratio
138,574
43,367
3.2
52,330
10,304
5.1
29,018
5,079
5.7
32,359
11,098
2.9
252,281
69,847
3.6
848,911
195,592
4.3
Tonnes
121,862
28,954
14,271
31,184
196,270
540,939
g/t
1.71
2.23
1.03
1.70
1.74
1.30
Tonnes
228,119
242,267
159,963
192,237
822,585
799,584
g/t
2.83
2.33
2.63
2.24
2.50
2.76
Tonnes
270,618
239,078
277,225
282,410
1,069,331
1,029,207
g/t
%
2.75
87.0
2.56
84.6
2.26
84.6
2.14
80.5
2.42
84.32
2.44
83.7
Ounces
19,489
18,301
16,641
15,822
70,253
66,802
Ounces
18,344
17,855
19,163
15,136
70,498
66,883
A$/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
2,547
46.7
169
449
356
121
1,095
89
195
(265)
24
52
1,191
4,290
2,618
46.7
155
390
383
174
1,103
111
375
(331)
23
44
1,323
4,732
2,787
53.4
122
393
349
125
990
80
329
349
18
40
1,805
2,207
2,884
43.7
82
646
480
148
2,703
190.5
2,467
165.0
134
461
388
141
211
460
346
136
1,356
1,124
1,153
95
603
44
21
55
2,174
2,890
93
364
(49)
22
47
1,602
2,890
81
247
(85)
21
43
1,460
3,149
Ore for immediate milling
Tonnes
462,925
495,068
383,957
328,594
328,594
383,563
Stockpile grade(2)
Contained gold
g/t
1.33
1.28
1.13
1.04
1.04
1.31
Ounces
19,746
20,381
13,969
10,940
10,940
16,167
(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.
72
Alkane Resources Annual Report 2023FINANCIAL REPORT DIRECTORS’ REPORT Tomingley Gold Extension Project
The Tomingley Gold Extension Project (TGEP) was approved by the NSW Minister for Planning in February. During
the period the Environment Protection Licence was varied by the NSW Environment Protection Authority to
include the TGEP. In July 2023, post year-end, the Mining Lease that includes the TGEP was also granted.
Detailed engineering for the paste plant that will be used at Roswell continues. The long lead items required for the
installation of a flotation and fine grinding circuit have now all been ordered.
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 drilling at
McLeans prospect, located between the Roswell deposit and the TGO site, tested the strike of the andesite host
and infilled previously intersected mineralisation.
Drilling at McLeans has defined mineralisation over 200 metres strike and 500 metres down dip that remains open.
A maiden underground Inferred Mineral Resource estimation for McLeans is expected this calendar year.
Northern Molong Porphyry Project (gold-copper)
The drilling program at the Northern Molong Porphyry Project (NMPP) extends over three kilometres from Kaiser
to Boda, down to Boda Two and Boda Three. The company believes this system has the potential to be a large, tier
one gold-copper project.
The project is located in Central West NSW at the northern end of the Molong Volcanic Belt of the Macquarie Arc,
and is considered highly prospective for large scale porphyry and epithermal gold-copper deposits.
Exploration in the NMPP has identified five discrete magnetic/intrusive complexes – Kaiser, Boda, Comobella, Driell
Creek and Finns Crossing – within a 15km northwest trending corridor. The corridor is defined by intermediate
intrusives, lavas and breccias, extensive alteration and widespread, low-grade, gold-copper mineralisation. Two
significant gold-copper resources have now been defined within the corridor at Boda and Kaiser. Drilling continues
to improve the confidence of the Boda and Kaiser deposits and to test mineralised zones outside their resource
envelopes.
A total of four high-capacity drilling rigs are in operation at Boda and Kaiser. The planned drilling is infilling areas
around high-grading mineralisation to improve confidence in the Boda Mineral Resource Estimation. An updated
Boda Mineral Resource Estimation, expected to include Boda Two, is anticipated in Q4 2023.
A second RC drill rig is currently infilling the initial Kaiser Resource Mineral Estimation to improve confidence to
define an updated Indicated Resource. This updated resource estimation is expected in Q1 2024.
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).
73
Alkane Resources Annual Report 2023FINANCIAL REPORT DIRECTORS’ REPORT Material business risks
The material business risks for the group include:
Mineral Resource and Ore Reserve Estimates
Mineral Resource and Ore Reserve estimates are expressions of judgement based on knowledge, experience, and
industry practice, and no assurances can be given that the Mineral Resource and Ore Reserve estimates and the
underlying assumptions will be realised. Estimates, which were valid when originally calculated, may alter when new
information or techniques become available.
In addition, by their very nature, Mineral Resource and Ore Reserve estimates are imprecise and depend to some
extent on interpretations, which may prove to be inaccurate. As further information becomes available through
additional fieldwork and analysis, the Mineral Resource and Ore Reserve estimates may change.
Actual mineralisation of ore bodies may differ from those predicted, and any material variation in the estimated
Ore Reserves may have a material adverse impact on the group’s results of operations, financial condition, and
prospects.
Production, cost and capital estimates
The group prepares estimates of future production, operating costs and capital expenditure relating to production
at its operations. No assurance can be given that such estimates will be achieved. Failure to achieve production
or cost estimates or material increases in costs could have an adverse impact on the group’s future cash flows,
profitability, results of operations and financial condition.
The group’s actual production and costs may vary from the estimates due to a variety of reasons including variances
in actual ore mined due to varying estimates of grade, tonnage, dilution, metallurgical and other characteristics;
revision of mine plans; changing ground conditions; labour availability and costs; diesel costs; and general
inflationary pressures being felt across the industry.
The development of estimates is managed by the group using a rigorous budgeting and forecasting process.
Operating risks
The group’s mining operations are subject to all the hazards and risks normally encountered in the exploration,
development, and production of gold that could result in decreased production, increased costs and reduced
revenues. The operation may be affected by equipment failure, toxic chemical leakage, labour disruptions and
availability, residue and tailings dam failures, rain and seismic events which may result in environmental pollution
and consequent liability. The impact of these events could lead to disruptions in production and scheduling,
increased costs and loss of facilities, which may have a material adverse impact on the group’s results.
To manage this risk Alkane seeks to attract and retain high calibre employees and implement suitable systems and
processes to ensure production targets are achieved.
Exploration risks
An ability to sustain or increase the current level of production in the longer term is in part dependent on the
success of the group’s exploration activities. Exploration is a high-risk activity that requires large amounts of
expenditure over extended periods of time. Few properties that are explored subsequently have economic deposits
of gold identified, and even fewer are ultimately developed into producing mines.
Conclusions drawn during exploration and development are subject to the uncertainties associated with all
sampling techniques and to the risk of incorrect interpretation of geological, geochemical, geophysical, drilling and
other data.
74
Alkane Resources Annual Report 2023FINANCIAL REPORT DIRECTORS’ REPORT Gold prices
Revenues and cashflows are exposed to fluctuations in the Australian dollar gold price. Volatility in the gold price
creates revenue uncertainty and requires careful management of business performance to ensure that operating
cash margins are maintained. Declining gold price can also impact operations by requiring a reassessment of the
feasibility of a particular exploration or development project which would cause delays and potentially have a
material adverse effect on results of operations and financial conditions forward contracts.
Taxation
The gold mining industry is subject to a number of government taxes, royalties and charges. Changes to the rates of
taxes, royalties and charges can impact the profitability of the group.
Community relations
Community relations is about people connecting with people. Maintaining trusted relationships with our local
community stakeholders throughout the entire mining cycle is an essential part of securing and maintaining our
social licences to operate.
The group recognises that a failure to appropriately manage local community stakeholder expectations may lead to
dissatisfaction which has the potential to disrupt production and exploration activities.
Cyber security risks
The group has an Information Systems Standard, and other information security policies and procedures in place
to ensure secure and reliable operations of all information systems. It is regularly audited based on accepted
information security standards from the Australian Signals Directorate (ASD) and National Institute of Standards
and Technology (NIST).
The group’s information security training and compliance program includes training during onboarding, quarterly
training refreshers, and anti-phishing simulations throughout the year for all employees. The group also has
active detection and response systems in place to mitigate any potential breaches that may try to circumvent
the boundary security controls. This addresses threat and vulnerability management from a cyber security
perspective. The group has experienced no material information security breaches. The Group Information Systems
Manager tracks all cyber risks and reports to the Board on information security matters, and to the Audit and Risk
Committees.
Government regulation
The group’s mining, processing, development and exploration activities are subject to various laws and statutory
regulations governing prospecting, development, production, taxes, royalty payments, labour standards and
occupational health, mine safety, toxic substances, land use, water use, communications, land claims of local people
and other matters.
No assurance can be given that new laws, rules and regulations will not be enacted or that existing laws, rules and
regulations will not be applied in a manner which could have an adverse effect on the group’s financial position
and results of operations. Any such amendments to current laws, regulations and permits governing operations
and activities of mining and exploration, or more stringent implementation thereof, could have a material adverse
impact on the group.
Debt and hedging covenants
The group has entered into agreements with financiers and hedge providers that contain various undertakings and
financial covenants. Non-compliance with the undertakings and covenants contained in these agreements could
lead to a default event resulting in the debt becoming due and payable with potentially adverse effects on the
financial position of the group.
Management continually monitors for compliance with the required undertakings and covenants.
75
Alkane Resources Annual Report 2023FINANCIAL REPORT DIRECTORS’ REPORT Government policy and permits
In the ordinary course of business, mining companies are required to seek government permits for exploration,
expansion of existing operations or for the commencement of new operations. The duration and success of
permitting efforts are contingent upon many variables not within the control of the group. There can be no
assurance that all necessary permits will be obtained, and, if obtained, that the costs involved will not exceed those
estimated by the group.
Climate-related risks
Alkane recognises that climate change poses a key environmental and social risk to our business, and the markets
in which the group operates in. The highest-priority climate-related risks include reduced water availability, extreme
weather events, changes in legislation and regulation, reputational risk, and technological and market changes.
While Alkane proposes to comply with applicable laws and regulations and conduct its programs in a responsible
manner regarding the environment, there is the risk that Alkane may incur liability for any breaches of these laws
and regulations.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
In July 2023, post year-end, the Mining Lease that includes the Tomingley Gold Extension Project (TGEP) was
granted. Following this, the exploration and evaluation assets related to TGEP will be transferred to Mine
Development.
No other matter or circumstance has arisen since 30 June 2023 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 (page 71) 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.
76
Alkane Resources Annual Report 2023FINANCIAL REPORT DIRECTORS’ REPORT
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 2023, 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
8
11
11
11
11
11
11
11
11
11
3
3
3*
3
3*
3
3
3
3
3
2*
2
2*
2
2
2
2
2
2
2
2
2
2*
2
2*
2
2
2
2
2
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 2022 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
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Alkane Resources Annual Report 2023 FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
(a) Key Management Personnel (‘KMP’) disclosed in this report
Non-Executive Directors
I J Gandel
G Smith
A D Lethlean
Executive Directors
D I Chalmers
N P Earner
Other Key Management Personnel
J Carter
S Parsons
Chief Financial Officer / Joint Company Secretary
Executive General Manager – Operations
(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 www.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.
The executive remuneration framework has three components:
• Total Fixed Remuneration (TFR);
• Short-Term Incentives (STI); and
• Long-Term Incentives (LTI).
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Alkane Resources Annual Report 2023 FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
(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. The executives do not receive any dividends and are not
entitled to vote in relation to the rights to shares during the vesting period. On vesting, the rights automatically
convert into one ordinary share each and a holding lock is applied to shares which cannot be traded for a further 12
months. 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 2023 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 Development
SAR Resources Increase
NMPP Resource Increase
Weighting
20%
20%
25%
15%
5%
15%
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.
79
Alkane Resources Annual Report 2023 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 FY2023 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.
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Alkane Resources Annual Report 2023 FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
(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.
30 June
2023
30 June
2022
30 June
2021
30 June
2020
30 June
2019
Revenue ($'000)
190,527
165,010
127,833
Profit/(loss) for the year attributable to owners ($'000)
42,450
70,251
55,701
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 (%)
7.1
-
0.71
5.9%
11.8
-
0.62
1.8%
5.6
-
1.15
2.1%
74,397
12,762
95,852
23,293
2.4
-
1.21
8.3%
4.6
-
0.46
3.3%
(f) Non-Executive Director remuneration policy
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 2023 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 2022 Annual General Meeting
The company received 98.77% of “yes” votes on its remuneration report for the financial year ended 30 June 2022.
The company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices.
81
Alkane Resources Annual Report 2023 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.
30 June 2023
Executive Directors
N P Earner
D I Chalmers
Other KMP
J Carter
S Parsons
Total Executive Directors
and other KMP
Total NED
remuneration(e)
Total KMP remuneration
expense
30 June 2022
Executive Directors
N P Earner
D I Chalmers
Other KMP
J Carter
S Parsons
Total Executive Directors
and other KMP
Total NED
remuneration(e)
Total KMP remuneration
expense
Fixed Remuneration
Variable Renumeration
Cash
Salary(a)
Annual and
long service
leave(b)
Post-
employment
benefits(c)
Cash bonus
(a)(f)
Bonus
Employee
Share Plan(g)
Rights to
deferred
shares(d)
Total
$
$
$
$
$
$
$
624,708
305,508
(13,594)
34,855
453,175
436,600
20,529
24,948
25,292
25,292
27,500
27,500
-
-
-
106,562
-
-
632,876
1,269,282
172,894
538,549
1,000
1,000
277,939
166,569
780,143
763,179
1,819,991
66,738
105,584
106,562
2,000
1,250,278
3,351,153
399,423
-
29,077
-
-
-
428,500
2,219,414
66,738
134,661
106,562
2,000
1,250,278
3,779,653
Fixed Remuneration
Variable Renumeration
Cash
Salary(a)
Annual and
long service
leave(b)
Post-
employment
benefits(c)
Cash bonus
(a)(f)
Bonus
Employee
Share Plan(g)
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
(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) Rights to deferred shares 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. Rights to deferred shares are equity-settled share-based payments as per the Corporations Regulations 2M.3.03(1) Item 11.
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) The cash bonus includes a paid short-term incentive for FY2022 ($55,743) & short-term incentive for FY2023 ($50,819) that will be paid subject to final determination.
(g) 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.
82
Alkane Resources Annual Report 2023 FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
Cash salary and
fees
$
Superannuation
$
Total
$
172,851
104,072
122,500
399,423
173,636
104,546
122,500
400,682
18,149
10,928
-
29,077
17,364
10,454
-
27,818
191,000
115,000
122,500
428,500
191,000
115,000
122,500
428,500
30 June 2023
Non-Executive Directors
I J Gandel
A D Lethlean
G M Smith
Total Non-Executive Directors
30 June 2022
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:
Executive Directors of Alkane Resources Ltd
N P Earner
D I Chalmers
Other Key Management Personnel
J Carter
S Parsons
Fixed remuneration
At risk - LTI
At risk - STI
2023
%
2022
%
2023
%
2022
%
2023
%
2022
%
50
68
64
64
47
69
66
70
34
20
19
19
39
19
21
17
16
12
17
17
14
12
13
13
(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
J Carter – Chief Financial Officer
Ongoing commencing 1 October 2018
S Parsons – Executive General Manager Operations Ongoing commencing 1 October 2015
$330,800
$480,675
$464,100
6 months
3 months
1 month
(1) Total Fixed Remuneration (TFR) is for the year ended 30 June 2023 and is inclusive of superannuation but does not include long service leave accruals. TFR is reviewed
annually by the Remuneration Committee.
(2) 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 3 months’ notice; or
Alkane may terminate the Executive Employment agreement with 3 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.
83
Alkane Resources Annual Report 2023 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
or shares
granted
Fair value of
share rights
and shares at
the date of
grant
$
Share rights
at fair value
$
Performance
period end
Share-based
payment
expense
current year
$
Executive Directors
D I Chalmers
FY2021 LTI - Performance Rights
11/11/2020
FY2022 LTI - Performance Rights
17/11/2021
FY2022 STI - Performance Rights
28/11/2022
FY2023 LTI - Performance Rights
28/11/2022
FY2023 STI - Performance Rights
N Earner
FY2021 LTI - Performance Rights
11/11/2020
FY2022 LTI - Performance Rights
17/11/2021
FY2022 STI - Performance Rights
28/11/2022
174,903
193,809
104,070
255,674
687,346
825,115
306,735
FY2023 LTI - Performance Rights
28/11/2022
1,088,497
FY2023 STI - Performance Rights
Other Key Management Personnel
J Carter
FY2021 LTI - Performance Rights
11/11/2020
FY2022 LTI - Performance Rights
26/10/2021
FY2022 STI - Performance Rights
09/09/2022
FY2023 LTI - Performance Rights
17/10/2022
205,530
270,677
153,957
378,237
0.748
0.598
0.620
0.323
0.748
0.598
0.620
0.323
0.748
0.604
0.800
0.410
130,827
31/08/2023
115,898
31/08/2024
64,523
31/07/2022
82,583
31/08/2025
72,445
30/06/2024
514,135
31/08/2023
493,419
31/08/2024
190,176
31/07/2022
351,585
31/08/2025
213,525
30/06/2024
153,736
31/08/2023
163,489
31/08/2024
123,166
31/07/2022
155,077
31/08/2025
43,609
38,633
(4,569)
22,776
72,445
171,378
164,473
(13,467)
96,967
213,525
51,245
54,496
24,160
42,770
FY2023 STI - Performance Rights
105,268
30/06/2024
105,268
Bonus Employee Shares(c)
20/10/2022
1,562
0.640
1,000
S Parsons
FY2021 LTI - Performance Rights
11/11/2020
FY2022 LTI - Performance Rights
26/10/2021
FY2022 STI - Performance Rights
09/09/2022
FY2023 LTI - Performance Rights
17/10/2022
214,214
261,010
74,324
365,194
0.748
0.604
0.800
0.410
FY2023 STI - Performance Rights
160,232
31/08/2023
157,650
31/08/2024
149,730
31/08/2025
50,819
30/06/2024
59,459
31/07/2022
(31,506)
1,000
53,411
52,550
41,295
50,819
1,000
Bonus Employee Shares(c)
20/10/2022
1,562
0.640
1,000
(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 28 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.
(c) 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.
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.
84
Alkane Resources Annual Report 2023 FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
Performance against key metrics
The STI performance metrics for the year are detailed in section (d)(iii) of the Remuneration Report.
The Company’s TSR for FY2021, FY2022 and FY2023 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:
Balance at the start
of the year
Received as part of
remuneration
Received on
vesting of PRs
Disposals/ other
Balance at the end
of the year
Ordinary shares
I J Gandel
A D Lethlean
D I Chalmers
N P Earner
G Smith
J Carter
S Parsons
131,792,506
720,086
5,687,885
3,627,496
331,875
1,921
251,921
142,413,690
-
-
-
-
-
1,562
1,562
3,124
-
-
218,390
1,414,219
-
537,654
273,829
(12,968,576)
118,823,930
-
-
-
-
-
-
720,086
5,906,275
5,041,715
331,875
541,137
527,312
2,444,092
(12,968,576)
131,892,330
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:
Balance at the
start of the
year
Granted
Vested
Expired/
forfeited/
other
Balance at the
end of the year
Performance rights over ordinary shares
D I Chalmers - Performance rights
635,169
359,744
(218,390)
N P Earner - Performance rights
3,319,265
1,395,232
(1,414,219)
J Carter - Performance rights
S Parsons - Performance rights
1,160,064
823,214
532,194
439,518
(537,654)
(273,829)
(48,067)
(392,585)
(146,203)
(74,161)
728,456
2,907,693
1,008,401
914,742
5,937,712
2,726,688
(2,444,092)
(661,016)
5,559,292
85
Alkane Resources Annual Report 2023 FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
(l) Other transactions with Key Management Personnel
There were no other transactions with KMPs during the financial year ended 30 June 2023.
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.
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), is
compatible 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 23 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.
86
Alkane Resources Annual Report 2023
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
24 August 2023
Perth
87
Alkane Resources Annual Report 2023FINANCIAL REPORT DIRECTORS’ REPORT
FINANCIAL REPORT AUDITOR'S INDEPENDENCE DECLARATION
Auditor’s Independence Declaration
As lead auditor for the audit of Alkane Resources Ltd for the year ended 30 June 2023, 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 Ltd and the entities it controlled during the period.
Helen Bathurst
Partner
PricewaterhouseCoopers
Perth
24 August 2023
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.
88
Alkane Resources Annual Report 2023 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. Cash and cash equivalents
Note 6. Trade and other receivables
Note 7. Inventories
Note 8. Financial assets at fair value through other comprehensive income
Note 9. Other financial assets
Note 10. Property, plant and equipment
Note 11. Exploration and evaluation
Note 12. Investments accounted for using the equity method
Note 13. Trade and other payables
Note 14. External borrowings
Note 15. Provisions
Note 16. Issued capital
Note 17. Reserves
Note 18. Retained profits
Note 19. Critical accounting judgements, estimates and assumptions
Note 20. Financial risk management
Note 21. Capital risk management
Note 22. Key management personnel disclosures
Note 23. Remuneration of auditors
Note 24. Contingent liabilities
Note 25. Commitments
Note 26. Events after the reporting period
Note 27. Related party transactions
Note 28. Share-based payments
Note 29. Earnings per share
Note 30. Parent entity information
Note 31. Interests in subsidiaries
Note 32. Deed of cross-guarantee
Note 33. Reconciliation of profit after income tax to net cash from operating activities
Note 34. Significant accounting policies
91
92
93
94
95
95
96
97
100
100
100
101
101
102
103
104
104
105
106
107
108
108
109
110
112
112
113
113
113
114
114
115
117
118
119
119
120
121
89
Alkane Resources Annual Report 2023 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 24 August 2023. 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: www.alkane.com.au
90
Alkane Resources Annual Report 2023 FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of profit or loss and
other comprehensive income
For the year ended 30 June 2023
Note
2023
$’000
2022
$’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 gain/(loss) on disposal of property, plant and equipment
Profit before income tax expense
Income tax expense
Profit after income tax expense for the year attributable to the
owners of Alkane Resources Ltd
Other comprehensive income/(loss)
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 reclassified 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/(loss) for the year, net of tax
Total comprehensive income for the year attributable to the
owners of Alkane Resources Ltd
2
3
12
3
3
12
4
18
8
20
20
190,527
(119,113)
71,414
430
2,398
-
(12,598)
(1,057)
-
-
60,587
(18,137)
42,450
165,010
(102,201)
62,809
1,119
69
48,334
(10,424)
(1,731)
(20)
317
100,473
(30,222)
70,251
(16,140)
4,902
-
-
(16,140)
26,310
712
(578)
5,036
75,287
11.80
11.64
Basic earnings per share
Diluted earnings per share
Note
Cents
Cents
29
29
7.10
7.00
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
91
Alkane Resources Annual Report 2023 FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated balance sheet
As at 30 June 2023
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Total current assets
Non-current assets
Property, plant and equipment
Exploration and evaluation
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
2023
$’000
2022
$’000
5
6
7
10
11
8
9
13
14
4
15
14
15
4
16
17
18
80,291
5,167
21,906
107,364
111,104
161,310
18,646
13,766
304,826
412,190
23,508
7,371
7,283
5,386
153
43,701
6,175
17,369
44,721
227
68,492
112,193
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
299,997
268,874
222,224
(75,166)
152,939
299,997
218,185
(60,640)
111,329
268,874
The above consolidated balance sheet should be read in conjunction with the accompanying notes
92
Alkane Resources Annual Report 2023 FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of changes in equity
For the year ended 30 June 2023
Share capital
$’000
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 16)
Share-based payments (note 28)
Deferred tax recognised in equity
Transfer of gain on disposal of equity investments at
fair value through other comprehensive income to
retained earnings
-
-
-
(4)
184
(74)
-
-
-
-
-
1,916
-
-
-
70,251
5,036
5,036
-
70,251
-
-
-
-
-
-
70,251
5,036
75,287
(4)
2,100
(74)
(2,414)
2,414
-
Balance at 30 June 2022
218,185
5,229
(65,869)
111,329
268,874
Share capital
$’000
Share-based
payments
reserve
$’000
Other
reserves
$’000
Retained
Profits
$’000
Total equity
$’000
Balance at 1 July 2022
218,185
5,229
(65,869)
111,329
268,874
Profit after income tax expense for the year
Other comprehensive loss for the year, net of tax
Total comprehensive income/(loss) for the year
Share issue transaction costs (note 16)
Share-based payments (note 28)
Deferred tax recognised in equity
Transfer of gain on disposal of equity investments at
fair value through other comprehensive income to
retained earnings
Ordinary shares issued
Employee share awards vested
Balance at 30 June 2023
-
-
-
(20)
197
(70)
-
1,900
2,032
222,224
-
-
-
-
2,806
-
-
-
(2,032)
6,003
-
42,450
(16,140)
(16,140)
-
42,450
-
-
-
-
-
-
42,450
(16,140)
26,310
(20)
3,003
(70)
840
(840)
-
-
-
-
-
1,900
-
(81,169)
152,939
299,997
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
93
Alkane Resources Annual Report 2023 FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of cash flows
For the year ended 30 June 2023
Note
2023
$’000
2022
$’000
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
33
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
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/(used in) financing activities
16
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the financial year
5
190,527
(90,025)
100,502
2,479
(590)
(7,080)
235
95,546
(5,580)
(33,695)
4
(58,105)
(269)
6,217
(91,428)
(20)
6,686
(8,189)
(198)
(1,721)
2,397
77,894
80,291
165,010
(73,567)
91,443
75
(1,368)
(4,504)
830
86,476
(1,420)
(42,581)
619
(40,935)
(1,955)
53,034
(33,238)
(4)
35,846
(30,018)
(159)
5,665
58,903
18,991
77,894
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
94
Alkane Resources Annual Report 2023 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.
30 June 2023
Gold sales to external customers
Interest Income
Segment net profit /(loss) before income tax
30 June 2022
Gold sales to external customers
Interest Income
Segment net profit /(loss) before income tax
Note 2. Revenue
Revenue from continuing operations
Gold sales
Gold Operations
$’000
Unallocated
$’000
Total
$’000
190,527
707
191,234
71,157
165,010
37
165,047
62,165
-
1,691
1,691
(10,570)
-
32
32
38,308
190,527
2,398
192,925
60,587
165,010
69
165,079
100,473
2023
$’000
2022
$’000
190,527
165,010
(a) Revenue
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.
95
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 3
Note 3. Expenses
Cost of sales
Cash costs of production
Inventory product movement
Depreciation and amortisation
Royalties and selling costs
2023
$’000
2022
$’000
80,257
(3,425)
35,617
6,664
67,758
(5,702)
34,674
5,471
119,113
102,201
(a) Cash costs of production
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 7 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 7 for further details on the group’s accounting policy for inventory.
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
96
2023
$’000
2022
$’000
3,144
3,010
3,003
1,471
497
785
491
197
2,638
2,849
2,108
1,434
3
789
439
164
12,598
10,424
2023
$’000
2022
$’000
989
-
68
1,057
795
712
224
1,731
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 4
Note 4. Income tax
(a) Income tax expense
Current tax
Current tax on profits for the year
Adjustments for current tax of prior periods
Total current tax expense
Deferred income tax
(Increase)/decrease in deferred tax asset
Increase in deferred tax liabilities
Total deferred tax expense
2023
$’000
2022
$’000
7,283
(300)
6,983
(1,488)
12,642
11,154
1,001
-
1,001
13,518
15,703
29,221
Income tax expense
18,137
30,222
Income tax expense is attributable to:
Profit from continuing operations
18,137
30,222
(b) Reconciliation of income tax expense/(benefit) to prima facie tax payable
Profit from continued operations before income tax expense
60,587
100,473
2023
$’000
2022
$’000
Tax at the Australian tax rate of 30% (2022 - 30%)
Tax benefits of deductible equity raising costs
Non-deductible share-based payments
Non-deductible expenses
(Over)/Under Provision for Prior Year
Utilisation of previously unrecognised tax losses
18,176
30,142
(77)
843
20
(60)
(765)
18,137
(76)
575
12
(103)
(328)
30,222
97
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 4
(c) Deferred tax assets
Tax losses
$’000
Rehabilitation
Provision and
assets
$’000
Property, plant
and equipment
$’000
R&D Tax
incentive
credits
$’000
Other
$’000
Total
$’000
9,408
(9,408)
-
-
-
-
-
-
3,652
418
-
4,070
4,070
430
-
4,500
9,192
(3,369)
-
5,823
5,823
740
-
6,563
1,431
(1,431)
-
-
-
-
-
-
2,133
272
(131)
2,274
2,274
317
(71)
2,520
25,816
(13,518)
(131)
12,167
12,167
1,487
(71)
13,583
Movements
At 1 July 2021
- profit or loss
- directly to equity
At 30 June 2022
Movements
At 1 July 2022
- profit or loss
- directly to equity
As at 30 June 2023
(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
2023
$’000
2022
$’000
(44,162)
(10,562)
(3,580)
(58,304)
13,583
(44,721)
(29,528)
(12,282)
(6,546)
(48,356)
12,167
(36,189)
Net recognised deferred tax assets/(liabilities) are attributable to:
Losses and temporary differences carried forward for continued operations
(44,721)
(36,189)
Exploration
Expenditure
$’000
Property, plant and
equipment
$’000
Other
$’000
Total
$’000
Movements
At 1 July 2021
Charged/(credited)
- to profit or loss
- directly to equity
- directly to retained earnings
At 30 June 2022
At 1 July 2022
Charged/(credited)
- to profit or loss
- directly to equity
- directly to retained earnings
17,313
-
12,215
-
-
29,528
29,528
-
14,634
-
-
11,441
-
841
-
-
12,282
12,282
-
(1,719)
-
-
At 30 June 2022
44,162
10,563
98
1,799
-
2,647
1,066
1,034
6,546
6,546
-
(274)
(2,333)
(360)
3,579
30,553
-
15,703
1,066
1,034
48,356
48,356
-
12,641
(2,333)
(360)
58,304
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 4
(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
(f) Unrecognised temporary differences and tax losses
Unrecognised tax losses
Deductible temporary differences
2023
$’000
2022
$’000
71
(360)
(2,333)
(2,622)
2023
$’000
2022
$’000
14,859
9,858
24,717
75
1,123
1,034
2,232
17,284
-
17,284
Potential tax benefit at 30% (2022: 30%)
7,415
5,185
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
2023
$’000
2022
$’000
7,283
1,001
99
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 5
Note 5. Cash and cash equivalents
Current assets
Cash at bank
2023
$’000
2022
$’000
80,291
77,894
Cash at bank at balance date weighted average interest rate was 3.13% (2022: 0.48%).
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 6. Trade and other receivables
Current assets
Trade receivables
Prepayments
GST and fuel tax credit receivable
2023
$’000
2022
$’000
240
3,068
1,859
5,167
121
1,144
1,079
2,344
(i) Classification as receivables
Receivables are recognised initially at fair value and then subsequently measured at amortised cost, less provision
for credit losses. As at 30 June 2023 the group has determined that the expected provision for credit losses is not
material (30 June 2022: 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 20.
Note 7. Inventories
Current assets
Ore stockpiles
Gold in circuit
Bullion on hand
Consumable stores
100
2023
$’000
2022
$’000
7,741
4,368
5,525
4,272
21,906
8,101
2,628
3,480
3,743
17,952
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 8
(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 2023 to write down inventories to their recoverable value (2022: $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 2023 amounted to $2,415,000
(2022: $2,928,000). These were included in costs of production.
Product inventory movement during the year ended 30 June 2023 amounted to an expense of $3,425,000 (2022:
$5,702,000) and is disclosed as part of cost of sales in note 3.
Note 8. 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)
2023
$’000
2022
$’000
9,297
353
8,996
18,646
22,790
436
14,890
38,116
During the year, the following (losses)/gains were recognised in profit or loss and
other comprehensive income.
(Losses)/gains recognised in other comprehensive income
(16,140)
4,902
Genesis Minerals Ltd was reclassified from Investments accounted for using the equity method in 2022. Refer to
note 12 for further information.
Note 9. Other financial assets
Non-current assets
Security deposits
2023
$’000
2022
$’000
13,766
13,497
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 $13,766,000
for the current period (2022: $13,497,000 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 20 for the group’s exposure to interest rate risk. The fair value of other financial assets is
equal to its carrying value.
101
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 10
Note 10. Property, plant and equipment
Year ended 30 June 2023
Opening cost
Additions
Transfers between classes
Disposals
Net movements
Closing cost
Land and
buildings
$’000
Plant and
equipment
$’000
Capital WIP
$’000
Mine
properties
$’000
Total
$’000
37,079
115,188
-
568
-
568
-
9,943
(56)
9,887
37,647
125,075
634
19,800
(10,511)
-
9,289
9,923
261,777
20,024
-
-
20,024
281,801
414,678
39,824
-
(56)
39,768
454,446
Opening accumulated depreciation and impairment
(13,409)
To profit or loss
Disposals
Net movement
(305)
-
(305)
(92,160)
(16,327)
56
(16,384)
Closing accumulated depreciation and impairment
(13,714)
(108,431)
-
-
-
-
-
(201,723)
(307,292)
(19,474)
(36,106)
-
56
(19,474)
(36,050)
(221,197)
(343,342)
Closing net carrying value
23,933
16,644
9,923
60,604
111,104
Land and
buildings
$’000
Plant and
equipment
$’000
Capital WIP
$’000
Mine
properties
$’000
Total
$’000
Year ended 30 June 2022
Opening cost
Additions
Transfers between classes
Disposals
Net movements
Closing cost
Opening accumulated depreciation and impairment
(13,076)
To profit or loss
Disposals
Net movement
Closing accumulated depreciation and impairment
Closing net carrying value
(333)
-
(333)
(13,409)
23,670
33,829
100,559
-
3,250
-
3,250
37,079
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)
(35,114)
-
5,655
(18,615)
(29,459)
(201,723)
(307,292)
634
60,054
107,386
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.
102
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 11
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.
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 11. Exploration and evaluation
Opening balance
Expenditure during the year
Amounts provided for or written off
2023
$’000
2022
$’000
98,498
63,309
(497)
161,310
57,794
40,707
(3)
98,498
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.
103
Alkane Resources Annual Report 2023
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 12
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.
Note 12. 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
Share of loss*
Reclassification
Closing carrying amount
2023
$’000
2022
$’000
-
-
-
-
-
-
15,944
(20)
(15,924)
-
* 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.
In the previous financial year, 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 held 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 in 2022.
Note 13. Trade and other payables
Current liabilities
Trade payables
Other payables
2023
$’000
2022
$’000
5,605
17,903
23,508
1,111
12,597
13,708
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.
104
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 14
Note 14. 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
Refer to note 20 for further information on financial risk management.
Financing arrangements
Total facilities
Macquarie Facility
Used at the reporting date
Macquarie Facility
Unused at the reporting date
Macquarie Facility
2023
$’000
2022
$’000
7,371
5,930
6,175
9,116
2023
$’000
2022
$’000
50,000
-
50,000
-
-
-
On 21 February 2023, Alkane executed a finance Facility Agreement between Tomingley Gold Operations Pty Ltd
and Macquarie Bank Limited to develop the Tomingley Gold Extension Project. The terms to this facility are an
amendment to the existing facility agreement that was executed on 07 December 2020. The first debt draw down
is permitted on the approval of the Mining Lease and satisfaction of other CPs, standard for a facility of this nature.
Borrowing costs incurred have been deferred as prepayments until the facility is drawn.
The facility remains undrawn as at 30 June 2023.
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.
105
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 15
Note 15. Provisions
Current liabilities
Employee benefits
Non-current liabilities
Employee benefits
Rehabilitation
2023
$’000
2022
$’000
5,386
4,457
986
16,383
17,369
553
15,253
15,806
(i) Provisions
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
$3,622,000 (2022: $3,027,000) 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.
2023
$’000
2022
$’000
Current leave obligations expected to be settled after 12 months
1,517
1,255
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.
106
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 16
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 $447,000 (2022: $110,000).
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
Expenditure during the year
Unwinding of discount
Change in estimate
Note 16. Issued capital
2023
$’000
2022
$’000
15,252
1,791
(93)
447
(1,014)
16,383
15,131
533
-
110
(522)
15,252
Ordinary shares - fully paid
601,574,030
595,583,420
222,224
218,185
2023
Shares
2022
Shares
2023
$’000
2022
$’000
Movements in ordinary share capital
Details
Balance
Share issue
Share issue costs
Less: Deferred tax credit recognised directly into equity
Date
Shares
$’000
1 July 2021
595,388,800
218,079
194,620
-
-
Balance
30 June 2022
595,583,420
Shares issued on vesting of performance rights
Share issue
Share issue costs
Less: Deferred tax credit recognised directly into equity
Issued ordinary shares on 30 May 2023 for tenement
acquisition at $0.68
2,901,458
307,714
-
-
2,781,438
Balance
30 June 2023
601,574,030
222,224
107
184
(4)
(74)
218,185
2,032
197
(20)
(70)
1,900
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 17
Ordinary shares
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.
On 30 May 2023, the group issued 2.78 million shares to Sandfire Resources Limited as consideration for the
acquisition of EL5792; EL7982; EL8025; and EL8338 (Southern Junee Porphyry Project) at 68 cents per share.
Note 17. 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
Share-based payments reserve
Demerger reserve
2023
$’000
2022
$’000
(10,869)
6,003
(70,300)
(75,166)
4,431
5,229
(70,300)
(60,640)
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.
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 was used to recognise the gain on ASM demerger and demerger dividend.
Note 18. Retained profits
Retained profits at the beginning of the financial year
Profit after income tax expense for the year
Transfer from other reserves
Retained profits at the end of the financial year
108
2023
$’000
2022
$’000
111,329
42,450
(840)
152,939
38,664
70,251
2,414
111,329
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 19
Note 19. 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 that the physical and transitional impacts of climate change may affect its assets, productivity,
the markets in which it sells its products, and the jurisdictions in which it operates. The group continues to develop
its assessment of the potential impacts of climate change and the transition to low carbon economy.
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 15.
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.
109
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 20
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 related assumptions are set out in note 28. 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.
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 20. 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.
110
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 20
(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 25 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.
Summarised market risk sensitivity analysis:
Interest rate risk
Impact on profit/(loss) after tax
30 June 2023
30 June 2022
Carrying
amount
$'000
+100BP
$'000
-100BP
$'000
Carrying
amount
$'000
+100BP
$'000
-100BP
$'000
80,291
240
13,766
37,207
-
562
-
96
-
658
(562)
-
(96)
-
(658)
77,894
122
13,497
28,955
-
545
-
93
-
638
(545)
-
(93)
-
(638)
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.
111
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 21
(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.
Hedge accounting
Movements in hedging reserves during the current and previous financial year are set out below:
Balance at 1 July 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
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 2023
Cashflow hedges
$’000
134
520
(712)
58
-
-
-
-
-
Note 21. 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 22. 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
112112
2023
$
2022
$
2,327,976
134,661
66,738
1,250,278
3,779,653
2,274,729
131,574
75,754
1,240,309
3,722,366
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 23
Note 23. 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
2023
$
2022
$
204,000
179,000
40,000
244,000
-
179,000
Note 24. Contingent liabilities
The group has entered into forward gold sales contracts which are not accounted for on the balance sheet. A
contingent liability of $32,020,000 (2022: asset $1,076,000) existed at the balance date in the event the contracts
are not settled by the physical delivery of gold.
Note 25. 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
2023
$’000
2022
$’000
1,022
1,314
(b) Physical gold delivery commitments
As part of its risk management policy, the group enters into derivatives including gold forward contracts and gold
put options to manage the gold price of a proportion of anticipated gold sales.
Alkane purchased gold forward sales and put options as part of a risk mitigation strategy on any potential
downward price pressure while Tomingley was processing the low grade stockpiles during the year.
The gold forward sales contracts disclosed below did not meet the criteria of financial instruments for accounting
purposes on the basis that they met the normal purchase/sale exemption because physical gold would be delivered
into the contract. Accordingly, the contracts were accounted for as sale contracts with revenue recognised in the
period in which the gold commitment was met. The balances in the table below relate to the value of the contracts
to be delivered into by transfer of physical gold.
113
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 26
30 June 2023
Fixed forward contracts
Within one year
One to five years
30 June 2022
Fixed forward contracts
Within one year
Gold for physical
delivery
Ounces
Contracted gold sale
price per ounce ($)
Value of committed
sales
$’000
25,700
86,800
2,819
2,819
72,465
244,745
36,800
2,716
99,949
(c) Capital commitments
Capital commitments committed for the year at the end of the reporting period but not recognised as liabilities
amounted to $23,473,000 (2022: $11,830,000).
Note 26. Events after the reporting period
In July 2023, post year-end, the Mining Lease that includes the Tomingley Gold Extension Project (TGEP) was
approved. Following this the exploration and evaluation assets related to TGEP will be transferred to Mine
Development.
No other matter or circumstance has arisen since 30 June 2023 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 27. Related party transactions
Parent entity
Alkane Resources Ltd is the parent entity of the group.
Associates
Interests in associates are set out in note 12.
Subsidiaries
Interests in significant subsidiaries are set out in note 31.
Key management personnel
Disclosures relating to key management personnel are set out in note 22 and the remuneration report included in
the directors’ report.
114
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 28
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
2023
$
2022
$
496,165
167,514
663,679
179,156
223,455
402,611
Note 28. Share-based payments
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.
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.
115
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 28
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.
2023
2022
Number of
performance rights
Weighted average
fair value
Number of
performance rights
Weighted average
fair value
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
7,106,162
3,633,835
(2,901,458)
(768,020)
7,070,519
$0.54
$0.68
$0.53
$1.41
$0.52
4,666,264
2,439,898
-
-
7,106,162
$0.47
$0.67
$0.00
$0.00
$0.54
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.
Long-term incentive scheme (LTI)
The following table lists the inputs to the models used.
Grant date
Performance hurdle
11/11/2020
Market condition
26/10/2021
Market condition
17/11/2021
Market condition
17/10/2022
Market condition
28/11/2022
Market condition
Dividend
yield
%
Expected stock
volatility
%
Risk free
rate
%
Expected
life years
Weighted average share
price at grant date
$
-
-
-
-
-
72
72
72
65
64
0.19
0.61
0.87
3.50
3.18
3.0
2.8
2.7
2.8
2.7
$1.08
$0.90
$0.92
$0.63
$0.62
The expected volatility is based on the historic market price over a historical period aligned to the life of the rights,
immediately prior to valuation date.
The Total Shareholder Return (TSR) Performance Condition attached to the Performance Rights granted under the
FY23 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.
116
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 29
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 FY22 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 2023 financial year FY23 STI were based on the scorecard measures and
weighting as disclosed, with the estimated value of the grant determined at the reporting date.
Plan
FY22 STI
FY22 STI
Offer
Hurdle
Valuation Model
Grant Date
Fair Value
$
Executive Directors
Other Executives
Service
Service
Black-Scholes
Black-Scholes
28/11/2022
09/09/2022
$0.62
$0.80
Expenses arising from share-based payment transactions
Performance rights
Employee share scheme
Note 29. Earnings per share
2023
$’000
2022
$’000
2,806
197
3,003
1,916
184
2,100
2023
$’000
2022
$’000
Earnings per share for profit from continuing operations
Profit after income tax attributable to the owners of Alkane Resources Ltd
42,450
70,251
Basic earnings per share
Diluted earnings per share
Cents
Cents
7.10
7.00
11.80
11.64
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
598,215,343
595,526,745
Adjustments for calculation of diluted earnings per share:
Performance rights
7,820,251
8,102,048
Weighted average number of ordinary shares used in calculating diluted earnings per share
606,035,594
603,628,793
117
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 30
Note 30. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Profit/(loss) after income tax
Total comprehensive income/(loss)
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
Total equity
Parent
2023
$’000
2022
$’000
(7,432)
(7,432)
26,565
26,565
Parent
2023
$’000
2022
$’000
69,797
81,536
191,466
200,790
11,858
4,996
42,050
32,615
222,224
(10,869)
6,003
(70,300)
2,358
149,416
218,185
4,431
5,229
(70,300)
10,630
168,175
Determining the parent entity financial information
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.
118
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 31
(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 2023 (2022: $nil).
Note 31. Interests in subsidiaries
The group’s subsidiaries at 30 June 2023 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
Principal place of business /
Country of incorporation
Tomingley Holdings Pty Ltd
Tomingley Gold Operations Pty Ltd
Mitchell Creek Mining Holdings Pty Ltd
Mitchell Creek Mining Pty Ltd
New South Wales
New South Wales
New South Wales
New South Wales
Ownership interest
2023
%
2022
%
100
100
100
100
100
100
100
100
Note 32. 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.
119
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 33
Note 33. Reconciliation of profit after income tax to net cash
from operating activities
Profit after income tax expense for the year
42,450
70,251
2023
$’000
2022
$’000
Adjustments for:
Depreciation and amortisation
Share of loss - associates
Share-based payments
Exploration costs provided for or written off
Finance charges
Gain on derecognition of equity investment
Profit on sale of asset
Change in operating assets and liabilities:
Increase in trade and other receivables
Increase in inventories
Movement in provision
Increase in trade and other payables
Increase in deferred tax liabilities
Net cash from operating activities
36,108
-
3,003
497
433
-
-
(1,960)
(3,954)
1,328
205
17,436
95,546
35,113
20
2,100
3
324
(48,334)
(317)
(453)
(6,304)
1,112
2,739
30,222
86,476
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
2023
$’000
2022
$’000
80,291
(7,371)
(6,175)
66,745
77,894
(5,930)
(9,116)
62,848
Opening net cash
Cash flows
Transfers between
categories
Closing net cash
Cash
$’000
Borrowings repayable
within one year
$’000
Borrowings repayable
after one year
$’000
Net cash
$’000
77,894
2,397
-
80,291
(5,930)
5,930
(7,371)
(7,371)
(9,116)
(4,430)
7,371
(6,175)
62,848
3,897
-
66,745
120
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 34
Note 34. 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 19.
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 30.
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.
121
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 34
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 of 30 June 2023 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.
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.
122
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 34
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.
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 11 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.
123
Alkane Resources Annual Report 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 34
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 rounded off in accordance
with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
124
Alkane Resources Annual Report 2023 FINANCIAL REPORT DIRECTORS’ DECLARATION
In the directors’ opinion:
• the financial statements and notes set out on pages 91 to 124 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 of 30 June 2023 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 34 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 32 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
24 August 2023
Perth
125
Alkane Resources Annual Report 2023
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
Independent auditor’s report
To the members of Alkane Resources Ltd
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of Alkane Resources Ltd (the Company) and its controlled entities
(together the Group) is in accordance with the Corporations Act 2001, including:
(a)
giving a true and fair view of the Group's financial position as of 30 June 2023 and of its
financial performance for the year then ended
(b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The Group financial report comprises:
•
•
•
•
•
•
the consolidated balance sheet as of 30 June 2023
the consolidated statement of changes in equity for the year then ended.
the consolidated statement of cash flows for the year then ended.
the consolidated statement of profit or loss and other comprehensive income for the year then
ended.
the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information.
the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
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
Liability limited by a scheme approved under Professional Standards Legislation.
126
Alkane Resources Annual Report 2023
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.
Materiality
Audit scope
Key audit matters
• Our audit focused on where
the Group made subjective
judgements; for example,
significant accounting
estimates involving
assumptions and inherently
uncertain future events.
•
The accounting processes are
structured around a Group
finance function at its head
office in Perth.
• Amongst other relevant topics,
we communicated the following
key audit matter to the Audit
Committee:
−− Estimate of rehabilitation and
mine closure provision
•
This is further described in the
Key audit matter section of our
report.
•
For the purpose of our audit
we used overall Group
materiality of $2.95 million,
which represents
approximately 5% of the
Group’s profit before tax.
• We applied this threshold,
together with qualitative
considerations, to determine
the scope of our audit and the
nature, timing and extent of our
audit procedures and to
evaluate the effect of
misstatements on the financial
report as a whole.
• We chose Group profit before
tax because, in our view, it is
the benchmark against which
the performance of the Group
is most commonly measured.
• We utilised a 5% threshold
based on our professional
judgement, noting it is within
the range of commonly
acceptable thresholds.
127
Alkane Resources Annual Report 2023
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
Key audit matter
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report for the current period. The key audit matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. Further, any commentary on the outcomes of a
particular audit procedure is made in that context.
Key audit matter
How our audit addressed the key audit matter
Estimate of rehabilitation and mine closure
provision
(Refer to note 15 and 19)
As a result of its mining and processing activities at the
Tomingley Gold Mine, the Group incurs obligations to
restore and rehabilitate the environment disturbed by
its operations. Rehabilitation activities are governed by
a combination of legislative requirements and the
Group’s policies.
This was a key audit matter as determining the
provision for rehabilitation and mine closure requires
the use of significant estimates and judgements by the
Group in assessing the magnitude, nature and extent
of rehabilitation work to be performed, and in
determining:
●
●
the expected future cost of performing the
work,
the timing of when the rehabilitation activities
are expected to take place, and
● economic assumptions such as the discount
rate used to discount this estimate to net
present value.
We performed the following procedures, amongst
others:
● Developed an understanding of how the
Group identified the relevant methods,
assumptions or sources of data, and the need
for changes in them, that are appropriate for
developing the rehabilitation and mine closure
provision in the context of the Australian
Accounting Standards.
● Evaluated the competence, capabilities and
objectivity of experts used by the Group in
calculating the nature and extent of
rehabilitation work required.
● Examined the Group’s assessment of
significant changes in future cost estimates
from the prior year.
● On a sample basis, tested the provision
amount to comparable data sourced from
external parties and management’s experts.
● Tested the mathematical accuracy of the
calculation of the discounted cash flows
prepared by the Group.
● Considered the appropriateness of the
discount rates and inflation rates utilised in
calculating the provision by comparing them to
current market consensus.
● Evaluated the reasonableness of the
disclosures made in the financial statements,
including those related to estimation
uncertainty, against the requirements of
Australian Accounting Standards.
128
Alkane Resources Annual Report 2023
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
Other information
The directors are responsible for the other information. The other information comprises the
information included in the annual report for the year ended 30 June 2023, but does not include the
financial report and our auditor’s report thereon. Prior to the date of this auditor's report, the other
information we obtained included the Directors report and Corporate directory. We expect the
remaining other information to be made available to us after the date of this auditor's report.
Our opinion on the financial report does not cover the other information and we do not and will not
express an opinion or any form of assurance conclusion thereon through our opinion on the financial
report. We have issued a separate opinion on the remuneration report.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
When we read the other information not yet received, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the directors and use our
professional judgement to determine the appropriate action to take.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial report.
129
Alkane Resources Annual Report 2023
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our
auditor's report.
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in pages 77
year ended 30 June 2023.
to
86
of the directors’ report for the
In our opinion, the remuneration report of Alkane Resources Ltd for the year ended 30 June 2023
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
PricewaterhouseCoopers
Helen Bathurst
Partner
Perth
24 August 2023
130
Alkane Resources Annual Report 2023 ADDITIONAL
INFORMATION
Tomingley
Alkane Resources Annual Report 2023 131
131
Alkane Resources Annual Report 2023FINANCIAL REPORT DIRECTORS’ REPORT 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 11 September 2023.
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:
HSBC Custody Nominees (Australia) Limited
Abbotsleigh Pty Ltd
Citicorp Nominees Pty Limited
J P Morgan Nominees Australia Pty Limited
Magnabay Pty Ltd
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