Gold producer Alkane share price moved higher by 2% following AGM it which it announced significant updates on its projects
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Gold producer Alkane Resources Limited (ASX: ALK) provided key updates on its drilling project at Roswell at today’s annual general meeting (AGM). At the time of writing, the Alkane share price is trading 4.84% higher at $1.30.
What’s moving the Alkane share price?
The Alkane share price is on the move today after the company provided some key updates on its ongoing drilling project at Roswell.
Over the past two years, Alkane Resources has undertaken extensive exploration at the Roswell and San Antonio deposits with the aim of identifying an inferred mineral resource.
The Roswell deposit is part of the 440sq km Tomingley Gold Project in New South Wales.
At today’s AGM, the company said that after an additional 29,000 metres of drilling, the Roswell deposit now stands at 10.1 million tonnes grading 2.04g/t of gold, or around 660,000 oz. This is an increase of 50% from the previous update in January, which is significant.
It also mentioned that the drilling is continuing to the south of Roswell, and an update on the San Antonio deposit is anticipated in December.
Other key takeaways from the AGM
- The company holds liquid assets of $92 million in cash, bullion and listed investments as at 30 September 2020.
- Significant shareholder value was created through the demerger of Australian Strategic Materials Ltd (ASX: ASM) in July.
- There are strong indications of large deposits at Boda, where a further 30,000-metre drilling operation is still in progress.
- Investments with strategic alliances are intact. These include 19.9% of Genesis Minerals Ltd (ASX: GMD) and 12.17% of Calidus Resources Ltd (ASX: CAI).
How has Alkane Resources performed?
Alkane Resources has produced return on equity of 13.77%, 11.52%, and 5.3% for the last three years respectively.
The company has also been reporting solid liquidity on its balance sheet, with the current ratio sitting comfortably at 4.87, supported by today’s announcement that it holds $92 million in liquid assets.
The Alkane share price has performed impressively this year, up by more than 120%, which includes today’s gain of nearly 5%. At its current price, Alkane has a market capitalisation of around $740 million.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.