Nic Earner on Alkane Resources’ 2019 gold investment strategy
“If you look at our gold investment strategy, we want to assist companies to come into production and therefore make money for our shareholders…” States Nic Earner, Managing Director of Alkane Resources Ltd. (ASX: ALK | OTCQX: ANLKY), in an interview with InvestorIntel Corp. CEO Tracy Weslosky.
Tracy Weslosky: We want to talk about gold for the holidays. I was reading the New York Times this weekend and it said this is the one year that stuffing your cash in a mattress may have actually put you further ahead. Let us talk about gold. This would be a good time to invest in gold. Nic, what do you think?
Nic Earner: Naturally I am a bit of a gold bull. Certainly we are really happy with how the year has gone for Alkane Resources. We are in Australian gold. We have seen the rise and fall of U.S. dollar gold, certainly the Australian dollar has corrected broadly as well. Last financial year, which was finished in Australia at the end of June, we sold our gold for an average of around $1,720.00 Australian. We have seen similar price levels this year in Aussie dollars. For a cost base, for us, of below $1,000.00 an ounce Australian it has been a wonderful period of time. If you look historically, at the moment in Australian gold there has been sort of 9 or 10 quarters in real terms over the history at these price levels. Certainly it is an excellent time to have been in Australian gold.
Tracy Weslosky: Nic, in our last conversation you said at the end of September you had $82.4 million in cash and bullion and you have been accruing that cash up. Talk to me a little bit about what you are doing with your gold acquisitions that you were working on.
Nic Earner: Thanks Tracy. We have been making investments into other near-term development prospects. There were two that we were chasing in Australia. One has been successful. One has been unsuccessful. The successful one has been in Calidus Resources. The ASX ticker for that is CAI. They have got ground and reasonable prospects which are going through scoping and feasibilities at the moment up in the Pilbara region of Western Australia. We are helping them to get through to feasibility, just through. Investment they manage and we formed a technical committee to help maximize value of our investment. We really like that one. We like the size of the deposit. We like its exploration potential. We like its capacity to bring near-term development cash. With Explaurum we were looking to do a similar thing; to be part of a placement, help them go through to feasibility, but they were also subject to a takeover offer from another company called Ramelius. Ramelius increased their offer and the directors of Explaurum accepted that offer so Alkane is no longer part of that, c’est la vie. If you look at our gold investment strategy, we want to assist companies to come into production and therefore make money for our shareholders because in general you get this tension where you have raised the ounces on your resources, which you have to mine and it becomes a funding crunch point. Working through that point brings value for the next lot of investors or the same investors and we want to be part of that…to access the complete interview, click here
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