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Alkane Resources Limited share price rises on guidance upgrade

Although the majority of the gold miners have fallen lower today, the Alkane Resources Limited (ASX: ALK) share price has managed to climb higher.

In afternoon trade the gold miner’s shares are up over 2% to 23.5 cents.

Why has it climbed?

This morning the company announced that an improvement in its gold production has led to a full-year guidance upgrade.

In January management advised that it expected to produce 31,000 to 36,000 ounces of gold at an all-in sustaining cost (AISC) of between A$1,350 and A$1,550 an ounce in the second-half.

It now expects second-half production of between 43,000 and 45,000 ounces at a lower AISC of A$1,000 to A$1,100 an ounce.

This will increase its full-year production to 65,000 and 67,000 ounces and reduce its AISC to between A$1,300 to A$1,400.

The current spot gold price is US$1,244 (A$1,626) an ounce.

Judging by the share price performance today, the market appears to be pleased with the company’s improved profitability.

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