Can you guess which ASX gold share is surging 15% on Thursday?

The gold price has been marching higher since the early November lows.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • ASX gold shares have enjoyed a rebounding gold price over the past two months
  • The Alkane Resources share price is rocketing today
  • The gold miner upgraded its production guidance at its Tomingley Gold Operations

ASX gold shares are broadly enjoying a strong run today.

With the gold price edging higher overnight to US$1,855 per troy ounce (up 1.7% so far in 2023), most gold stocks are in the green.

That sees the S&P/ASX All Ordinaries Gold Index (ASX: XGD) up 2.3% in late morning trade, compared to a 0.4% gain posted by the All Ordinaries Index (ASX: XAO).

But one ASX gold share is leaving those gains in the dust.

Can you guess which one?

If you said Alkane Resources Limited (ASX: ALK), go to the head of the class. Shares in the gold miner are up 13% at the time of writing, having earlier posted gains of 15%.

Here's what's sending the Alkane Resources share price rocketing.

A woman in a business suit holds a large gold bar in both hands with a gold arrow tracking upwards.

Image source: Getty Images

What did the gold miner report?

Alkane Resources is leading the ASX gold share rally today after the miner upgraded its FY2023 guidance for its Tomingley Gold Operations, located in New South Wales.

Alkane increased its guidance to between 62,000 ounces and 70,000 ounces of gold, up from the previous guidance of 55,000 to 60,000 ounces.

All in sustaining costs (AISC) were revised downwards from the previous $1,650 to $1,900 per ounce to the new guidance of $1,550 to $1,800 per ounce.

The ASX gold share also looks to be getting a boost after reporting Tomingley exceeded its production forecast for the December quarter, with 18,301 ounces of gold produced over the three months. That brings the miner's first half-year production for FY23 to 37,790 ounces of gold.

The company reported its unaudited cash, bullion and listed investments position on 31 December stood at $114 million.

Commenting on the updates sending the ASX gold share soaring today, Alkane managing director Nic Earner said:

Tomingley continues to deliver outstanding performance, resulting in upgraded guidance for the 2023 financial year… With approvals expected shortly to extend the life of Tomingley beyond 2030 at increased production rates, we're looking forward to developing the Roswell resource in the year ahead.

How has this ASX gold share been performing?

With today's big intraday lift factored in, the Alkane Resources share price is up a handy 20% in the first week of trading in 2023.

Over the past year, as you can see in the chart below, the ASX gold share remains in the red, down 29%.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

A woman with bright yellow hair wearing a brightly patterned blouse reacts to big news that she's reading on her phone.
Gold

Gold output rises again, but this ASX miner is slipping with the market today

Kingsgate Consolidated Ltd (ASX: KCN) shares are edging lower on Monday despite another steady production and cash update from the gold…

Read more »

gold, gold miner, gold discovery, gold nugget, gold price,
Gold

Up 194% in a year, ASX 300 gold stock gets 'big confidence boost' from Canada

The ASX gold stock is eyeing 38,000 ounces of Canadian gold.

Read more »

Calculator and gold bars on Australian dollars, symbolising dividends.
Gold

2 ASX gold stocks to buy next week

These gold miners are rated as buys by analysts at Bell Potter.

Read more »

Machinery at a mine site.
Gold

Could this ASX-listed gold mine developer really increase six-fold?

One broker thinks there are big things ahead for this company.

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Gold

This ASX gold company is up more than 4% on promising early exploration results

Good gold and copper results have this stock in focus.

Read more »

Business people discussing project on digital tablet.
Gold

Which cheap ASX 200 gold stock could rise over 50%?

Bell Potter has picked out this gold miner as one to buy now.

Read more »

A young man goes over his finances and investment portfolio at home.
Gold

Are Northern Star shares a cheap buy?

Bell Potter has given its verdict on this beaten down gold stock.

Read more »

Gold bars with a share price chart in the background.
Gold

Why did the Iran war smash the gold price?

Investors were surprised when the gold price dropped 21% over the first three weeks of March.

Read more »