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

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

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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.

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