Alkane Resources delivers strong FY2025 performance as merger with Mandalay nears completion

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has reported gold production of 70,120 ounces for the 2025 financial year, in line with guidance, as it advances towards a transformative merger with Canadian-listed Mandalay Resources Corporation (TSX: MND). The merger, approved by both sets of shareholders post-quarter, is scheduled for completion in early August 2025.

“The June quarter saw us deliver within production and cost guidance for FY2025. Tomingley is performing well, particularly in relation to our underground

production rates,” Alkane managing director and CEO Nic Earner said,

“Our planned merger with Mandalay Resources is almost complete. Our combined operations are creating a new, larger gold and antimony business that will have increased scale and a stronger balance sheet, generating greater cashflow and providing us with more flexibility and growth options in the future.”

Solid operational delivery at Tomingley

The company’s Tomingley Gold Operations in Central West New South Wales produced 19,193 ounces of gold in the June 2025 quarter. Site all-in sustaining costs (AISC) were A$2,302 per ounce for the quarter, with full-year AISC at A$2,560 per ounce — both within guidance. Operating cash costs averaged A$2,039 per ounce for the year.

Gold sales for the quarter totalled 18,476 ounces, generating A$78 million in revenue at an average realised price of A$4,221 per ounce. Operating cash flow from the site reached A$26.6 million for the quarter and A$94 million for the full year.

Highlights:

• Gold production of 19,193oz for the quarter and 70,120oz for FY2025, within full year guidance.
• Site AISC of A$2,302/oz for the quarter and A$2,560/oz for FY2025, within full year guidance.
• Site operating cash costs of A$2,132/or for the quarter and A$2,039/oz for FY2025.
• Site operating cash flow was A$26.6 million for the quarter and A$94.0 million for FY2025.
• Gold sales for the quarter of 18,476oz for revenue of A$78.0 million at an average price of A$4,221/oz.

Exploration around Tomingley yielded promising ore-grade intercepts at depth outside existing resource models, with further updates expected in August 2025.

Robust financial position

Alkane’s cash and bullion balance rose by A$9.8 million during the quarter to A$60.3 million. When combined with listed investments, total liquid assets stood at A$68.3 million. Underlying free cash flow for the quarter was A$12.3 million, excluding A$4.1 million in land acquisitions tied to the Boda project.

Debt repayments during the quarter amounted to A$1.8 million. Alkane also delivered 7,200 ounces into existing gold hedge contracts at A$2,818 per ounce.

Investment and hedging strategy

Alkane maintains forward gold sales of 61,600 ounces through to June 2027 at an average price of A$2,856 per ounce, alongside 99,000 ounces in put options with a strike price of A$3,000 per ounce.

The company also retains equity holdings in ASX-listed juniors Sky Metals and Medallion Metals.

Growth projects advancing

Expenditure on growth and expansion projects reached A$5.9 million in the quarter. Major items included early works on the Newell Highway realignment, upgrades at the paste and process plants, and expansionary drilling to support future open-pit development.

Exploration spend totalled A$2.7 million, primarily focused on the Northern Molong Porphyry Project (NMPP), which includes the Boda, South Boda and Driell Creek prospects. Drilling results from these areas were released in early July.

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