Jun 2025

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# Jun 2025

Source: https://investors.alkres.com/site/pdf/fb63ec55-be6b-48e5-b50c-fc3b6c2f853b/Quarterly-Activities-Report.pdf?Platform=ListPage
Published: 2025-07-30T00:00:00+00:00
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## Content

# Jun 2025
ASX and MEDIA RELEASE
30 July 2025
Quarterly Activities Report to 30 June 2025
Tomingley Gold Operations (Tomingley)
 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.
Corporate
 Post quarter end Alkane Resources Limited (ASX:ALK) and Mandalay Resources Corporation
(TSX:MND) shareholders have both voted to approve the “merger of equals” between the
companies. The transaction is expected to be completed on or about 5 August 2025.
 Cash and bullion balance of A$60.3 million, an increase of A$9.8 million from the March FY2025
quarter and an A$20.8 million increase for the 6 months to June 2025.
 Underlying free cashflow of A$12.3 million for the quarter, before land purchases relating to the
Boda project of A$4.1 million.
 Debt repayments of A$1.8 million and 7,200oz of hedges filled during the quarter.
 Cash, bullion and listed investments totalled A$68.3 million, an increase of A$9.7 million from
the March FY2025 quarter.
 FY2026 guidance will be released for the combined Alkane and Mandalay in the September
quarter.
Alkane Managing Director & CEO Nic Earner said: “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.
“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.”
CONTACT : NIC EARNER, MANAGING DIRECTOR & CEO, ALKANE RESOURCES LTD, TEL +61 8 9227 5677
INVESTORS : NATALIE CHAPMAN, CORPORATE COMMUNICATIONS MANAGER, TEL +61 418 642 556
MEDIA : PAUL RYAN, SODALI, TEL +61 409 296 511
Level 4, 66 Kings Park Rd, West Perth WA 6005, AUSTRALIA (PO Box 768, West Perth WA 6872, AUSTRALIA)
Telephone: +61 8 9227 5677 Facsimile: +61 8 9227 8178 www.alkane.com.au mail@alkane.com.au
TOMINGLEY GOLD OPERATIONS
Tomingley Gold Operations Pty Ltd 100%
Tomingley Gold Operations (Tomingley) is a wholly owned subsidiary of Alkane, located near the village
of Tomingley, approximately 50km southwest of Dubbo in Central Western New South Wales. Tomingley
has been operating since 2014. Mining occurs underground on four gold deposits (Wyoming One, Caloma
One, Caloma Two and Roswell).
Operations Performance
Tomingley had a solid quarter with underground mining lifting production levels. The primary source of
ore continues to be from Roswell.
A total of 19,193 ounces of gold was poured for the quarter. The site cash costs for the quarter were
A$2,132/oz with an all-in-sustaining cost (AISC) of A$2,302/oz.
Gold sold for the quarter was 18,476 ounces at an average sales price of A$4,221/oz, generating revenue
of A$78.0m. Bullion stocks were 2,422 ounces (fair value of A$12.2m at quarter end). The site’s operating
cash flow was A$26.6m for the quarter.
The Newell Highway diversion contractor has mobilised to the site and is expected to begin construction
in August 2025.
Exploration
Resource expansion drilling at Tomingley has yielded multiple ore-grade intercepts at depth outside
existing resource models and close to existing underground infrastructure (see ASX Announcement 7
April 2025).
Results from the regional drilling program around Tomingley are being compiled and are expected to be
reported in August 2025.
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Alkane Resources Ltd – 30 June 2025 Quarterly Report – 30 July 2025
Tomingley FY 2025 Quarterly and Annual Production Figures
FY Sep Quarter Dec Quarter Mar Quarter Jun Quarter FY
Tomingley Production
2024 2024 2024 2025 2025 2025
Underground
Ore mined Tonnes 1,047,035 282,061 264,263 274,110 340,192 1,160,986
Grade g/t 2.10 2.38 2.24 2.09 2.19 2.22
Ore milled Tonnes 1,132,538 264,370 268,614 277,550 273,324 1,083,858
Head grade g/t 2.00 2.44 2.25 2.19 2.38 2.31
Recovery % 78.4 84.8 84.2 83.7 88.9 85.5
Gold poured Ounces 57,217 18,418 14,852 17,657 19,193 70,120
Revenue Summary
Gold sold Ounces 57,592 18,208 16,576 16,513 18,476 69,774
Average price realised A$/oz 3,004 3,422 3,582 3,839 4,221 3,770
Gold revenue A$M 173.0 62.3 59.4 63.4 78.0 263.1
Cost Summary
Surface works A$/oz 33 37 44 47 41 42
Mining A$/oz 800 1,165 1,198 1,272 1,287 1,231
Processing A$/oz 504 461 535 656 618 566
Site Support A$/oz 205 177 238 203 187 200
C1 Site Cash Cost A$/oz 1,541 1,840 2,015 2,178 2,132 2,039
Royalties A$/oz 94 117 103 130 137 122
Sustaining capital A$/oz 401 466 578 425 303 440
Gold in circuit and A$/oz 15 (320) 254 (65) (386) (141)
inventory movements
Rehabilitation A$/oz 20 26 47 38 24 33
Corporate A$/oz 66 53 57 64 92 67
AISC1 A$/oz 2,137 2,182 3,053 2,770 2,302 2,561
Bullion on hand Ounces 2,500 2,704 1,066 2,113 2,422 2,422
Stockpiles
Ore for immediate milling Tonnes 241,179 258,871 251,767 246,503 313,742 313,742
Grade g/t 1.13 1.15 1.11 0.98 1.13 1.13
Contained gold Ounces 8,776 9,602 9,005 7,805 11,387 11.387
1AISC = All in Sustaining Cost comprises all site operating costs, royalties, mine exploration, sustaining capex, mine development and an allocation of corporate
costs, calculated on the basis of ounces sold. AISC does not include share-based payments or net realisable value provision for ore inventory.
3/10
Alkane Resources Ltd – 30 June 2025 Quarterly Report – 30 July 2025
Refer to the tables on pages 8 and 9 for relevant data, and in the Annual Resources and Reserve Statement FY24 (see ASX
Announcement 4 September 2024)
4/10
Alkane Resources Ltd – 30 June 2025 Quarterly Report – 30 July 2025
CORPORATE
Cash, Bullion and Listed Investments
Description Mar-25 Quarter Jun-25 Quarter
A$m A$m
Cash 39.9 48.1
Bullion 10.6 12.2
Cash and bullion sub-total 50.5 60.3
Listed investments 8.1 8.0
Total cash, bullion and listed investments 58.6 68.3
Banking Facilities
At the end of the quarter, the Company had $13.3m of mobile equipment financing, which decreased
from the March quarter due to net repayments.
Alkane has a Project Loan Facility from Macquarie Bank Limited (Macquarie) to develop the Tomingley
Gold Extension Project. This facility had no change on the amount drawn during the quarter, with $45.0m
drawn. The overall facility limit was reduced during the quarter to $48.0m.
Cashflows
The waterfall chart below summarises the quarterly movement in cash held (excludes bullion and
investments held at the beginning and end of the period):
*AISCC – The Gold-in-circuit movement from the AISC table on page 3 is a non-cash movement, so it is excluded from the cashflow waterfall above.
5/10
Alkane Resources Ltd – 30 June 2025 Quarterly Report – 30 July 2025
Cashflow Discussion and Analysis
Revenue $78.0 million
During the quarter, Tomingley Gold Operations sold 18,476 ounces at an average price of A$4,221/oz.
This included the delivery of 7,200 ounces into forward sales contracts at $2,818/oz. Further details of
the current forward sales can be found below.
AISCC (All-In Sustaining Cash Cost) $49.7 million
All-in sustaining cash outflows for the quarter were $49.7m (note this excludes the gold in circuit and
inventory movement from the table on page 3, as these are non-cash). Underground mining largely drove
operating costs, with 340,192 tonnes of ore mined during the quarter.
Sustaining capital was $303/oz or $5.6m for the quarter. The major items of spend during the quarter
were underground capital development, underground truck refurbishments and a wheel loader
replacement.
Growth and Expansion $5.9 million
The major expenditure items included the Paste Plant and Process Plant Upgrade capital projects, Newell
Highway realignment early works, and expansionary drilling for future open pit development.
Corporate and Exploration $7.5 million
Corporate was $4.8m with approximately half of this relating to Mandalay merger activities. Exploration
expenditures totalled $2.7m, with the primary focus being the Northern Molong Porphyry Project.
Other $6.0 million
• Land purchases relating to the Boda project of $4.1m
• Tax instalments of $0.9m. These are PAYG instalments of corporate income tax paid monthly.
• Interest expense associated with mobile lease and project finance of $1.1m.
Borrowings Repaid $1.8 million
Repayments of mobile equipment finance leases.
Investments
At the end of the quarter, Alkane holds ~9m shares in Sky Metals (ASX:SKY). Alkane also holds 30 million
shares in Medallion Metals Limited (ASX:MM8), with ownership of ~5.9% of the shares on issue as of 30
June 2025. Post quarter end Alkane’s investment in Medallion was reduced to ~4.90% as a result of the
issue of new shares.
6/10
Alkane Resources Ltd – 30 June 2025 Quarterly Report – 30 July 2025
Gold Forward Sale Contracts
The Company holds the following forward sale contracts.
Quarter Average Forward Delivery Ounces
Price A$/oz
September 2025 2,832 7,250
December 2025 2,843 8,200
March 2026 2,855 8,700
June 2026 2,870 8,500
September 2026 2,884 7,800
December 2026 2,896 7,200
March 2027 2,821 7,300
June 2027 2,844 6,650
Total 2,856 61,600
The Company also holds the following 99koz of put options with a strike of A$3,000/oz. The options have
monthly expiry dates over the period July 2025 to June 2027.
NORTHERN MOLONG PORPHYRY PROJECT (NMPP) (gold-copper)
Alkane Resources Ltd 100%
Post quarter end results from drilling at Boda, South Boda and Driell Creek were released (see ASX
Announcement 8 July 2025).
7/10
Alkane Resources Ltd – 30 June 2025 Quarterly Report – 30 July 2025
8/10
Alkane Resources Ltd – 30 June 2025 Quarterly Report – 30 July 2025
9/10
Alkane Resources Ltd – 30 June 2025 Quarterly Report – 30 July 2025
Competent Person
Unless otherwise advised above or in the Announcements referenced, the information in this report that relates to mineral resources and ore
reserves is based on information compiled by Mr D I Chalmers, FAusIMM, FAIG, (director of the Company) who has sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Mr Chalmers consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
Previously Reported Information
The information in this report that references previously reported exploration results, mineral resources, production plans and studies is extracted
from the Company’s ASX market announcements released on the date noted in the body of the text where that reference appears (specifically
the information in this report that relates to Mineral Resources and Reserves is extracted from the announcement dated 4 September 2024). The
previous market announcements are available to view on the Company's website or on the ASX website (www.asx.com.au). The Company
confirms that it is not aware of any new information or data that materially affects the information included in the original market
announcements and, in the case of estimates of mineral resources or ore reserves, that all material assumptions and technical parameters
underpinning the estimates in the original market announ

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