# Mar 2025

Source Brief: https://evesgoldminers.com/research/source-briefs/alkane-resources-ltd-2025-04-29-mar-2025-43f4ff9c
Original source: https://investors.alkres.com/site/pdf/e93b6160-ea1b-4f49-aa4e-7be618360d00/March-Quarterly-Activities-Report.pdf
Original published: 2025-04-29
EGM generated: 2026-09-04
Company: Alkane Resources Ltd (ALK)

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## Extracted Document Text

# Mar 2025

Source: https://investors.alkres.com/site/pdf/e93b6160-ea1b-4f49-aa4e-7be618360d00/March-Quarterly-Activities-Report.pdf
Published: 2025-04-29T00:00:00+00:00
Fetched: 2026-05-12T14:07:09.135+00:00
Source artifact: 43f4ff9c-dcc4-4e48-975e-0646774ea8f2
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## Content

# Mar 2025
ASX and MEDIA RELEASE
29 April 2025
Quarterly Activities Report to 31 March 2025
Tomingley Gold Operations (Tomingley)
 Gold production of 17,657oz for the quarter, resulting in 50,927oz to date in FY2025.
 Gold sales for the quarter of 16,513oz for revenue of A$63.4m at an average price of A$3,839/oz.
 Site operating cash costs at A$2,178/oz and AISC of A$2,770/oz. Site operating cash flow was
A$29.0m for the quarter.
 FY2025 guidance for Tomingley of 70,000oz to 80,000oz production at an AISC of A$2,400/oz to
$2,600/oz remains unchanged. Production is expected to be at the lower end of guidance.
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
Announcements 28 February and 7 April 2025).
Corporate
 Post quarter end Alkane Resources Limited (ASX:ALK) and Mandalay Resources Corporation
(TSX:MND) have announced their intention of a “merger of equals” to create a combined
company that will continue under the name “Alkane Resources”. The transaction will create a
diversified Australian-centric gold and antimony producer with a portfolio of three operating
mines and a strong balance sheet (see ASX Announcements 28 April 2025).
 Cash and bullion balance of $50.5 million, an increase of $11.0 million from the December FY2025
quarter.
 Underlying free cashflow of $8.4 million before income tax payment of $3.5 million.
 Debt repayments of $1.8 million and 6,600oz of hedges filled during the quarter.
 Cash, bullion and listed investments totalled $58.6 million, an increase of $16.2 million from the
December FY2025 quarter.
Alkane Managing Director Nic Earner said: “The March FY2025 quarter has delivered the increase in cash
and bullion that we expected. Our paste plant is performing strongly, and our recently commissioned
flotation and fine-grinding circuit increased its output through the quarter, with nearly 7,000 ounces of
gold produced in March. With these capital programs behind us, we look forward to further reducing the
debt and hedge book obligations and building cash in this record AUD gold spot price environment.”
“Our planned merger with Mandalay Resources will allow us to leverage our combined operations to
create 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, 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 another solid quarter. The main source of ore continues to be from Roswell.
A total of 17,657 ounces of gold was poured for the quarter. The site cash costs for the quarter were
A$2,178/oz with an all-in-sustaining cost (AISC) of A$2,770/oz. FY2025 guidance for Tomingley of
70,000oz to 80,000oz production at an AISC of A$2,400/oz to $2,600/oz remains unchanged. Production
is expected to be at the lower end of guidance.
Gold sold for the quarter was 16,513 ounces at an average sales price of A$3,839/oz, generating revenue
of A$63.4m. Bullion stocks were 2,113 ounces (fair value of A$10.6m at quarter end). The site’s operating
cash flow was A$29.0m for the quarter.
Tomingley Gold Extension Project
The flotation and fine grind circuit continue to be optimised. Recovery from the circuit was less than
designed during January and February due to insufficient capacity within the regeneration kiln to re-
activate the carbon sufficiently from the addition of flotation reagents. The kiln burners were upgraded
late in the quarter, resulting in increased performance.
The new paste plant is operating well, performing above design. The commissioning of these two projects
is now complete.
The Newell Highway diversion contractor is expected to mobilise to the site and commence site
preparation in the current (June 2025) quarter.
Exploration
Resource expansion drilling at Tomingley has yielded multiple ore grade intercepts at depth outside
existing resource models and close to existing underground infrastructure (see ASX Announcements 28
February and 7 April 2025). A substantial regional aircore drilling program between San Antonio and
Peak Hill has recently been completed, and results are being compiled. RC and core drilling at El Paso
and other targets is scheduled.
2/10
Alkane Resources Ltd – 31 March 2025 Quarterly Report – 29 April 2025
Tomingley FY 2025 Quarterly and Annual Production Figures
FY Sep Quarter Dec Quarter Mar Quarter FY
Tomingley Production
2024 2024 2024 2025 2025
Underground
Ore mined Tonnes 1,047,035 282,061 264,263 274,110 820,794
Grade g/t 2.10 2.38 2.24 2.09 2.24
Ore milled Tonnes 1,132,538 264,370 268,614 277,550 810,534
Head grade g/t 2.00 2.44 2.25 2.19 2.29
Recovery % 78.4 84.8 84.2 83.7 84.2
Gold poured Ounces 57,217 18,418 14,852 17,657 50,927
Revenue Summary
Gold sold Ounces 57,592 18,208 16,576 16,513 51,298
Average price realised A$/oz 3,004 3,422 3,582 3,839 3,608
Gold revenue A$M 173.0 62.3 59.4 63.4 185.1
Cost Summary
Surface works A$/oz 33 37 44 47 42
Mining A$/oz 800 1,165 1,198 1,272 1,210
Processing A$/oz 504 461 535 656 548
Site Support A$/oz 205 177 238 203 205
C1 Site Cash Cost A$/oz 1,541 1,840 2,015 2,178 2,006
Royalties A$/oz 94 117 103 130 117
Sustaining capital A$/oz 401 466 578 425 489
Gold in circuit and A$/oz 15 (320) 254 (65) (53)
inventory movements
Rehabilitation A$/oz 20 26 47 38 36
Corporate A$/oz 66 53 57 64 58
AISC1 A$/oz 2,137 2,182 3,053 2,770 2,654
Bullion on hand Ounces 2,500 2,704 1,066 2,113 2,113
Stockpiles
Ore for immediate milling Tonnes 241,179 258,871 251,767 246,503 246,503
Grade g/t 1.13 1.15 1.11 0.98 0.98
Contained gold Ounces 8,776 9,602 9,005 7,805 7,805
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 – 31 March 2025 Quarterly Report – 29 April 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 – 31 March 2025 Quarterly Report – 29 April 2025
CORPORATE
Cash, Bullion and Listed Investments
Description Dec-24 Quarter Mar-25 Quarter
A$m A$m
Cash 35.0 39.9
Bullion 4.5 10.6
Cash and bullion sub-total 39.5 50.5
Listed investments 2.9 8.1
Total cash, bullion and listed investments 42.4 58.6
Banking Facilities
At the end of the quarter, the Company had $15.0m of mobile equipment financing, which decreased
from the December 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 $54.0m.
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 – 31 March 2025 Quarterly Report – 29 April 2025
Cashflow Discussion and Analysis
Revenue $63.4 million
During the quarter, Tomingley Gold Operations sold 16,513 ounces at an average price of A$3,839/oz
This included the delivery of 6,600 ounces into forward sales contracts at an average of $2,804/oz.
Further details of the current forward sales can be found below.
AISCC (All-In Sustaining Cash Cost) $46.8 million
All-in sustaining cash outflows for the quarter were $46.8m (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 274,110 tonnes of ore mined during the quarter.
Sustaining capital was $425/oz or $7.0m for the quarter. The major item of spend during the quarter was
underground capital development, underground truck refurbishments and a wheel loader replacement.
Growth and Expansion $3.4 million
The major expenditure items were the Paste Plant and Process Plant Upgrade capital projects, both now
finalised.
Corporate and Exploration $5.2 million
Corporate was $2.0m, and exploration was $3.2m, with the main area of exploration being the Northern
Molong Porphyry Project.
Other $7.0 million
• Income Tax Payments of $4.5m. This is made up of;
o Tax instalments of $1.0m. These are PAYG instalments of corporate income tax paid on
a monthly basis.
o The FY 2024 income tax of $3.5m was paid in the March quarter.
• Interest expense associated with mobile lease and project finance of $1.5m.
• Alkane contributed $1.0m to Medallion Metals Limited (ASX:MM8) $6.5 million placement
(previously announced by 3 February 2025 by MM8).
Borrowings Repaid $1.8 million
Repayments of mobile equipment finance leases.
Investments
At the end of the quarter, Alkane holds ~9m shares in Sky Metals (ASX:SKY). Alkane also holds 30m shares
in Medallion Metals Limited (ASX:MM8), with ownership of ~6.3% of shares on issue.
6/10
Alkane Resources Ltd – 31 March 2025 Quarterly Report – 29 April 2025
Gold Forward Sale Contracts
The Company holds the following forward sale contracts.
Quarter Average Forward Delivery Ounces
Price A$/oz
June 2025 2,818 7,200
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 2,852 68,800
The Company also holds the following 111koz of put options with a strike of A$3,000/oz. The options
have monthly expiry dates over the period April 2025 to June 2027.
NORTHERN MOLONG PORPHYRY PROJECT (NMPP) (gold-copper)
Alkane Resources Ltd 100%
Drilling at Boda, South Boda and Driell Creek continues, the company is waiting on results from several
programs.
7/10
Alkane Resources Ltd – 31 March 2025 Quarterly Report – 29 April 2025
8/10
Alkane Resources Ltd – 31 March 2025 Quarterly Report – 29 April 2025
9/10
Alkane Resources Ltd – 31 March 2025 Quarterly Report – 29 April 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 R

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