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Highlights
Alkane Resources achieves full-year gold production within operational guidance
Cash position strengthens as Tomingley output supports free cash generation
Regulatory approvals secured for merger with Mandalay Resources
Alkane Resources Ltd (ASX:ALK) (OTC:ALKEF), a gold production and development company listed on the ASX 300, has reported its full-year gold production for FY2025, confirming delivery within its guidance range. The company operates the Tomingley Gold Operations in central west New South Wales and continues to consolidate its position within the mid-tier gold producer segment.
Alkane also highlighted a stronger cash balance at the close of the financial year, supported by improved output and operational performance across the June quarter.
Tomingley Operations Conclude Strong Production Year
Gold output from the Tomingley project contributed significantly to Alkane’s full-year production. Performance during the June quarter was underpinned by enhanced activity at the Roswell underground mine and the successful start-up of new infrastructure, including a paste plant and advanced flotation and fine grind circuits.
The company acknowledged internal teams and contractors for maintaining production continuity and safety protocols across its sites, reflecting a consistent operational standard throughout the year.
Liquidity Position Strengthened with Free Cash Flow Gains
Alkane's unaudited cash, bullion, and listed investment holdings at the end of June reflected a positive movement from the March quarter. The increase in free cash flow for the quarter was achieved prior to several capital outlays, including land acquisitions linked to its Boda gold-copper development project.
Additional liquidity actions included the repayment of existing debt and closure of gold hedging arrangements, reinforcing Alkane’s ongoing financial discipline.
Merger with Mandalay Resources Clears Key Regulatory Approvals
Alkane has also progressed its strategic merger with Mandalay Resources Corp. (TSX:MND, OTCQB:MNDJF), having secured key regulatory clearances required for the transaction. The Foreign Investment Review Board (FIRB) confirmed no objections under applicable Australian laws, aligning with the conditions set in the binding Arrangement Agreement disclosed in April.
ASIC granted regulatory relief related to the structure of the transaction, enabling the process to move forward under a Canadian court-supervised framework. Alkane’s objective to combine with Mandalay marks a significant strategic expansion into a broader resource portfolio with international exposure.
Positioning Within ASX Mid-Tier Gold Segment
The combination of Tomingley’s performance and the progression of its merger strategy underpins Alkane’s emergence as a mid-tier gold producer on the ASX 300. Company leadership reiterated its focus on production growth and corporate consolidation, positioning Alkane among a growing list of gold firms navigating both operational delivery and market expansion.
