Alkane Resources posts strong FY2025 profit, completes Mandalay Resources merger

Alkane Resources Limited reported a robust financial year for 2025, with profit after tax reaching A$33m, a substantial increase from A$17.7m in FY2024. Gold revenue also saw a significant rise to A$262.4m (FY2024: A$173.0m), driven by 69,774oz of gold sold at an average price of A$3,770 per ounce. The Tomingley Gold Operations produced 70,120oz of gold at an AISC of A$2,560 per ounce, within guidance. Capital investments in cash, bullion, and listed securities stood at A$68.3m at year-end.

A pivotal event post-year-end was the merger of equals with Mandalay Resources on 5 August 2025, creating a diversified gold and antimony producer with three operating mines across Australia and Sweden. This transaction is expected to enhance Alkane's capital market position and drive a valuation re-rate, with a combined board now in place. Exploration efforts continued, yielding multiple ore-grade intercepts at Tomingley and advancing the Boda-Kaiser gold-copper porphyry project.

The Boda-Kaiser project's Scoping Study, released in July 2024, highlighted a 17-year mine life with a 20Mtpa throughput scenario, demonstrating potential for significant value creation. The total Mineral Resources for Boda-Kaiser are approximately 8.3Moz Au and 1.5Mt Cu. Alkane also maintained strong community engagement and sustainability initiatives, including improved safety performance, increased workforce diversity, and the establishment of biodiversity stewardship agreements.