Alkane Resources Annual Financial Report - June 30 2025

• Profit After Tax: A$33 million in FY2025, up 87% from A$17.7 million in FY2024
• Gold Production: 70,120 ounces produced versus 57,217 ounces in prior year
• Gold Revenue: A$262.4 million, reflecting 52% increase from A$173 million in FY2024
• Average Sale Price: A$3,770 per ounce compared to A$3,004 per ounce in FY2024
• Cash Position: A$60.3 million in cash, bullion and listed investments at 30 June 2025

Alkane Resources Limited (ASX:ALK) is a gold and antimony producer with three mining operations across Australia and Sweden. The company's assets include the Tomingley open pit and underground gold mine in New South Wales, the Costerfield gold and antimony underground operation in Victoria, and the Björkdal underground gold mine in Sweden.

The company also owns the Boda-Kaiser gold-copper porphyry project in Central West New South Wales, where a scoping study has been completed. Alkane conducts ongoing exploration within the Northern Molong Porphyry Project and maintains near-mine regional exploration programmes across its three operations.

Financial Performance and Production Results

Alkane's FY2025 profit after tax of A$33 million represented an 87% increase from the previous year's A$17.7 million. The Tomingley operation contributed a profit before tax of A$60.9 million, compared to A$33.1 million in FY2024. Gold production increased to 70,120 ounces from 57,217 ounces, whilst gold sales reached 69,774 ounces versus 57,592 ounces in the prior period.

Revenue from gold sales totalled A$262.4 million, reflecting both higher sales volumes and an average realised price of A$3,770 per ounce. The price represented a A$766 increase from FY2024's average of A$3,004 per ounce. Production increases reflected higher grade ore and improved recoveries following the fine grind circuit upgrade completion.

The company held cash of A$48.1 million, bullion valued at A$12.2 million, and listed investments worth A$8.0 million at year-end. Total revenue from ordinary activities increased 34.1% to A$262.4 million during the reporting period.

Operational Developments and Cost Management

Gold recovery rates improved to 85.45% in FY2025 from 78.4% in the previous year, attributed to the fine grind circuit upgrade. The average grade milled increased to 2.31 grams per tonne compared to 2.00 grams per tonne in FY2024. All-in sustaining costs reached A$2,561 per ounce, within the company's guidance range of A$2,400 to A$2,600 per ounce.

Production continued from the Roswell underground deposit throughout the year. The company completed major capital projects under the Tomingley Gold Extension Projects programme, which commenced in FY2023. Processing plant upgrades and paste plant installations were completed during the reporting period.

Work on the Newell Highway diversion is scheduled to begin in early FY2026 to enable open pit access to reserves above the Roswell underground mine. Exploration activities continued across the Tomingley to Peak Hill corridor and the Northern Molong Porphyry Project areas.

Corporate Merger with Mandalay Resources

Alkane completed a merger with Mandalay Resources Corporation on 5 August 2025, following shareholder approval from both companies on 28 July 2025. Under the arrangement, Mandalay shareholders received 7.875 Alkane shares for each Mandalay share held. Former Mandalay shareholders own approximately 55% of the combined entity, whilst existing Alkane shareholders hold 45%.

The transaction created a combined entity operating mines across Australia and Sweden. Managing Director Nic Earner stated:

"With the merger with Mandalay completed post financial year end we are well positioned for the upcoming financial year for both production and growth."

Board changes accompanied the merger, with Andrew Quinn appointed as Non-Executive Chairman and three former Mandalay directors joining the board. The company's outstanding Macquarie facility of A$45 million was repaid on 18 August 2025 following the transaction completion.

Next Steps and Development Plans

Alkane plans to continue operations at the Tomingley underground mine whilst pursuing exploration and evaluation activities across its tenement portfolio. The Newell Highway diversion project will commence in early FY2026 to access additional reserves. Regional exploration results from the Tomingley to Peak Hill corridor drilling programme are expected to be released in the September quarter.

The company intends to pursue opportunities to expand its tenement portfolio and develop additional ore sources. Following the Mandalay merger, the enlarged entity will focus on integrating operations across its three-mine portfolio whilst maintaining exploration activities at all sites.

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