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Highlights

  • Gold revenue rose to AUD 262.4mn, an increase of 52% year-on-year.
  • Production increased to 70,120 ounces following a fine-grind circuit upgrade.
  • Merger with Mandalay approved by shareholders; effective 5 August 2025.

Alkane Resources Limited (ASX:ALK; TSX:ALK; OTCQX:ALKEF) reported a profitable year for the 12 months ended 30 June 2025, driven largely by higher ore grades and improved recoveries after a fine-grind circuit upgrade. The company recorded gold revenue of AUD 262.4mn, up 52% from AUD 173.0mn in the prior year, supported by a higher realised sale price of AUD 3,770 per ounce (up 25% year-on-year).

Operationally, Alkane produced 70,120 ounces of gold in FY25, a 23% lift from 57,217 ounces in FY24, and sold 69,774 ounces. The company reported an all-in sustaining cost (AISC) of AUD 2,561 per ounce for the period. At the Tomingley operation, profit before tax was reported at AUD 60.9mn, up 84% from AUD 33.1mn the previous year, reflecting the combination of higher metal prices, grade improvement and processing enhancements.

On the bottom line, Alkane’s profit after tax rose to AUD 33.0mn, an 87% increase from AUD 17.7mn in FY24. The company highlighted that commissioning and ramp-up activities at the Roswell underground deposit contributed to the year’s production profile and that the investment in capital works at Tomingley was aimed at increasing recoveries and extending mine life.

Balance sheet and liquidity disclosures showed the company reporting cash, bullion and listed investments figures: AUD 48.1mn in cash, AUD 12.2mn of bullion at fair value and AUD 8.0mn of listed investments; the company stated a combined figure of AUD 60.3mn as at 30 June 2025. Management said these resources provide working capital flexibility heading into the new financial year.

Post financial year end, shareholders of Alkane and Mandalay Resources Corporation (TSX: MND) approved a "merger of equals" that became effective on 5 August 2025. Management commented that the combination is intended to align production and exploration portfolios across both companies, and that integration activities will be a focus in the near term.