Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • ALK produced 70,120oz of gold in FY25, in line with full-year guidance
  • Alkane reports AUD 68.3 million in cash, bullion, and listed investments at FY25 end
  • ALK records AUD 12.3 million in free cash flow before Boda land purchase costs

Alkane Resources Limited (ASX:ALK) has announced that gold production from its Tomingley Gold Operations in New South Wales reached 19,193 ounces in the June quarter of FY25. This brings the company’s total gold output for the full financial year to 70,120 ounces, aligning with previously stated guidance.

The company noted a cash and bullion balance of AUD 60.3 million as of 30 June 2025, up AUD 9.8 million from the March quarter and AUD 20.8 million higher over the six months to June. When combined with listed investments valued at AUD 8.0 million, Alkane’s unaudited financial position at the close of the financial year stood at AUD 68.3 million.

Free cash flow for the June quarter was reported at AUD 12.3 million, before accounting for AUD 4.1 million in land purchases related to the Boda project. During the same period, the company made AUD 1.8 million in debt repayments and delivered 7,200 ounces of gold under hedge commitments.

Alkane attributes the FY25 production result to ongoing output from the Roswell underground mine and the commissioning of new processing infrastructure. This includes a paste plant as well as a flotation and fine grind circuit, both of which were completed and brought online during the year.

Managing Director Nic Earner commented on the company’s performance, noting that the combination of operational execution at Tomingley and Alkane’s merger with Mandalay Resources reflects a shift in scale for the company. While operational achievements were acknowledged, the company emphasised its focus on maintaining consistent output and financial stability.

The Tomingley Gold Operations, located in central west New South Wales, include open-cut and underground mining, along with on-site processing facilities. Alkane has continued to invest in the development and expansion of its regional operations, with the Roswell underground development playing a key role in FY25’s output.

The reported AUD 68.3 million in total financial holdings marks an increase of AUD 9.7 million from the March 2025 quarter. These figures include listed investments held by Alkane, which are subject to market valuation and may fluctuate accordingly. The company’s improved cash position also reflects disciplined capital allocation, even as it proceeds with strategic land acquisitions for its exploration and development pipeline.

In addition to its operational update, Alkane reiterated its outlook for FY26, which will reflect the impact of the completed Mandalay Resources transaction. This merger is expected to affect consolidated reporting in future quarters and expand the company’s asset portfolio.

Alkane Resources is an Australian gold exploration and production company listed on the Australian Securities Exchange under the ticker ALK. Its operations are primarily concentrated in central New South Wales, with Tomingley as its flagship project. The company also holds interests in exploration and development projects across the region, including the Boda and Kaiser prospects.

As of 7 July 2025, Alkane Resources’ shares were trading at AUD 0.68, down 1.88% from the previous close.