Tomingley Gold Operations (Tomingley)
- Gold production of 17,657oz for the quarter, resulting in 50,927oz to date in FY2025.
- Gold sales for the quarter of 16,513oz for revenue of A$63.4m at an average price of A$3,839/oz.
- Site operating cash costs at A$2,178/oz and AISC of A$2,770/oz. Site operating cash flow was A$29.0m for the quarter.
- FY2025 guidance for Tomingley of 70,000oz to 80,000oz production at an AISC of A$2,400/oz to $2,600/oz remains unchanged. Production is expected to be at the lower end of guidance.
Exploration
- Resource expansion drilling at Tomingley has yielded multiple ore grade intercepts at depth outside existing resource models and close to existing underground infrastructure (see ASX Announcements 28 February and 7 April 2025).
Corporate
- Post quarter end Alkane Resources Limited (ASX:ALK) and Mandalay Resources Corporation (TSX:MND) have announced their intention of a “merger of equals” to create a combined company that will continue under the name “Alkane Resources”. The transaction will create a diversified Australian-centric gold and antimony producer with a portfolio of three operating mines and a strong balance sheet (see ASX Announcements 28 April 2025).
- Cash and bullion balance of $50.5 million, an increase of $11.0 million from the December FY2025 quarter.
- Underlying free cashflow of $8.4 million before income tax payment of $3.5 million.
- Debt repayments of $1.8 million and 6,600oz of hedges filled during the quarter.
- Cash, bullion and listed investments totalled $58.6 million, an increase of $16.2 million from the December FY2025 quarter.
Alkane Managing Director, Nic Earner said: “The March FY2025 quarter has delivered the increase in cash and bullion that we expected. Our paste plant is performing strongly, and our recently commissioned flotation and fine-grinding circuit increased its output through the quarter, with nearly 7,000 ounces of gold produced in March. With these capital programs behind us, we look forward to further reducing the debt and hedge book obligations and building cash in this record AUD gold spot price environment.”
“Our planned merger with Mandalay Resources will allow us to leverage our combined operations to create a new, larger gold and antimony business that will have increased scale and a stronger balance sheet, generating greater cashflow and providing us with more flexibility and growth options in the future.”