ANNUAL REPORT
2025
Corporate Directory
Disclaimer
This report contains certain forward-looking statements and forecasts, including possible or assumed reserves and resources, production levels
and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth or other trend projections. Such
statements are not a guarantee of future performance and involve unknown risks and uncertainties, as well as other factors which are beyond
the control of Alkane Resources Ltd. Actual results and developments may differ materially from those expressed or implied by these forward-
looking statements depending on a variety of factors. Nothing in this report should be construed as either an offer to sell or a solicitation of an
offer to buy or sell securities.
This document has been prepared in accordance with the requirements of Australian securities laws, which may differ from the requirements
of United States and other country securities laws. Unless otherwise indicated, all Ore Reserve and Mineral Resource estimates included
or incorporated by reference in this document have been, and will be, prepared in accordance with the JORC classification system of the
Australasian Institute of Mining and Metallurgy, and Australian Institute of Geosciences.
ACN 000 689 216 | ABN 35 000 689 216
Directors
A Quinn
Non-Executive Chair
(appointed 5 August 2025)
I J Gandel
Non-Executive Director
(resigned Non-Executive Chair
5 August 2025)
N P Earner
Managing Director and
Chief Executive Officer
B Mills
Non-Executive Director
(appointed 5 August 2025)
F Bourchier
Non-Executive Director
(appointed 5 August 2025)
D I Chalmers
Technical Director
(resigned 5 August 2025, now
Alkane Technical Advisor)
A D Lethlean
Non-Executive Director
(resigned 5 August 2025)
G M Smith
Non-Executive Director
(resigned 5 August 2025)
Joint Company Secretaries
D Wilkins
J Carter
(resigned 17 October 2024)
J Beckett
(appointed 17 October 2024)
Registered office
and principal place of business
Level 4, 66 Kings Park Road, West Perth WA 6005
Telephone: +61 8 9227 5677
Share register
Automic Pty Ltd (up to 4 August 2025)
Level 5, 126 Phillip Street, Sydney NSW 2000
Computershare Investor Services Pty Ltd
(from 4 August 2025)
Australia:
Level 17, 221 St Georges Terrace, Perth WA 6000
computershare.com/au
Canada:
14th Floor, 320 Bay Street, Toronto ON M5H 4A6
computershare.com/ca/en
Auditor
PricewaterhouseCoopers
Brookfield Place, 125 St Georges Terrace, Perth WA 6000
Stock exchange listing
Alkane Resources Ltd shares are listed on the
Australian Securities Exchange (Perth) (ASX: ALK),
the OTC Markets (OTC: ALKEF)
and Toronto Stock exchange (TSX: ALK)
Ordinary fully paid shares
Contact
Website: alkres.com | Email: info@alkres.com
Contents
About Alkane
4
Annual Highlights
6
Alkane Board
8
Message from the Chair
10
Alkane’s Producing Assets
12
Business Review
13
Tomingley
14
Boda-Kaiser
16
Exploration in NSW
18
Mineral Resources and Ore Reserves 23
Sustainability Report
31
Sustainability at Alkane
32
Governance
34
Our People
37
Communities
44
Environment
54
Financial Report
63
Directors’ Report
64
Auditor’s Independence Declaration
88
Financial Statements
89
Consolidated Financial Statements
91
Notes to the Consolidated Financial Statements
95
Directors’ Declaration
129
Consolidated Entity Disclosure Statement
130
Independent Auditor’s Report
131
Additional Information
137
Shareholder Information
138
Corporate Governance Statement
139
Mining Tenements
140
4
Alkane Resources Annual Report 2025
ANNUAL REPORT ABOUT ALKANE
About Alkane
We are an Australia-based resources group with interests in gold,
antimony and copper and three operating mines across Australia
and Sweden.
Alkane Resources Ltd is the parent
entity of the Alkane group, a gold and
antimony producer in Australia and Sweden.
Our wholly owned producing assets are
the Tomingley open pit and underground
gold mine southwest of Dubbo in Central
West New South Wales (around 310km
northwest of Sydney), the Costerfield
gold and antimony underground mining
operation northeast of Heathcote in
Central Victoria (around 105km north
of Melbourne), and the Björkdal
underground gold mine northwest of
Skellefteå in Sweden (approximately
750km north of Stockholm).
Alkane also owns the very large gold-
copper porphyry Boda-Kaiser Project
in Central West New South Wales and
holds several highly prospective gold and
copper tenements in Central West New
South Wales.
Alkane is headquartered in Perth,
Western Australia. The company was
incorporated in 1969 and merged with
Mandalay Resources in August 2025.
*FY2025 production = Mandalay prior results and calendar half-year update from Mandalay 9 July 2025 news release and Alkane fiscal year update from ALK Announcement
7 July 2025. Gold equivalent ounces produced calculated by multiplying production quantities of gold and antimony in period by respective average market prices of the
commodities in period, adding amounts to get a ‘total contained value based on market price’, and then dividing that total contained value by average market price of gold in the
period. The source for Au price is lbma.org.uk, and Sb price is metalbulletin.com. 2026 production estimate = consensus broker analyst estimates for Mandalay (calendar year)
and Alkane (fiscal year).
Alkane Resources Annual Report 2025
5
Merger with Mandalay Resources
ANNUAL REPORT ABOUT ALKANE
On 5 August 2025, Alkane completed
a merger of equals with Mandalay
Resources, formerly a Canada-based
natural resource company with producing
assets in Australia and Sweden. The
transaction has created a diversified
gold and antimony producer with three
operating mines and a strong balance sheet.
The well-established and stable
production from Costerfield and
Björkdal will complement the expanding
production from Tomingley. As a mid-
tier producer, the combined company
is better positioned to pursue growth
opportunities, such as seeking a
joint-venture partner to assist in the
development of the Boda-Kaiser Project.
Alkane Managing Director and Chief
Executive Officer, Nic Earner, continues
to lead the Australia-based executive
team of the combined company, which
has a new Board of Directors (see
page 8).
The Board is committed to further
increasing value for our shareholders
and strengthening Alkane for the long
term. We look forward to announcing
our revised and updated strategy in due
course.
Diversified production of
161koz AuEq
in FY2025, growing
further in FY2026*
Improved capital
market positioning
anticipated to drive
valuation re-rate.
(Market cap. ~A$1 billion)
Combined Board
with deep markets,
operational and industry
experience
Gold revenue of
$262.4M
(FY2024: $173.0M)
Annual Highlights
Profit after tax of
A$33M
(FY2024: $17.7M)
Cash, Bullion and listed
investments of
$68.3M
at 30 June 2025
(FY2024: $54.5M)
69,774oz
gold sold at
$3,770 per oz
(FY2024: 57,592oz gold sold at $3,004 per oz)
Corporate
ANNUAL REPORT ANNUAL HIGHLIGHTS
Alkane Resources Annual Report 2025
6
Gold poured at Tomingley
7
Alkane Resources Annual Report 2025
Commissioned Tomingley
paste plant and
flotation &
fine grind circuit
Operating cashflow of
$94.0M
for the year
(FY2024: $64.8M)
Operations
Announced intended merger
of equals with
Mandalay
Resources
(completed 5 August 2025)
26,000m drilled
at exploration prospects in NSW
(276 holes)
(FY2024: 75,235m)
Released a Boda-Kaiser Project
Scoping Study
Diamond core drilling at Tomingley
yielded multiple
ore-grade
intercepts
at depth outside existing
resource models
Exploration and Growth
70,120oz
gold poured (Tomingley)
at an AISC of
A$2,560 per oz
(FY2024: 57,217oz gold poured at an AISC of
A$2,137 per oz)
Tomingley introduced a fleet of new
CAT 2900XE
underground loaders
ANNUAL REPORT ANNUAL HIGHLIGHTS
8
Alkane Resources Annual Report 2025
ANNUAL REPORT ALKANE BOARD
Directors
On completion of the merger with Mandalay Resources on 5 August 2025, four new directors were appointed
following the resignation of three incumbent Alkane directors.
Andrew Quinn, a chartered mining engineer and highly credentialed investment banking and mining industry
veteran, was appointed independent Non-Executive Chair. The balance of the Board combines two former directors
of Mandalay and two incumbent directors of Alkane, including Nic Earner as Managing Director and Chief Executive
Officer. (Former Mandalay director, Dominic Duffy, resigned 14 October 2025.)
Andrew Quinn
BSc Mineral Exploitation (Mining)
Non-Executive Chair (appointed 5 August 2025)
Mr Quinn is a chartered mining engineer and a highly experienced investment banker and
company director.
Ian Gandel
LLB, BEc, FCPA, FAICD
Non-Executive Director (appointed 24 July 2006 and Chair 1 September 2017;
resigned as Chair 5 August 2025)
The former Chair of Alkane, Mr Gandel is a retail-sector businessman and long-term
investor in the mining industry.
Nic Earner
BEng (Chemical)
Managing Director and Chief Executive Officer (appointed 1 September 2017)
Mr Earner is a chemical engineer and mining executive with 30 years of experience in
technical and operational optimisation and management.
Bradford Mills
MSc (Geology and Mineral Economics)
Non-Executive Director (appointed 5 August 2025)
The former Chair of Mandalay (2017 to 2025), Mr Mills has over 40 years of executive,
board governance and investment experience in the global resources industry.
Alkane Board
9
Alkane Resources Annual Report 2025
ANNUAL REPORT ALKANE BOARD
Frazer Bourchier
MASc Eng
Non-Executive Director (appointed 5 August 2025)
Former president, CEO and director of Mandalay (2023 to 2025), Mr Bourchier is a
registered professional engineer with over 36 years of operational and executive
leadership experience in the Canadian and international mining industry.
Directors in FY2025
Ian Gandel
Chair (appointed director 24 July 2006 and Chair 1 September 2017; resigned as Chair 5 August 2025)
Nic Earner
Managing Director and Chief Executive Officer (appointed 1 September 2017)
David Ian Chalmers
Technical Director (appointed Managing Director in 2006; resigned as Managing Director 31 August 2017;
appointed Technical Director 1 September 2017; resigned as Technical Director 5 August 2025)
Anthony Dean Lethlean
Non-Executive Director (appointed director 30 May 2002; resigned as director 5 August 2025)
Gavin Murray Smith
Non-Executive Director (appointed director 29 November 2017; resigned as director 5 August 2025)
FY2025 Board: Tony Lethlean, Ian Chalmers, Ian Gandel, Gavin Smith, Nic Earner
10
Alkane Resources Annual Report 2025
ANNUAL REPORT MESSAGE FROM THE FORMER CHAIR
Message from the former Chair
Welcome to the Alkane Resources
Annual Report to shareholders
for 2025.
Following Alkane’s merger with Mandalay Resources
post-year-end in August, our company has entered an
exciting new era as a diversified gold and antimony producer.
Underpinned by three wholly owned producing assets in
Tomingley, Costerfield and Björkdal, and with the promising
Boda-Kaiser Project at the scoping stage, the Alkane group is
poised for further growth.
The transaction with Mandalay was made possible by the
sustained excellent performance of Tomingley Gold Mine for
almost a decade and the immense potential of Boda-Kaiser
and the broader Northern Molong Porphyry Project.
Tomingley continued to perform well in FY2025, producing 70,120 ounces of gold and completing the
first phase of capital growth outlined in the Tomingley Five Year Plan (24 June 2024). Both the paste
plant and flotation-and-fine-grind circuit were commissioned during the period. We’re delighted the
next phase of capital growth, involving realignment of the Newell Highway to allow open cut access
to the deposits, recently commenced post-year-end.
Release of the Boda-Kaiser Scoping Study in July 2024 represented a key milestone for that project:
the study demonstrates the significant value that could come from development of Boda-Kaiser,
particularly leveraging economies of scale. During the past year, Alkane continued to refine various
aspects of the project, conduct baseline environmental studies and evaluate partnering options.
We believe Alkane’s new status as a mid-tier producer puts the company in a stronger negotiation
position for a joint-venture partner for this project.
It has been my great pleasure and privilege to serve as Chair of the Alkane Resources Board for the
past eight years. On entering this new era as a combined entity, I have stepped down as Chair and look
forward to continuing in the role of director alongside a newly elected Board. Our highly accomplished
new Chair, Andrew Quinn, is a chartered mining engineer and experienced investment banker and
company director who has my unreserved support.
I extend my thanks to former Alkane directors Ian Chalmers, Tony Lethlean and Gavin Smith for their
many years of service, including during FY2025. Ian Chalmers in particular, Alkane’s former Managing
Director (2006–2017) and Technical Director, has steered Alkane’s success in minerals exploration and
development across Central West New South Wales over many years. He has been the lifeblood of the
company for more than three decades, and I’m delighted he continues with Alkane as Technical Advisor.
Once again, I acknowledge and thank the employees, contractors, strategic partners and consultants of
the company for their strong and continued commitment to Alkane. I also thank our many shareholders
– including those who were shareholders of Mandalay – and stakeholders for their support of Alkane
over the past financial year, during the transaction period, and into the future.
Ian Gandel
Director and Chair FY2025
Alkane Resources Ltd
11
Alkane Resources Annual Report 2025
ANNUAL REPORT MESSAGE FROM THE CHAIR
Message from the Chair
On behalf of the Board of the
newly transformed Alkane Resources,
I extend a warm greeting to all
our shareholders.
The merger of Alkane and Mandalay has created an expanded
company well positioned to deliver significant year-over-year
growth across our combined operations.
We recently released FY2026 combined production guidance
of 160,000 to 175,000oz AuEq for our three operating assets:
Tomingley Gold Mine, Costerfield Mine (gold and antimony)
and Björkdal Gold Mine. This represents a modest step up from
the combined production of the same three assets in
FY2025 (161,000oz AuEq).
Importantly, for FY2026 we have budgeted sustaining and growth capex to lay foundations for
potentially increasing production the following year.
Exploration remains a key focus for Alkane. We have budgeted substantial expenditure at all three
mines, particularly Costerfield in FY2026, with the view to both establishing new sources of ore as
well as extending existing deposits.
With one eye trained on sustaining and growing our existing assets, the other is turned to the next
step-jump in growth for the company: we hope to add another operation to our portfolio within the
next couple of years, through either acquisition or development, with the view to new production
in 2027.
I’m delighted to have been appointed Non-Executive Chair of Alkane as the company embarks on
this new chapter. I look forward to an exciting future working with a highly experienced Board and
management team, as we remain focused on sustainable growth and delivering shareholder value.
Andrew Quinn
Chair
Alkane Resources Ltd
12
Alkane Resources Annual Report 2025
Björkdal
Underground gold mine with open-pit resources in Northern Sweden
• Location: approximately 28km northwest of Skellefteå and 750km north of Stockholm.
• Open pit mining occurred from 1988 to 2019, and underground mining commenced in 2008. Large gold system
with long reserve life.
• Processing is from the 1.4Mtpa Björkdal plant.
• Production FY2025: 41.4koz Au.
• Production guidance FY2026: 40–44koz Au.
• Acquired by Mandalay 2014.
Tomingley
Open cut and underground gold mine in New South Wales, Australia
• Location: approximately 50km southwest of Dubbo in Central West New South Wales and 310km
northwest of Sydney.
• Open pit mining occurred from 2014 to 2023, and underground mining commenced in 2019.
• Processing is from the 1.1-1.2Mtpa Tomingley plant.
• Production FY2025: 70.1koz Au.
• Production guidance FY2026: 75–80koz Au.
• Undergoing major extension project to new resources. Approved until 2032.
• Discovered, developed and operated by Alkane.
Costerfield
High-grade underground gold and antimony mine in Victoria, Australia
• Location: approximately 50km east of Bendigo in Central Victoria and 105km north of Melbourne.
• Underground mining has occurred since 2006 on several deposits.
• Processing is from the 140ktpa Brunswick plant.
• Production calendar year 2024: 43.3koz Au and 1.3kt of antimony (Sb) – a gold equivalent of 54.8koz AuEq
(FY2025: 49.4koz AuEq).
• Production guidance FY2026: 40–45koz Au and 800–900t Sb.
• Costerfield is a significant critical mineral producer of antimony in the Western World.
• Acquired by Mandalay 2009.
ANNUAL REPORT ALKANE’S PRODUCING ASSETS
Alkane’s Producing Assets
Following the merger with Mandalay Resources, Alkane has three wholly
owned producing assets with strong resource growth potential.
Tomingley underground
BUSINESS REVIEW
FY2025
13
Alkane Resources Annual Report 2025
Tomingley
Tomingley continued its growth trajectory during FY2025, with strong
production and completion of the first phase of capital works aimed at
extending and futureproofing operations.
Mining and production
Tomingley is an open pit and underground mining
development with a processing facility, commissioned
in 2014, that typically runs at 1.1–1.2Mtpa. The
operation lies near the village of Tomingley, approximately
50 kilometres southwest of Dubbo in Central
West New South Wales. Tomingley Gold Operations
Pty Ltd is a wholly owned subsidiary of Alkane.
Mining at Tomingley currently occurs underground
on four gold deposits: Wyoming One, Caloma One,
Caloma Two and Roswell. Throughout FY2025, the
primary source of ore was the Roswell deposit.
Production for the financial year was 70,120 ounces
of gold at an AISC* of A$2,560. These fell within the
production guidance of 70,000 to 80,000 ounces (ASX
announcement 7 July 2025).
*AISC, or All In Sustaining Cost, comprises all site operating costs, royalties,
mine exploration, sustaining capex and mine development and an allocation of
corporate costs, presented on the basis of ounces sold.
Extension of operations
The first phase of capital growth outlined in the
Tomingley Five Year Plan (ASX Announcement 24 June
2024) was largely completed with the commissioning
of the flotation and fine grind circuit in December
2024 and the paste plant in January 2025.
Additional milestones included the introduction of a
fleet of new CAT 2900XE underground loaders, which
became operational in the September 2024 quarter,
and appointing contractors for construction of the
Newell Highway realignment, which commenced in
September 2025.
Alkane also progressed establishment of a binding,
in-perpetuity biodiversity stewardship agreement for
approximately 283 hectares of conservation areas to
offset the impact of the Tomingley Gold Extension
Project.
BUSINESS REVIEW TOMINGLEY
Alkane Resources Annual Report 2025
14
Tomingley
In FY2025 Tomingley
produced 70,120 ounces
of gold at an AISC of
A$2,560 per ounce.
Growth of resources
During the year, underground diamond core resource-
expansion drilling at Tomingley (Caloma One, Caloma
Two, Wyoming One and Roswell) yielded multiple
ore-grade intercepts at depth outside existing
resource models and close to existing underground
infrastructure.
Drilling campaigns were described and results
announced in ASX Announcements 28 February 2025
and 7 April 2025.
See page 25 for complete Mineral Resources and Ore
Reserves.
15
Alkane Resources Annual Report 2025
BUSINESS REVIEW TOMINGLEY
About the Tomingley Gold Extension Project
The Tomingley Gold Extension Project permits Alkane to extend gold mining
operations to the San Antonio and Roswell resources immediately south of the
existing mine. Approval was granted in February 2023 until end-2032.
We have approval to develop an underground mine at Roswell and one large open
cut (comprising three stages of pit development within its footprint). The consent also
permits realignment of the Newell Highway and other local roads, a higher processing
rate of 1.75Mtpa, paste-filling of underground stopes at Roswell, and further wall-lifts
to the second residue storage facility.
Tomingley open cut
Tomingley underground
BUSINESS REVIEW BODA-KAISER
Alkane Resources Annual Report 2025
16
Boda-Kaiser
Following the release of a Boda-Kaiser Scoping Study in July 2024, Alkane
continued to refine various aspects of the project, conduct baseline
environmental studies and evaluate partnering options.
Project overview
The Boda-Kaiser Project is founded on a large gold-
copper porphyry system near the village of Bodangora,
15 kilometres northeast of Wellington in Central West
New South Wales.
Alkane discovered porphyry mineralisation with
significant economic potential at Boda in late 2019.
An extensive drilling campaign has since defined the
Boda and Kaiser resources, which lie in a mineralised
corridor some 3.5 kilometres in length. We believe
the Boda and Kaiser deposits have the potential
to support a long-term bulk-tonnage mining and
processing operation.
The Mineral Resource Estimate (Indicated + Inferred)
for the Boda and Kaiser deposits stands at: 796Mt at
0.58g/t AuEq for 14.7Moz AuEq* (0.33g/t Au, 0.18%
Cu, 8.3Moz Au, 1.5Mt Cu).
Refer to page 29 for the complete Mineral Resource
tables.
The Boda-Kaiser Project is part of Alkane’s Northern
Molong Porphyry Project (NMPP), which comprises
several Exploration Licenses (ELs) in the broader area
(see page 20).
*The gold equivalent calculation formula is AuEq(g/t) = Au(g/t) + Cu%/100 x
31.1035 x copper price($/t) / gold price($/oz). The prices used were 12-month
averages of US$1,950/oz gold and US$8,600/t copper, and A$:US$0.67.
Estimated recoveries are 87% Cu and 81% Au for Boda and 81% Cu and 71% Au
for Kaiser from metallurgical studies of the Boda and Kaiser ore. Alkane considers
the elements included in the metal equivalents calculation have a reasonable
potential to be recovered and sold.
The Boda-Kaiser resources
have a combined metal
inventory of approximately
8.3Moz Au and 1.5Mt Cu.
Exploration at Boda-Kaiser
Boda-Kaiser
Alkane Resources Annual Report 2025
17
BUSINESS REVIEW BODA-KAISER
Boda-Kaiser Scoping Study
In July 2024, Alkane released a Boda-Kaiser Scoping
Study, which showed that a development scenario
of 20Mtpa with a 17-year mine life offered high
value due to potential economies of scale (ASX
Announcement 10 July 2025).
Alkane continues to refine various aspects of the
project with the view to progressing further into
feasibility. Baseline environmental studies are
underway, and Alkane is evaluating partnering options
for what would be a major project.
Summary of
Scoping Study
metrics for
the 20Mtpa
scenario
20Mtpa
Throughput
(2 x 10 Mtpa)
17+ years
Life of Mine
A$1.8B
Capex
(pre-production)
35,611tpa
Copper
(first 5 years)
159,334oz pa
Gold
(first 5 years)
A$630.4/oz
AISC
(with copper
by-product credit)
A$4.3B
10-Year Free
Cashflow
(pre-tax)
A$1.8B
Net Present
Value
(7%)
24%
Internal Rate of
Return
Mitchell Creek Mining
Alkane’s wholly owned subsidiary, Mitchell Creek Mining Pty Ltd (MCM), holds all the assets
associated with Boda-Kaiser and the NMPP. This includes three properties within the NMPP, including
most of the land on which the Boda and Kaiser deposits are located.
The name Mitchell Creek Mining (MCM) honours the historical Mitchell’s Creek Gold Mine, which
operated near Bodangora in the late 19th and early 20th centuries.
18
Alkane Resources Annual Report 2025
BUSINESS REVIEW EXPLORATION IN NSW
Exploration in NSW
Alkane holds several gold and copper tenements in Central West New
South Wales. Our FY2025 exploration efforts focused on the Tomingley
Gold Project and Northern Molong Porphyry Project.
Tomingley Gold Project
Alkane Resources Ltd 100%
Alkane’s Tomingley Gold Project covers an area of
approximately 440 square kilometres, stretching 60
kilometres north–south along the Newell Highway
in Central West New South Wales. The prospective
belt extends from near the village of Tomingley in the
north (about 50km southwest of Dubbo), through
Peak Hill and almost to Parkes in the south.
The project incorporates Alkane’s currently active
Tomingley Gold Operations, which includes the
Wyoming One, Wyoming Two, Caloma One, Caloma
Two, Roswell and San Antonio deposits, and the
currently inactive Peak Hill Gold Mine.
Exploration program
Alkane continues to explore the gold corridor between
Tomingley and Peak Hill, with the view to defining
additional resources to extend the life of the Tomingley
asset. Targets are being sought within the project area
both near-mine and farther out from Tomingley.
We announced the results of the previous year’s
exploration program in October 2024 (ASX
Announcement 7 October 2024). This encompassed
drilling at the Plains and El Paso prospects, an air-
core (AC) program testing the eastern side of the
prospective belt southeast of Tomingley, and AC
drilling at the Allendale prospect.
The FY2025 exploration program involved:
• Six diamond core holes: four at the El Paso prospect
(1,222 metres) and one each at the historic Paton’s
and Crowhurst & Sons mines (661 metres).
• A small RC drilling campaign of six holes: four
at Tomingley Two (1,018 metres); one testing
northern extensions to the historic Crowhurst &
Sons mines (300 metres); and one to follow up on
some AC results from four years ago near El Paso
(124 metres).
• A large, shallow, exploratory campaign of over 200
AC drill holes (16,693 metres) between the San
Antonio deposit and Peak Hill.
Peak Hill Gold Mine
Located 15 kilometres south of Tomingley, Alkane’s
Peak Hill Gold Mine operated from 1996 to 2005 as
an open cut heap leach. While the site is substantially
rehabilitated, it remains an active Mining Lease.
Technological advances and gold price increases in the
last two decades have led Alkane to re-evaluate the
economics of further development.
Following a University of Tasmania student research
project, which enhanced our understanding of the
deposit alteration and mineralogy, Alkane collected
180 rock chip samples from the pits and outcropping
rocks all over the hill for analysis to help determine
the best place to drill a deep diamond core hole.
Although Alkane retains its Mining Lease and
Environment Protection Licence for Peak Hill Gold
Mine, any further mine development would require
further environmental assessment and government
approval.
Refer to page 29 for the Mineral Resource table.
19
Alkane Resources Annual Report 2025
BUSINESS REVIEW EXPLORATION IN NSW
?
Creek
(Diversion)
Creek
Gundong
Kenilw orth Fault
Narrom ine Thrust
Barrabadeen
M ugincoble Fault
Portal
Future Highw ay
UG Developm ent
E L 5 6 7 5
E L 8 6 7 6
N ew ell
H ighw ay
Kyalite
Road
O 'Learys
Lane
Back
Tom ingley
W est
Road
M L 1 8 2 1
M L 1 8 5 8
E L 5 6 7 5
Tomingley
Peak Hill
M cNivens
Lane
E L 5 9 4 2
M yalls United
San Antonio
Rosw ell
M cLeans
El Paso
Calom a
W yom ing
G len Isla
Cem etery
El Paso SE
Plains
Calom a North
Patons
Peak Hill Gold M ine
Jounam a
Sm iths
W estray
TGO Plant
M L 1 6 8 4
610000m E
620000m E
6390000m N
6380000m N
1AL‐057hi
Cotton Form ation siltstone
Hornblende + plagioclase‐phyric diorite
M onzodiorite sill
Volcaniclastic sedim ents
Andesite
Feldspar phyric dacitic intrusions
(~200m RL interp)
M ineralisation
(surface projection)
UG developm ent
Septem ber 2025
0
5km
Feldspar phyric Andesite (elevated P)
Feldspar phyric Andesite
M ingelo Volcanics
148° 15' E
32° 35' S
32° 40' S
Northern section of Tomingley Gold Project, showing regional geology
20
Alkane Resources Annual Report 2025
BUSINESS REVIEW EXPLORATION IN NSW
Planned exploration in FY2026
Planned regional exploration around Tomingley for
the next 12 months includes a drone high-resolution
magnetic survey over the area surrounding and
including Peak Hill to define fertile structures and map
near volcanic rocks beneath cover. Other activities
include target generation work, such as mapping, soil
sampling and air-core drilling at various prospects
including Glen Isla, Gundong and Trewilga.
RC and diamond core drilling are planned to further
test El Paso, Tomingley Two, Glen Isla and new
geochemical targets identified by Alkane’s previous
AC work.
Northern Molong Porphyry
Project (gold-copper)
Alkane Resources Ltd 100%
The Northern Molong Porphyry Project (NMPP) lies
in Central West New South Wales, centred about 20
kilometres north of Wellington and 35 kilometres east
of Dubbo. It covers an area of 180 square kilometres
at the northern end of the Molong Volcanic Belt of the
Macquarie Arc, which is considered highly prospective
for large-scale porphyry and epithermal gold-copper
deposits.
Alkane’s exploration activity has identified at least
seven discrete magnetic/intrusive complexes within
a northwest trending transverse corridor. These are
the Kaiser (KIC), Boda (BIC), Boda South (BSIC), Driell
Creek (DIC), Murga (MIC), Windora (WIC), and the
Saxa (SIC) intrusive complexes, which are all located
outboard of the major Comobella Intrusive Complex
(CIC) (see map on page 21). The corridor is defined by
intermediate intrusives, lavas and breccias, extensive
alteration and widespread, low-grade, gold-copper
mineralisation.
Alkane owns five exploration licences within this
prospective corridor and has defined two significant
gold-copper resources at Boda and Kaiser (see Boda-
Kaiser on page 16).
Exploration program
Exploration continues to improve the understanding
of the Boda-Kaiser geological setting and to test
targets throughout the NMPP.
Regional exploration during FY2025 included several
drilling programs focused on Boda 2-3 and Kaiser
extensions, and the Driell Creek prospect.
A total of 7,616 metres drilled comprised eight reverse
circulation (RC) drill holes (2,468m) and six diamond
cores (DD) (5,148m).
The exploration team also completed an IP survey
at the Haddington prospect, a ground gravity survey
over Boda South (EL8338), and trialled passive seismic
(ambient noise tomography) with Fleet Space Pty Ltd
across the project.
These exploration activities were described, and the
material results reported, in ASX Announcement 8 July
2025.
Planned exploration in FY2026
Planned regional exploration for the next 12 months
includes a Mobile MT (mobile magnetotellurics) survey
over the NMPP to define new porphyry systems.
Other activities include target generation work
such as mapping, soil sampling and air-core drilling.
Any deeper drilling will focus on further testing the
Driell Creek and Haddington prospects, as well as
extensions to Boda-Kaiser, including the area between
the two deposits.
Southern Junee Porphyry
Project (gold-copper)
Alkane Resources Ltd 100%
The Southern Junee Porphyry Project (SJPP) lies in the
Riverina region of New South Wales, centred about 50
kilometres south of the large Cowal mine (Evolution
~14.3Moz gold). It covers an area of 235 square
kilometres at the southern extension of the Junee-
Narromine Volcanic Belt (J-NVB), which is considered
highly prospective for world-class gold-copper
porphyry and epithermal deposits.
The project comprises one exploration licence
(EL9600) and is 100% owned by Alkane with no
underlying royalties or liabilities.
Other projects
Alkane’s other exploration projects in New South
Wales are Armstrongs (gold), Rockley (base metals,
gold), Cudal (gold-copper-zinc) and Mt Conqueror
(gold). (All Alkane Resources Ltd 100%).
21
Alkane Resources Annual Report 2025
BUSINESS REVIEW EXPLORATION IN NSW
Nindethana
Fault
Fault
W indora
Finns
Fault
W ongajong
Fault
M oonlight
Fault
Kaiser
Fault
Fault
Com obella
Fault
Solar
Fault
M oonlight
Fault
Stoney
CIC
DCIC
BIC
BSIC
KIC
SIC
M IC
W IC
CIC
CIC
M acquarie
Thrust
32°20'S
149° 00'E
6420000m N
680000m E
E L 8 2 6 1
E L 4 0 2 2
E L 8 3 3 8
E L 8 3 3 8
E L 8 8 8 7
E L 6 2 0 9
E L 4 0 2 2
Bodangora
10km
W ellington
Saxa
Road
Goolm a
Com obella
Road
Rd
Forestvale
Road
(Great Artesian Basin)
Basin
Gunnedah
Haddington
Glen Hollow
Driell Creek
Kaiser
Boda
Boda 2‐3
Hillcroft
Gollan
Gollan South
Gollan North
Com obella North
M urga
W indora
Ballim ore
Konigin
Boda 4
Saxa
Septem ber 2025
Gravity low (possible intrusion)
‐ Intrusive com plexes (w ith nam e)
Ordovician volcanics and sedim ents
Faults
Thrust
(Gunnedah Basin)
Unconform ity
M agnetic com plex (possible intrusive com plex)
Devonian ‐ Silurian sedim ents and volcanics
0
5km
Alkane’s NMPP tenements, showing regional geology
22
Alkane Resources Annual Report 2025
BUSINESS REVIEW EXPLORATION IN NSW
Forbes
Dubbo
Nyngan
Parkes
Tottenham
Orange
West
Wyalong
Bathurst
Wellington
Northparkes
Cowal
Cadia Valley
Sunrise
Mineral Hill
Tritton
McPhillamys
CentralWestof
inset
NSW
Sydney
NSW
34°S
148°E
150°E
32°S
Armstrongs
Peak Hill
Cudal
Rockley
Tomingley
Armstrongs
TGO
Peak Hill
Cudal
TGO
Rockley
Tomingley
Southern
Junee
Porphyry
Southern
Junee
Porphyry
Northern
Molong
Porphyry
Northern
Molong
Porphyry
Mount
Conqueror
Mount
Conqueror
To Sydney
Burrendong
Dam
N
S
W
E
0
100
kilometres
Alkane
Resources Ltd
Alkane’s projects and operations in Central West New South Wales
MINERAL
RESOURCES AND
ORE RESERVES
Alkane Resources Annual Report 2025
23
Alkane Resources Annual Report 2025
24
Mineral Resources and Ore Reserves
Alkane reports Mineral Resources and Ore Reserves for its
tenements in Australia (New South Wales and Victoria) and Sweden as
at 30 June 2025.
All Mineral Resources and Ore Reserves are reported in accordance with the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC 2012).
The following tables summarise content reported to the ASX on 15 October 2025 for:
• Tomingley Gold Operations, the Peak Hill Gold Project and Boda-Kaiser Project in Central West New South
Wales, Australia
• Costerfield Mine in Central Victoria, Australia
• Björkdal Gold Mine and the Storheden and Norrberget projects in Northern Sweden.
Mineral Resources and Ore Reserves have been re-estimated to account for additional resources, mining depletion,
changes in gold price and operating costs during the 2025 financial year. Mineral Resources are wholly inclusive of
Ore Reserves.
Location
Tonnage
(kt)
Gold
grade
(g/t)
Copper
grade
(%)
Antimony
grade
(%)
Contained
gold
(koz)
Contained
copper
(Mt)
Contained
antimony
(kt)
Tomingley
(includes Peak Hill)
20,254
2.25
-
-
1,465
-
-
Boda-Kaiser
796,000
0.33
0.18
-
8,280
1.46
-
Costerfield
1,700
7.9
-
2.3
431
-
39.4
Björkdal
32,055
1.91
-
-
1,967
-
-
TOTAL
850,009
0.45
12,143
1.46
39.4
Combined Mineral Resources (30 June 2025)
Refer to tables on pages 25 (Tomingley), 27 (Costerfield), 28 (Björkdal) and 29 (Peak Hill and Boda-Kaiser) for details on Measured, Indicated and Inferred Resources.
Apparent arithmetic inconsistencies are due to rounding.
Combined Operations Ore Reserves (30 June 2025)
Location
Tonnage
(kt)
Gold
grade
(g/t)
Copper
grade
(%)
Antimony
grade
(%)
Contained
gold
(koz)
Contained
copper
(Mt)
Contained
antimony
(kt)
Tomingley
10,362
1.9
-
-
620
-
-
Costerfield
537
8.7
-
2.0
150
-
10.7
Björkdal
13,048
1.3
-
-
543
-
-
TOTAL
23,947
1.7
1,313
10.7
Apparent arithmetic inconsistencies are due to rounding.
MINERAL RESOURCES AND ORE RESERVES
Tomingley Gold Operations, Central West NSW, Australia
Identified Mineral Resources and Ore Reserves for Tomingley Gold Operations have been updated for 30 June 2025
and comprise the Wyoming One, Wyoming Three, Caloma One, Caloma Two, Roswell, San Antonio and McLeans
deposits.
Refer to ASX Announcement 15 October 2025 (NSW Operations) for details.
Tomingley Gold Operations Mineral Resources (30 June 2025)
DEPOSIT
MEASURED
INDICATED
INFERRED
TOTAL
Total Gold
(koz)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Open Pittable Resources (cut-off 0.4g/t Au)
San Antonio
0
0
5,930
1.8
1,389
1.3
7,319
1.7
406
Subtotal
0
0
5,930
1.8
1,389
1.3
7,319
1.7
406
Underground Resources (cut-off 1.3g/t Au)
Wyoming One
1,033
2.7
636
2.2
104
2.1
1,772
2.5
140
Wyoming Three
46
2.2
24
2.0
20
1.9
90
2.1
6
Caloma One
598
2.2
795
2.1
17
1.5
1,410
2.2
98
Caloma Two
368
2.3
1,499
2.3
362
2.0
2,229
2.3
162
Roswell
2,649
2.9
2,487
2.6
408
1.9
5,544
2.6
476
McLeans
870
2.5
870
2.5
70
Subtotal
4,694
2.7
5,441
2.4
1,781
2.2
11,915
2.5
952
TOTAL
4,694
2.7
11,371
2.1
3,170
1.8
19,234
2.2
1,358
Apparent arithmetic inconsistencies are due to rounding.
Tomingley Gold Operations Ore Reserves (30 June 2025)
DEPOSIT
PROVED
PROBABLE
TOTAL
Total Gold
(koz)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Open Pittable Reserves (cut-off 0.4g/t Au)
San Antonio
0
0
4,100
1.6
4,100
1.6
214
Stockpiles
314
1.1
0
0
314
1.1
11
Subtotal
314
1.1
4,100
1.6
4,414
1.6
225
Underground Reserves (cut-off 1.3g/t Au and 1.6g/t Au for Roswell)
Wyoming One
26.4
1.8
1
1.2
27
1.8
2
Caloma One
134.7
1.7
337.4
1.5
472
1.6
24
Caloma Two
38.4
1.5
936.2
1.7
975
1.7
53
Roswell
2,365
2.3
2,109
2.1
4,474
2.2
316
Subtotal
2,564
2.3
3,383
1.9
5,948
2.1
396
TOTAL
2,878
2.1
7,483
1.7
10,362
1.9
621
Apparent arithmetic inconsistencies are due to rounding.
25
Alkane Resources Annual Report 2025
MINERAL RESOURCES AND ORE RESERVES
Comparative Tomingley Gold Operations Mineral Resources (30 June 2024 to 30 June 2025)
DEPOSIT
2024
2025
Tonnage
(kt)
Grade
(g/t Au)
Gold
(koz)
Tonnage
(kt)
Grade
(g/t Au)
Gold
(koz)
Open Pittable Resources (cut-off 0.4g/t Au)
Roswell
3,900
1.7
213
San Antonio
7,319
1.7
406
7,319
1.7
406
Subtotal
11,219
1.7
619
7,319
1.7
406
Underground Resources (cut-off 1.3g/t Au)
Wyoming One
1,884
2.5
150
1,772
2.5
140
Wyoming Three
90
2.1
6
90
2.1
6
Caloma One
1,987
2.1
132
1,410
2.2
98
Caloma Two
2,074
2.3
153
2,229
2.3
162
Roswell
5,905
2.7
517
5,544
2.8
476
McLeans
870
2.5
70
870
2.5
70
Subtotal
12,810
2.5
1028
11,915
2.5
952
TOTAL
24,029
2.1
1,647
19,234
2.2
1,358
Apparent arithmetic inconsistencies are due to rounding.
Comparative Tomingley Gold Operations Ore Reserves (30 June 2024 to 30 June 2025)
DEPOSIT
2024
2025
Tonnage
(kt)
Grade
(g/t Au)
Gold
(koz)
Tonnage
(kt)
Grade
(g/t Au)
Gold
(koz)
Open Pittable Reserves (cut-off 0.4g/t Au)
Roswell
3,900
1.7
213
San Antonio
4,100
1.6
214
4,100
1.6
214
Stockpiles
241
1.1
9
314
1.1
11
Subtotal
8,241
1.6
436
4,414
1.6
225
Underground Reserves (cut-off 1.2g/t Au and 1.6g/t Au for Roswell)
Proved
442
1.9
27
2,564
2.3
186
Probable
2,185
2.3
162
3,383
1.9
210
Subtotal
2,627
2.2
189
5,948
2.1
395
TOTAL
10,868
1.8
625
10,362
1.9
621
Apparent arithmetic inconsistencies are due to rounding.
The primary differences from 2024 to 2025 are:
• Removal of Roswell open pit resources and reserves to be replaced by underground resources and reserves due
to a change in mining schedule
• Underground resources and reserves added by extensional development drilling in Caloma One and Caloma Two
• Depletion due to mining.
MINERAL RESOURCES AND ORE RESERVES
Alkane Resources Annual Report 2025
26
Costerfield Mine, Victoria, Australia
Alkane reports Costerfield Mineral Resources and Ore Reserves for the first time in accordance with JORC 2012.
The Mineral Resources and Ore Reserves were estimated as at 31 December 2024 and depleted with subsequent
production through to 30 June 2025.
The Mineral Resources stated here are for the Augusta, Cuffley, Brunswick, True Blue and Youle deposits. Refer to
ASX Announcement 15 October 2025 (Costerfield) for details.
Costerfield Mineral Resources (30 June 2025)
Category
Tonnage
(kt)
Gold grade
(g/t)
Antimony grade
(%)
Contained gold
(koz)
Contained antimony
(kt)
Measured (Underground)
387
13.1
3.7
162
14.4
Measured (Stockpile)
41
5.6
0.7
7
0.3
Indicated
735
5.5
2.0
131
15.0
Measured + Indicated
1,162
8.0
2.6
300
29.7
Inferred (Costerfield)
392
5.5
1.3
69
5.2
Inferred (True Blue)
145
13.1
3.1
61
4.5
Inferred
537
7.5
1.8
130
9.7
TOTAL
1,700
7.9
2.3
431
39.4
Cut-off 4.3g/t AuEq (AuEq = Au g/t + 2.39 × Sb %. The AuEq factor of 2.39 is calculated at a gold price of US$2,500/oz, an antimony price of US$19,000/t, and recoveries of
91% Au and 92% Sb.) Apparent arithmetic inconsistencies are due to rounding.
Costerfield Ore Reserves (30 June 2025)
Category
Tonnage
(kt)
Gold grade
(g/t)
Antimony grade
(%)
Contained gold
(koz)
Contained antimony
(kt)
Proved (Stockpile)
41.0
5.6
0.7
7.4
0.3
Proved (Costerfield underground)
255.7
11.6
2.4
95.6
6.1
Subtotal
296.7
10.8
2..1
103
6.4
Probable (Costerfield underground)
240.4
6.0
1.8
46.1
4.2
TOTAL
537.1
8.7
2.0
149.5
10.7
Sustaining cut-off 5.6g/t AuEq; incremental cut-off 3.2g/t AuEq. (AuEq = Au g/t + 1.55 × Sb %. The AuEq factor of 1.48 is calculated at a gold price of US$2,100/oz, an
antimony price of US$16,000/t, exchange rate US$:A$ of 0.68.) Apparent arithmetic inconsistencies are due to rounding.
Alkane has governance arrangements and internal controls in place with respect to its estimates of Mineral
Resources and Ore Reserves including:
• oversight and approval of the Tomingley, Peak Hill and Boda-Kaiser annual statement by the Alkane
Technical Advisor, and oversight and approval of the Costerfield and Björkdal annual statements by
Alkane’s VP Operational Geology and Exploration (Costerfield and Björkdal);
• establishment of internal procedures and controls to meet JORC Code 2012 compliance in all external
reporting;
• independent review of new and materially changed estimates;
• annual reconciliation with internal planning to validate reserve estimates for operating mines; and
• Board approval of new and materially changed estimates.
Mineral Resource and Ore Reserve Governance and Internal Controls
27
Alkane Resources Annual Report 2025
MINERAL RESOURCES AND ORE RESERVES
Björkdal Gold Mine Mineral Resources (30 June 2025)
DEPOSIT
MEASURED
INDICATED
INFERRED
TOTAL
Total Gold
(koz)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Open Pittable Resources (cut-off 0.17g/t Au Björkdal and 0.27g/t Au Norrberget)
Björkdal
0
0
4,130
1.61
6,666
1.09
10,796
1.28
446
Norrberget
0
0
221
2.76
96
5.36
317
3.63
37
Subtotal
0
0
4,351
1.67
6,762
1.15
11,113
1.35
483
Underground Resources (cut-off 0.71g/t Au)
Björkdal
1,033
2.56
13,675
2.41
3,178
2.11
17,886
2.37
1,360
Storheden
0
0
0
0
1,769
1.74
1,769
1.74
99
Subtotal
1,033
2.56
13,675
2.41
4,947
1.98
19,655
2.31
1,459
Stockpile Resources
Björkdal
0
0
1,287
0.59
0
0
1,287
0.59
24
TOTAL
1,033
2.56
19,313
2.12
11,709
1.50
32,055
1.91
1,967
Apparent arithmetic inconsistencies are due to rounding.
DEPOSIT
PROVED
PROBABLE
TOTAL
Total Gold
(koz)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Open Pittable Reserves (cut-off 0.2g/t Au Björkdal and 0.32g/t Au Norrberget)
Björkdal
5,325
1.05
5,325
1.05
180
Norrberget
161
2.72
161
2.72
14
Subtotal
5,486
1.10
5,486
1.10
194
Underground Reserves (cut-off 0.85g/t Au stopes and 0.2g/t Au development)
Björkdal
848
1.54
5,427
1.62
6,275
1.61
325
Stockpile Reserves
Björkdal
1,287
0.59
1,287
0.59
24
TOTAL
848
1.54
12,200
1.28
13,048
1.29
543
Björkdal Gold Mine Ore Reserves (30 June 2025)
Apparent arithmetic inconsistencies are due to rounding.
Björkdal Gold Mine, Northern Sweden
Alkane reports Björkdal Mineral Resources and Ore Reserves for the first time in accordance with JORC 2012.
The Mineral Resources and Ore Reserves were estimated as at 31 December 2024 and depleted with subsequent
production through to 30 June 2025.
At Björkdal, open-pit mining has been paused, with the potential for continued mining once underground
operations have ceased or new portals to the underground can be established.
The Mineral Resources stated here are for the Björkdal, Norrberget and Storheden deposits. Refer to ASX
Announcement 15 October 2025 (Björkdal) for details.
MINERAL RESOURCES AND ORE RESERVES
Alkane Resources Annual Report 2025
28
Boda-Kaiser Project, Central West NSW, Australia
There was no change in Mineral Resources for the Boda-Kaiser Project in FY2025. Full details with accompanying
JORC tables were reported in ASX Announcements 30 May 2022 and 14 December 2023 (Boda) and 17 February
2023 and 29 April 2024 (Kaiser).
DEPOSIT
INDICATED
INFERRED
TOTAL
METAL
Tonnes
(Mt)
Au
(g/t)
Cu
(%)
Tonnes
(Mt)
Au
(g/t)
Cu
(%)
Tonnes
(Mt)
AuEq*
(g/t)
Au
(g/t)
Cu
(%)
AuEq*
(Moz)
Au
(Moz)
Cu
(Mt)
Open Pittable Resources (cut-off 0.3g/t AuEq)
Boda
191
0.36
0.17
42
0.29
0.16
233
0.58
0.35
0.17
4.31
2.62
0.39
Kaiser
179
0.27
0.2
10
0.29
0.14
189
0.54
0.27
0.19
3.28
1.64
0.37
Subtotal
370
0.32
0.18
52
0.29
0.16
422
0.56
0.31
0.18
7.59
4.26
0.76
Underground Resources (cut-off 0.4g/t AuEq)
Boda
151
0.34
0.2
198
0.34
0.18
350
0.59
0.34
0.18
6.63
3.78
0.65
Kaiser
16
0.3
0.22
8
0.36
0.2
24
0.61
0.32
0.21
0.46
0.24
0.05
Subtotal
167
0.34
0.2
206
0.34
0.18
374
0.59
0.34
0.18
7.09
4.02
0.7
TOTAL
537
0.32
0.19
258
0.33
0.18
796
0.58
0.33
0.18
14.7
8.28
1.46
Boda and Kaiser Mineral Resources (30 June 2025)
Apparent arithmetic inconsistencies are due to rounding.
*At the time the resources were estimated, the prices used to calculate AuEq were based on 12-month averages of US$1,950/oz gold and US$8,500/t copper, and A$:US$0.67.
Recoveries are estimated at 87% for Cu and 81% for Au at Boda and 81% Cu and 71% Au at Kaiser from metallurgical studies. Alkane considers the elements included in the
metal equivalents calculation have a reasonable potential to be recovered and sold.
Boda-Kaiser Project
Total Mineral Resources (Indicated + Inferred):
796Mt grading 0.33g/t Au and 0.18% Cu (8.3Moz Au; 1.3Mt Cu)
(0.3g/t AuEq* and 0.4g/t AuEq* cut-off) for 0.58g/t AuEq* (14.7Moz AuEq)
Peak Hill Gold Project, Central West NSW, Australia
There was no change in Mineral Resources for the Peak Hill Gold Project in FY2025. The recent history of the
project was summarised in the 2021 Annual Resource and Reserve Statement (ASX Announcement 7 September
2021) and JORC Tables documented in ASX Announcement 18 October 2018.
Deposit
Resource
category
Cut-off
Tonnes
(Mt)
Gold grade
(g/t)
Gold metal
(koz)
Copper metal
(%)
Proprietary underground
Inferred
2g/t Au
1.02
3.29
108
0.15
TOTAL
1.02
3.29
108
0.15
Peak Hill Mineral Resources (30 June 2025)
Apparent arithmetic inconsistencies are due to rounding.
29
Alkane Resources Annual Report 2025
MINERAL RESOURCES AND ORE RESERVES
Competent Persons
The information in this report relating to Mineral Resource and Ore Reserve estimates has been approved by individuals having
sufficient experience to qualify as a Competent Person, as defined in the 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’ (JORC 2012). Such experience relates to the style of mineralisation and type
of deposit under consideration, and the activity undertaken. All Competent Persons named below have provided prior written consent
to the inclusion of the matters based on their information in this report, in the form and context in which it appears.
Information relating to
Competent Person
Annual Mineral Resources and Ore Reserves Statement for
Tomingley Gold Operations, Peak Hill Gold Project and Boda-Kaiser
Project (Central West NSW) as a whole
Mr D Ian Chalmers (FAusIMM, FAIG), who is employed by Alkane
Resources Ltd as Technical Advisor.
Tomingley Gold Operations Mineral Resource estimate (including
Roswell)
Peak Hill Mineral Resource estimate
Mr Craig Pridmore (MAusIMM), who is Geology Manager
Tomingley Gold Operations and an employee of Alkane Resources
Ltd.
Tomingley Gold Operations Open Pit Ore Reserve estimate (San
Antonio)
Mr John Millbank (MAusIMM), an independent consultant
(Proactive Mining Solutions).
Tomingley Gold Operations Underground Ore Reserve estimate
(including Roswell)
Mr Christopher Hiller (MAusIMM), an independent consultant
(Hiller Enterprises Pty Ltd).
Tomingley Gold Operations Mineral Resource estimates (San
Antonio and McLeans)
Boda and Kaiser Mineral Resource estimates
Mr David Meates (MAIG), who is Exploration Manager NSW and
an employee of Alkane Resources Ltd.
Annual Mineral Resources and Ore Reserves Statements for
Costerfield Mine (Victoria, Australia) and Björkdal Gold Mine
(Sweden) as a whole
Mr Chris Davis (MAusIMM) CP(Geo) who is employed by Alkane
Resources Ltd as Vice President of Operational Geology and
Exploration (Costerfield and Björkdal).
Costerfield Mineral Resource estimate
Mr Cael Gniel (MAusIMM), an independent consultant (SRK).
Costerfield Ore Reserve estimate
Mr Robert Urie (MAusIMM), an independent consultant (SRK).
Björkdal Mineral Resource estimate (including Storheden and
Norrberget)
Mr Reno Pressacco (Member Association of Professional
Geoscientists of Ontario), an independent consultant (SLR).
Björkdal Ore Reserve estimate
Mr Richard Taylor (MAusIMM), an independent consultant (SLR).
Previously reported information
All information in this report that relates to Mineral Resource or Ore Reserve estimates has been extracted from Alkane’s ASX
announcements dated 15 October 2025. Additional exploration results have been extracted from ASX announcements noted in the text
of the report.
The relevant ASX announcements are available to view on Alkane’s website. Alkane confirms that, other than mining depletion, it is
not aware of any new information or data that materially affects the information included in the relevant market announcement(s); in
the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the
estimates in the relevant market announcement continue to apply and have not materially changed; and that the form and context in
which the Competent Person’s findings are presented have not been materially altered.
MINERAL RESOURCES AND ORE RESERVES
Alkane Resources Annual Report 2025
30
SUSTAINABILITY
REPORT
31
Alkane Resources Annual Report 2025
Sustainability at Alkane
Alkane strives to uphold high environmental, social and governance (ESG)
standards across all our activities. These sustainability foundations are
embedded in our business; they underpin our social licence to operate
and are integral to our ability to deliver value to all stakeholders.
Our approach
This Sustainability Report summarises Alkane’s
sustainability performance in FY2025. During this
period, Alkane’s activities occurred largely in Central
West New South Wales at Tomingley Gold Mine
(our one producing asset during FY2025), the Boda-
Kaiser Project, various exploration tenements, and
the rehabilitated Peak Hill Gold Mine (still an active
Mining Lease).
Post year-end, on 5 August 2025, Alkane completed a
merger with Mandalay Resources and now owns three
producing assets: Tomingley, the Costerfield gold and
antimony mine in Central Victoria, and the Björkdal
gold mine in Northern Sweden.
This report primarily describes the sustainability
performance of activities within Central West New
South Wales during FY2025. As per recent years, it is
structured around four sustainability pillars spanning
ESG: Governance, Our People, Communities, and
Environment.
Underpinning Alkane’s approach to sustainability
is our ESG Mission Statement. This ESG Mission
Statement represents our pledge to all stakeholders
– including investors, host communities, employees,
government bodies and the people of Australia.
Improved safety performance
(reduced TRIFR* by 68% on FY2024).
*total recordable injury frequency rate
2
Underground mining project achieved
runner-up for ‘Health Excellence’ in NSW
Mining Awards (August 2025).
3
Participated in several projects with
Mid-Macquarie Landcare
(including hosting bat survey).
4
Hosted Mining and Extractive
Environment Team (MEET) Central West
for a 24-hour event.
5
Supported seven university students
(for honours projects or vacation work)
during the period.
6
Key achievements FY2025
Improved workforce diversity
(grew numbers of ATSI* employees by 28%
and women by 12% on FY2024).
*Aboriginal and Torres Strait Islander
1
Commenced the process for establishing
a biodiversity stewardship agreement to
offset ecosystem credits generated by the
Tomingley Gold Extension Project.
8
Planted 1,200 Fuzzy Box seedlings in
designated biodiversity stewardship areas.
Also re-erected, hollow-bearing dead trees,
providing roosting habitat.
9
7
Community and corporate sponsorships
totalled $174.6k, an increase of ~69%
(FY2024: $103.5k).
Common Fringe Lily (Thysanotus tuberosus)
SUSTAINABILITY REPORT SUSTAINABILITY AT ALKANE
Alkane Resources Annual Report 2025
32
Company Values
ESG Mission Statement
Integrity
We do what’s right
in our actions and
relationships.
Respect
We treat people and
the environment
with care.
Transparency
We are proactive in
communicating our
intent and outcomes.
Performance
We plan and execute
to deliver strong
business results.
• Ensure our choices and behaviours align with
our values.
• Maintain good environmental governance.
• Be responsive to the needs of all stakeholders.
• Minimise impacts from our operations.
• Stay positively engaged with host communities.
• Value the safety and wellbeing of our workforce.
• Expand sustainability reporting and disclosures.
• Communicate openly with stakeholders about
our activities.
• Actively seek sustainable solutions that have
a strong business case.
=
=
=
=
Four Sustainability Pillars
Adhering to a
corporate governance
framework
Operating with
integrity, respect and
transparency
Managing risks across
operations, finance
and sustainability
Ensuring a rewarding
and equal-opportunity
workplace
Valuing the safety
and wellbeing of our
workforce
Responding to the
needs of stakeholders
Working with host
communities to build
resilience
Respecting Aboriginal
and Torres Strait
Islander culture and
traditions
Managing water,
emissions and waste
responsibly
Rehabilitating the land
we disturb
Enhancing biodiversity
and land capability to
offset our impact
Governance
Our People
Communities
Environment
33
Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT SUSTAINABILITY AT ALKANE
Governance
Alkane administers corporate governance with openness and integrity,
employing comprehensive systems of control and accountability.
Organisational governance
Alkane’s corporate governance framework is based
on the principles and recommendations of the ASX
Corporate Governance Council (Corporate Governance
Principles and Recommendations 4th edition). The key
features of this framework are set out in our annual
Corporate Governance Statement, available on the
Alkane website.
Board
FY2025
During FY2025, the Alkane Board comprised five
directors and two joint company secretaries with skills
and experience across technical, operational, finance,
broking and general business:
• Ian Gandel – Non-Executive Chair
• Nic Earner – Managing Director
• Ian Chalmers – Technical Director
• Tony Lethlean – Non-Executive Director
• Gavin Smith – Non-Executive Director
• Dennis Wilkins – Joint Company Secretary
• James Carter – Joint Company Secretary
(resigned 17 October 2024)
• Julia Beckett – Joint Company Secretary
(appointed 17 October 2024)
Two of the non-executive directors, Mr Lethlean and
Mr Smith, were considered independent.
Merger with Mandalay Resources
(5 August 2025)
Following the merger with Mandalay Resources,
which completed on 5 August 2025, Mr Chalmers, Mr
Lethlean and Mr Smith resigned as directors of Alkane,
and the following directors were appointed to the
Board:
• Andrew Quinn – Non-Executive Chair
(independent)
• Bradford Mills – Non-Executive Director
• Dominic Duffy – Non-Executive Director
(resigned on 14 October 2025)
• Frazer Bourchier – Non-Executive Director
The Board continues to seek additional independent
members who will bring complementary skill sets and
diversity to Alkane’s leadership. Details of directors
are presented on page 64 of this report.
Board sub-committees
During FY2025, the Board had four established sub-
committees, each with its own charter:
• Audit Committee
• Nomination Committee
• Remuneration Committee
• Risk Management Committee
SUSTAINABILITY REPORT GOVERNANCE
Alkane Resources Annual Report 2025
34
Following completion of the merger with Mandalay,
the Board reviewed the nature and scope of each sub-
committee and in September 2025 reconstituted the
following sub-committees, each with its own charter:
• Audit & Risk Committee
• Nomination & Governance Committee
• Remuneration Committee
• Technical Committee
ESG considerations are governed by the Nomination
& Governance Committee. This committee assists
the Board with matters pertaining to sustainability –
setting sustainability strategy, guiding sustainability
governance, business and social performance. It
also assists the Audit & Risk Committee in managing
sustainability risks and opportunities.
Corporate policies and procedures
Alkane’s corporate governance practices are
underpinned by a suite of corporate policies and
procedures, including Appointment and Independence
of Directors, Diversity, Code of Conduct, Risk
Management, Anti-bribery and Corruption, Modern
Slavery and Safety, Health and Sustainability.
The Code of Conduct was updated post-year-end in
September 2025.
Alkane’s Corporate Governance Statement is
available on our website, along with the Board
charter and details of Board sub-committees.
Also listed are key policies and procedures,
including those pertaining to appointment and
independence of directors, diversity, code of
conduct, risk management, and anti-bribery and
corruption.
alkres.com/about/governance/
Corporate Governance Statement
Ethical business practices
In keeping with our core values, Alkane operates with
integrity, respect and transparency across the business
and our supply chain. The following policies (available
on our website) guide the actions of our leaders,
employees, contractors, suppliers and customers:
Code of Conduct – Alkane is committed to
conducting itself with integrity, honesty and
fairness in all business practices and to observing
the rule and spirit of the legal and regulatory
environment in which the group operates.
Anti-Bribery and Corruption (ABC) Policy – Alkane
is committed to maintaining a high standard of
ethical conduct in all business dealings, compliance
with international ABC regulations, and an open
and transparent management approach to avoid
exposing ourselves to potential conflicts of interest.
Whistleblower Policy – Alkane is committed to
supporting a confidential and anonymous process
whereby persons can report any matter deemed to
be illegal, contrary to the policies of the company
or in some other manner not right or proper.
Modern Slavery Policy – Alkane is committed to
implementing and enforcing effective systems and
controls to minimise the risk of modern slavery
taking place anywhere in our business or in any of
our supply chains.
Modern Slavery Statement
Alkane’s first Modern Slavery Statement under the
Australian Government’s Modern Slavery Act 2018 was
submitted in October 2022.
The initial statement submitted in 2022 noted
Alkane’s risk of exposure to modern slavery as low.
Alkane has continued to pursue its undertakings and
commitments with respect to Modern Slavery, which
include:
• Incorporating modern slavery clauses into all
contracts. These require suppliers to comply with
modern slavery legislation and provide Alkane
with audit rights to confirm;
• Updating our market approach documentation
(invitations to tender, requests for proposals and
supplier application forms) to require prospective
suppliers to identify the location of manufacture
of any goods supplied; and
• Seeking and receiving demonstrations of best
practice and the absence of modern slavery in
the supply chains of existing suppliers in at-risk
industries (clothing and apparel).
Alkane submitted its FY2024 Modern Slavery
Statement in January 2025. We will continue to report
the steps Alkane is taking to assess and address
modern slavery risks in future annual statements.
35
Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT GOVERNANCE
Regulatory and compliance
Alkane complies with the regulations of the
Corporations Act 2001, Australian Accounting
Standards, and other mandatory professional reporting
requirements (refer to the Financial Report).
Some of the key ESG-themed reports submitted
annually include:
• Modern Slavery Statement
• Workplace Gender Equality Agency
• National Pollutant Inventory
• National Greenhouse and Energy Reporting
• Annual return to the NSW Environment Protection
Authority
• Annual rehabilitation management plans
Risk management
Alkane is committed to the active management of
risks to operations via the Audit & Risk Committee,
which routinely reviews Alkane’s Risk Management
Framework to ensure it is fit for purpose.
As outlined in Alkane’s Risk Management Policy,
our Risk Management Framework considers both
strategic and organisational risks. The company’s
Risk Management Coordinator is tasked with the
responsibility of keeping the Risk Management Policy,
Framework and registers updated, subject to formal
approval of policy amendments by the Board.
Financial risks & IT
The Audit & Risk Committee is responsible for
assessment, monitoring and management of financial
and non-financial risks, including IT. Periodically
Alkane commissions external consultants to perform
diagnostics and reviews of internal controls and IT
maturity and cyber security.
During FY2025, Alkane undertook a desktop-style
review aimed at evaluating the company’s privacy
protection protocols. This included an analysis
of relevant artefacts and consultation with key
stakeholders. Following this review, Alkane has
developed:
• a privacy policy that aligns with the Australian
Privacy Principles and Obligations under the
Privacy Act 1988;
• procedures congruent with the privacy policy,
designed to guide the company in consistent
handling of personal information in accordance
with established best practices and legal
requirements; and
• a breach notification plan to help manage and
mitigate the impact of data breaches, with clear
guidelines for action and compliance with legal
notification duties.
Material risks
The company’s primary material risks are described
in the Directors’ Report (see page 71). They include:
Mineral Resource and Ore Reserve estimates;
production, cost and capital estimates; operating risks;
exploration risks; gold prices; taxation; community
relations; cyber security risks; government regulation;
debt and hedging covenants; government policy and
permits; climate-related risks.
Alkane continues to review and update the corporate
risk register, focusing on the resourcing required to
manage key risks.
Operations
Alkane continues to monitor and audit critical controls
as part of its ongoing risk management process at
each of its operations. Specialised software assists
with the management of the complexities for the
high-level risks.
To minimise environmental risks, Alkane strives
to conduct activities to the highest standard of
environmental obligation, including compliance with
all environmental laws and regulations.
Tomingley
36
Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT GOVERNANCE
23
Corporate and Finance
mostly Perth, some Dubbo
300
Tomingley
including casuals
16
Exploration
339 in total
Our People
Alkane is committed to providing a safe, rewarding and
equal-opportunity workplace.
Workforce
Alkane is headquartered in Perth, Western Australia,
where many of our centralised services and executive
and senior managers are located. During FY2025,
the majority of Alkane’s workforce was in New South
Wales, with the largest number (almost 90 percent) at
Tomingley Gold Operations southwest of Dubbo.
At year-end, Tomingley had 300 employees (including
casuals and excluding contractors and subcontractors)
across geology, mining, processing, finance and
administration, maintenance, work health and safety
(WHS), and environment. Since Tomingley is a
residential operation and does not support a ‘fly-in/
fly-out’ scheme, the majority of our workforce lives in
the local area.
Alkane workforce by location
(30 June 2025)
37
Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT OUR PEOPLE
Alkane’s experienced exploration team has its main
premises and core yard in Orange (Central West New
South Wales), along with additional field facilities and
core yard at the decommissioned Peak Hill Gold Mine.
At Peak Hill Gold Mine, Alkane also employs a
site supervisor who maintains the mining leases
and infrastructure while the site is under care and
maintenance. We also have a shopfront office in the
town centre of Dubbo.
At financial year-end, Alkane had 339 personnel
engaged in the business.
Diversity and inclusion
Alkane is committed to actively managing diversity
at all levels of the company, where diversity may
result from a range of factors including age, gender,
disability, ethnicity, marital or family status, religious
or cultural background, sexual orientation and gender
identity. We value the unique contributions made
by people from all backgrounds, experiences and
perspectives.
Alkane’s commitments are outlined in our Diversity
Policy, which addresses equal opportunities in the
hiring, training, flexible working practices and career
advancement of directors, officers and employees.
We recognise the particular importance of attracting
women to join the company and the mining industry
more generally.
In support of improving overall female representation
across the company, the Board has the following
objectives, as outlined in the company’s Corporate
Governance Statement:
• By 30 June 2027, at least 30 percent of directors
on the Board will be female.
• By 30 June 2027, women will represent greater
than 18 percent at all levels of the organisation.
To arrive at this figure, we considered the average
percentage of women working in ‘Metal Ore
Mining’ according to Australia’s Workplace Gender
Equality Agency for companies of different sizes.
• Hiring practices will continue to target female
candidate representation.
As stated in the Diversity Policy, Alkane does not
tolerate any form of discrimination, harassment,
vilification and victimisation.
Alkane female and ATSI employees
30 June 2023
30 June 2024
30 June 2025
Women
32 (12%)
32 (10%)
36 (11%)
Aboriginal and Torres Strait
Islander
32 (12%)
32 (10%)
41 (13%)
Numbers include casuals but not contractors/subcontractors.
“On finding myself in the mining
industry, I discovered I really enjoy
the unique environment. The
Tomingley team is small and tight
knit, making it easy to build good
relationships across the site with
colleagues from a range of
backgrounds and experiences.”
- Lachlan, Environmental Coordinator
Diversity performance
The table below indicates the number and percentage
of female and Aboriginal and Torres Strait Islander (ATSI)
employees at Alkane (excluding Tomingley contractors/
subcontractors) at year-end for the past three years.
38
Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT OUR PEOPLE
At year-end, the Tomingley workforce included 39
people identifying as ATSI and 26 women.
Tomingley continues to encourage diverse candidates
to apply for all roles include using gender-neutral or
female-positive language in recruitment material and
creating career profiles of Tomingley employees with
diverse backgrounds.
We also continue to employ some women with less
mining experience, with the view to training them in
the desired skills. In a number of cases, these women
have relocated to the Tomingley area with their more
industry-experienced partners, also employed by
Alkane.
Numbers include casuals but not contractors/subcontractors.
Numbers of Tomingley women by role
Manager
Supervisors
Professionals (geologists, environmental and planner)
Finance/Administration
Operators
Trades
TOTAL
0
5
10
15
20
25
30
FY23
FY24
FY25
“I thoroughly enjoy working at
Tomingley, where I feel
encouraged to try new things
and strive to achieve. It’s easy
to go to work when you have a
positive work culture and a great
work-life balance.”
- Gemma, Finance Officer
39
Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT OUR PEOPLE
Health, safety and wellbeing
Alkane takes protecting our employees seriously. At
Tomingley, our primary gold mining and production
facility during FY2025, we continue to prioritise safety
and strive for continuous improvement of the site’s
Safety and Health Management System. Alkane also
maintained health and safety management systems for
the Peak Hill Gold Mine and our exploration team,
based in Orange.
Safety approach at Tomingley
The health, safety and wellbeing of our employees
remains our highest priority at Tomingley. We embed
safety into every decision and action to support safe
production. Employees are actively encouraged to
assess potential risks, intervene when unsafe acts are
observed, and critically consider ‘what could go wrong’
before undertaking tasks.
Our safety strategy places strong emphasis on leading
indicators to drive continuous improvement and
strengthen injury prevention. Tomingley’s dedicated
Work Health and Safety (WHS) team works across all
levels of the operation to:
• Deliver essential safety training and refresher
programs
• Strengthen hazard identification and critical
control verification processes
• Implement robust safety systems and monitoring
tools
• Ensure compliance with site and legislative
requirements.
We remain committed to reducing injuries, preventing
catastrophic incidents, and maintaining our record of
zero fatalities.
FY2025 focus: A key priority was the rollout of
practical cultural initiatives such as Back 2 Basics and
the expansion of the Safe 2 Handle program. These
initiatives helped lift workforce engagement and
reinforced a proactive approach to safety.
FY2026 focus: Our focus has shifted to enhancing
frontline leadership capability, embedding learnings
from hazard audits, and leveraging technology to
improve both hazard management and health outcomes.
Tomingley safety programs and
initiatives in FY2025
Back 2 Basics initiative
The Back 2 Basics initiative continued in FY2025
with strong workforce participation. This program
reinforces the core safety principles of hazard
identification, risk control and reporting, while aligning
our workplace culture with industry benchmarks.
In FY2026, the initiative will be expanded to include
crew-based safety improvement projects, where
employees lead initiatives to improve their work areas.
Safety and Health Management System
Following the creation of the Tomingley Training
Strategy in FY2024, FY2025 saw measurable
improvements in training completion rates, verification
of competency and compliance tracking.
In FY2026, the focus will be on digitising training
records and building leadership capability through
targeted supervisor training modules.
Tomingley underground
SUSTAINABILITY REPORT OUR PEOPLE
Alkane Resources Annual Report 2025
40
For a submission entitled ‘Removing the “worst job” in the mine’, Tomingley was
runner-up in the ‘Health Excellence’ category of the NSW Mining Health, Safety,
Environment and Community Awards in August 2025.
The project, a collaboration with Jennmar Australia, eliminated most heavy manual
tasks from cable bolt installations in the mine.
Cable bolts are conventionally used underground to secure slabs of rock against
rockfalls. The job used to be time-consuming and labour-intensive, with risk of manual
handling, chemical and eye injuries.
In response to several back strain injuries and feedback from employees, we worked
with Jennmar to trial and implement Jennmar’s new Falcon Bolt, a self-drilling rock
bolt that is drilled, installed and tensioned all in one step by a Jumbo.
Following multiple successful trials throughout 2023, Tomingley began implementing
Falcon Bolts in lieu of cable bolts in early 2024 and has been using them exclusively
since July 2024.
In parallel, we replaced the labour-intensive and messy grouting process (required
to encapsulate the installed Falcon Bolts), with a new resin-injection system that
eliminates manual handling and exposure to respirable crystalline silica (RCS) powders.
The combined Falcon Bolt and resin-injection encapsulation system provides significant
health, productivity and quality control benefits at Tomingley. The elimination of most
manual handling and mess has made the new processes extremely popular with our
operators.
Falcon Bolt project runner-up at NSW Mining Awards
Falcon Bolt installation at Tomingley underground
41
Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT OUR PEOPLE
New WHS management platform
In FY2025, Tomingley commenced the transition from
the Noggin system to SAI360, a modern electronic
WHS management platform. The move reflects
Alkane’s commitment to strengthening governance,
improving data visibility, and embedding proactive
safety management practices across the organisation.
The planned focus for FY2026 is embedding the
system into day-to-day operations.
Managing principal hazards
Our Fatal Hazard Program matured further in FY2025,
supported by a structured audit program to verify
controls.
In FY2026, the program will expand to include
cross-department peer reviews of Principal Hazard
Management Plans, encouraging knowledge-sharing
and strengthening site-wide accountability.
Safe 2 Handle program
The Safe 2 Handle program has been instrumental
in addressing manual handling risks. In FY2025, we
increased training intensity with awareness sessions,
onsite physiologist interventions, and wearable
technology trials. Early results demonstrated improved
reporting of discomfort and proactive task redesign.
In FY2026, the program will be supported by the
rollout of the Safe 2 Handle app, providing employees
with interactive guidance, real-time ergonomic
reminders and digital reporting of high-strain tasks.
Respiratory Health Monitoring
In FY2025, Tomingley advanced its Respiratory Health
Monitoring program, building on regulatory requirements
and industry best practice. Respiratory health is a
critical focus area for Tomingley, given the nature of
underground and surface mining activities and the
potential exposure to dust, diesel particulates, and
other airborne contaminants. Protecting workers from
occupational lung disease remains a key health priority.
Key elements of the program included:
• Baseline and periodic health checks – All
employees in designated risk categories underwent
baseline lung function testing (spirometry), with
regular follow-up assessments scheduled in line
with NSW Mining legislative requirements.
• Dust and contaminant monitoring – Personal
exposure monitoring was increased across high-
risk work areas to provide more granular data on
respirable dust and crystalline silica exposure.
Results were reviewed monthly by the WHS team
and site leadership.
• Education and awareness – Toolbox talks and
health campaigns highlighted the long-term risks
of dust exposure, correct respirator use and
the importance of early reporting of respiratory
symptoms.
• Respiratory protective equipment (RPE) – The
program included face-fit testing for all employees
required to wear respirators. A structured
replacement schedule for respiratory PPE was
introduced to ensure ongoing compliance and
comfort.
“The team at Tomingley are great
value – always friendly and
approachable. They have great
communication and take safety
seriously. I still love this industry
and my job just as much as when
I first started.”
- Casey, Underground Utility Operator
42
Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT OUR PEOPLE
Exploration team
Alkane’s exploration team undertakes an annual
review of the exploration safety management system,
safe work practices, and annual safety targets.
In FY2025, in addition to reviewing all safety work
procedures, the team commenced a review of the
safety systems for the rehabilitated Peak Hill Gold
Mine (PHGM), which is used as an exploration base.
During the reporting period, the exploration team had
zero reportable injuries.
Our targets for FY2026 are to maintain a negligible
rate of injuries and to complete the substantial review
of the PHGM safety systems.
In FY2025, there were 16 recordable injuries at the Tomingley site, including four Lost Time Injuries (LTI) and
five Medical Treated Injuries (MTI). The total recordable injury frequency rate (TRIFR) was 9.9, a 68 percent
reduction on FY2024 (TRIFR of 31.2). There were also 54 first aid injuries treated.
Tomingley safety performance
Source data
FY2023
FY2024
FY2025
Tomingley TRIFR
28.08
31.22
9.0
Additional FY2025 achievements
• Delivered weekly onsite physiotherapy sessions,
providing timely access to treatment and early
intervention.
• Expanded ergonomic and musculoskeletal injury
prevention strategy through task analysis, manual
handling assessments and physiologist-led coaching.
• Reinforced Safe 2 Handle program with increased
awareness training and proactive task redesign
and education.
• Supported employee wellbeing through the $300
annual Health and Wellbeing Rebate, encouraging
fitness and lifestyle initiatives that reduce injury
risks.
Exploration
Tomingley
SUSTAINABILITY REPORT OUR PEOPLE
43
Alkane Resources Annual Report 2025
Communities
Alkane respects and strives to respond to the needs of all our
stakeholders. We communicate with openness and integrity and aim to
leave a lasting positive legacy for our host communities.
Stakeholder engagement
Alkane engages regularly with a range of stakeholders.
Our social licence to operate relies upon sustained
positive relationships with our employees, contractors,
neighbours, local indigenous and host communities,
government and industry bodies, and investors.
Host communities (NSW)
During FY2025, Alkane actively engaged with the host
communities surrounding our operations and projects
in Central West New South Wales – specifically in
Narromine Shire, Parkes Shire and the Dubbo Regional
local government area.
We take a long-term and respectful approach to
building and nurturing community relationships. This
begins from the earliest stages of exploration and
continues through project development, operations,
and ultimately full site rehabilitation.
DUBBO
WELLINGTON
PARKES
NARROMINE
Tomingley
Peak Hill
Bodangora
Tomingley Gold Operations
Peak Hill Gold Mine
Boda-Kaiser Project
DUBBO
REGIONAL
COUNCIL
NARROMINE
SHIRE
COUNCIL
PARKES
SHIRE
COUNCIL
In FY2025, Alkane engaged with communities across three shires in Central West
New South Wales.
SUSTAINABILITY REPORT COMMUNITIES
Alkane Resources Annual Report 2025
44
Dubbo Regional Local Government Area,
Boda-Kaiser Project
Alkane has been embedded in the Dubbo Regional
Local Government Area for more than two decades.
Over that time, our Dubbo office has provided
technical and administrative support for all our
activities across tenements in NSW. Our deep
relationships with the Dubbo community provide a
strong foundation for our ongoing exploration and
potential development activities.
Our Boda-Kaiser Project (part of the Northern Molong
Porphyry Project) lies near the historic mining village
of Bodangora. Development of Boda-Kaiser would
return gold and copper production to the Wellington
district after a long hiatus. Mining will further add to
the diversification of the economy on the doorstep of
Wellington.
Over the past several years, we have strengthened
our relationships with these communities through
engagement, sponsorships and, more recently, a six-
monthly community newsletter.
Parkes Shire, Peak Hill Gold Mine
Alkane has been part of the Peak Hill and Parkes Shire
communities since operating Peak Hill Gold Mine from
1996 to 2005. We still use the site to host our Central
West exploration base and core yard. After three
decades, we continue to nurture positive relationships
and remain active in the community.
The rehabilitated Peak Hill Gold Mine open cut
landscape is open to the public, providing a unique
opportunity for visitors to learn about modern mining
and land rehabilitation. We also own historic buildings
in Peak Hill that are leased for minimal rents to
community organisations.
Narromine Shire, Tomingley Gold Mine
Since discovering the orogenic gold deposits at
Tomingley in the 2000s, Alkane has established
positive cooperative relationships with the communities
around Tomingley village, Dubbo and the broader
Narromine Shire. Our regular engagement activities
include participation on the Tomingley Community
Consultative Committee, publication of four-monthly
community newsletters, sponsorship programs and
participation in school and community events.
Eric Woods Park, Tomingley
Alkane raffle winner at the Peak Hill Show, August 2024
Alkane supported Mid Macquarie
Landcare’s microbats survey, part of the
wider Bats in Backyards citizen science
project from Saving our Species (SoS), the
NSW Government’s flagship threatened
species conservation program.
Mid Macquarie Landcare installed an
‘audiomoth’ device near the old Kaiser
workings from 10-17 April 2025. The
detector recorded night-time echolocation
signals of bats passing the detector as
they foraged during the night. These were
analysed using software to confidently
identify 10 different insectivorous bat
species, including two listed as vulnerable:
the Large Bent-winged Bat (Miniopterus
orianae) and Yellow-bellied Sheath-tailed
Bat (Saccolaimus flaviventris).
Bat survey on Kaiser Hill
Mid Macquarie Landcare installed a bat
recording device at Kaiser for one week in April.
Kaiser represents one of about 20 bat
recording sites around Wellington and Dubbo
so far this year. Mid Macquarie Landcare
Group is a not-for-profit organisation,
centred around Wellington and Dubbo.
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SUSTAINABILITY REPORT COMMUNITIES
Key community engagement activities in FY2025 (Central West NSW)
• Tomingley Community Consultative Committee
meetings – August 2024, November 2024,
February 2025, May 2025
• Tomingley community newsletters – July 2024,
December 2024, March 2025
• Bodangora community newsletter (Boda-Kaiser) –
November 2024, May 2025
Alkane activities
Community activities and events
• Attended careers and education events
װNSW Mining Careers Dinners in Parkes (19
March 2025) and Orange (3 June 2025)
װWestern Plains Science & Engineering Challenge
(also sponsor) (26 March 2025)
װDubbo Secondary College regional careers expo
(8 May 2025)
װClontarf Foundation Employment Forum
(22 May 2025)
• Hosted visits to Tomingley Gold Mine
װClontarf Coonamble students (4 July 2024)
װHollow Hog Field Day – demonstration of
constructing hollows in live trees (26 July 2024)
װClontarf Narromine students tree planting
(20 August 2024)
װTGO Community Consultative Committee (CCC)
(22 August 2024)
װMining & Extractive Environment Team
(14 November 2024)
װClontarf Wellington students (19 March 2025)
• Hosted visits to Peak Hill Gold Mine
װMining & Extractive Environment Team
(14 November 2024)
װDubbo School of Distance Education
(12 March 2025)
װChatswood High School Earth & Environmental
Science (3 classes) (9 April 2025)
װDubbo Senior College (7 May 2025)
װUniversity of New England SWEDG (29 July 2024)
• Tomingley community consultation for Tomingley
Gold Extension Project (Newell Highway and
Kyalite Road diversions)
• Attended Peak Hill CCC meeting to provide an
update on the Tomingley Gold Extension Project
(28 April 2025)
SUSTAINABILITY REPORT COMMUNITIES
Alkane Resources Annual Report 2025
46
Clontarf Foundation
Employment Forum
2025 NSW Mining Careers Dinner, Orange
Community activities and events (continued)
• Supported shows and festivals
װSponsored and staffed a booth at the Peak Hill
Show (August 2024)
װSponsored and staffed a booth at the Wellington
Show, including yard dog trials (24 May 2025)
װStaffed a booth at the Dubbo Show
(30 May – 1 June 2025)
• Sponsored Cudgegong Jump Club’s horse trials
(December 2024)
• Sponsored and participated in the opening of the
Peak Hill photographic exhibition (December 2024)
• Participated in Business Golf Days at Dubbo Golf
Course
• Hosted BBQ for Comobella and Bodangora locals
at Comobella Hall to discuss the Boda-Kaiser
Project (20 February 2025)
• Attended, sponsored and judged the Narromine
Car Club 2025 Car Show (16 March 2025)
• Attended and sponsored the Tomingley Picnic
Races (5 April 2025)
• Supported Mid Macquarie Landcare’s microbats
survey by hosting bat recording device near Kaiser
(April 2025)
• Hosted Mid-Macquarie Landcare field day and
‘Hollow Hog’ demonstration at Thule Hill (May 2025)
Government & industry
In FY2025, Alkane actively engaged with key
government and industry bodies that have oversight
of mining and related activities in New South Wales.
Alkane advocated for the metalliferous mining and
exploration sectors via participation in the following
organisations:
• NSW Minerals Council – Alkane personnel
represent the company on most of the special
interest committees and working groups (including
Executive, Environment & Community, Exploration
and OH&S Committees, and ESG, Rehabilitation
and Mine Closure, Communications and Water
Working Groups).
װAlkane’s exploration team contributed to NSW
Minerals Council’s submission to the Resources
Regulator’s Exploration code of practice:
Community Consultation (June 2025).
• Association of Mining and Exploration Companies
– Alkane is a member of this peak industry body
for the Australian resources sector.
• Water NSW Macquarie-Cudgegong Customer
Advisory Group – Alkane is represented in this
CAG, which provides a forum for Water NSW to
consult with a broad cross-section of customers
on issues relevant to performance and delivery of
services.
• Regional Development Australia (RDA) Orana –
Alkane participates in various forums and events.
Alkane shares knowledge through papers,
participation in selected industry forums and field
trips, and hosting visits to Alkane projects by industry
and educational groups. These activities enable us to
connect with other professionals in the industry and
discuss new methods and developments in the region.
Activities in FY2025 included:
• Monthly technical industry talks/meetings in
Orange and Parkes run by the Central West
Exploration Discussion Group (CWEDG) and
the NSW branch of the Australian Institute of
Geoscientists (AIG)
• Australian Institute of Geoscientists (AIG)
(Silver sponsorship)
• AIG Mines and Wines Conference – presented
on the Boda-Kaiser gold-copper deposits
(5-6 September 2024)
• Hosted MEET (Mining Environment Extractive
Team) to visit Tomingley mine and biodiversity
offsets and Peak Hill regenerating bushland
(14-15 November 2024)
• RDA Orana Resources Energy and Industry
Innovation Forum Day 2 – Participated on the
panel: Energy & Circularity in practice
(18-20 June 2025).
2025 Wellington Show
47
Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT COMMUNITIES
Alkane hosted 51 members of the Mining and Extractive Environment Team (MEET)
Central West for a 24-hour event on 14-15 November 2024. The event included a site
tour of the Peak Hill and Tomingley Gold Mines, a networking session and a half-day
conference.
MEET is an industry group connecting environment and community teams from
mines, quarries and consultancies. Its members include representatives from most
metalliferous mines in Central West NSW. The purpose of the event was environment
and land management knowledge transfer within the industry.
Local environment consultants, AREA Environmental, provided a presentation on the
intricacies of setting up biodiversity stewardship agreements, with reference to our
recently planted Fuzzy Box seedlings. Delegates also viewed the regeneration progress
of our original Tomingley and Peak Hill biodiversity offsets (one and nearly three
decades of growth respectively).
At Peak Hill Gold Mine, MEET members walked across the rehabilitated waste
rock emplacement, which is a long-term stable landform with excellent grass cover
supporting many wallabies and kangaroos.
We also showed them trees that were planted in 1996 around the sediment ponds.
These areas have become a naturally regenerating myall and river redgum woodland.
Several shrub species have recruited to these early plantings, providing a diverse
understorey of shrubs for woodland birds.
Alkane hosts MEET event
At Peak Hill Gold Mine, MEET members descended the rehabilitated waste rock emplacement to view a 28-year-old naturally regenerating woodland.
(Main photo: AMEC. Inset: Aurelia Metals)
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Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT COMMUNITIES
Education
Alkane actively supports promotion of careers in earth
sciences and mining. Activities in FY2025 included:
• Australian Earth Science Education (AusEarthEd)
– Alkane is a sponsor of AusEarthEd, an
organisation that aims to grow awareness of
career opportunities in earth sciences and provide
real-world context and resources for teachers and
students.
• UNSW Geoscience Society – Alkane sponsored
this student-run society and presented at an
industry night (July 2024).
• University of New England students visited Peak
Hill Gold Mine (July 2024).
• RDA Orana Youth Forum in Dubbo (November
2024)
• Dubbo Secondary College regional careers expo
(8 May 2025)
• NSW Mining Careers Dinners in Parkes
(19 March 2025) and Orange (3 June 2025)
• Clontarf Foundation Employment Forum
(22 May 2025)
• Western Plains Science & Engineering Challenge
(also sponsor) (26 March 2025).
We also supported the following university students
during the FY2025 financial year:
• University of New South Wales geology
Honours student (to August 2024) – This project
investigated the Tomingley ore-bearing rocks.
• University of New South Wales geology Honours
student (to December 2024) – This project
looked at the sulphide chemistry of the Tomingley
deposits. Alkane provided co-supervision and
advice and paid for laboratory costs
(approx. A$15k) in FY2025.
• Australian National University geology Honours
student (to July 2025) – This project investigated
geochronology of the Boda-Kaiser ore-bearing
rocks (funded laboratory/analytical services in July
2025).
• University of New England geology vacation
student (Exploration, Summer 2024-2025)
• Australian National University geology vacation
student (Exploration, Summer 2024-2025)
• University of NSW Chemical Engineering vacation
student (Tomingley, Summer 2024-2025)
• University of Wollongong Mining Engineering
vacation student (Tomingley, Summer 2024-2025).
Investors
Alkane communicates openly with investors through
ASX Announcements and investor presentations
– all available on our website. Following major
announcements, Alkane’s Managing Director often
discusses the development with investment media
portals, Proactive, Crux Investor and Corporate
Storytime.
Alkane’s formal investor communications are
complemented by a series of explanatory videos
and presentations published on our website, where
aspects of projects are discussed in greater detail.
• Boda-Kaiser Scoping Study webinar (July 2024)
In FY2025, Alkane’s Managing Director and/or
executive team gave investor updates as follows:
• Discussion with Crux Investor about the Tomingley
5-year plan (2 July 2024)
• Discussion with Crux Investor about the Boda-
Kaiser Scoping Study (July 2024)
• Presentation at the Noosa Mining Conference
(18 July 2024)
• Discussion with Proactive about Rockley
(8 August 2024)
• Presentation at the Australian Gold Conference
(August 2024)
• Presentation at the Resources Rising Stars
Conference (September 2024)
• Interview with Crux Investor (11 November 2024)
• 2024 Year in Review video on Corporate Storytime
(17 December 2024)
• Detailed interview with Crux Investor about
Alkane’s recent activities, current situation and
future plans (21 February 2025)
• Presented at the Denver Gold Group Mining
Forum Europe (April 2025)
• Discussion with Proactive about the high-
grade gold intercepts and the ongoing resource
expansion at Tomingley (10 April 2025)
• Q&A with Corporate Storytime about the then-
proposed Mandalay merger (30 April 2025)
• Discussion of then-proposed Mandalay merger
with Crux Investor (with former Mandalay
President and CEO, current Board member,
Frazer Bourchier) (22 May 2025).
Alkane also held two investor briefing days in Sydney
and Melbourne following the Annual General Meeting
in November 2024.
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Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT COMMUNITIES
Key Alkane economic contributions in FY2025
Government
payments
$11.4M
(including $8.4M
in royalties,
excluding income tax)
Local council
payments
$0.6M
(rates and planning
agreement)
Suppliers
$246.6M
(63% NSW)
Sponsorships
$174.6k
(excludes community
fund)
Contributions to the economy
Alkane practises safe and sustained economic
development for the long-term benefit of our
Developing resilient regional
communities
Alkane supports the development of more resilient
regional communities through the establishment of
permanent infrastructure, sponsorship of local events
and organisations, provision of training and career
opportunities to local students and residents, and the
engagement of local suppliers and service providers.
Narromine Shire, New South Wales (Tomingley)
Since 2014, when Tomingley Gold Operations
commenced production, Alkane has supported the
Tomingley and broader Narromine communities via
a planning agreement with Narromine Shire Council.
This provides funding for community projects (via the
Tomingley Community Fund), council environmental
projects and shire road works (separate from the road
realignments Alkane is undertaking as part of the
Tomingley Gold Extension Project).
In FY2025, a total of $148,178 was awarded across
more than 20 different projects under the Tomingley
Community Fund (FY2024 $118,000).
Supported projects and events included Pam’s Big
Pink Breakfast to raise funds for breast cancer
research, Narromine Community Skills Project towards
running the 2024 Venetian Carnival in Narromine,
THRIV3 Paddling Pathway Program towards running
a kayaking trip on the Macquarie River for young
people and the Murungidyal Paddling Pathways 2025
Program, Lifeline Central West for a men’s health
event, and Tomingley Racecourse and Recreation
Reserve towards the inaugural Tomingley Quick Shear
event.
The Tomingley Gold Extension Project will see the
operation continue beyond 2030. This will benefit
the wider community in terms of continuation of
employment, workforce and supplier expenditure,
and community investment. The economic impact
assessment estimated that 50 percent of operational
expenditure over the life of the project is expected to
be spent within the local area and 80 percent within
New South Wales.
Outside the Tomingley Community Fund, Alkane
sponsored around a dozen organisations and events
across the Tomingley, Peak Hill, Dubbo, Parkes and
Wellington communities. We also supported several
students and educative organisations.
shareholders, employees, contractors, suppliers and
host communities.
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Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT COMMUNITIES
Sponsorships
$148.2k
Community fund recipients
(comes out of council planning
agreement funds)
$15k
Geology student project
$24.2k
Community events
(community, education and
earth science gatherings)
$35.4k
Organisations
(community sport, earth science
industry and education)
$100k
Clontarf Foundation
Aboriginal engagement and
cultural heritage
Alkane respects the traditions and culture of
indigenous peoples and traditional custodians of the
lands hosting our projects and activities.
Our projects
During FY2025, our projects and activities took place
in New South Wales, Australia, where we continue
to ensure local Aboriginal groups are engaged and
consulted on heritage and land access, as per the
codes and guidelines established by Heritage New
South Wales.
Our Tomingley operation lies on the traditional
lands of the Upper Bogan River clan group, who are
members of the Wiradjuri Nation. Today the operation
lies within the boundaries of the Peak Hill Local
Aboriginal Land Council (PHLALC).
An Aboriginal Cultural Heritage Management Plan
guides the management of Aboriginal heritage sites
identified within Alkane’s Mining Leases at Tomingley.
The plan was developed in close consultation with
several Wiradjuri Aboriginal stakeholder groups,
including PHLALC.
The Aboriginal Cultural Heritage Management Plan
has been reviewed and updated to cover the new
Mining Lease and disturbance footprint associated
with the Tomingley Gold Extension Project. A
total of 39 sites of Aboriginal heritage significance
were identified during the Environmental Impact
Assessment in 2021, of which 12 will be disturbed
by the project. We continue to work with the local
Aboriginal community and archaeologists to manage
disturbances, recover artefacts where possible and
protect those that remain in situ.
Alkane has commenced conversations with local
Aboriginal community representatives of the
Wellington area, where the Boda-Kaiser project is
located.
Field exploration
SUSTAINABILITY REPORT COMMUNITIES
Alkane Resources Annual Report 2025
51
Support for Aboriginal organisations
and businesses
Over several years, Alkane has developed a strong
relationship with the Clontarf Foundation’s Narromine
Academy. The Clontarf Foundation exists to improve
the education, discipline, life skills, self-esteem and
employment prospects of young Aboriginal and Torres
Strait Islander men. We were a major sponsor of the
foundation from 2020 to 2023 and entered into a new
three-year sponsorship beginning in mid-2024.
Throughout the year, Alkane supported Clontarf in
various ways, including:
• Clontarf Coonamble students visited Tomingley
4 July 2024.
• In August 2024, a group of students from the
Clontarf Narromine Academy helped plant Fuzzy
Box seedlings in new conservation areas at
Tomingley and also enjoyed a visit to our Peak Hill
Gold Mine.
• Clontarf Wellington students visited Tomingley
19 March 2025.
• 2025 Clontarf Foundation Employment Forum
(22 May).
Additionally, Alkane engages indigenous businesses
where possible; for example, an indigenous contractor
was engaged to spray Boxthorn in TGO offsets in
October 2024.
Native title process initiated near Peak Hill
In May 2025, in keeping with the Native Title Act 1993 (Cth) (NTA), Alkane initiated the Right to
Negotiate (RTN) process for the lands comprising Exploration Licence 6319 in the Peak Hill area.
EL6319 surrounds the Peak Hill Gold Mine and encompasses several parcels of crown land south of
the mine and east of the town – some 18 hectares in total.
The RTN process involved the NSW government publicly notifying any native title parties of Alkane’s
proposal to access the crown land for exploration. There were no native title claimants at the end of
the four-month notification period.
52
Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT COMMUNITIES
Clontarf students help plant trees at Tomingley
Stakeholder groups
How we engage
Shareholders and investors
Key topics
Employees and contractors
Government and regulators
(federal, state and local)
Mining and related industries
Host communities
Aboriginal and Torres Strait
Islander Peoples
NGOs and special interest groups
Landholders
Suppliers
• ASX announcements and quarterly reports
• Interviews and investor briefings
• Video presentations
• Annual Report and Annual General Meeting
• Website
• Induction and training
• Meetings/briefings/toolboxes
• BBQ/pizza/food van days
• Internal social interactions (outside of work)
• Volunteer efforts
• Focus on residential employment
• Meetings, site visits, briefings
• NSW Minerals Council committees and
working groups (participation)
• Association of Mining and Exploration
Companies (participation)
• Water NSW Macquarie-Cudgegong
Customer Advisory Group (participation)
• Participation at industry forums
• Partnerships with educational institutions
• Sponsorship and participation with
Australian Earth Science Education
(AusEarthEd)
• Community Consultative Committee
(Tomingley)
• Community newsletters
• Direct engagement and briefings
• Investment in community infrastructure
• Sponsorship of community projects and
events
• Participation in community events
• Meetings, site visits, briefings
• Investment and partnerships
• Sponsorship of Clontarf Foundation
• Presentations and talks
• Meetings, contractual agreements
• Direct engagement and briefings
• Meetings, contractual agreements
• Local procurement where feasible
• Operating performance
• Exploration results
• Balance sheet
• Mineral Resources and Ore Reserves
• Sustainability performance
• Corporate governance
• Health and safety performance
• Monthly site performance
• Employee and contractor recognition
• Employee share scheme
• Regulatory and legal compliance
• Environmental performance and
management
• Community investment
• Project approvals and licences
• Metalliferous mining advocacy and feedback
• Metalliferous mining advocacy
• Technical methodologies
• Environmental performance and
management
• Project development
• Social and economic impact
• Economic contributions
• Career opportunities
• Project development
• Culture and heritage management
• Project development
• Social and economic impact
• Land access and compensation
agreements
• Infrastructure improvements
• Project development
• Social and economic impact
• Health and safety requirements
• Modern slavery requirements
• Contract conditions
Summary of stakeholder engagement activities
53
Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT COMMUNITIES
Environment
Alkane’s exploration, mining, processing and rehabilitation activities are
carefully designed to minimise our environmental footprint and enhance
biodiversity.
Environmental management
Alkane takes environmental stewardship seriously
– not simply as a legislative requirement, but as a
demonstration of integrity and the respect we have
for the land and our host communities. Environmental
responsibility is embedded into the design of our
activities and normal business practices.
Tomingley
At Tomingley Gold Operations, a comprehensive
Environmental Management Strategy (EMS) is
underpinned by a series of site-specific environmental
management plans available on our website.
These have all been updated to incorporate the
extension of operations to the San Antonio and
Roswell resources, and all but one have been
approved by the New South Wales Department of
Planning, Housing and Infrastructure (DPHI).
A dedicated Environmental Management team
undertakes regular monitoring of air, water, noise
and blasting to ensure site compliance with project
approvals, licences and permits. Annual environmental
reporting includes:
• Annual Review (NSW DPHI)
• Annual Return (NSW EPA)
• Annual Rehabilitation and Biodiversity Monitoring
Assessment Report (NSW DPHI)
• Annual Rehabilitation Forward Program & Report
(NSW Resources Regulator)
• National Pollutant Inventory Reporting (NPI)
• National Emissions and Energy Report (NGER)
SUSTAINABILITY REPORT ENVIRONMENT
Alkane Resources Annual Report 2025
54
Tomingley water storage
Independent environmental audit
During October 2024, a government-approved
independent auditor visited the Tomingley site to
complete the three-yearly environmental audit of
our operations. For the first time, the audit also
encompassed the Tomingley Gold Extension Project.
DPHI accepted the audit report as meeting the audit
requirements and also accepted the submitted action
plan to address 34 identified minor non-compliances
(out of 501 conditions audited). Of the non-compliant
conditions, 32 were administrative (applied where the
non-compliance does not risk environmental harm).
The other two were rated as ‘low’ and related to areas
of soil erosion and hydrocarbon storage, both of which
are part of ongoing site improvement works.
Environmental performance in FY2025
No noise, dust or vibration exceedances were
recorded at Tomingley during the reporting period,
and there were zero reportable incidents.
We received one complaint (January 2025) relating
to an alleged odour release from site. Following a
site investigation, we contacted the complainant and
established an action plan to mitigate this risk. No
further complaints were received on this matter.
Details of Tomingley’s environmental performance can
be found on Alkane’s website.
Peak Hill Gold Mine
Although Peak Hill Gold Mine ceased operating in
2005 and the site is largely rehabilitated, it remains
an active mining lease. Environmental management
actions include waste management, minor soil
remediation works, pest animal and weed control,
monitoring and reporting.
Annual environmental reporting includes:
• Environmental Management Report (NSW DPHI,
Resources Regulator, Parkes Shire Council)
• Rehabilitation Management Forward Program &
Report
• Pollution Incident Response Plan.
Exploration
Alkane adheres to strict environmental protocols
during all exploration activities. For surface-disturbing
drilling campaigns, we complete a comprehensive
‘review of environmental factors’ (REF) report as part
of the approval process.
The REF evaluates potential impacts across categories
including air, water, soil and stability, noise and
vibration, hazardous substances, waste and emissions,
vegetation, threatened species, biodiversity, social,
Aboriginal heritage, and land use (agricultural) impacts.
In obtaining approval to undertake exploration
activities, Alkane commits to courses of action in
compliance with the information supplied.
For each drilling program, we are also required to
submit rehabilitation plans and later provide evidence
that the rehabilitation was successful.
No noise, dust or vibration
exceedances were recorded at
Tomingley during FY2025.
55
Alkane Resources Annual Report 2025
SUSTAINABILITY REPORT ENVIRONMENT
Exploration at Boda-Kaiser
Water
Alkane recognises that water is a valuable resource
we share with our communities, including towns
and agricultural enterprises near our operations and
projects. Our activities are carefully designed to use
water responsibly and efficiently.
Our approach to water management at Tomingley
is comprehensively described in the site’s Water
Management Plan, which contains details of the
New South Wales regulatory environment and water
licences. The Water Management Plan has been
updated by an external consultant to incorporate the
Tomingley Gold Extension Project and was approved
by DPHI in September 2024.
Water licences
The main water supply at Tomingley Gold Operations
is raw water from the Woodlands Borefield, piped
approximately 46 kilometres from east of Narromine.
The entitlement of 1,000 megalitres (ML) is sufficient
for the site’s net requirements, where water is
primarily lost by entrainment in processing residue.
To support the proposed increased throughput at
Tomingley, we have acquired a second, backup Water
Access Licence for 400ML from the Mid Macquarie
Alluvial Aquifer. This licence is yet to be utilised and
will require infrastructure to be installed prior to
accessing (if needed).
Caption
Tomingley bore water use consumption and efficiency
FY2023
FY2024
FY2025
Total water drawn from bore (ML)
401
470
477
Per tonne of ore processed (L/t)
375
415
411
Per ounce of gold poured (L/oz)
5,709
8,214
6,804
Water management and consumption
Tomingley employs a range of measures to optimise
water management and minimise consumption of
clean (raw) water. For example, surface runoff due
to rainfall is contained in sediment ponds, then used
for dust suppression. The process water system
preferentially uses water from an internal recycling
circuit, with new bore water used to top up the
process water only as required. Water is recovered
and recycled multiple times before it evaporates out
of the process water system.
The table below shows bore water consumption and
efficiency at Tomingley over the past three years. In
FY2025, the site again drew below 50 percent of its
1,000ML entitlement.
The water management system at Tomingley includes
infrastructure (drains, dams, pumps and pipelines)
to manage clean, raw, dirty, mine and process
(contaminated) water. These systems are rigorously
maintained to protect the integrity of natural surface
and groundwater flows.
Alkane Resources Annual Report 2025
56
SUSTAINABILITY REPORT ENVIRONMENT
Water testing near Tomingley
Emissions and energy
Alkane acknowledges the need for the mining sector
to transition towards renewable energy sources and
reduce greenhouse gas (GHG) emissions to combat
climate change.
We are aware approval of future project developments
are likely to require substantial commitments to
renewable energy solutions and continue to evaluate
the feasibility of renewable and low-emission power
sources for incorporation in our projects.
Tomingley continues to explore renewable energy
solutions to provide an effective proportion of the
power requirements for the Tomingley processing
plant and other site infrastructure. During FY2025, a
fleet of new diesel/electric hybrid underground mining
equipment arrived on-site.
Tomingley Air Quality and Greenhouse
Gas Management Plan
Consent conditions for the Tomingley Gold Extension
Project require Tomingley to prepare an Air Quality
and Greenhouse Gas Management Plan that includes
measures taken to minimise Scope 1 and 2 GHG
emissions and improve energy efficiency. The plan will
be updated every three years to describe progress
and set goals around abating Scope 1 and 2 GHG
emissions.
Following consultation with the New South Wales
Environment Protection Authority, resulting in
a revision to the draft plan, the DPHI approved
Tomingley’s Air Quality and Greenhouse Gas
Management Plan in March 2025.
Emissions reporting
Alkane collates and reports annual GHG emissions
and energy consumption data for Tomingley Gold
Operations in line with the National Greenhouse and
Energy Reporting (NGER) scheme and the National
Pollutant Inventory (NPI).
• Scope 1 GHG emissions are predominantly
associated with the mining fleet.
• Scope 2 GHG emissions relate to electricity
purchased from the grid.
The FY2024 and estimated FY2025 emissions and
energy data reflect a period of extensive construction
associated with the Tomingley Gold Extension Project.
Tomingley emissions and energy data
FY2023
FY2024
FY2025*
Greenhouse gas emissions
Total emissions
Scope 1 & Scope 2 (t CO2-e)
58,054
58,631
67,425
GHG intensity (t CO2-e/oz)
0.83
1.02
0.96
Energy
Total consumed (GJ)
421,507
442,311
508,657
Energy intensity (GJ/oz)
6.00
7.74
7.25
*FY2025 data is estimated. Note that, due to changes in fuel and energy use, the estimate may be less accurate than in previous years.
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SUSTAINABILITY REPORT ENVIRONMENT
Air monitoring station near Tomingley
SUSTAINABILITY REPORT ENVIRONMENT
Alkane Resources Annual Report 2025
58
Waste management and
recycling
Alkane takes care to manage the waste generated
by our operations responsibly and securely. Through
careful design, construction, and maintenance, we
preserve the structural integrity of our waste storage
facilities and ensure they are fit for purpose.
Wherever it is practical, we seek opportunities to
repurpose and recycle consumables to recapture key
materials and minimise our impact on landfill.
Waste rock management
Where practical, waste rock from underground mining
has been used for construction projects around the
site – such as construction of amenity bunds and
buttresses of the residue storage facility. The balance
was initially stored in two purpose-built waste rock
emplacements that have been rehabilitated.
In FY2025, suitable waste material was used in the
construction of several civil works projects, including
the construction of a new access road between
the existing operations and the new extension
project area. Residual waste rock from underground
operations was also used to backfill mined stopes and
underground voids.
Residue management
Processing residues at Tomingley are treated in a
cyanide destruction circuit, then stored in the site’s
purpose-built residue storage facilities (RSF).
RSF1 is a ‘High A’ consequence category upstream
dam with perimeter deposition. It is designed as a
non-release facility capable of storing a ‘probable
maximum precipitation’ event. Being nearly full, this
dam is on care and maintenance. It has undergone
extensive buttressing to maintain appropriate factors
of safety and further rehabilitation will be done at end
of mine life.
Currently in use is RSF2, a ‘Significant’ consequence
category dam, following a centreline lift methodology
with perimeter deposition. It is a non-release facility
with emergency spillways. Construction of cell 1 was
completed in FY2024 and cell 2 in the first quarter of
FY2025.
Both RSFs are designed and constructed according
to ANCOLD guidelines and Dams Safety NSW
Regulations. They are operated according to the
Caption
site’s comprehensive Dam Safety Management Plan,
which incorporates an ‘operations, maintenance and
surveillance’ manual and an emergency response plan.
Recycling
Tomingley utilises several waste management
contractors to collect and recycle consumables such
as metal (used in large quantities underground), tyres,
machine oil and general waste/recycling.
Tomingley recycling FY2025:
• Waste material not recycled (general waste,
construction and maintenance scrap etc):
502,318kg (FY2024: 328,044kg)
• Waste material recycled (tyres, oil, metal,
cardboard, plastic etc.): 149,109 (FY2024:
367,198kg)
NOTE: Volumes here are approximate due to changes in site reporting
requirements. FY2025 and FY2024 waste numbers are above average due to
extensive construction. FY2024 recycled material was above average due to scrap
metal clean-up campaign (additional 200,000kg being recycled).
Residue storage facility at Tomingley
Rehabilitation and land
management
Alkane abates the impact of our operations to
the landscape through sensitive project design,
progressive rehabilitation, and sustainable farming
practices. We aim to minimise our footprint and
improve the productivity of residual agricultural lands
that are not disturbed.
Rehabilitation of mine sites
We understand the importance of returning sites
to stable and productive ecosystems once mining is
finished. At Peak Hill Gold Mine, where operations
ceased in 2005, the rehabilitated site is enjoying
the natural regeneration of trees and shrubs from
original plantings in 1996 and seed blown in from
neighbouring properties. Landscape function analyses
across parts of the mining lease indicate the site
is in better ecological condition than when mining
commenced.
To meet Resource Regulator requirements, Alkane
proposes to remediate an area (less than 10,000
square metres) of scalds on the 50 hectares of final
landforms at Peak Hill Gold Mine (heap leach and
waste rock emplacement) during FY2025-FY2027.
Alkane undertakes progressive rehabilitation of our
disturbances at Tomingley Gold Operations – and will
continue this practice when mining is extended to
new resources nearby. The two original waste rock
emplacements at Tomingley have been rehabilitated.
High levels of rainfall in recent years have generated
good vegetation growth, including acacias and
eucalypts.
Tomingley
Rehabilitation management plans and reports
All rehabilitated landforms continue to be monitored
and the required reports prepared for government
departments. Where applicable, the reports are also
available on Alkane’s website.
For each of Tomingley and Peak Hill (required by the
NSW Resources Regulator):
• Rehabilitation Management Plan
• Rehabilitation Forward Program (Annual – rolling
plan for next three years)
• Rehabilitation Management Report (Annual –
measures actions of forward program)
Required by the NSW Department of Planning,
Housing and Infrastructure:
• Tomingley Rehabilitation and Biodiversity
Monitoring Assessment report (Annual)
• Peak Hill Environmental Management Report
(Annual)
Rehabilitation of exploration prospects
Alkane’s exploration team also rehabilitates the land
disturbed by drilling activities. This is managed via
a rehabilitation plan created with the input of the
landowner, with all stages carefully documented. Once
rehabilitation of an exploration site is completed, we
submit a report to the NSW Department of Planning,
Housing and Infrastructure.
Alkane uses an inhouse mobile app to streamline
management and documentation of our rehabilitation
activities. Sites are rehabilitated progressively, as
permitted by weather.
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Integrated mining and agriculture
Over the past few years, the properties Alkane
acquired for the Tomingley Gold Extension Project
have been managed by our agricultural partner, Toongi
Pastoral Company (TPC). TPC is a sustainable farming
enterprise founded by Alkane in 2016 to manage
the agricultural land associated with the polymetallic
Dubbo Project (now owned by our former subsidiary,
Australian Strategic Materials).
Land Management Plan
TPC developed a Land Management Plan for all the
lands associated with the project, spanning their use
before, during and after mining. The plan encompasses:
• Agricultural land outside the mining lease and
highway construction zone, where the focus will
be enhancing agricultural productivity
• Allocated revegetation zones, where we will focus
on enhancing the biodiversity of flora and fauna
• Land that will be rehabilitated after mining has
finished and returned to agricultural productivity
• Land that will be rehabilitated and not returned
to agriculture (open cut voids and waste rock
emplacements), and
• Land that will be used for construction of new roads.
Over the year, the TPC team worked closely with
the Tomingley project and external civil works
teams to plan stock withdrawals on a paddock-by-
paddock basis. Some of the relinquished paddocks
are becoming biodiversity offset areas; others lie
within the mining lease footprint or Newell Highway
realignment project areas.
Exclusion zones have been established between
fenced-off farming lands and the operations and civil
project areas, which will have separate high-security
fences. The land in these exclusion zones (up to 300
metres) will be left to rest for the foreseeable future.
Enhancing agricultural productivity
Per the project’s consent conditions, Alkane has
committed to improving the overall land and soil
capability of the agricultural land that will not be
disturbed by the Tomingley Gold Extension Project
(approximately 1450 hectares). This will yield a net
gain in long-term agricultural productivity to offset
the land that will be permanently removed from
agricultural production.
Last graze of cattle on land earmarked to become a biodiversity offset area (late 2024).
To achieve this, TPC aims to establish a mixed
agricultural enterprise that demonstrates leading
practice sustainable farming technologies – including
genetics, soil and pasture management, pest and weed
management, and carbon sequestration solutions.
The goal is to increase the carrying capacity by
approximately five percent per year to improve the
average agricultural carrying capacity of approximately
3.1 dry sheep equivalent (DSE) to approximately
6.0DSE by 2035.
During FY2025, many of the paddocks underwent
rest and recovery as a precursor to TPC eventually
establishing vegetation suitable for increasing soil
carbon content – and thereby improving water holding
capacity. Other paddocks were on crop rotation with
grain and forage crops for sheep and cattle.
Biodiversity
Alkane works hard to protect and nurture the wide
variety of native species that live in and around
our projects. Through careful management of
rehabilitation and biodiversity offset areas, we aim to
restore wildlife habitats and enhance native flora and
fauna populations.
Peak Hill
At Peak Hill Gold Mine, our rehabilitation efforts
have resulted in an increasingly species-rich site,
with several native and woodland bird and mammal
species, not present pre-mining, now thriving. The
original tree plantings from 1996 are now around 20
metres tall. They have led to natural regeneration of
the woodland species on site.
SUSTAINABILITY REPORT ENVIRONMENT
Alkane Resources Annual Report 2025
60
Tomingley
For the original mining lease at Tomingley, designated
biodiversity offset areas totalling 157 hectares are
protected in-perpetuity by a binding Conservation
Property Vegetation Plan, signed in agreement with
Central West Local Land Services.
These areas comprise a mix of native grassy
woodlands being conserved (80ha) and extensions to
these woodlands through ameliorative revegetation
(77ha). Ongoing management activities include
revegetation (endemic trees, shrubs, herbs and grasses),
weed control, feral animal control and protection of
native species from introduced predators.
Alkane obtained an additional mining lease in July
2023 for the Tomingley Gold Extension Project.
Approximately 78 hectares will be disturbed by this
extension to operations, mostly cleared agricultural
land with isolated paddock trees. With no significant
habitat to be cleared, we will offset the small
biodiversity impacts in accordance with the NSW
Government’s requirements, as per the consent
conditions for the project. This will include paying into
the New South Wales Biodiversity Conservation Trust,
as well as establishing a new biodiversity stewardship
agreement (see below).
Biodiversity monitoring and reporting
All the biodiversity activities associated with the
extension project have been included in Tomingley’s
updated Biodiversity Management Plan, Annual
Rehabilitation and Biodiversity Monitoring Assessment
Report, as well as other relevant documentation
(approved August 2025).
The annual Rehabilitation and Biodiversity Monitoring
Assessment report measures and compares the
ecological recovery of conservation and mine
rehabilitation areas at Tomingley against reference sites
(remnant woodland and native grasslands). This report
is submitted to the NSW Department of Planning,
Housing and Infrastructure in October each year.
A biannual fauna monitoring report is also prepared
by external ecological consultants with data obtained
from an extensive field assessment program.
This report guides the ongoing management of native
fauna around the Tomingley operations, with the most
recent assessment and report being completed in
March 2024.
Biodiversity stewardship agreement
To offset some of the 1,724 ecosystem credits
generated by the disturbance footprint of the
Tomingley Gold Extension Project, Alkane is seeking
to establish a binding in-perpetuity biodiversity
stewardship agreement (BSA) for approximately
290 hectares of protected conservation areas on land
outside the mining lease and highway realignment
project.
These areas comprise former cropping paddocks and
remnant native grassy woodland areas that Alkane
intends to restore and protect – including Fuzzy Box
(Eucalyptus conica), Western Grey Box (Eucalyptus
microcarpa) and Belah (Allocasuarina cristata)
woodland.
The impetus for the BSA was the lack of available
Fuzzy Box Woodland (Plant Community Type 201)
offsets through third parties. Endemic to eastern
Australia, Fuzzy Box is a locally uncommon species
and classified as a Threatened Ecological Community
under the NSW Biodiversity Conservation Act 2016.
Fuzzy Box Woodland is approximately 94 percent
cleared from the pre-European extent and, although
once widespread, is naturally confined to low-lying
wet areas and doesn’t naturally grow in large patches.
The BSA will save Alkane significant capital and
provide a superior, environmentally beneficial solution
that ensures vegetation impacted by the project is
replaced within the immediate local environment.
A comprehensive report, prepared by AREA
Environmental & Heritage Consultants, is under
consideration with the NSW Department of Climate
Change, Energy, Environment and Water (DCCEEW).
Tomingley wildlife
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Alkane has already commenced actively restoring native Fuzzy Box Woodland in broad
drainage lines that would have originally carried this species.
Lands totalling 123.3ha have been fenced and in August 2024 were planted with
1,200 Fuzzy Box seedlings propagated from seed collected from remnant Fuzzy Box
stands on Alkane’s land at Tomingley.
Additionally, in September 2024, about 20 trimmed, dead Western Grey Box trees
containing hollows were erected amongst the new Fuzzy Box plantings. Restoring
hollows and tree crowns helps reestablish essential nesting and roosting habitat for
Australian wildlife. The thermal properties of hollows inside dead trees are superior to
those of thin-walled nesting boxes.
The value of this approach was immediately demonstrated when a pair of cockatiels
were spotted investigating one of the re-erected, hollow-bearing dead trees within
24 hours of installation.
The Fuzzy Box seedlings planted in August 2024 continue to do well. By March 2025,
they had almost doubled in size.
Elsewhere on the property, Alkane is already seeing strong natural regeneration of
Fuzzy Box and other native plant species in the vicinity of Fuzzy Box seedlings planted
earlier, in 2021.
Restoring native grassy woodlands
Tree planting in biodiversity offset areas near Tomingley
SUSTAINABILITY REPORT ENVIRONMENT
Alkane Resources Annual Report 2025
62
FINANCIAL
REPORT
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Alkane Resources Annual Report 2025
Directors’ Report
The directors present their report, together with the financial statements, on
the consolidated entity (referred to hereafter as the ‘consolidated entity’ or
the ‘group’) consisting of Alkane Resources Ltd (referred to hereafter as the
‘company’ or ‘parent entity’) and the entities it controlled at the end of, or
during, the year ended 30 June 2025.
Directors
The following persons were directors of Alkane Resources Ltd (Alkane) during the whole of the financial year and up
to the date of this report, unless otherwise stated:
• I J Gandel (Resigned as Non-Executive Chair 5 August 2025) (Appointed Non-Executive Director 5 August 2025)
• N P Earner
• D I Chalmers (Resigned 5 August 2025)
• A D Lethlean (Resigned 5 August 2025)
• G M Smith (Resigned 5 August 2025)
• A Quinn (Appointed 5 August 2025)
• B Mills (Appointed 5 August 2025)
• F Bourchier (Appointed 5 August 2025)
• D Duffy (Appointed 5 August 2025)
The Board continues its efforts to seek to appoint additional independent members who will bring complementary
skill sets and diversity to the group’s leadership.
Information on Directors and Company Secretaries
Ian Jeffrey Gandel – Non-Executive Director
LLB, BEc, FCPA, FAICD
Appointed Director 24 July 2006 and Chair 1 September 2017. Resigned Chair and appointed Non-Executive
Director 5 August 2025.
Mr Gandel is a Melbourne-based businessman with extensive experience in retail management and retail property.
He has been a director of the Gandel Retail Trust and has had an involvement in the construction and leasing of
Gandel shopping centres. He has previously been involved in the Priceline retail chain and the Chief Executive
Officer chain of serviced offices. Mr Gandel has been an investor in the mining industry since 1994. Mr Gandel
is currently a substantial holder in a number of publicly listed Australian companies and, through his private
investment vehicles, now holds and explores tenements in his own right in Western Australia and South Australia.
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During the past five years, he has also served as a director of the following public listed companies:
• Alliance Resources Pty Ltd (appointed as a director on 15 October 2003 and in June 2016 was appointed
non-executive chair). Alliance Resources Pty Ltd was delisted in July 2022.
• Australian Strategic Materials Limited (ASX: ASM) (previously named Australian Zirconia Limited) (appointed as
a director in 2014 and in 2017 was appointed non-executive chair).
During the year Mr Gandel was a member of the Audit Committee, Remuneration Committee and Nomination
Committee.
Nicolas Paul Earner – Managing Director
BEng (hons)
Appointed Managing Director 1 September 2017.
Mr Earner is a chemical engineer and a graduate of the University of Queensland with 30 years’ experience in
technical and operational optimisation and management and has held a number of executive roles in mining and
processing. Mr Earner joined Alkane Resources Ltd as Chief Operations Officer in August 2013 with responsibility
for the safe and efficient management of the company’s operations at Tomingley Gold Operations and the Dubbo
Project. During Mr. Earner’s time as Managing Director, the Dubbo Project was de-merged into the separately
listed Australian Strategic Materials Limited (ASX: ASM), Tomingley Gold Operations has had its mine life extension
approved by the NSW government, and the Boda-Kaiser Project has gone from discovery to scoping study.
During the past five years, he has also served as a director of the following public listed companies:
• Australian Strategic Materials Limited (ASX: ASM) (appointed 1 September 2017 and resigned 1 March 2025); and
• Genesis Minerals Limited (ASX: GMD) (appointed 24 October 2019 and resigned 19 November 2021).
During the year Mr Earner was a member of the Risk Committee.
David Ian Chalmers – Technical Director
MSc, FAusIMM, FAIG, FIMM, FSEG, MSGA, MGSA, FAICD
Appointed Technical Director 1 September 2017. Appointed Managing Director in 2006 and resigned as Managing
Director 31 August 2017. Resigned as Technical Director 5 August 2025.
Mr Chalmers is an economic geologist and graduate of the Western Australia Institute of Technology (Curtin
University) and has a Master of Science degree from the University of Leicester in the United Kingdom. He has
worked in the mining and exploration industry for over 50 years, during which time he has had experience in all
facets of exploration and mining through feasibility and development to the production phase.
Mr Chalmers was Technical Director of Alkane until his appointment as Managing Director in 2006, overseeing the
group’s minerals exploration efforts. During his time as chief executive, he steered Alkane through the discovery,
feasibility, construction and development of the now fully operational Tomingley Gold Operations; the discovery
and ultimate sale of the McPhillamys gold deposit; the evaluation, recovery flowsheet, marketing and feasibility
for the Dubbo Project (rare metals and rare earths), advancing the project towards development; and the recent
discovery of the gold deposits immediately south of Tomingley and the porphyry gold-copper discovery at Boda.
Mr Chalmers has held executive director roles in a number of ASX companies for more than 30 years. Specifically,
he held managing director positions for a total of 15 years in ASX listed companies which required formal sign off
of annual accounts and day to day management of the companies’ accounting activities. He has also managed a
number of significant feasibility studies which required a broad understanding of financial analysis procedures.
During the year Mr Chalmers was a member of the Nomination Committee and was Co‐Chair of the Toronto based
Critical Minerals Institute.
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Anthony Dean Lethlean – Non-Executive Director
BAppSc (Geology)
Appointed Director 30 May 2002. Resigned Director 5 August 2025.
Mr Lethlean is a geologist and resource analyst with over ten years’ mining experience, including four years on
underground operations in the Golden Mile in Kalgoorlie. In later years, he has worked as a resource analyst with
various stockbrokers and investment banks including CIBC World Markets. He was a founding director of Helmsec
Global Capital Limited, which seeded, listed and funded a number of companies in a range of commodities. He
retired from the Helmsec group in 2014.
Mr Lethlean has modelled and analysed hundreds of mining companies and resource projects globally. He
has carried out this work for both a mine site operational level and as an Investment Banking analyst in many
commodities. In addition to this, over the last 20 years he has been a director on company boards including the
Chair of audit committees.
During the year Mr Lethlean was the senior independent director, Chair of the Audit Committee and Risk
Committee and a member of the Remuneration and Nomination Committees.
Gavin Murray Smith – Non-Executive Director
B.Com, MBA, MAICD
Appointed Director 29 November 2017. Resigned Director 5 August 2025.
Mr Smith has more than 35 years’ experience in Information Technology, Business Development, and General
Management in a wide range of industries and sectors. Mr Smith has worked for the Bosch group for the past 34
years in Australia and Germany and is current chair and president of Robert Bosch Australia.
Mr Smith holds a BComm., and MBA, and has 30 years’ experience managing businesses with responsibility for
financial management and eight years board experience as Audit and Risk Committee Chair.
Mr Smith has led the restructuring and transformation of the local Bosch subsidiary. Concurrent with this role, he
is a non-executive director of the various Bosch subsidiaries, joint ventures, and direct investment companies in
Australia and New Zealand. Mr. Smith is currently a non-executive director of Australian Strategic Materials Limited.
During the past five years, he has also served as a director of Australian Strategic Materials Limited (ASX: ASM)
(appointed December 12, 2017).
During the year, Mr Smith was a member of the Audit Committee and Risk Committee and Chair of the
Remuneration and Nomination Committees.
Andrew Quinn – Non-Executive Chair
BSc Mineral Exploitation (Mining)
Appointed Non-Executive Chair 5 August 2025.
Mr Quinn is a chartered mining engineer and a highly experienced investment banker and company director. He
was head of Mining Investment Banking for Europe and Africa at the Canadian Imperial Bank of Commerce for 15
years prior to his retirement in 2011. From 2011 to 2018, he served as a non-executive director of London-listed
FTSE 100 company Randgold Resources. Upon the merger with TSX and NYSE-listed Barrick Gold in 2019, he
joined that board as non-executive director and served until May 2025.
Since 2016, Mr Quinn has also served as a non-executive director of the London Bullion Market Association, the
international trade association that oversees and regulates the OTC market for precious metals.
Mr Quinn has almost 50 years of experience in the mining and financial industries, including positions at Anglo
American, Greenbushes Tin, The Mining Journal, James Capel and HSBC Investment Banking. He holds an
undergraduate degree in Mineral Exploitation (Mining Engineering) from Cardiff University, is a Member of the
Institute of Materials, Minerals & Mining, and is a registered Chartered Engineer.
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Bradford Mills – Non-Executive Director
MSc (Geology and Mineral Economics)
Appointed Non-Executive Director on 5 August 2025.
Mr. Mills has over 40 years of executive, board governance and investment experience in the global resources
industry. He is the former Chair of Mandalay Resources Corporation (‘Mandalay’), a role he held from April 2017
until the merger with Alkane. Prior to that, he served as the CEO of Mandalay from 2009 until 2016 and oversaw
its transition to a producing gold company (2010).
Other past roles include CEO of Lonmin Plc (GBX: LMI) (2004–2009), the world’s number three platinum and
platinum group metals producer, and president of BHP Billiton’s copper group. He was a director of Rambler Metals
& Mining PLC, a Canadian base and precious metals mining company.
Mr Mills is the founder and managing director of Plinian Capital, a private equity firm whose principal business is
investment in natural resources projects and companies. Mr. Mills is also currently a director of Circum Minerals, a
private potash development company in Ethiopia, and CNM, a private company in Zambia producing nickel, copper,
cobalt and platinum group metals.
Dominic Duffy – Non-Executive Director
BEng (Mining Engineering)
Appointed Non-Executive Director 5 August 2025.
Mr Duffy has over 20 years of operational experience in the resources sector across Australia, South America and
Europe. He served as the president and CEO of Mandalay from 2018 to 2023; Mr Duffy originally joined Mandalay
in 2010, overseeing operational improvements at Costerfield, Björkdal and Cerro Bayo (silver-gold mine formerly
owned by Mandalay).
Mr Duffy has a proven track record of operational turnarounds, founded on his extensive experience in both
technical and production roles. Prior to joining Mandalay, Mr. Duffy worked for Coeur d’Alene Mines and Hecla
Mining Company in South America.
Frazer Bourchier – Non-Executive Director
MASc Eng
Appointed Non-Executive Director 5 August 2025.
Mr Bourchier is a registered professional engineer with over 36 years of operational and executive leadership
experience in the Canadian and international mining industry.
He is the former president, chief executive officer and director of Mandalay, a role he held from April 2023 until the
merger with Alkane. Mr Bourchier has extensive public company and inter-company board governance experience,
and a Chartered Director Certification (C.Dir.) accredited by McMaster University, Canada.
Previous executive roles include president, CEO and director of Harte Gold Corp. (late 2020 to early 2022), COO of
Detour Gold (2018-2019), COO at Nevsun Resources (2012-2017), and operational executive at Wheaton Precious
Metals (formerly Silver Wheaton) for two years. For the first 16 years of his career, he worked at Placer Dome
(subsequently Barrick Gold), where he held positions of increasing responsibility, concluding as mining manager and
then general manager at the Porgera open pit gold mine in PNG.
Mr. Bourchier also served as a director of Treasury Metals Inc. (TSX: TML) from August 2020 to March 2024.
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Dennis Wilkins – Joint Company Secretary
Appointed Company Secretary 29 March 2018.
Mr Wilkins is the founder and principal of DWCorporate Pty Ltd, a corporate advisory firm servicing the natural
resources industry.
Since 1994 he has been a director, and involved in the executive management of, many publicly listed resource
companies with operations in Australia, PNG, Scandinavia and Africa. Mr Wilkins is the principal of DWCorporate
Pty Ltd, where he advises on governance, compliance and corporate secretarial matters to companies in the
Australian resources sector.
James Carter – Joint Company Secretary
Appointed Company Secretary 20 May 2020. Resigned Joint Company Secretary 17 October 2024.
Mr Carter is a CPA and Chartered Company Secretary with over 25 years’ international experience in the resources
industry. He has held senior finance positions across listed resources companies since 2001.
Julia Beckett – Joint Company Secretary
Appointed Joint Company Secretary 17 October 2024.
Ms Beckett is a corporate governance professional with 20 years of experience in public company management
specialising in mining and exploration. She has vast expertise across ASX listing rules and ASIC compliance,
including implementation and administration of corporate governance, initial public offerings and secondary raisings
and shareholder relations.
Ms Beckett holds a Certificate in Governance Practice and Administration and is an Affiliated Member of the
Governance Institute of Australia.
Principal activities
During the financial year the principal activities of the consolidated entity consisted of:
• Mining operations at the Tomingley Gold Operations and the extension project
• Completion of Tomingley Gold Extension Project growth projects
• Merger of equals with Mandalay to create a diversified Australia-based gold and antimony producer
• Exploration and evaluation activities on tenements held by the group; and
• Pursuing strategic investments in gold exploration companies.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Result for the year
The profit for the consolidated entity, after providing for income tax, amounted to A$33,043,000 (30 June 2024:
A$17,677,000).
This result included a profit before tax of A$60,934,000 (30 June 2024: A$33,123,000) in relation to Tomingley
Gold Operations.
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Review of operations
Tomingley Gold Operations
Tomingley Gold Operations (‘TGO’) is a wholly owned subsidiary of Alkane, located near the village of Tomingley,
approximately 50km southwest of Dubbo in Central West New South Wales. Tomingley has been operating since
2014. Mining is based on four gold deposits (Wyoming One, Caloma One, Caloma Two and Roswell).
During the year, TGO produced 70,120 ounces of gold which was within updated production guidance (70,000 to
80,000 ounces of gold). All in sustaining cost (AISC) of A$2,561/oz was within guidance (A$2,400 - A$2,600).
Gold recovery of 85.45% for the period was higher than 2024 (78.4%). Average grade milled increased to 2.31g/t
in the current year (2024: 2.00g/t).
Production for the period was 70,120 ounces of gold (2024: 57,217 ounces of gold) with AISC of $2,561 per ounce
(2024: $2,137 per ounce). The average sales price achieved for the year increased to $3,770 per ounce (2024:
$3,004 per ounce). Gold sales of 69,774 ounces (2024: 57,592 ounces) resulted in sales revenue of $262,362,000
(2024: $172,991,000).
Bullion on hand decreased by 78 ounces from 30 June 2024 to 2,500 ounces (fair value of $12,157,000 at
year end).
The main drivers of change in profit year on year were the completion of Tomingley Gold Exploration Project
(‘TGEP’) growth projects that commenced in FY2023. Projects such as the ultra-fine grind circuit boosted recoveries
from 78.4% in FY2024 to 85.45% this financial year. Input costs increased; however, this was offset by significantly
higher gold prices.
Tomingley Gold Extension Project
Production continued as expected throughout FY2025 with all major TGEP capital projects finishing within the
year. Work for the diversion of the Newell Highway is expected to commence in early FY2026 to allow for open pit
access to reserves above the Roswell underground mine.
Exploration
The extensive exploration program focused on the immediate area to the south of the TGO mine has continued as
part of the plan to source additional ore feed, either at surface or underground.
Full results for the regional exploration aircore, RC and core drilling of several targets within and adjacent to the
Tomingley to Peak Hill corridor have yet to be received. This data will be compiled into a summary expected to be
released in the September quarter.
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TGO Production
Unit
September
Quarter
2024
December
Quarter
2024
March
Quarter
2025
June
Quarter
2025
FY
2025
FY
2024
Underground
Ore mined
tonnes
282,061
264,623
274,110
340,192
1,160,986
1,047,035
Grade
g/t
2.38
2.24
2.09
2.19
2.22
2.10
Ore Milled
tonnes
264,370
268,614
277,550
273,324
1,083,858
1,132,538
Head Grade
g/t
2.44
2.25
2.19
2.38
2.31
2.00
Gold Recovery
%
84.8
84.2
83.7
88.9
85.45
78.4
Gold poured(3)
ounces
18,418
14,852
17,657
19,193
70,120
57,217
Revenue summary
Gold sold
ounces
18,208
16,576
16,513
18,476
69,774
57,592
Average price realised
A$/oz
3,422
3,582
3,839
4,221
3,770
3,004
Gold revenue
A$M
62.3
59.4
63.4
78.0
263.1
173.0
Cost summary
Surface works
A$/oz
37
44
47
41
42
33
Underground
A$/oz
1,165
1,198
1,272
1,287
1,231
800
Processing
A$/oz
461
535
656
618
566
504
Site support
A$/oz
177
238
203
187
200
204
C1 Cash Cost(1)
A$/oz
1,840
2,015
2,178
2,132
2,039
1,541
Royalties
A$/oz
117
103
130
137
122
94
Sustaining capital
A$/oz
466
578
425
303
440
401
Gold in circuit movement
A$/oz
(320)
254
(65)
(386)
(141)
15
Rehabilitation
A$/oz
26
47
38
24
33
20
Corporate
A$/oz
53
57
64
92
67
66
All in Sustaining Cost(1)
A$/oz
2,183
3,054
2,770
2,302
2,561
2,137
Bullion on hand
ounces
2,704
1,066
2,111
2,422
2,422
2,500
Stockpiles
Ore for immediate milling
tonnes
258,871
251,767
246,503
313,742
313,742
241,179
Stockpile grade(2)
g/t
1.15
1.11
0.98
1.13
1.13
1.13
Contained gold
ounces
9,602
9,005
7,805
11,387
11,387
8,776
(1) All in Sustaining Cost (AISC) comprises all site operating costs, royalties, mine exploration, sustaining capex, sustaining mine development and an allocation of corporate
costs on the basis of ounces sold. AISC does not include share‐based payments, production incentives or net realisable value provision for product inventory.
(2) Based on the resource models.
(3) Represents gold sold at site, not adjusted for refining adjustments which results in minor differences between the movements in bullion on hand and the difference between
production and sales.
The table below summarises the key operational information:
Northern Molong Porphyry Project (gold-copper)
The drilling program at the Northern Molong Porphyry Project (NMPP) extends over three kilometres from Kaiser
to Boda, down to Boda Two and Boda Three. The Boda‐Kaiser development scoping study was announced on
10 July 2024 and included a 17-year LOM based on a 20 million tonnes per annum scenario.
The Project is located in Central West NSW at the northern end of the Molong Volcanic Belt of the Macquarie Arc
and is considered highly prospective for large scale porphyry and epithermal gold-copper deposits.
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Exploration in the NMPP has identified seven discrete intrusive complexes – Kaiser, Boda, Boda South, Driell
Creek, Murga, Windora and Thompkins – outboard of the major 35km2 Comobella Intrusive Complex and within
a northwest-trending transverse corridor. The corridor is defined by intermediate intrusive, lavas and breccias,
extensive alteration and widespread, low‐grade, gold‐copper mineralisation. Drilling continues to improve the
confidence of the Boda and Kaiser deposits and to test mineralised zones outside the defined resource envelopes.
Planned regional exploration in the NMPP for the next 12 months includes a MobileMT survey over the NMPP to
define new porphyry systems. Other activities include target generation work comprising mapping, soil sampling,
and air-core drilling. Any deeper drilling will focus on further testing the Driell Creek and Haddington prospects as
well as extensions to Boda-Kaiser, including the area between the two deposits.
Corporate
In accordance with the strategy of investing part of its cash balance in junior gold mining companies and projects
that meet its investment criteria and the needs of the business, during the period Alkane acquired 30M shares in
Medallion Metals (ASX: MM8) at a cost of $2M.
Material business risks
The material business risks for the group include:
Mineral Resource and Ore Reserve Estimates
Mineral Resource and Ore Reserve estimates are expressions of judgement based on knowledge, experience, and
industry practice, and no assurances can be given that the Mineral Resource and Ore Reserve estimates and the
underlying assumptions will be realised. Estimates, which were valid when originally calculated, may alter when new
information or techniques become available.
In addition, by their very nature, Mineral Resource and Ore Reserve estimates are imprecise and depend to some
extent on interpretations, which may prove to be inaccurate. As further information becomes available through
additional fieldwork and analysis, the Mineral Resource and Ore Reserve estimates may change.
Actual mineralisation of ore bodies may differ from those predicted, and any material variation in the estimated Ore
Reserves may have a material adverse effect impact on the group’s results of operations, financial condition, and
prospects.
Production, cost and capital estimates
The group prepares estimates of future production, operating costs and capital expenditure relating to production
at its operations. No assurance can be given that such estimates will be achieved. Failure to achieve production
or cost estimates or material increases in costs could have an adverse impact on the group’s future cash flows,
profitability, results of operations and financial condition.
The group’s actual production and costs may vary from the estimates due to a variety of reasons, including:
variances in actual ore mined due to varying estimates of grade, tonnage, dilution, metallurgical and other
characteristics; revision of mine plans; changing ground conditions; labour availability and costs; diesel costs; and
general inflationary pressures being felt across the industry.
The development of estimates is managed by the group using a rigorous budgeting and forecasting process.
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Operating risks
The group’s mining operations are subject to all the hazards and risks normally encountered in the exploration,
development, and production of gold that could result in decreased production, increased costs and reduced
revenues. The operation may be affected by equipment failure, toxic chemical leakage, labour disruptions and
availability, residue and tailings dam failures, rain and seismic events, which may result in environmental pollution
and consequent liability. The impact of these events could lead to disruptions in production and scheduling,
increased costs and loss of facilities, which may have a material adverse impact on the group’s results.
To manage this risk Alkane seeks to attract and retain high-calibre employees and implement suitable systems and
processes to ensure production targets are achieved.
Exploration risks
An ability to sustain or increase the current level of production in the longer term is in part dependent on the
success of the group’s exploration activities. Exploration is a high-risk activity that requires large amounts of
expenditure over extended periods of time. Few properties that are explored subsequently have economic deposits
of gold identified, and even fewer are ultimately developed into producing mines.
Conclusions drawn during exploration and development are subject to the uncertainties associated with all sampling
techniques and to the risk of incorrect interpretation of geological, geochemical, geophysical, drilling and other data.
Gold prices
Revenues and cashflows are exposed to fluctuations in the Australian dollar gold price. Volatility in the gold price
creates revenue uncertainty and requires careful management of business performance to ensure that operating
cash margins are maintained. Declining gold price can also impact operations by requiring a reassessment of the
feasibility of a particular exploration or development project which would cause delays and potentially have a
material adverse effect on results of operations and financial conditions forward contracts.
Taxation
The gold mining industry is subject to a number of government taxes, royalties and charges. Changes to the rates of
taxes, royalties and charges can impact the profitability of the group.
Community relations
Community relations is about people connecting with people. Maintaining trusted relationships with our local
community stakeholders throughout the entire mining cycle is an essential part of securing and maintaining our
social licences to operate.
The group recognises that a failure to appropriately manage local community stakeholder expectations may lead to
dissatisfaction which has the potential to disrupt production and exploration activities.
Cyber security risks
The company has an Information Systems Standard and other information security policies and procedures in
place to ensure secure and reliable operations of all information systems. It is regularly audited based on accepted
information security standards from the Australian Signals Directorate (ASD) and National Institute of Standards
and Technology (NIST).
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The company’s information security training and compliance program includes training during onboarding, quarterly
training refreshers, and anti-phishing simulations throughout the year for all employees. The company also has
active detection and response systems in place to mitigate any potential breaches that may try to circumvent the
boundary security controls. This addresses threat and vulnerability management from a cyber security perspective.
The company has experienced no material information security breaches. The Group Information Systems Manager
tracks all cyber risks and reports to the Board on information security matters, and to the Audit and Risk Committees.
Government regulation
The group’s mining, processing, development and exploration activities are subject to various laws and statutory
regulations governing prospecting, development, production, taxes, royalty payments, labour standards and
occupational health, mine safety, toxic substances, land use, water use, communications, land claims of local people
and other matters.
No assurance can be given that new laws, rules and regulations will not be enacted or that existing laws, rules and
regulations will not be applied in a manner which could have an adverse effect on the group’s financial position
and results of operations. Any such amendments to current laws, regulations and permits governing operations
and activities of mining and exploration, or more stringent implementation thereof, could have a material adverse
impact on the group.
Debt and hedging covenants
The company has entered into agreements with financiers and hedge providers that contain various undertakings
and financial covenants. Non-compliance with the undertakings and covenants contained in these agreements
could lead to a default event resulting in the debt becoming due and payable with potentially adverse effects on the
financial position of the company. Management continually monitors for compliance with the required undertakings
and covenants.
Government policy and permits
In the ordinary course of business, mining companies are required to seek government permits for exploration,
expansion of existing operations or for the commencement of new operations. The duration and success of
permitting efforts are contingent upon many variables not within the controls of the company. There can be no
assurance that all necessary permits will be obtained, and, if obtained, that the costs involved will not exceed those
estimated by the company.
Climate-related risks
Alkane recognises that climate change poses a key environmental and social risk to our business, and the markets in
which the company operates. The highest-priority climate-related risks include reduced water availability, extreme
weather events, changes in legislation and regulation, reputational risk, and technological and market changes.
While Alkane proposes to comply with applicable laws and regulations and conduct its programs in a responsible
manner regarding the environment, there is the risk that Alkane may incur liability for any breaches of these laws
and regulations.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the consolidated entity during the financial year.
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Matters subsequent to the end of the financial year
On 27 April 2025, Alkane entered into an arrangement agreement (the ‘Arrangement Agreement’) with Mandalay,
a Canadian company with its common shares listed on the Toronto Stock Exchange. Pursuant to the Arrangement
Agreement, Alkane, through a wholly owned Canadian subsidiary, agreed to acquire 100% of the issued
and outstanding common shares of Mandalay by way of a statutory plan of arrangement under the Business
Corporations Act (British Columbia).
The transaction was approved by Alkane shareholders and Mandalay shareholders at separate meetings held on
28 July 2025. Final court approval was received on 4 August 2025 and the arrangement became effective on
5 August 2025.
Pursuant to the Arrangement Agreement, Mandalay shareholders received 7.875 ordinary shares of Alkane for
each common share of Mandalay held immediately prior to the completion of the transaction. Former Mandalay
shareholders and existing Alkane shareholders own approximately 55% and 45% respectively of the outstanding
ordinary shares of the combined entity.
The transaction creates a powerful platform underpinned by a shared vision for growth, three cash-generating
mines in premier mining jurisdictions with strong organic growth potential and a robust combined balance sheet.
The following board changes were effected under this arrangement:
• Ian Gandel (Non-Executive Chair) resigned as Chair and was appointed as a Non-Executive Director.
• Anthony Lethlean, Gavin Smith and Ian Chalmers resigned from their respective Director roles.
Ian Chalmers remains as Alkane Technical Advisor.
• Andrew Quinn was appointed as Non-Executive Chair.
• Bradford Mills, Frazer Bourchier and Dominic Duffy were appointed as Non-Executive Directors.
Per the information circular released on 27 June 2025 and under the Arrangement Agreement, Alkane, who is
deemed to be the accounting acquirer, issued 758,622,367 Alkane shares to Mandalay shareholders at an exchange
ratio of 7.875 Alkane shares for every 1 Mandalay share held immediately prior to the closing of the Arrangement.
The fair value of the consideration paid by Alkane to acquire the net assets of Mandalay is based on the fair value
of Alkane Shares to be issued to by Alkane. On this basis, Consideration equated to $568,966,775, which was
measured using Alkane’s quoted market share price on the Australian Securities Exchange (‘ASX’) at close of market
on 5 August 2025, at $0.735/share.
With the acquisition date being 5 August 2025, a purchase price allocation is required and will be completed within
a year of this date, which is consistent with accounting standards. Expert external consultants have been engaged
to complete valuation studies to ascertain fair values of the underlying assets, most significantly at the Björkdal and
Costerfield mining operations. Once these valuation activities have been completed, further accounting and tax
professionals will utilise the valuation findings to complete the full purchase price allocation computations. Given
the time required for these activities to be undertaken, the accounting for the business combination is incomplete
at the time of publishing this report.
On 18 August 2025, the company’s outstanding Macquarie facility of $45M was repaid.
No further matters or circumstance has arisen since 30 June 2025 that has significantly affected, or may
significantly affect, the group’s operations, the results of those operations, or the group’s state of affairs in future
financial years.
Likely developments and expected results of operations
In addition to the merger of Alkane with Mandalay subsequent to year-end, the group intends to continue efforts
at Tomingley to be focused on continued safe operation of the underground mine, and exploration, evaluation
and project approval of several of its other tenements to secure additional ore feed. Exploration and evaluation
activities will continue on existing tenements and opportunities to expand the group’s tenement portfolio will be
pursued with a view to ensuring there is a pipeline of development opportunities for consideration.
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Refer to the Review of Operations for further detail on planned developments.
Environmental regulation
The group is subject to significant environmental regulation in respect of its exploration and evaluation,
development and mining activities.
The group aspires to the highest standards of environmental management and insists its staff and contractors
maintain that standard. A significant environmental incident is considered to be one that causes a major impact or
impacts to land biodiversity, ecosystem services, water resources or air, with effects lasting greater than one year.
There were no significant environmental incidents reported at any of the group’s operations.
Meetings of directors
The number of meetings of the company’s Board of Directors (the ‘Board’) and of each Board committee held
during the year ended 30 June 2025, and the number of meetings attended by each director were:
Meetings of directors
Audit Committee
Risk Committee
Remuneration and
Nomination Committee
Attended
Held
Attended
Held
Attended
Held
Attended
Held
I J Gandel
16
16
4
4
1*
1
0
0
A D Lethlean
14
16
3
4
1
1
0
0
D I Chalmers
16
16
4*
4
1*
1
0
0
G Smith
16
16
4
4
1
1
0
0
N Earner
16
16
4*
4
1
1
0
0
Held: represents the number of meetings held during the time the director held office or was a member of the committee during the year.
* Not a member of this committee. Non-members may attend the relevant committee meetings by invitation.
Remuneration report
The directors are pleased to present Alkane Resources Ltd’s remuneration report which sets out remuneration
information for the company’s Non-Executive Directors, Executive Directors and other Key Management Personnel
(‘KMP’).
The report contains the following sections:
(a)
Key Management Personnel (‘KMP’) disclosed in this report
(b)
Remuneration governance
(c)
Use of remuneration consultants
(d)
Executive remuneration policy and framework
(e)
Statutory performance indicators
(f)
Non-Executive Director remuneration policy
(g)
Voting and comments made at the company’s 2024 Annual General Meeting
(h)
Details of remuneration
(i)
Service agreements
(j)
Details of share-based payments and performance against key metrics
(k)
Shareholdings and share rights held by KMP
(l)
Other transactions with KMP
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(a) Key Management Personnel (‘KMP’) disclosed in this report
Non-Executive Directors
I J Gandel
G Smith
A D Lethlean
Executive Directors
D I Chalmers
N P Earner
Other Key Management Personnel
J Carter
Chief Financial Officer/ Company Secretary (Resigned from Company Secretary 17 October 2024)
S Parsons
Executive General Manager – Operations
(b) Remuneration governance
The company has established a Remuneration Committee to assist the Board in fulfilling its corporate governance
responsibilities with respect to remuneration by reviewing and making appropriate recommendations to the Board on:
• the overall remuneration strategy and framework for the company;
• the operation of the incentive plans which apply to the executive team, including the appropriateness of key
performance indicators and performance hurdles; and
• the assessment of performance and remuneration of the Executive Directors, Non-Executive Directors and
other KMP.
The Remuneration Committee is a committee of the Board and until 5 August 2025 the members of the
Remuneration Committee were I J Gandel, A D Lethlean and G M Smith, all of whom were non-executive (with Mr
Smith and Mr Lethlean being independent).
From 5 August 2025, the members of the Remuneration Committee are A Quinn, F Bourchier (Chair) and D Duffy all
of whom are non-executive (with Mr Quinn being independent).
Their objective is to ensure that remuneration policies and structures are fair, competitive and aligned with the long-
term interests of the company and its shareholders.
The company’s annual Corporate Governance Statement provides further information on the role of this committee,
and the full statement is available at URL: alkres.com/company/governance
(c) Use of remuneration consultants
No remuneration consultants were engaged in the financial year to provide remuneration advice.
(d) Executive remuneration policy and framework
In determining executive remuneration, the Board (or the Remuneration Committee as its delegate) aims to ensure
that remuneration practices:
• are competitive and reasonable, enabling the company to attract and retain key talent while building a diverse,
sustainable and high achieving workforce;
• are aligned to the company’s strategic and business objectives and the creation of shareholder value;
• promote a high-performance culture recognising that leadership at all levels is a critical element in this regard;
• are transparent; and
• are acceptable to shareholders.
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The executive remuneration framework has three components as at 30 June 2025:
• Total Fixed Remuneration (TFR);
• Short-Term Incentives (STI); and
• Long-Term Incentives (LTI).
As part of the merger with Mandalay, effective 5 August 2025, the executive remuneration framework will be
reviewed by the incoming board.
(i) Executive remuneration mix
The company has in place executive incentive programs which provide the mechanism to place a material portion of
executive pay ‘at risk’.
(ii) Total fixed remuneration
A review is conducted of remuneration for all employees and executives on an annual basis, or as required. The
Remuneration Committee is responsible for determining executive TFR.
(iii) Incentive arrangements
The company may utilise both short-term and long-term incentive programs to balance the short and long-term
aspects of business performance, to reflect market practice, to attract and retain key talent and to ensure a strong
alignment between the incentive arrangements of executives and the creation and delivery of shareholder return.
Performance rights have been used in the current period to incentivise the company’s executive and KMP.
The performance rights plan was approved by shareholders at the 2016 Annual General Meeting.
Short-term incentives
Executives have the opportunity to earn an annual Short-Term Incentive (STI) if predefined targets are achieved.
The executive STI is provided in the form of rights to ordinary shares in the company that vest at the end of the
12-month period, provided the predefined targets are met. On vesting, the rights automatically convert into
one ordinary share each. The executives do not receive any dividends and are not entitled to vote in relation to
the rights to shares during the vesting period. If an executive ceases to be employed by the group within the
performance period (the service condition), the rights will be forfeited, except in limited circumstances that are
approved by the Board on a case-by-case basis.
STI awards for the executive team in the 2025 financial year were based on the scorecard measures and weighting
as disclosed below. Targets were approved by the Board through a rigorous process to align to the company’s
strategic and business objectives.
STI FY2025 Performance metrics
Weighting
Production performance at TGO
20%
Cost performance at TGO
20%
Safety Performance, Environment & Social Licence
25%
SAR Development
15%
SAR Resources Increase
5%
NMPP Resource Increase
15%
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For the STI in FY2024, the following results were achieved:
STI – FY2024
Weighting
(%)
Metric
Target
Reward
(%)
Actual
Result
Actual
Reward
(%)
Production ounces at TGO
20
Threshold
85% Budget (52,700oz)
100
57,217oz
24
AISC at TGO
20
Threshold
Top guidance (A$2,100/oz)
100
A$2,137/oz
0
Safety Performance
Environment Social Licence
25
Board will assess the company’s
performance taking into account
safety, environmental & regulatory
performance as well as risk,
community and social licence
improvement
50
Board
Discretion
56
SAR Development
15
Target
115% budget (A$76.8M)
100
$58.1M
94
SAR Resource Increase
(incl McLeans)
5
Threshold
10 evaluated and reported for
progress/rejection
100
19 Evaluated
100
NMPP Resource Increase
15
Stretch
4,000,000oz AuEq at 0.3g/t (AuEq)
cut-off
0
No change
0
Total
100
38
FY2024 STIs were revalued by Deloitte via a Black-Scholes model upon reaching the above vesting criteria.
Executive director incentives vested on 26 November 2024 with a fair value of $0.495. Other executives (KMP)
incentives vested on 30 October 2024 and had a fair value of $0.555. Both are subject to a restricted trading
period of one year from vesting date.
The committee has the discretion to adjust short-term incentives downwards in light of unexpected or unintended
circumstances.
For FY2025 STI, results are yet to be approved via the remuneration committee which will occur after the release of
the financial statements. The performance conditions are listed below.
Note: Board discretion to modify or cancel if fatality, serious injury or serious ESG incident
STI ‐ FY2025 Weighting Metric
Weighting
(%)
Metric
Performance Conditions
Production ounces at TGO
20
Threshold
85% budget (61,200oz)
Target
Budget (72,000oz)
Stretch
115% budget (82,800oz)
Threshold
Top guidance (A$2,600/oz)
Target
Mid guidance (A$2,500/oz)
AISC at TGO
20
Stretch
Bottom guidance (A$2,400/oz)
Safety Performance Environment
Social Licence
25
-
SAR Development
15
Threshold
85% Budget (A$84.9M)
Target
Budget (A$73.8M)
Stretch
115% Budget (A$62.7M)
SAR Resource Increase (incl McLeans)
5
Threshold
5 evaluated and reported for progress / rejection
Target
10 evaluated and reported for progress / rejection
Stretch
15 evaluated and reported for progress / rejection
NMPP Resource Increase
15
Threshold
8 projects advanced / developed and less than $6.6M spent
Target
10 projects advanced / developed and less than $6.0M spent
Stretch
12 projects advanced / developed and less than $5.4M spent
Total
100
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Long-term incentives (LTI)
The LTI is designed to focus executives on delivering long-term shareholder returns. Eligibility for the plan is
restricted to executives and nominated senior managers, being the employees who are most able to influence
shareholder value. Under the plan, participants have an opportunity to earn up to 100% of their TFR (calculated
at the time of approval by the Remuneration Committee) comprised of performance rights. In previous periods
performance rights were granted in two tranches each year. Each tranche of performance rights has separate
vesting conditions being share price growth and company milestone events, with the executives’ LTI weighted more
heavily to the share price growth tranche. The LTI vesting period is three years.
In FY2025 LTIs were issued with vesting conditions linked to total shareholder return (‘TSR’) with a vesting period
of three years.
The performance rights will be provided in the form of rights to ordinary shares in Alkane Resources Ltd that will
vest at the end of the three-year vesting period provided the predefined targets are met. On vesting, the rights
automatically convert into one ordinary share each. Participants do not receive any dividends and are not entitled
to vote in relation to the rights to shares prior to the vesting period. If a participant ceases to be employed by the
group within this period, the rights will be forfeited, except in limited circumstances that are approved by the Board
on a case-by-case basis.
Participation in the plan is at the Board’s discretion and no individual has a contractual right to participate in the
plan.
Targets are generally reviewed annually and set for a forward three-year period. Performance related targets reflect
factors such as the expectations of the group’s business plans, the stage of development of the group’s projects and
the industry business cycle. The most appropriate target benchmark will be reviewed each year prior to the granting
of rights.
During the year, conditional rights to the FY2022 LTI lapsed because the conditions have not been, or have become
incapable of being, satisfied.
FY2025 LTIs were valued upon issue by Deloitte using a Monte‐Carlo valuation model. Executive director
incentives were granted on 26 November 2024 and have a fair value of $0.327. Other executives’ incentives (KMP)
were granted on 30 October 2024 at a fair value of $0.380.
The Remuneration Committee is responsible for determining the LTI to vest based on an assessment of whether the
predefined targets are met. To assist in this assessment, the committee receives detailed reports on performance
from management. The committee has the discretion to adjust LTIs downwards in light of unexpected or
unintended circumstances.
(iv) Clawback policy for incentives
Under the terms and conditions of the company’s incentive plan offer and the plan rules, the Board (or the
Remuneration Committee as its delegate) has discretion to determine forfeiture of unvested equity awards
in certain circumstances (e.g. unlawful, fraudulent or dishonest behaviour or serious breach of obligations to
the company). All incentive offers and final outcomes are subject to the full discretion of the Board (or the
Remuneration Committee as its delegate).
(v) Share trading policy
The trading of shares issued to participants under any of the company’s employee share plans is subject to, and
conditional upon, compliance with the company’s employee share trading policy. Executives are prohibited from
entering into any hedging arrangements over unvested rights under the company’s employee incentive plans. The
company would consider a breach of this policy as gross misconduct which may lead to disciplinary action and
potentially dismissal.
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FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
(e) Statutory performance indicators
The company aims to align executive remuneration to the company’s strategic and business objectives and the
creation of shareholder wealth. The table below shows measures of the group’s financial performance over the
last five years as required by the Corporations Act 2001. However, these are not necessarily consistent with the
specific measures in determining the variable amounts of remuneration to be awarded to KMP. As a consequence,
there may not always be a direct correlation between the statutory key performance measures and the variable
remuneration rewarded.
30 June
2025
30 June
2024
30 June
2023
30 June
2022
30 June
2021
Revenue ($’000)
262,362
172,991
190,527
165,010
127,833
Profit/(loss) for the year attributable to owners ($’000)
33,043
17,677
42,450
70,251
55,701
Basic earnings/(loss) per share (cents)
5.46
2.93
7.1
11.8
5.6
Dividend payments ($’000)
-
-
-
-
Share price at period end ($)
0.715
0.50
0.71
0.62
1.15
Total KMP incentives as a percentage of profit/(loss) for the year (%)
3.4
5
5.9
1.8
2.1
(f) Non-Executive Director remuneration policy
On appointment to the Board, all Non-Executive Directors enter into a service agreement with the company in
the form of a letter of appointment. The letter summarises the Board policies and terms, including remuneration,
relevant to the office of director.
Non-Executive Directors receive a Board fee and fees for chairing or participating on Board Committees. Non-
Executive Directors appointed do not receive retirement allowances. Fees provided are inclusive of superannuation
and the Non-Executive Directors do not receive performance-based pay.
Fees are reviewed annually by the Remuneration Committee taking into account comparable roles and market data
obtained from independent data providers.
The maximum annual aggregate directors’ fee pool limit (inclusive of applicable superannuation) for the year was
$950,000, as approved by shareholders at the Annual General Meeting on 17 November 2021. For FY2026 the
annual aggregate directors’ fee pool has been increased to $1,500,000 (inclusive of applicable superannuation), as
approved by shareholders at the General Meeting on 28 July 2025.
Details of Non-Executive Director fees in the year ended 30 June 2025 are as follows:
$ per annum
Base fees
Chair
191,000
Other Non-Executive Directors
95,000
Additional fees
Audit Committee - chair
12,500
Audit Committee - member
7,500
Remuneration Committee - chair
12,500
Remuneration Committee - member
7,500
Risk Committee - chair
12,500
Risk Committee - member
7,500
For services in addition to ordinary services, Non-Executive Directors may charge per diem consulting fees at the
rate specified by the Board from time to time for a maximum of four days per month over a 12-month rolling basis.
Any fees in excess of this limit are to be approved by the Board.
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(g) Voting and comments made at the company’s 2024 Annual General Meeting
The company received 94.97% of ‘yes’ votes on its remuneration report for the financial year ended 30 June
2024. The company did not receive any specific feedback at the AGM or throughout the year on its remuneration
practices.
(h) Details of remuneration
The following table shows details of the remuneration expense recognised for the Directors and other KMP of the
group for the current and previous financial year measured in accordance with the requirements of the accounting
standards.
30 June 2025
Fixed Remuneration
Variable Remuneration
Total
Cash
Salary(a)
Annual
and long
service
leave(b)
Post-
employment
benefits(c)
Cash
bonus
(a)(f)
Bonus
Employee
Share
Plan(g)
STI
Performance
Rights(d)
LTI
Performance
Rights(d)
$
$
$
$
$
$
$
$
Executive Directors
N P Earner
639,568
60,032
29,932
61,966
-
107,206
439,414
1,338,118
D I Chalmers
310,792
34,336
29,932
-
-
36,373
103,213
514,646
Other KMP
J Carter
492,111
23,290
29,932
-
1,000
56,886
178,309
781,529
S Parsons
474,159
13,675
29,932
30,815
1,000
54,930
172,168
776,680
Total Executive
Directors and other
KMP
1,916,630
131,334
119,729
92,781
2,000
255,395
893,104
3,410,973
Total NED
remuneration(e)
474,221
-
30,904
-
-
-
-
505,125
Total KMP
remuneration expense
2,390,851
131,334
150,633
92,781
2,000
255,395
893,104
3,916,098
30 June 2024
Fixed Remuneration
Variable Remuneration
Total
Cash
Salary(a)
Annual
and long
service
leave(b)
Post-
employment
benefits(c)
Cash
bonus(a)
Bonus
Employee
Share
Plan(g)
STI
Performance
Rights(d)
LTI
Performance
Rights(d)
$
$
$
$
$
$
$
$
Executive Directors
N P Earner
622,601
43,026
27,399
-
-
50,294
399,521
1,142,841
D I Chalmers
303,401
27,011
27,399
-
-
17,064
93,842
468,717
Other KMP
J Carter
474,765
17,843
27,399
-
1,000
25,787
146,800
693,594
S Parsons
457,449
10,887
27,399
69,446
1,000
12,449
141,671
720,301
Total Executive
Directors and other
KMP
1,858,216
98,767
109,596
69,446
2,000
105,594
781,834
3,025,453
Total NED
remuneration(e)
398,175
-
30,325
-
-
-
-
428,500
Total KMP
remuneration expense
2,256,391
98,767
139,921
69,446
2,000
105,594
781,834
3,453,953
(a) Short-term benefits as per Corporations Regulation 2M.3.03(1) Item 6.
(b) Other long-term benefits as per Corporations Regulation 2M.3.03(1) Item 8. The amounts disclosed in this column represent the movements in the associated provisions.
They may be negative where a KMP has taken more leave than accrued during the year. Post-employment benefits are provided through superannuation contributions.
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FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
(c)
Post-employment benefits are provided through superannuation contributions.
(d) Rights to deferred shares granted under the executive STI and LTI schemes are expensed over the performance period, which includes the year to which the incentive relates
and the subsequent vesting period of the rights.
Rights to deferred shares are equity-settled share-based payments as per the Corporations Regulations 2M.3.03(1) Item11. These include negative amounts for the rights
forfeited during the year.
Details of each grant of share right are provided in the table in section (j). Shareholder approval was received in advance to the grant of share rights where required.
(e)
Refer below for details of Non-Executive Directors’ (NED) remuneration.
(f)
The cash bonus includes a paid short-term incentive for FY2024 ($69,446) and short-term incentive for FY2025 ($92,781) that was paid in lieu of receiving shares for the
FY2024 performance rights.
(g) Recipients of shares issued under the Bonus Employee Share Plan will not be able to deal with the new shares until the earlier of the third anniversary of the issue date and
the date on which they cease to be an employee of the company.
Cash salary and
fees
$
Superannuation
$
Total
$
30 June 2025
Non-Executive Directors
I J Gandel
181,150
9,850
191,000
A D Lethlean*
170,571
21,054
191,625
G M Smith
122,500
-
122,500
Total Non-Executive Directors
474,221
30,904
505,125
30 June 2024
Non-Executive Directors
I J Gandel
172,072
18,928
191,000
A D Lethlean
103,603
11,397
115,000
G M Smith
122,500
-
122,500
Total Non-Executive Directors
398,175
30,325
428,500
*Fees owing to Anthony Lethlean at 30 June 2025 were $76,625 from an administrative error which resulted in the Risk Committee chair position being invoiced incorrectly.
Fixed remuneration
At risk – LTI
At risk – STI
2025
%
2024
%
2025
%
2024
%
2025
%
2024
%
Executive Directors of Alkane Resources Ltd
N P Earner
59
61
28
35
13
4
D I Chalmers
73
76
20
20
7
4
Other Key Management Personnel
J Carter
70
75
23
21
7
4
S Parsons
67
69
22
20
11
11
The relative proportions of remuneration expense recognised during the year that are linked to performance and
those that are fixed are as follows:
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FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
Name and Position
Term of agreement
TFR (1)
Termination
payment (2)
N Earner – Managing Director
Ongoing commencing 1 September 2017
$669,500
see note 2 below
D I Chalmers – Technical Director
Ongoing commencing 1 September 2017
$340,724
6 months
J Carter – Chief Financial Officer
Ongoing commencing 1 October 2018
$522,043
3 months
S Parsons – Executive General Manager Operations
Ongoing commencing 1 October 2015
$504,092
1 month
(1) Total Fixed Remuneration (TFR) is for the year ended 30 June 2025 and is inclusive of superannuation but does not include long service leave accruals. TFR is reviewed
annually by the Remuneration Committee.
(2) Specified termination payments are within the limits set by the Corporations Act 2001. The termination benefit provision for the Managing Director was approved at the
Annual General Meeting on 29 November 2017.
Mr Earner may resign with 3 months’ notice; or
Alkane may terminate the Executive Employment agreement with 3 months’ notice; or
Where Mr Earner resigns as a result of a material diminution in the position, Mr Earner will be entitled to payment in lieu of 12 months’ notice and short-term incentives and
long-term incentives granted or issued but not yet vested.
(i) Service agreements
Remuneration and other terms of employment for KMP are formalised in service agreements. Details of these
agreements are as follows:
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Alkane Resources Annual Report 2025
FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
Date of grant
Number
of rights
or shares
granted
Fair value of
share rights
and shares at
the date of
grant
$
Share rights
at fair value
$
Performance
period end
Share-based
payment
expense
current year
$
Executive Directors
D I Chalmers
FY2023 LTI – Performance Rights
28/11/2022
255,674
0.323
82,583
31/08/2025
27,528
FY2024 LTI – Performance Rights
21/11/2023
269,336
0.369
99,385
31/08/2026
33,128
FY2025 LTI – Performance Rights
26/11/2024
471,449
0.327
154,164
31/08/2027
42,557
FY2025 STI – Performance Rights(d)
-
-
-
-
30/06/2025
36,373
N Earner
FY2023 LTI – Performance Rights
28/11/2022
1,088,497
0.323
351,585
31/08/2025
117,195
FY2024 LTI – Performance Rights
21/11/2023
1,146,657
0.369
423,116
31/08/2026
141,039
FY2025 LTI – Performance Rights
26/11/2024
2,007,126
0.327
656,330
31/08/2027
181,181
FY2025 STI – Performance Rights(d)
-
-
-
-
30/06/2025
107,206
Other Key Management Personnel
J Carter
FY2023 LTI – Performance Rights
17/10/2022
378,237
0.410
155,077
31/08/2025
51,692
FY2024 LTI – Performance Rights
13/10/2023
407,018
0.358
145,712
31/08/2026
48,571
FY2025 LTI – Performance Rights
30/10/2024
744,004
0.380
282,722
31/08/2027
78,046
FY2025 STI – Performance Rights(d)
-
-
-
-
30/06/2025
56,886
Bonus Employee Shares(c)
11/10/2024
1,887
0.530
1,000
-
1,000
S Parsons
FY2023 LTI – Performance Rights
17/10/2022
365,194
0.410
149,730
31/08/2025
49,910
FY2024 LTI – Performance Rights
13/10/2023
392,982
0.358
140,688
31/08/2026
46,896
FY2025 LTI – Performance Rights
30/10/2024
718,420
0.380
273,000
31/08/2027
91,000
FY2025 STI – Performance Rights(d)
-
-
-
-
30/06/2025
54,390
Bonus Employee Shares(c)
11/10/2024
1,887
0.530
1,000
-
1,000
Right holders now have the option to receive 50% of their entitlement as shares and 50% as cash.
The determination of the number of rights that are to vest or be forfeited during a financial year is made by
the Remuneration Committee after the statutory audit has been substantially completed. As such, the actual
determination is made after the balance sheet date. Where there are rights that have vested or been forfeited,
details will be included in the Remuneration Report as the relevant performance period will conclude at the end of
the relevant financial year.
(a) The value at grant date for share rights granted during the year as part of remuneration is calculated in accordance with AASB 2 Share-Based Payments. Differences will
arise between the number of share rights at fair value in the table above and the STI and LTI percentages mentioned in section (d) due to different timing of valuation of
rights as approved by the Remuneration Committee and at grant. Refer to note 27 for details of the valuation techniques used for the rights plan.
(b) Share rights only vest if performance and service targets are achieved. The determination is usually made at the conclusion of the statutory audit.
(c)
Recipients of shares issued under the Bonus Employee Share Plan will not be able to deal with the new shares until the earlier of the third anniversary of the Issue Date and
the date on which they cease to be an employee of the company.
(d)
The Board will calculate the STI earned value shortly after 30 June 2025 in accordance with the metrics agreed. The calculated earned value will be converted into restricted
rights calculated at the August 2025 VWAP for a service period of one year. The restricted rights held will be converted into fully paid shares in the following year.
(j) Details of share-based payments and performance against key metrics
Details of each grant of share rights affecting remuneration in the current or future reporting period are set out below.
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FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
Performance against key metrics
During FY2025, the company’s FY2022 long-term incentive rights lapsed as they did not meet the minimum TSR
during this time frame and were reversed in the profit and loss.
The STI performance metrics for the year are detailed in section (d)(iii) of the Remuneration Report.
The company’s TSR for FY2024 and FY2025 will be compared to the S&P/ASX All Ordinaries Gold (Sub industry)
XGD (Gold Index). TSR and number of performance rights will vest as follows:
Shareholder return comparison
Proportion of performance rights that vest
%
TSR is less than Gold Index TSR
-
TSR is equal to Gold Index TSR
25
TSR is >5% and <10% to Gold Index TSR
50
TSR is equal to or >10% to Gold Index TSR
100
(k) Shareholdings and share rights held by Key Management Personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members of Key
Management Personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at the start
of the year
Received as part of
remuneration*
Received on
vesting of PRs
Disposals / other
Balance at the end
of the year
Ordinary shares
I J Gandel
110,128,277
-
-
1,100,000
111,228,277
A D Lethlean
720,086
-
-
100,000
820,086
D I Chalmers
6,010,345
-
121,836
-
6,132,181
N P Earner
5,348,450
-
359,101
57,471
5,765,022
G Smith
331,875
-
-
68,493
400,368
J Carter
696,681
1,887
177,037
(141,075)
734,530
S Parsons
503,223
1,887
85,466
(575,000)
15,576
123,738,937
3,774
743,440
608,889
125,096,040
Performance rights holding
The number of performance rights over ordinary shares in the company held during the financial year by each
director and other members of KMP of the consolidated entity, including their personally related parties, is set out
below:
Balance at the
start of the
year
Granted
Vested
Expired/
forfeited/
other
Balance at the
end of the year
Performance rights over ordinary shares
D I Chalmers – Performance rights
840,655
561,024
(121,836)
(193,809)
1,086,034
N P Earner – Performance rights
3,419,370
2,139,133
(359,101)
(825,115)
4,374,287
J Carter – Performance rights
1,232,969
879,982
(177,037)
(270,677)
1,665,237
S Parsons – Performance rights
1,104,652
784,065
(85,466)
(261,010)
1,542,241
6,597,646
4,364,204
(743,440)
(1,550,611)
8,667,799
*All employees of Alkane are entitled to received $1,000 worth of bonus shares each financial year under the employee share plan. Shares were issued on 17 October 2024 at a
price of $0.53.
86
Alkane Resources Annual Report 2025
FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
(l) Other transactions with Key Management Personnel
There were no other transactions with KMPs during the financial year ended 30 June 2025.
There were no unissued ordinary shares of Alkane Resources Ltd under performance rights outstanding at the date
of this report.
This concludes the remuneration report, which has been audited.
Indemnity and insurance of officers
Alkane Resources Ltd has entered into deeds of indemnity, access and insurance with each of the directors. These
deeds remain in effect as at the date of this report. Under the deeds, the company indemnifies each director to the
maximum extent permitted by law against legal proceedings or claims made against or incurred by the directors in
connection with being a director of the company, or breach by the group of its obligations under the deed.
The liability insured is the indemnification of the group against any legal liability to third parties arising out of any
directors’ or officers’ duties in their capacity as a director or officer other than indemnification not permitted by law.
No liability has arisen under this indemnity as at the date of this report.
The group has not otherwise, during or since the financial year, indemnified nor agreed to indemnify an officer of
the group or of any related body corporate, against a liability incurred as such by an officer.
During the year the company has paid premiums in respect of directors’ and executive officers’ Insurance. The
contracts contain prohibitions on disclosure of the amount of the premiums and the nature of the liabilities under
the policies.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings
on behalf of the company, or to intervene in any proceedings to which the company is a party for the purpose of
taking responsibility on behalf of the company for all or part of those proceedings.
Non-audit services
The company may decide to employ the auditor on assignments additional to their statutory audit duties where the
auditor’s expertise and experience with the group is important.
The directors, in accordance with advice provided by the audit committee, are satisfied that the provision of non-
audit services during the financial year, by the auditor (or by another person or firm on the auditor’s behalf), is
compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 23 to the financial statements do not
compromise the external auditor’s independence requirements of the Corporations Act 2001 for the following
reasons:
• all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and
objectivity of the auditor; and
• none of the services undermine the general principles relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants.
87
Alkane Resources Annual Report 2025
FINANCIAL REPORT DIRECTORS’ REPORT
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is
set out immediately after this directors’ report.
Rounding of amounts
The company is of a kind referred to in ASIC Legislative Instrument 2016/191, issued by the Australian Securities
and Investments Commission, relating to the ‘rounding-off’ of amounts in the directors’ report and financial report.
Amounts in this report have been rounded off in accordance with that ASIC Legislative Instrument to the nearest
thousand dollars, or in certain cases, to the nearest dollar.
This report is made in accordance with a resolution of directors.
On behalf of the directors
N P Earner
Managing Director
21 August 2025
Perth
88
Alkane Resources Annual Report 2025
FINANCIAL REPORT AUDITOR’S INDEPENDENCE DECLARATION
pwc.com.au
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, Level 15, 125 St Georges Terrace, PERTH WA 6000,
GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Auditor’s Independence Declaration
As lead auditor for the audit of Alkane Resources Ltd for the year ended 30 June 2025, I declare that to
the best of my knowledge and belief, there have been:
a. no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation
to the audit; and
b. no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Alkane Resources Ltd and the entities it controlled during the period.
Ian Campbell
Perth
Partner
PricewaterhouseCoopers
21 August 2025
89
Alkane Resources Annual Report 2025
FINANCIAL REPORT FINANCIAL STATEMENTS
Financial Statements
Consolidated Financial Statements
Consolidated statement of profit or loss and other comprehensive income
91
Consolidated balance sheet
92
Consolidated statement of changes in equity
93
Consolidated statement of cash flows
94
Notes to the Consolidated Financial Statements
Note 1. Segment information
95
Note 2. Revenue
95
Note 3. Expenses
96
Note 4. Income tax
97
Note 5. Cash and cash equivalents
100
Note 6. Trade and other receivables
100
Note 7. Inventories
101
Note 8. Financial assets at fair value through other comprehensive income
101
Note 9. Derivative financial instruments
102
Note 10. Other financial assets
103
Note 11. Property, plant and equipment
103
Note 12. Exploration and evaluation
105
Note 13. Trade and other payables
106
Note 14. External borrowings
106
Note 15. Provisions
107
Note 16. Issued capital
109
Note 17. Reserves
109
Note 18. Retained profits
111
Note 19. Critical accounting judgements, estimates and assumptions
111
Note 20. Financial risk management
113
Note 21. Capital risk management
115
Note 22. Key Management Personnel disclosures
116
Note 23. Remuneration of auditors
116
Note 24. Commitments
116
Note 25. Events after the reporting period
117
Note 26. Related party transactions
118
Note 27. Share-based payments
119
Note 28. Earnings per share
121
Note 29. Parent entity information
121
Note 30. Interests in subsidiaries
123
Note 31. Deed of cross-guarantee
123
Note 32. Reconciliation of profit after income tax to net cash from operating activities
124
Note 33. Material accounting policy information
125
90
Alkane Resources Annual Report 2025
FINANCIAL REPORT FINANCIAL STATEMENTS
These financial statements are consolidated financial statements for the group consisting of Alkane
Resources Ltd and its subsidiaries.
The financial statements are presented in the Australian currency.
Alkane Resources Ltd is a company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
Alkane Resources Ltd
Level 4, 66 Kings Park Road
West Perth WA 6005
The financial statements were authorised for issue by directors on 21 August 2025. The directors have the
power to amend and reissue the financial statements.
All press releases, financial reports and other information are available in the investor section on our website:
alkres.com
91
Alkane Resources Annual Report 2025
FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of profit or loss and
other comprehensive income
For the year ended 30 June 2025
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
Note
2025
$’000
2024
$’000
Continuing operations
Revenue
2
262,362
172,991
Cost of sales
3
(205,749)
(138,399)
Gross profit
56,613
34,592
Other income
694
509
Interest income
1,929
2,527
Impairment reversal
19
7,024
-
66,260
37,628
Expenses
Other expenses
3
(15,315)
(10,949)
Finance costs
3
(5,341)
(2,347)
Net gain/(loss) on disposal of property, plant and equipment
541
110
(20,115)
(13,186)
Profit before income tax expense
46,145
24,442
Income tax expense
4
(13,102)
(6,765)
Profit after income tax expense for the year attributable to the
owners of Alkane Resources Ltd
18
33,043
17,677
Other comprehensive income/(loss)
Items that will not be reclassified subsequently to profit or loss
Changes in the fair value of equity investments at fair value
through other comprehensive income, net of tax
8
(5,708)
(7,099)
Items that will be reclassified subsequently to profit or loss
Cash flow hedges reclassified to profit or loss, net of tax
17
695
-
Net change in the fair value of cash flow hedges taken to equity,
net of tax
17
(4,150)
(1,449)
Other comprehensive income/(loss) for the year, net of tax
2,253
(8,548)
Total comprehensive income for the year attributable to the
owners of Alkane Resources Ltd
35,296
9,129
Note
Cents
Cents
Basic earnings per share
28
5.46
2.93
Diluted earnings per share
28
5.39
2.89
92
Alkane Resources Annual Report 2025
FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated balance sheet
As at 30 June 2025
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
Note
2025
$’000
2024
$’000
Assets
Current assets
Cash and cash equivalents
5
48,089
45,519
Trade and other receivables
6
4,361
3,848
Inventories
7
31,566
22,241
Derivative financial instruments
9
2
394
Total current assets
84,018
72,002
Non-current assets
Property, plant and equipment
11
297,848
271,750
Exploration and evaluation
12
114,543
101,403
Financial assets at fair value through other comprehensive income
8
8,007
299
Derivative financial instruments
9
116
5,354
Other financial assets
10
14,852
13,888
Total non-current assets
435,366
392,694
Total assets
519,384
464,696
Liabilities
Current liabilities
Trade and other payables
13
21,899
23,744
External borrowings
14
33,315
16,144
Current tax liabilities
4
14,389
5,134
Provisions
15
8,063
6,891
Other liabilities
458
445
Total current liabilities
78,124
52,358
Non-current liabilities
External borrowings
14
26,009
32,874
Provisions
15
27,578
21,998
Deferred tax
4
41,827
47,633
Other liabilities
156
459
Total non-current liabilities
95,570
102,964
Total liabilities
173,694
155,322
Net assets
345,690
309,374
Equity
Issued capital
16
224,693
223,319
Reserves
17
(83,289)
(85,188)
Retained profits
18
204,286
171,243
Total equity
345,690
309,374
93
Alkane Resources Annual Report 2025
FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of changes in equity
For the year ended 30 June 2025
Issued capital
$’000
Share-based
payments
reserve
$’000
Other
reserves
$’000
Retained
Profits
$’000
Total equity
$’000
Balance at 1 July 2024
223,319
5,156
(90,344)
171,243
309,374
Profit after income tax expense for the year
-
-
-
33,043
33,043
Other comprehensive loss for the year, net of tax
-
-
2,253
-
2,253
Total comprehensive income/(loss) for the year
-
-
2,253
33,043
35,296
Share placement
-
-
-
-
-
Share issue transaction costs (note 16)
(4)
-
-
-
(4)
Share-based payments (note 27)
255
769
-
-
1,024
Employee share awards vested
1,123
(1,123)
-
-
-
Balance at 30 June 2025
224,693
4,802
(88,091)
204,286
345,690
Issued capital
$’000
Share-based
payments
reserve
$’000
Other
reserves
$’000
Retained
Profits
$’000
Total equity
$’000
Balance at 1 July 2023
222,224
6,003
(81,169)
152,939
299,997
Profit after income tax expense for the year
-
-
-
17,677
17,677
Other comprehensive loss for the year, net of tax
-
-
(8,548)
-
(8,548)
Total comprehensive income/(loss) for the year
-
-
(8,548)
17,677
9,129
Share issue transaction costs (note 16)
(9)
-
-
-
(9)
Share-based payments (note 27)
228
103
-
-
331
Deferred tax recognised in equity
(74)
-
-
-
(74)
Transfer of gain on disposal of equity investments at
fair value through other comprehensive income to
retained earnings
-
-
(627)
627
-
Employee share awards vested
950
(950)
-
-
-
Balance at 30 June 2024
223,319
5,156
(90,344)
171,243
309,374
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
94
Alkane Resources Annual Report 2025
FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of cash flows
For the year ended 30 June 2025
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Note
2025
$’000
2024
$’000
Cash flows from operating activities
Receipts from customers (inclusive of GST)
263,057
172,991
Payments to suppliers and employees (inclusive of GST)
(181,044)
(109,580)
82,013
63,411
Interest received
1,413
2,392
Finance costs paid
(4,382)
(632)
Royalties and selling costs
(7,780)
(4,963)
Other receipts
714
514
Derivatives
-
(7,819)
Net cash from operating activities
32
71,978
52,903
Cash flows from investing activities
Payments for investments
(2,000)
(1,094)
Payments for property, plant and equipment and development
expenditure
(58,052)
(115,969)
Proceeds from disposal of property, plant and equipment
132
150
Payments for exploration expenditure
(17,541)
(19,528)
Payments for security deposits
(1,621)
(122)
Receipts from security deposits
427
-
Proceeds from disposal of investments
-
13,043
Net cash used in investing activities
(78,655)
(123,520)
Cash flows from financing activities
Cost of share issue
16
-
(9)
Proceeds from borrowings
33,300
43,815
Repayment of borrowings
(23,821)
(7,516)
Principal elements of lease payment
(232)
(445)
Net cash from financing activities
9,247
35,845
Net increase/(decrease) in cash and cash equivalents
2,570
(34,772)
Cash and cash equivalents at the beginning of the financial year
45,519
80,291
Cash and cash equivalents at the end of the financial year
5
48,089
45,519
95
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 1
Note 1. Segment information
The consolidated entity is currently with one operating segment: gold operations. The operating segments are
based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief
Operating Decision Makers) in assessing performance and in determining the allocation of resources.
Costs that do not relate to the gold operating segment have been identified as unallocated costs. The group has
formed a tax consolidation group and therefore tax balances are disclosed under the unallocated grouping. The
group utilises a central treasury function resulting in cash balances being included in the unallocated segment.
The group has two customers to which it sells gold, being Macquarie Bank and ABC Refinery. Revenue from these
customers (excluding derivative options) was $91.6M and $171.4M in 2025 respectively (2024: $68.74M and
$104.25M).
Note 2. Revenue
Gold Operations
$’000
Unallocated
$’000
Total
$’000
30 June 2025
Gold sales to external customers
262,362
-
262,362
Interest Income
1,626
298
1,924
Reversal of impairment
7,024
-
7,024
271,012
298
271,310
Cost of sales
(205,749)
-
(205,749)
Segment net profit/(loss) before income tax
60,934
(14,789)
46,145
30 June 2024
Gold sales to external customers
172,991
-
172,991
Interest Income
586
1,941
2,527
173,577
1,941
175,518
Cost of sales
(138,399)
-
(138,399)
Segment net profit/(loss) before income tax
33,123
(8,681)
24,442
2025
$’000
2024
$’000
Revenue from continuing operations
Gold sales
263,057
172,991
Less: derivative options lapsed
(695)
-
262,362
172,991
(a) Revenue
Revenue is recognised when the group satisfies its performance obligation and transfers control to a customer.
Control is generally determined to be when the customer has the ability to direct the use of and obtain substantially
all of the remaining benefits from that good or service.
(b) Gold Sales
Bullion revenue is recognised at a point in time upon transfer of control to the customer and is measured at the
amount to which the group expects to be entitled which is based on the deal agreement.
96
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 3
Note 3. Expenses
2025
$’000
2024
$’000
Cost of sales
Cash costs of production
155,131
96,666
Inventory product movement
(8,749)
868
Depreciation and amortisation
50,921
35,493
Royalties and selling costs
8,446
5,372
205,749
138,399
(a) Cash costs of production
Cash costs of production include ore and waste mining costs, processing costs and site administration and support
costs.
(b) Inventory product movement
Inventory product movement represents the movement in the balance sheet inventory ore stockpile, gold in circuit
and bullion on hand.
Refer to note 7 for further details on the group’s accounting policy for inventory.
(c) Inventory product provision for net realisable value
Inventory must be carried at the lower of cost and net realisable value. Net realisable value is the estimated selling
price in the ordinary course of business less estimated costs to complete processing and to make a sale. The net
realisable value provision equals the decrement between the net realisable value and the carrying value before
provision.
All inventory was carried at cost and there was no write-down to net realisable value.
Refer to note 7 for further details on the group’s accounting policy for inventory.
2025
$’000
2024
$’000
Other expenses
Corporate administration
5,363
3,814
Employee remuneration and benefits expensed
2,400
3,236
Share-based payments
1,225
331
Professional fees and consulting services
4,331
1,990
Exploration expenditure provided for or written off
155
3
Directors’ fees and salaries expensed
753
781
Depreciation
623
650
Non-core project expenses
465
144
15,315
10,949
(c) Derivative options
During the financial year, 41,319 derivative options @ A$3,000/oz expired at a cost of $695,000 and was
transferred from other comprehensive income to offset revenue.
Refer to note 20 for more information on these derivative contracts.
97
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 4
Note 4. Income tax
(a) Income tax expense
(d) Finance costs
2025
$’000
2024
$’000
Finance costs
Interest Expense
5,271
1,518
Other
70
829
5,341
2,347
(b) Reconciliation of income tax expense/(benefit) to prima facie tax payable
2025
$’000
2024
$’000
Current tax
Current tax on profits for the year
18,509
6,116
Adjustments for current tax of prior periods
(1,078)
(2,109)
Total current tax expense
17,431
4,007
Deferred income tax
Increase in deferred tax asset
(3,603)
(3,045)
(Increase)/decrease in deferred tax liabilities
(726)
5,803
Total deferred tax (benefit)/expense
(4,329)
2,758
Income tax expense
13,102
6,765
Income tax expense is attributable to:
Profit from continuing operations
13,102
6,765
2025
$’000
2024
$’000
Profit from continued operations before income tax expense
46,145
24,442
Tax at the Australian tax rate of 30% (2024 - 30%)
13,844
7,333
Tax benefits of deductible equity raising costs
(4)
(77)
Non-deductible share-based payments
291
31
Non-deductible expenses
20
210
Movement in unrecognised temporary differences
1,090
-
(Over)/Under Provision for Prior Year
(196)
(90)
Utilisation of previously unrecognised tax losses
(1,943)
(642)
13,102
6,765
98
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 4
(c) Deferred tax assets
Movements
Tax losses
$’000
Rehabilitation
Provision and
assets
$’000
Property, plant
and equipment
$’000
Other
$’000
Total
$’000
At 1 July 2023
-
4,500
6,563
2,520
13,583
- profit or loss
-
341
2,423
281
3,045
- direct to equity
-
-
-
547
547
At 30 June 2024
-
4,841
8,986
3,348
17,175
At 1 July 2024
-
4,841
8,986
3,348
17,175
- profit or loss
-
3,159
(2)
446
3,603
- directly to equity
1,650
-
-
1,477
3,127
As at 30 June 2025
1,650
8,000
8,984
5,271
23,905
Movements
Exploration
Expenditure
$’000
Property, plant and
equipment
$’000
Other
$’000
Total
$’000
At 1 July 2023
44,162
10,563
3,579
58,304
Charged/(credited)
-
-
-
-
– to profit or loss
6,551
1,331
(2,079)
5,803
– transfer between classes
(17,788)
17,788
-
-
– directly to equity
-
-
432
432
– directly to retained earnings
-
-
269
269
At 30 June 2024
32,925
29,682
2,201
64,808
At 1 July 2024
32,925
29,682
2,201
64,808
Charged/(credited)
-
-
-
-
– to profit or loss
(1,097)
360
11
(726)
– directly to equity
-
-
1,650
1,650
At 30 June 2025
31,828
30,042
3,862
65,732
(d) Deferred tax liabilities
2025
$’000
2024
$’000
The balance comprises temporary differences attributable to:
Exploration expenditure
(31,828)
(32,925)
Property, plant & equipment
(30,042)
(29,682)
Other
(3,862)
(2,201)
Gross recognised deferred tax liabilities
(65,732)
(64,808)
Set-off of deferred tax assets
23,905
17,175
Net recognised deferred tax liabilities
(41,827)
(47,633)
Net recognised deferred tax assets/(liabilities) are attributable to:
Losses and temporary differences carried forward for continued operations
(41,827)
(47,633)
99
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 4
(e) Deferred tax recognised directly in equity
2025
$’000
2024
$’000
Relating to equity raising costs
4
74
Relating to realised gains posted directly to retained earnings
-
269
Relating to investments/financial instruments
(1,481)
(188)
(1,477)
155
Current tax liabilities
2025
$’000
2024
$’000
Current tax liabilities
18,509
6,116
PAYG (‘Pay as you go’) Instalments
(4,120)
(982)
Total current tax liabilities
14,389
5,134
(f) Unrecognised temporary differences and tax losses
2025
$’000
2024
$’000
Unrecognised tax losses
6,713
13,135
Deductible temporary differences
4,121
19,209
Unused capital losses
13,013
-
23,847
32,344
Potential tax benefit at 30% (2024: 30%)
7,154
9,703
The potential benefit of carried forward tax losses will only be obtained if taxable income is derived of a nature and
amount sufficient to enable the benefit from the deductions to be realised. In accordance with the group’s policies
for deferred taxes, a deferred tax asset is recognised only if it is probable that sufficient future taxable income will
be generated to offset against the asset.
Determination of future taxable profits requires estimates and assumptions as to future events and circumstances
including commodity prices, ore resources, exchange rates, future capital requirements, future operational
performance, the timing of estimated cash flows, and the ability to successfully develop and commercially exploit
resources.
Tax legislation prescribes the rate at which tax losses transferred from entities joining a tax consolidation group
can be applied to taxable incomes and this rate is diluted by changes in ownership, including capital raisings. As a
result, the reduction in the rate at which the losses can be applied to future taxable incomes, the period of time
over which it is forecast that these losses may be utilised has extended beyond that which management considers
prudent to support their continued recognition for accounting purposes. Accordingly, no deferred tax asset has
been recognised for certain tax losses. Recognition for accounting purposes does not impact the ability of the
Group to utilise the losses to reduce future taxable profits.
Alkane Resources Ltd and its wholly owned Australian controlled entities have implemented the tax consolidation
legislation. As a consequence, these entities are taxed as a single entity and the deferred tax assets and liabilities of
these entities are set off in the consolidated financial statements.
Deferred tax assets relating to deductible temporary differences can only be recognised to the extent that it is
probable that future taxable profits will be available against which the deductible temporary difference can be
utilised. Recognition for accounting purposes does not impact the ability of the Group to utilise the deductible
temporary differences to reduce future taxable profits.
100 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 5
Note 5. Cash and cash equivalents
2025
$’000
2024
$’000
Current assets
Cash on hand
48,089
45,519
Cash at bank at balance date weighted average interest rate was 4.07% (2024: 4.28%).
Cash and cash equivalents include cash on hand and deposits held at call with financial institutions and other
short-term, highly liquid investments with original maturities of three months or less that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value.
(i) Classification as receivables
Receivables are recognised initially at fair value and then subsequently measured at amortised cost, less provision
for credit losses. As at 30 June 2025 the group has determined that the expected provision for credit losses is not
material (30 June 2024: provision for credit losses was not material).
In determining the recoverability of a trade or other receivables using the expected credit loss model, the group
performs a risk analysis considering the type and age of outstanding receivables, the creditworthiness of the
counterparty, contract provisions, letter of credit and timing of payment.
(ii) Fair value of receivables
Due to the short-term nature of the current receivables, their carrying amount is assumed to be the same as their
fair value.
(iii) Impairment and risk exposure
Information about the impairment of receivables, their credit quality and the group’s exposure to credit risk, foreign
currency risk and interest rate risk can be found in note 20.
Note 6. Trade and other receivables
2025
$’000
2024
$’000
Current assets
Trade receivables
666
85
Prepayment
2,370
2,172
GST
1,325
1,591
4,361
3,848
101
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 7
2025
$’000
2024
$’000
Current assets
Ore stockpiles
15,034
8,047
Gold in circuit
3,287
4,126
Bullion on hand
7,194
4,593
Consumable stores
6,051
5,475
31,566
22,241
(i) Assigning costs to inventories
Costs are assigned to ore stockpiles, gold in circuit and bullion on hand on the basis of weighted average costs.
Inventories must be carried at the lower of cost and net realisable value. Cost comprises direct materials, direct
labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the
basis of normal operating capacity. At balance date ore stockpiles, gold in circuit, bullion on hand and consumable
stores were carried at cost.
No provision was recorded at 30 June 2025 to write down inventories to their recoverable value (2024: $nil).
Consumable stores include diesel, explosives and other consumables items. These items are carried at cost.
Product inventory movement during the year ended 30 June 2025 amounted to an expense of ($8,749,000) (2024:
$868,000) and is disclosed as part of cost of sales in note 3.
Note 7. Inventories
2025
$’000
2024
$’000
Non-current assets
Listed securities
Medallion Metals Ltd (ASX: MM8)
7,500
-
Sky Metals Ltd (ASX: SKY)
507
299
8,007
299
During the year, the following gains/(losses) were recognised in profit or loss and
other comprehensive income
Gains/(losses) recognised in other comprehensive income
5,708
(7,099)
Note 8. Financial assets at fair value through other
comprehensive income
Fair Value Measurement
30 June 2025
Notes
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
Financial Assets at FVOCI
8
8,007
-
-
8,007
Hedging derivatives – cash flow hedge
9
-
118
-
118
Closing fair value
8,007
118
-
8,125
Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and
equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price
used for financial assets held by the group is the current bid price. The quoted market price incorporates the
market’s assumptions with respect to changes in economic climate such as rising interest rates and inflation, as well
as changes due to ESG risk. These instruments are included in level 1.
102 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 9
Level 2: The fair value of financial instruments that are not traded in an active market (e.g. over-the counter
derivatives) is determined using valuation techniques that maximise the use of observable market data and rely
as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2. AASB13(86) Revised illustration.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3. This is the case for unlisted equity securities and for instruments where ESG risk gives rise to a significant
unobservable adjustment.
Fair Value Measurements
2025
$’000
2024
$’000
Current assets
Commodity put options – cash flow hedges
2
394
Non-current assets
Commodity put options – cash flow hedges
116
5,354
118
5,748
Note 9. Derivative financial instruments
During the 2024 financial year subsidiary company Tomingley Gold Operations Pty Ltd (‘TGO’) entered into several
commodity put option contracts from 31 July 2024 to 30 June 2027.
The cost to enter the contracts was $7.82M.
• Bought a total of 140,799oz of put options at $3,000/oz
• 41,319 options expired during FY2025 at a cost of $695,163 which has offset revenue as the options have
been treated as a cashflow hedge under AASB 9.
• 98,490 options remain at 30 June 2025.
Accounting policy for derivative financial instruments
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured to their fair value at each reporting date. The accounting for subsequent changes in fair
value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item
being hedged.
Derivatives are classified as current or non-current depending on the expected period of realisation.
Cash flow hedges
Cash flow hedges are used to cover the consolidated entity’s exposure to variability in cash flows that is
attributable to particular risks associated with a recognised asset or liability or a firm commitment which could
affect profit or loss. The effective portion of the gain or loss on the hedging instrument is recognised in other
comprehensive income through the cash flow hedges reserve in equity, whilst the ineffective portion is recognised
in profit or loss. Amounts taken to equity are transferred out of equity and included in the measurement of the
hedged transaction when the forecast transaction occurs.
Cash flow hedges are tested for effectiveness on a regular basis both retrospectively and prospectively to ensure
that each hedge is highly effective and continues to be designated as a cash flow hedge. If the forecast transaction
is no longer expected to occur, the amounts recognised in equity are transferred to profit or loss.
If the hedging instrument is sold, terminated, expires, exercised without replacement or rollover, or if the hedge
becomes ineffective and is no longer a designated hedge, the amounts previously recognised in equity remain in
equity until the forecast transaction occurs.
103
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 10
Note 10. Other financial assets
2025
$’000
2024
$’000
Non-current assets
Security deposits
14,852
13,888
The above deposits are held by financial institutions or regulatory bodies as security for rehabilitation obligations as
required under the respective exploration and mining leases or as required under agreement totalling $14,852,000
for the current period (2024: $13,888,000 backed by security deposits).
All interest-bearing deposits are held in Australian dollars and therefore there is no exposure to foreign currency
risk. Please refer to note 20 for the group’s exposure to interest rate risk. The fair value of other financial assets is
equal to its carrying value.
Land and
buildings
$’000
Plant and
equipment
$’000
Capital WIP
$’000
Mine
properties
$’000
Total
$’000
Year ended 30 June 2025
Opening cost
38,595
130,275
76,384
405,459
650,713
Additions
326
193
60,873
9,398
70,790
Reversal of impairment
-
-
-
7,024
7,024
Transfer between classes (b)
-
114,591
(109,421)
(5,170)
-
Disposals (c)
-
(9,012)
-
(141,766)
(150,778)
Net movement
326
105,772
(48,548)
(130,514)
(72,964)
Closing cost
38,921
236,047
27,836
274,945
577,749
Opening accumulated depreciation and impairment
(14,213)
(120,712)
-
(244,038)
(378,963)
Depreciation charge
(24)
(17,275)
-
(34,284)
(51,583)
Disposals
-
8,878
-
141,766
150,644
Net movement
(24)
(8,397)
-
107,482
99,061
Closing accumulated depreciation and impairment
(14,237)
(129,109)
-
(136,556)
(279,902)
Closing net carrying value
24,684
106,938
27,836
138,390
297,848
Note 11. Property, plant and equipment
104 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 11
Land and
buildings
$’000
Plant and
equipment
$’000
Capital WIP
$’000
Mine
properties
$’000
Total
$’000
Year ended 30 June 2024
Opening cost
37,647
125,075
9,923
281,801
454,446
Additions
-
-
51,906
49,131
101,037
Transfers between classes
948
5,760
(6,708)
-
-
Transfers from exploration (a)
-
-
21,263
74,527
95,790
Disposals
-
(560)
-
-
(560)
Net movement
948
5,200
66,461
123,658
196,267
Closing cost
38,595
130,275
76,384
405,459
650,713
Opening accumulated depreciation and impairment
(13,714)
(108,431)
-
(221,197)
(343,342)
Depreciation charge
(502)
(12,801)
-
(22,841)
(36,144)
Disposals
3
520
-
-
523
Net movement
(499)
(12,281)
-
(22,841)
(35,621)
Closing accumulated depreciation and impairment
(14,213)
(120,712)
-
(244,038)
(378,963)
Closing net carrying value
24,382
9,563
76,384
161,421
271,750
(a) Transfer from exploration: In July 2023, the group was granted a mining lease for the Tomingley Gold Extension Project. As a result of this, $95,790,000 in capitalised
exploration expenditure has been transferred into mine development assets and WIP.
(b) Transfer to/from work in progress: In December 2024, the processing plant upgrade ($25.9M) and paste plant ($24.4M) were transferred from work in progress to property,
plant and equipment upon completion of these assets. A further $5.9M was transferred relating to electrical upgrades in April 2025.
In June 2025, projects which were not yet finished were transferred from mine development into work in progress totalling $5.17M.
(c)
Write off fully depreciated assets: Costs relating to the TGO open cut mines ($65.5M) and associated deferred waste ($76.3M) were fully depreciated in FY2022 and have
been written off.
All property, plant and equipment are stated at historical cost less accumulated depreciation and impairment
charges. Historical cost includes:
• expenditure that is directly attributable to the acquisition of the items;
• direct costs associated with the commissioning of plant and equipment including pre-commissioning costs in
testing the processing plant;
• where the asset has been constructed by the group, the cost of all materials used in construction, direct labour
on the project and project management costs associated with the asset; and
• the present value of the estimated costs of dismantling and removing the asset and restoring the site on which
it is located.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the group and the cost
of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is
derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting
period in which they are incurred. Depreciation is calculated using the straight-line method to allocate their cost
over their estimated useful lives as follows:
Buildings
units of production
Plant and equipment
units of production
Mining properties
units of production
Office equipment
3-5 years
Furniture and fittings
4 years
Motor vehicles
4-5 years
Software
2-3 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.
105
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 12
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included
in the statement of profit or loss and other comprehensive income.
Mine properties
Mine properties represent the accumulation of all exploration, evaluation and development expenditure incurred by
the group in relation to areas of interest for which the technical feasibility and commercial viability of the extraction
of mineral resources are demonstrable.
When further development expenditure is incurred in respect of a mine property after the commencement of
production, such expenditure is carried forward as part of the mine property only when it is probable that the
additional future economic benefits associated with the expenditure will flow to the group. Otherwise such
expenditure is classified as part of the cost of production. Mine properties are amortised on a units of production
basis over the economically recoverable resources of the mine concerned.
Note 12. Exploration and evaluation
2025
$’000
2024
$’000
Opening balance
101,403
161,310
Expenditure during the year
13,295
35,886
Amounts provided for or written off
(155)
(3)
Transfer to Mine Development (a)
-
(95,790)
114,543
101,403
(a) Transfers to development assets and WIP: At 30 June 2024, $74.52M was transferred into mine development assets. An additional $21.26M was transferred into capital
WIP.
Exploration and evaluation costs are carried forward on an area of interest basis. Costs are recognised and carried
forward where rights to tenure of the area of interest are current and either:
• the expenditures are expected to be recouped through successful development and exploitation of the area of
interest; or
• activities in the area of interest have not at the reporting date reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves, and active and significant
exploration and evaluation activities in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are tested for impairment when reclassified to development tangible or intangible
assets, or whenever facts or circumstances indicate impairment. An impairment loss is recognised for the amount
by which the exploration and evaluation assets carrying amount exceeds their recoverable amount. The recoverable
amount is the higher of the exploration and evaluation assets fair value less costs of disposal and their value in use.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest
are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for
impairment and then reclassified to mine properties under development. No amortisation is charged during the
exploration and evaluation phase.
Recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest.
There may exist, on the group’s exploration properties, areas subject to claim under native title or containing sacred
sites or sites of significance to Aboriginal people. As a result, exploration properties or areas within tenements may
be subject to exploration or mining restrictions.
106 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 13
Note 13. Trade and other payables
2025
$’000
2024
$’000
Current liabilities
Trade payables
7,053
4,685
Other payables
14,846
19,059
21,899
23,744
Trade and other payables represent liabilities for goods and services provided to the group prior to the end of the
financial period which are unpaid. Current trade and other payables are unsecured and are usually paid within 30
days of recognition. Trade and other payables are presented in current liabilities unless payment is not due within
12 months from the reporting date.
The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their
short-term nature.
Note 14. External borrowings
2025
$’000
2024
$’000
Current liabilities
Macquarie Facility
25,500
11,173
Other borrowings
7,815
4,971
33,315
16,144
Non-current liabilities
Macquarie Facility
19,500
30,819
Other borrowings
6,509
2,055
26,009
32,874
Refer to note 20 for further information on financial risk management.
Financing arrangements
2025
$’000
2024
$’000
Total facilities
Macquarie Leasing Facility
48,000
60,000
Used at the reporting date
Macquarie Leasing Facility
45,000
42,819
Unused at the reporting date
Macquarie Leasing Facility
3,000
17,181
On 21 February 2023, Alkane executed a finance Facility Agreement between Tomingley Gold Operations Pty Ltd
and Macquarie Bank Limited to develop the Tomingley Gold Extension Project. The terms to this facility are an
amendment to the existing facility agreement that was executed on 07 December 2020.
107
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 15
The balance drawn down at 30 June 2024 was $42.18M. A further $17.18M was drawn in July 2024 to bring the
balance to $60M. $15M was repaid in September 2024.
Repayments owing at the end of the March ($6M) and June 2025 ($6M) quarters were waived and the facility limit
has been reduced in their place. The limit under the facility at 30 June 2025 is $48M.
Other borrowings including hire purchase liabilities are secured over the assets to which they relate, the carrying
value of which exceeds the value of the hire purchase liability. The group does not hold title to the equipment
under the hire purchase pledged as security.
Covenants
There are various covenants required to be adhered to under the facility to sustain the debt repayment profile.
The nature of these covenants include ratios relating to working capital (balances of current assets and current
liabilities), planned remaining gold production life of Tomingley compared to duration of debt repayments, gold
production and operating costs compared to agreed plans, projected cashflow generation comparisons to debt and
interest repayments as well as cash and trade creditor balances. All covenants are tested on a quarterly basis and
were compliant at 30 June 2025 enabling the projected debt repayments after 30 June 2026 to be classified as
non-current.
Accounting policy for borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction
costs. They are subsequently measured at amortised cost using the effective interest method.
Note 15. Provisions
2025
$’000
2024
$’000
Current liabilities
Employee benefits
8,063
6,891
Non-current liabilities
Employee benefits
912
1,078
Rehabilitation
26,666
20,920
27,578
21,998
(i) Provisions
Provisions are recognised when the group has a present legal or constructive obligation, it is probable that an
outflow of resources will be required to settle the obligation, and the amount can be reliably estimated.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value
is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the
liability. The increase in the provision due to the passage of time is recognised in finance charges.
108 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 15
(ii) Information about individual provisions and significant estimates
Employee benefits
The provision for employee benefits relates to the group’s liability for long service leave and annual leave.
The current portion of this liability includes all of the accrued annual leave. The entire amount of the provision of
$4,851,567 (2024: $4,588,151) is presented as current, since the group does not have an unconditional right to
defer settlement for any of these obligations. However, based on past experience, the group does not expect all
employees to take the full amount of accrued leave or require payment within the next 12 months. The following
amounts reflect leave that is not expected to be taken or paid within the next 12 months.
2025
$’000
2024
$’000
Current leave obligations expected to be settled after 12 months
1,451
1,663
The liability for long service leave not expected to vest within 12 months after the end of the period in which
the employees render the related service is recognised in the non-current provision for employee benefits and
measured at the present value of expected future payments to be made in respect of services provided up to
the end of the reporting period. Consideration is given to expected future wage and salary levels, experience of
employee departures and periods of service. Expected future payments are discounted using market yields at the
end of the reporting period on corporate bonds with terms and currencies that match as closely as possible, the
estimated future cash outflows. Where the group does not have an unconditional right to defer settlement for any
annual or long service leave owed, it is classified as a current provision regardless of when the group expects to
realise the provision.
Rehabilitation and mine closure
The group has obligations to dismantle and remove certain items of property, plant and equipment and to restore
and rehabilitate the land on which they sit.
A provision is raised for the estimated cost of settling the rehabilitation and restoration obligations existing at
balance date, discounted to present value using an appropriate pre-tax discount rate.
Where the obligation is related to an item of property, plant and equipment, its cost includes the present value of
the estimated costs of dismantling and removing the asset and restoring the site on which it is located. Costs that
relate to obligations arising from waste created by the production process are recognised as production costs in the
period in which they arise.
The discounted value reflects a combination of management’s assessment of the nature and extent of the work
required, the future cost of performing the work required, the timing of cash flows and the discount rate. An
increase in the provision due to the passage of time of was recognised in finance charges in the statement of profit
or loss and other comprehensive income of $779,000 (2024: $522,000).
The provisions are reassessed at least annually. A change in any of the assumptions used to determine the
provisions could have a material impact on the carrying value of the provision.
Movements in rehabilitation and mine closure provision during the financial year are set out below:
Rehabilitation and mine closure
2025
$’000
2024
$’000
Opening balance
20,919
16,383
Additional provision incurred
6,175
5,079
Unwinding of discount
779
522
Change in estimate
(1,207)
(1,064)
26,666
20,920
109
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 16
Note 16. Issued capital
2025
Shares
2024
Shares
2025
$’000
2024
$’000
Ordinary shares – fully paid
605,541,892
603,490,487
224,693
223,319
Movements in ordinary share capital
Details
Date
Shares
$’000
Balance
1 July 2023
601,574,030
222,224
Shares issued on vesting of performance rights
1,553,034
950
Share issue
363,423
228
Share issue costs
-
(9)
Less: Deferred tax credit recognised directly into equity
-
(74)
Balance
30 June 2024
603,490,487
223,319
Shares issued on vesting of performance rights
1,570,220
1,123
Share issue
481,185
255
Less: Deferred tax credit recognised directly into equity
-
(4)
Balance
30 June 2025
605,541,892
224,693
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in
proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value
and the company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll
each share shall have one vote.
2025
$’000
2024
$’000
Financial assets at fair value through other comprehensive income reserve
(12,887)
(18,595)
Hedging reserve – cash flow hedges
(4,904)
(1,449)
Share-based payments reserve
4,802
5,156
Demerger reserve
(70,300)
(70,300)
(83,289)
(85,188)
Note 17. Reserves
The following table shows a breakdown of the balance sheet line item ‘Reserves’ and the movements in these
reserves during the year. A description of the nature and purpose of each reserve is provided below the table.
110 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 17
Financial assets at fair value through other comprehensive income reserve
This reserve is used to recognise changes in the fair value of certain investments in equity securities in other
comprehensive income.
Hedging reserve – cash flow hedges
The reserve is used to recognise the effective portion of the gain or loss of cash flow hedge instruments that is
determined to be an effective hedge.
Share-based payments reserve
The reserve is used to recognise the grant date fair value of shares issued to directors and KMP, as well as the grant
date fair value of deferred rights granted but not yet vested.
Demerger reserve
The demerger reserve is used to recognise the gain on ASM demerger and demerger dividend.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Financial
assets – OCI
Reserve
$’000
Hedging
Reserve
$’000
Share-based
payments
Reserve
$’000
Demerger
Reserve
$’000
Total
$’000
Balance at 1 July 2023
(10,869)
-
6,003
(70,300)
(75,166)
Revaluation – gross
(7,099)
(2,070)
-
-
(9,169)
Deferred tax
-
621
-
-
621
Transfer of Gain on disposal of equity investments
at fair value through other comprehensive income
to retained earnings
(627)
-
-
-
(627)
Share-based payments (note 27)
-
-
103
-
103
Employee share awards vested
-
-
(950)
-
(950)
Balance at 30 June 2024
(18,595)
(1,449)
5,156
(70,300)
(85,188)
Revaluation – gross
5,708
(5,630)
-
-
78
Deferred tax
-
1,480
-
-
1,480
Transfer to P&L
-
695
-
-
695
Share-based payments (note 27)
-
-
(99)
-
(99)
Employee share awards vested
-
-
(255)
-
(255)
Balance at 30 June 2025
(12,887)
(4,904)
4,802
(70,300)
(83,289)
111
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 18
Note 18. Retained profits
2025
$’000
2024
$’000
Retained profits at the beginning of the financial year
171,243
152,939
Profit after income tax expense for the year
33,043
17,677
Transfer from other reserves
-
627
Retained profits at the end of the financial year
204,286
171,243
Note 19. Critical accounting judgements, estimates and assumptions
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. Management also needs to exercise judgement in applying the group’s accounting policies.
Carrying value of non-current assets
Non-current assets include capitalised exploration and evaluation expenditures and mine properties. The group has
capitalised significant exploration and evaluation expenditure on the basis either that such expenditure is expected
to be recouped through future successful development (or alternatively sale) of the areas of interest concerned or
on the basis that it is not yet possible to assess whether it will be recouped and activities are planned to enable that
determination.
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of
factors, including whether the group decides to exploit the related lease itself, or, if not, whether it successfully
recovers the related exploration asset through sale. The future recoverability of mine properties is dependent on
the generation of sufficient future cash flows from operations (or alternately sale). Factors that could impact the
future recoverability of exploration and evaluation and mine properties include the level of reserves and resources,
future technological changes, costs of drilling and production, production rates, future legal changes (including
changes to environmental restoration obligations) and changes to commodity prices and exchange rates.
Estimates of recoverable quantities of resources and reserves also include assumptions requiring significant
judgment as detailed in the resource and reserve statements.
An impairment review is undertaken to determine whether any indicators of impairment are present. There were no
further indicators of reversal or impairment at 30 June 2025.
The group recognises the physical and transitional impacts of climate change may affect its assets, productivity, the
markets in which it sells its products, and the jurisdictions it which it operates. The group continues to develop its
assessment of the potential impacts of climate change and the transition to low carbon economy.
Tomingley CGU assumptions
The group’s operations at Tomingley have been assessed to be a cash generating unit (CGU). This CGU was tested
for impairment: The key assumptions used in the 31 March 2025 impairment test, which was determined using fair
value less cost of disposal (FVLCOD) included:
• Ounces mined in the current life-of-mine plan (288koz) were valued using a discounted cash flow model.
• Ounces not included in the life of mine plan (730koz) were valued based on multiples determined from recent
transactions.
• Pricing assumptions were generated from current hedging obligations, current forward rates (adjusted for
inflation) and mean analyst consensus forecasts, with hedging limited to 50% of expected production. The gold
price came out to an average of A$4,070/oz.
• Capital and operating expenditures were modelled on a real basis and were based on the current life-of-mine plan.
• A discount rate of 8% was used.
112 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 19
On performing the impairment test as at 31 March 2025, it was noted that there was significant headroom
between the recoverable amount calculated on a Fair Value Less Cost of Disposal basis and the carrying value of
net assets. This indicated that a historical impairment of $8.31 million related to Roswell mine development assets
should be reversed, as the increase in value was driven by the increase in long term forecast future gold price and
the decrease in risks as the mine progressed into production. As these assets had already begun amortising, $7.02
million has been reversed of the original $8.31 million balance representing the remaining value of the historic cost.
Depreciation of property, plant and equipment
Non-current assets include property, plant and equipment. The group reviews the useful lives of depreciable asset
at each reporting date or when there is a change in the pattern in which the asset’s future economic benefits are
expected to be consumed, based on the expected utilisation of the assets. Depreciation and amortisation are
calculated using the units of production method based on ounces of gold produced.
Rehabilitation and mine closure provisions
These provisions represent the discounted value of the present obligation to restore, dismantle and rehabilitate
certain items of property, plant and equipment and to rehabilitate exploration and mining leases. The discounted
value reflects a combination of management’s assessment of the nature and extent of the work required, the future
cost of performing the work required, the timing of cash flows and the discount rate. Changes to one or more of
these assumptions is likely to result in a change to the carrying value of the provision and the related asset or a
change to profit and loss in accordance with the group’s accounting policy stated in note 15.
Net realisable value and classification of inventory
The group’s assessment of the net realisable value and classification of its inventory requires the use of estimates,
including the estimation of the relevant future commodity or product price, future processing costs and the likely
timing of sale.
Share-based payments
The group measures the cost of equity settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The related assumptions are set out in note 28. The
accounting estimates and assumptions relating to equity settled share-based payments would have no impact on
the carrying amounts of assets and liabilities within the next annual reporting period but may impact expenses and
equity.
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement
is required in determining the provision for income tax. There are many transactions and calculations undertaken
during the ordinary course of business for which the ultimate tax determination is uncertain. The consolidated
entity recognises liabilities for anticipated tax audit issues based on the consolidated entity’s current understanding
of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such
differences will impact the current and deferred tax provisions in the period in which such determination is made.
In addition, the group has recognised deferred tax assets relating to carried forward tax losses to the extent there
are sufficient taxable temporary differences (deferred tax liabilities) relating to the same taxation authority against
which the unused tax losses can be utilised. Utilisation of the tax losses also depends on the ability of the entity to
satisfy certain tests at the time the losses are recouped. Refer to note 4 for the current recognition of tax losses.
113
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 20
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence
commercial production in the future, from which time the costs will be amortised in proportion to the depletion of
the mineral resources. Key judgements are applied in considering costs to be capitalised which includes determining
expenditures directly related to these activities and allocating overheads between those that are expensed and
capitalised. In addition, costs are only capitalised that are expected to be recovered either through successful
development or sale of the relevant mining interest. Factors that could impact the future commercial production
at the mine include the level of reserves and resources, future technology changes, which could impact the cost of
mining, future legal changes and changes in commodity prices.
Where economic recoverable reserves for an area of interest have been identified, and a decision to develop has
occurred, capitalised expenditure is classified as mine development.
To the extent that capitalised costs are determined not to be recoverable in the future, they will be written off in
the period in which the determination is made.
Note 20. Financial risk management
Financial risk management objectives
The group’s activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk
and interest rate risk), credit risk and liquidity risk. The consolidated entity’s overall risk management program
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial
performance of the consolidated entity. The group uses derivative financial instruments including gold forward and
gold put option contracts to mitigate certain risk exposures.
This note presents information about the group’s exposure to each of the above risks, their objectives, policies and
processes for measuring and managing risk, and the management of capital.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. Management monitors and manages the financial risks relating to the operations of the group through
regular reviews of the risks and mitigating strategies.
(a) Market risk
(i) Foreign currency risk
The group’s sales revenue for gold are largely denominated in Australian dollars, the revenues are generated with
reference to global gold prices denominated in US Dollars, hence the group’s cash flow is significantly exposed to
movement in the A$:US$ exchange rate. The group mitigates this risk through the use of derivative instruments,
including but not limited to a combination of Australian dollar denominated gold forward contracts and put options
to hedge a portion of future gold sales.
The Australian dollar denominated gold forward contracts are entered into and continue to be held for the purpose
of physical delivery of gold bullion. As a result, the contracts are not recorded in the financial statements. Refer to
note 25 for further information.
(ii) Commodity price risk
The group’s sales revenues are generated from the sale of gold. Accordingly, the group’s revenues are exposed
to commodity price fluctuations, primarily gold. The group mitigates this risk primarily through the use of a
combination of Australian dollar denominated options and physical gold forward contracts.
The intrinsic value of gold options is determined with reference to the relevant spot market exchange rate. The
differential between the contracted strike rate and the discounted spot market exchange rate is defined as the time
value. It is discounted, where material. The changes in the time value of the options that relate to hedged items are
deferred in the cash flow hedge reserve.
114 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 20
As the options were significantly out of the money at 30 June 2025, the group’s sensitivity to reasonably possible
changes in gold price from these options was not material.
Options
2025
2024
Carrying amount ($’000, note 8)
118
5,748
Carrying amount (oz)
98,480
140,799
Strike price/oz
3,000
3,000
Maturity dates
July 2024 to June 2027
July 2024 to June 2027
Hedge Ratio
1:1
1:1
Change in intrinsic value of outstanding hedging instruments since inception
of the hedge
(5,689)
-
Change in value of hedged item used to determine hedge ineffectiveness
(695)
-
The extent of commodity price risk mitigated through physical gold forward sales contracts (which are not
derivatives) is disclosed in note 25(b).
(iii) Interest rate risk
The group’s main interest rate risk arises through its cash and cash equivalents and other financial assets held
within financial institutions. The group minimises this risk by utilising fixed rate instruments where appropriate.
Summarised market risk sensitivity analysis:
Interest rate risk
Impact on profit/(loss) after tax
30 June 2025
30 June 2024
Carrying
amount
$’000
+100BP
$’000
-100BP
$’000
Carrying
amount
$’000
+100BP
$’000
-100BP
$’000
Financial assets
Cash and cash equivalents
48,089
481
-481
45,519
455
-455
Receivables*
4,361
-
-
3,849
-
-
Other financial assets
14,852
149
-149
13,888
138
-138
Financial liabilities
Trade and other payables
21,897
-
-
23,744
-
-
Macquarie Facility
45,000
450
-450
42,819
428
-428
Total increase/(decrease) in profit
-
1,079
-1,079
-
1,021
-1,021
* The receivables balance excludes prepayments and tax balances which do not meet the definition of financial assets and liabilities.
There is no exposure to foreign exchange risk or commodity price risk for the above financial assets and liabilities.
(b) Credit risk
The consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses
to trade receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These
provisions are considered representative across all customers of the consolidated entity based on recent sales
experience, historical collection rates and forward-looking information that is available.
In determining the recoverability of a trade or other receivable using the expected credit loss model, the group
performs a risk analysis considering the type and age of the outstanding receivables, the creditworthiness of the
counterparty, contract provisions, letter of credit and timing of payment.
115
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 21
Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, as well as credit
exposure to customers, including outstanding receivables and committed transactions.
(i) Risk management
The group limits its exposure to credit risk in relation to cash and cash equivalents and other financial assets by only
utilising banks and financial institutions with acceptable credit ratings above a‐/A3. Alkane currently transacts with
Macquarie Bank and Westpac Bank.
(ii) Credit quality
Tax receivables and prepayments do not meet the definition of financial assets. The group assesses the credit
quality of the customer, taking into account its financial position, past experience and other factors.
(c) Liquidity risk
Liquidity risk is the risk that the group will not be able to meet its financial liabilities as they fall due. The group’s
approach to managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to
meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the group’s reputation. The Board of Directors monitors liquidity levels on an ongoing basis.
The group’s financial liabilities maturity ranges from one month to three years. Therefore the carrying amount
equals the cash flow required to settle the liability.
Working Capital
Contractual maturities of financial
liabilities
Less than
12 months
$’000
Between 1
and 2 years
$’000
Between 2
and 3 years
$’000
Over 3 years
$’000
Total
contractual
cash flows
$’000
Carrying
amount
$’000
At 30 June 2025
Trade and other payables
21,897
-
-
-
21,897
21,897
Macquarie Facility
26,062
19,500
-
-
45,562
45,000
Other Borrowings
8,391
5,636
798
74
14,900
14,324
Total
56,350
25,136
798
74
82,359
81,221
At 30 June 2024
Trade and other payables
23,744
-
-
-
23,744
23,744
Macquarie Facility
14,880
29,840
2,559
-
47,279
41,992
Other Borrowings
5,236
1,947
155
-
7,338
7,026
Total
43,860
31,787
2,714
-
78,361
72,762
Note 21. Capital risk management
The group’s objectives when managing capital are to safeguard the ability to continue as a going concern, so that
it can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the group may
return capital to shareholders, pay dividends to shareholders, issue new shares or sell assets.
116 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 22
Note 22. Key Management Personnel disclosures
The aggregate compensation made to directors and other members of KMP of the consolidated entity is set out below:
2025
$
2024
$
Short-term employee benefits
2,485,632
2,327,837
Post-employment benefits
150,633
139,921
Long-term benefits
131,334
98,767
Share-based payments
1,148,499
887,428
3,916,098
3,453,953
2025
$
2024
$
Audit services – PricewaterhouseCoopers
Audit or review of the financial statements
230,455
230,934
Other services – PricewaterhouseCoopers
Other advisory services
61,200
18,003
Due diligence
483,920
-
Taxation
134,528
-
679,648
18,003
910,103
248,937
Note 23. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by PricewaterhouseCoopers,
the auditor of the company:
Note 24. Commitments
(a) Exploration and mining lease commitments
In order to maintain current rights of tenure to exploration and mining tenements, the group will be required to
outlay the amounts disclosed in the below table. These amounts are discretionary, however if the expenditure
commitments are not met then the associated exploration and mining leases may be relinquished.
2025
$’000
2024
$’000
Within one year
1,799
2,978
(b) Physical gold delivery commitments
As part of its risk management policy, the group enters into derivatives including gold forward contracts and gold
put options to manage the gold price of a proportion of anticipated gold sales.
The gold forward sales contracts disclosed below did not meet the criteria of financial instruments for accounting
purposes on the basis that they met the normal purchase/sale exemption because physical gold would be delivered
into the contract. Accordingly, the contracts were accounted for as sale contracts with revenue recognised in the
period in which the gold commitment was met.
117
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 25
The balances in the table below relate to the value of the contracts to be delivered into by transfer of physical gold.
The group has entered into forward gold sales contracts which are not accounted for on the balance sheet. A
contingent liability of $139,343,000 (2024: Liability $73,979,000) existed at the balance date in the event the
contracts are not settled by the physical delivery of gold.
Gold for physical
delivery
(oz)
Contracted gold sale
price per ounce
($)
Value of
committed sales
$’000
30 June 2025
Fixed forward contracts
Within one year
32,650
2,851
93,070
One to five years
28,950
2,862
82,846
30 June 2024 (restated)
Fixed forward contracts
Within one year
25,600
2,799
71,658
One to five years
51,520
2,864
146,776
(c) Capital commitments
Capital commitments committed for the year at the end of the reporting period but not recognised as liabilities
amounted to $16,084,000 (2024: $48,435,000).
Note 25. Events after the reporting period
On 27 April 2025, Alkane entered into an arrangement agreement (the ‘Arrangement Agreement’) with Mandalay
Resources Corporation (‘Mandalay’), a Canadian company with its common shares listed on the Toronto Stock
Exchange. Pursuant to the Arrangement Agreement, Alkane, through a wholly owned Canadian subsidiary, has
agreed to acquire 100% of the issued and outstanding common shares of Mandalay by way of a statutory plan of
arrangement under the Business Corporations Act (British Columbia).
Mandalay shareholders will be entitled to receive 7.875 ordinary shares of Alkane for each common share of
Mandalay held immediately prior to the completion of the transaction. Former Mandalay shareholders and existing
Alkane shareholders will own approximately 55% and 45% respectively of the outstanding ordinary shares of the
combined entity.
The transaction creates a powerful platform underpinned by a shared vision for growth, three cash-generating
mines in premier mining jurisdictions with strong organic growth potential and a robust combined balance sheet.
Alkane shareholder approval was received on 28 July 2025 and Mandalay shareholder approval was received on
29 July 2025. Final court approval was received on 4 August 2025 with the arrangement becoming effective on 5
August 2025.
At 30 June 2025, the difference between the contract price and spot price represents a liability of $139,343,000
(2024: liability $73,979,000) which is only payable in the event the contracts are not settled as expected by the
physical delivery of gold.
Restatement of comparative information
At 30 June 2024, fixed forward contracts were stated as the following:
Within one year: 47,400oz, $2,797oz, $132.584M committed sales.
One to five years: 66,900oz, $2,856oz, $191.092M committed sales.
An adjustment to the hedge at in May 2024 was incorrectly disclosed resulting in 13,550oz being added to the note
when they should have been subtracted.
118 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 26
The following board changes were effected under this arrangement:
• Ian Gandel (Non-Executive Chair) resigned as Chair and was appointed as a Non-Executive Director.
• Anthony Lethlean, Gavin Smith and Ian Chalmers resigned from their respective director roles.
• Andrew Quinn was appointed as Non-Executive Chair.
• Bradford Mills, Frazer Bourchier and Dominic Duffy were appointed as Non-Executive Directors.
Per the information circular released on 27 June 2025 and under the Arrangement Agreement, Alkane, who is
deemed to be the accounting acquirer, will issue 758,622,367 Alkane shares to Mandalay shareholders at an
exchange ratio of 7.875 Alkane shares for every 1 Mandalay share held at 26 May 2025. The fair value of the
consideration paid by Alkane to acquire the net assets of Mandalay is based on the fair value of Alkane shares to
be issued to by Alkane. On this basis, Consideration equated to $568,966,775 which was measured using Alkane’s
quoted market share price on the Australian Securities Exchange (‘ASX’) at close of market on 5 August 2025, at
$0.735/share.
With the acquisition date being 5 August 2025, a purchase price allocation is required which will be completed
within a year of this date which is consistent with accounting standards. Expert external consultants have been
engaged to complete valuation studies to ascertain fair values of the underlying assets, most significantly at
the Björkdal and Costerfield mining operations. Once these valuation activities have been completed, further
accounting and tax professionals will utilise the valuation findings to complete the full purchase price allocation
computations. Given the time required for these activities to be undertaken, the accounting for the business
combination is incomplete at the time of publishing this report.
On 18 August 2025, the outstanding Macquarie facility of $45M was repaid via cash reserves.
No further matters or circumstance has arisen since 30 June 2025 that has significantly affected, or may
significantly affect the group’s operations, the results of those operations, or the group’s state of affairs in future
financial years.
Note 26. Related party transactions
Parent entity
Alkane Resources Ltd is the parent entity of the group.
Joint operations
Interests in joint operations are set out in note 30.
Key Management Personnel
Disclosures relating to Key Management Personnel are set out in note 22 and the remuneration report included in
the directors’ report.
Transactions with other related parties
Nuclear IT is a director-related entity where David Chalmers’ son is a director of the company. David Chalmers does
not have any financial interest, is not an office holder or hold any other relationship with Nuclear IT.
Nuclear IT provides information technology consulting services to the group which includes the coordination
of the purchase of information technology hardware and software which are typically routine. These terms are
documented in a service level agreement and represent normal commercial terms.
119
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 27
2025
$
2024
$
Purchase of computer hardware and software
568,654
489,235
Consulting fees and services
237,963
447,134
Total
806,617
936,369
Note 27. Share-based payments
Share-based compensation benefits are provided to employees via the group’s incentive plans. The incentive plans
consist of short-term and long-term incentive plans for executive directors and other executives and the employee
share scheme for all other employees. Information relating to these plans is set out in the remuneration report and
below.
The fair value of rights granted under the short-term and long-term incentive plans is recognised as an employee
benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by
reference to the fair value of the rights granted, which includes any market performance conditions and the
impact of any non-vesting conditions but excludes the impact of any service and non-market performance vesting
conditions.
Non-market vesting conditions and the impact of service conditions are included in assumptions about the number
of rights that are expected to vest. The total expense is recognised over the vesting period, which is the period
over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises
its estimates of the number of rights that are expected to vest based on the non-market vesting and service
conditions. It recognises the impact of the revision to original estimates, if any, in the statement of profit or loss and
other comprehensive income, with a corresponding adjustment to equity.
The initial estimate of fair value for market-based and non-vesting conditions is not subsequently adjusted for
differences between the number of rights granted and number of rights that vest.
When the rights are exercised, the appropriate number of shares are transferred to the employee. The proceeds
received net of any directly attributable transaction costs are credited directly to equity.
Under the employee share scheme, shares issued by the group to employees for no cash consideration vest
immediately on grant date. On this date, the market value of the shares issued is recognised as an employee
benefits expense with a corresponding increase in equity.
The fair value of deferred shares granted to employees for nil consideration under the employee share scheme is
recognised as an expense over the relevant service period, being the year to which the incentive relates and the
vesting period of the shares. The fair value is measured using the Monte Carlo valuation method for long-term
incentive plans and Black-Scholes valuation method for short-term incentive plans at the grant date of the shares
and is recognised in equity in the share-based payment reserve. The number of shares expected to vest is estimated
based on the non-market vesting conditions. The estimates are revised at the end of each reporting period and
adjustments are recognised in profit or loss and the share-based payment reserve.
Executive directors and other executives
The company’s remuneration framework is set out in the remuneration report, including all details of the
performance rights and share appreciation rights plans, the associated performance hurdles and vesting criteria.
Participation in the plans is at the discretion of the Board of Directors and no individual has a contractual right
to participate in the plans or to receive any guaranteed benefits. Participation is currently restricted to senior
executives within the group.
120 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 27
2025
2024
Number of
performance rights
Weighted average
fair value
Number of
performance rights
Weighted average
fair value
Performance Rights
Outstanding at the beginning of the year
8,767,462
$0.54
7,070,519
$0.54
Issued during the year
5,785,350
$0.38
4,147,784
$0.64
Vested during the year
(1,156,587)
$0.62
(958,215)
$0.67
Lapsed/Cancelled during the year
(1,944,058)
$0.60
(1,492,626)
$0.75
Outstanding at the end of the year
11,452,167
$0.44
8,767,462
$0.54
The number of Performance Rights to be granted is determined by the Remuneration Committee with reference
to the fair value of each Performance Right which is generally the volume weighted average price for the month
preceding the start of the performance period. This will differ from the fair value reported in the table above which
is determined at the time of grant.
Long-term incentive scheme (LTI)
The following table lists the inputs to the models used.
Grant date
Performance hurdle
Dividend
yield
%
Expected stock
volatility
%
Risk free
rate
%
Expected
life
(years)
Weighted average share
price at grant date
$
26/10/2021
Market condition
-
72
0.61
2.8
0.90
17/11/2021
Market condition
-
72
0.87
2.7
0.92
17/10/2022
Market condition
-
65
3.50
2.8
0.90
28/11/2022
Market condition
-
64
3.18
2.8
0.92
02/10/2023
Market condition
-
56
4.08
2.7
0.63
21/11/2023
Market condition
-
54
4.11
2.7
0.62
30/10/2024
Market condition
-
53
3.97
2.9
0.38
26/11/2024
Market condition
-
52
3.99
2.8
0.33
The expected volatility is based on the historic market price over a historical period aligned to the life of the rights,
immediately prior to valuation date.
The Total Shareholder Return (‘TSR’) Performance Condition attached to the Performance Rights granted under the
FY2024 LTI is considered a market-based hurdle under AASB 2 and should be considered when estimating the fair
value. The service conditions attached to the awards are deemed non-market-based hurdles. Accordingly, a Monte
Carlo simulation-based model has been used to test the likelihood of achieving the TSR hurdle when estimating the
fair value.
Short-term incentive scheme (STI)
Under the group’s short-term incentive (STI) scheme, executives and senior management receive rights to deferred
shares based on the annual STI achieved. The rights are granted at the end of the performance period and vest one
year after the grant date. They automatically convert into one ordinary share each on vesting at an exercise price of
nil. There is no entitlement to dividends or voting in relation to the deferred shares during the restricted period. If
employment ceases during this period, the rights will be forfeited, except in limited circumstances that are approved
by the board. The number of rights to be granted is determined based on the share price at the date of grant.
The vested portion of FY2023 STI were accounted for in the prior year based on the estimated value at the
reporting date. The value was adjusted based on the final value determined in the current year.
The following tables illustrate the number and weighted average fair value of, and movements in, share rights
during the year.
121
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 28
STI awards for the executive team in the 2024 financial year FY2024 STI were based on the scorecard measures
and weighting as disclosed, with the estimated value of the grant determined at the reporting date.
Plan
Offer
Hurdle
Valuation Model
Grant Date
Fair Value
$
FY2024 STI
Executive Directors
Service
Black-Scholes
21/11/2023
0.49
FY2024 STI
Other Executives
Service
Black-Scholes
30/10/2023
0.55
Expenses arising from share-based payment transactions
2025
$’000
2024
$’000
Performance rights
769
103
Employee share scheme
255
228
1,024
331
Note 28. Earnings per share
2025
$’000
2024
$’000
Earnings per share for profit from continuing operations
Profit after income tax attributable to the owners of Alkane Resources Ltd
33,043
17,677
Cents
Cents
Basic earnings per share
5.46
2.93
Diluted earnings per share
5.39
2.89
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
604,701,773
598,215,343
Adjustments for calculation of diluted earnings per share:
Performance rights
7,847,043
7,820,251
Weighted average number of ordinary shares used in calculating diluted earnings per share
612,548,816
606,035,594
Note 29. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
2025
$’000
2024
$’000
Loss after income tax
(14,787)
(5,686)
Total comprehensive loss
(9,079)
(8,306)
122 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 29
Balance sheet
Parent
2025
$’000
2024
$’000
Total current assets
45,642
74,180
Total assets
158,657
173,825
Total current liabilities
2,321
9,205
Total liabilities
29,833
37,229
Equity
Issued capital
224,697
223,320
Financial assets at fair value through other comprehensive income reserve
(12,887)
(18,595)
Share-based payments reserve
4,802
5,156
Demerger reserve
(70,300)
(70,300)
Retained profits/(accumulated losses)
(17,488)
(2,985)
Total equity
128,824
136,596
Determining the parent entity financial information
The financial information for the parent entity has been prepared on the same basis as the consolidated financial
statements, except as set out below.
(i) Tax consolidation legislation
Alkane Resources Ltd and its wholly owned Australian controlled entities have implemented the tax consolidation
legislation. Refer to note 4 for further details.
(ii) Share-based payments rights
The grant by the company of rights to equity instruments to the employees of subsidiary undertakings in the
group is treated as a capital contribution to that subsidiary undertaking. The fair value of employee services
received, measured by reference to the grant date fair value, is recognised over the vesting period as an increase to
investment in subsidiary undertakings, with a corresponding credit to equity.
(iii) Investment in subsidiaries
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Capital commitments – Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2025 (2024: $nil).
123
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 30
Note 30. Interests in subsidiaries
The group’s subsidiaries at 30 June 2025 are set out below. Unless otherwise stated, they have share capital
consisting solely of ordinary shares that are held directly by the group, and the proportion of ownership interests
held equals the voting rights held by the group. The state of incorporation or registration is also their principal place
of business.
Name of entity
Principal place of business /
Country of incorporation
Ownership interest
2025
%
2024
%
Tomingley Holdings Pty Ltd
New South Wales
100
100
Tomingley Gold Operations Pty Ltd
New South Wales
100
100
Mitchell Creek Mining Holdings Pty Ltd
New South Wales
100
100
Mitchell Creek Mining Pty Ltd
New South Wales
100
100
1536968 B.C. Ltd
Canada
100
-
Note 31. Deed of cross-guarantee
The following group entities have entered into a deed of cross-guarantee. Under the deed of cross-guarantee, each
body has guaranteed that the debts to each creditor of each other body which is a party to the deed will be paid in
full in accordance with the deed:
• Alkane Resources Limited (the Holding Entity)
• Tomingley Holdings Pty Ltd and Tomingley Gold Operations Pty Ltd (the wholly owned subsidiaries, which are
eligible for the benefit of the ASIC Instrument)
By entering into the deed, the wholly owned entities have been relieved from the requirement to prepare financial
statements and directors’ report under Corporations Instrument 2016/785 issued by the Australian Securities and
Investments Commission.
The above companies represent a ‘Closed Group’ for the purposes of the Corporations Instrument, and as there are
no other parties to the deed of cross guarantee that are controlled by Alkane Resources Ltd, they also represent the
‘Extended Closed Group’.
The statement of profit or loss and other comprehensive income and balance sheet are substantially the same as
the consolidated entity as stated in the Consolidated Statement of Profit or Loss and Other Comprehensive Income
and therefore have not been separately disclosed.
124 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 32
Note 32. Reconciliation of profit after income tax to net cash from
operating activities
2025
$’000
2024
$’000
Profit after income tax expense for the year
33,043
17,677
Adjustments for:
Depreciation and amortisation
51,544
36,143
Reversal of impairment
(7,024)
-
Realised gain on expiry of option derivatives
695
-
Share-based payments
1,024
331
Exploration costs provided for or written off
155
3
Finance charges
1,321
1,963
Profit on sale of asset
238
(110)
Change in operating assets and liabilities:
Decrease (increase) in trade and other receivables
(285)
1,377
Decrease (increase) in inventory
(9,325)
(335)
Increase (decrease) in provision
3,223
1,852
Increase (decrease) in trade and other payables
(1,751)
1,213
Increase (decrease) deferred tax liabilities
(880)
608
Purchase price of derivatives
-
(7,819)
Net cash from operating activities
71,978
52,903
Net debt reconciliation
This section sets out an analysis of net debt and the movements in net debt for each of the periods presented.
2025
$’000
2024
$’000
Cash and cash equivalents
48,089
45,519
Borrowings – repayable within one year
(33,749)
(17,375)
Borrowings – repayable after one year
(26,468)
(32,874)
Net (Debt)/Cash
(12,128)
4,730
Cash
$’000
Borrowings repayable
within one year
$’000
Borrowings repayable
after one year
$’000
Net cash
$’000
Opening net cash
45,519
(17,375)
(32,874)
(4,730)
Proceeds from borrowings
33,000
(33,000)
-
-
Repayment of borrowings
(24,068)
17,361
6,707
-
Non-cash accruals
-
(735)
(301)
(1,013)
All other cash flows
(6,362)
-
-
(6,362)
Closing net cash
48,089
(33,749)
(26,468)
(12,128)
125
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 33
Note 33. Material accounting policy information
The accounting policies that are material to the consolidated entity are set out either in the respective notes or below.
The accounting policies adopted are consistent with those of the previous financial year, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial
performance or position of the Consolidated Entity.
Basis of preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) and the Corporations
Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International
Financial Reporting Standards as issued by the International Accounting Standards Board (‘IASB’).
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for certain financial
assets and liabilities which are measured at fair value.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity’s accounting policies.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the financial statements, are disclosed in note 19.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated
entity only. Supplementary information about the parent entity is disclosed in note 29.
Tax consolidated legislation
Alkane Resources Ltd and its wholly owned Australian controlled entities have implemented the tax consolidation
legislation.
The head entity, Alkane Resources Ltd, and the controlled entities in the Tax Consolidated Group account for their
own current and deferred tax amounts. These tax amounts are measured as if each entity in the Tax Consolidated
Group continues to be a standalone taxpayer in its own right.
In addition to its own current and deferred tax amounts, Alkane Resources Ltd also recognises the current tax
liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed
from controlled entities in the Tax Consolidated Group.
126 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 33
The entities have also entered into a tax funding agreement under which the wholly owned entities fully
compensate Alkane Resources Ltd for any current tax payable assumed and are compensated by Alkane Resources
Ltd for any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits
that are transferred to Alkane Resources Ltd under the tax consolidation legislation. The funding amounts are
determined by reference to the amounts recognised in the wholly owned entities financial statements.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as
current amounts receivable from or payable to other entities in the group.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Alkane Resources
Ltd (‘company’ or ‘parent entity’) as at 30 June 2024 and the results of all subsidiaries for the year then ended.
Alkane Resources Ltd and its subsidiaries together are referred to in these financial statements as the ‘consolidated
entity’ or the ‘group’.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls
an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries
are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-
consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated
entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the consolidated entity.
The financial statements are presented in Australian dollars, which is Alkane Resources Ltd’s functional and
presentation currency.
Accounting policy for lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the
present value of the lease payments to be made over the term of the lease, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined, the consolidated entity’s incremental borrowing
rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments
that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of
a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination
penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which
they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability
is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying
amount of the right-of-use asset is fully written down.
Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights
to the assets, and obligations for the liabilities, relating to the arrangement. The consolidated entity has recognised
its share of jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated
in the financial statements under the appropriate classifications.
127
Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 33
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of
the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently
measured at either amortised cost or fair value depending on their classification. Classification is determined based
on both the business model within which such assets are held and the contractual cash flow characteristics of the
financial asset unless an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred
and the consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no
reasonable expectation of recovering part or all of a financial asset, its carrying value is written off.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as such
upon initial recognition.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the loss
allowance depends upon the consolidated entity’s assessment at the end of each reporting period as to whether
the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and
supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses
that is attributable to a default event that is possible within the next 12 months. Where a financial asset has
become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is
based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognised is measured
on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument
discounted at the original effective interest rate.
For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is
recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases,
the loss allowance reduces the asset’s carrying value with a corresponding expense through profit or loss.
Impairment of non-financial assets
The group assesses at the end of each reporting period whether there is any indication that an asset, or a group
of assets is impaired (excluding exploration and evaluation assets, refer to note 12 for impairment policy for
exploration and evaluation assets). An asset or a group of assets is impaired and impairment losses are incurred
only if there is objective evidence of impairment as a result of one or more events that occurred after the initial
recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash
flows of the asset or group of assets that can be reliably estimated.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are
expensed in the period in which they are incurred.
Goods and Services Tax (GST) and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or
as part of the expense.
128 Alkane Resources Annual Report 2025
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 33
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the balance
sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax
authority.
Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
• the profit attributable to owners of the company, excluding any costs of servicing equity other than ordinary
shares; by
• the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus
elements in ordinary shares issued during the year and excluding treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account:
• the profit attributable to owners of the company, excluding any costs of servicing equity, and
• the weighted average number of additional ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
Derivatives and hedging activities
Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are
subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent
changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature
of the item being hedged. The group designates certain derivatives as either:
• hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedges)
• hedges of a particular risk associated with the cash flows of recognised assets and liabilities and highly probable
forecast transactions (cash flow hedges), or
• hedges of a net investment in a foreign operation (net investment hedges).
At inception of the hedge relationship, the group documents the economic relationship between hedging
instruments and hedged items including whether changes in the cash flows of the hedging instruments are
expected to offset changes in the cash flows of hedged items. The group documents its risk management objective
and strategy for undertaking its hedge transactions.
Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges
is recognised in the cash flow hedge reserve within equity. The gain or loss relating to the ineffective portion is
recognised immediately in profit or loss, within other gains/(losses). Where option contracts are used to hedge
forecast transactions, the group designates only the intrinsic value of the options as the hedging instrument.
Gains or losses relating to the effective portion of the change in intrinsic value of the options are recognised in the
cash flow hedge reserve within equity. The changes in the time value of the options that relate to the hedged item
(‘aligned time value’) are recognised within OCI in the cash flow hedge reserve within equity. Amounts accumulated
in equity are reclassified in the periods when the hedged item affects profit or loss.
129
Alkane Resources Annual Report 2025
FINANCIAL REPORT DIRECTORS’ DECLARATION
When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for
hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time
remains in equity until the forecast transaction occurs, resulting in the recognition of a non‐financial asset such as
inventory. When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred
costs of hedging that were reported in equity are immediately reclassified to profit or loss.
Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance
with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
Directors’ declaration
In the directors’ opinion:
• the financial statements and notes set out on pages 89 to 129 are in accordance with the Corporations Act 2001
including:
(a)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
(b)
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2025 and of its
performance for the financial year ended on that date; and
• the financial statements and notes also comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board as described in note 33 to the financial statements;
• there are reasonable grounds to believe that Alkane Resources Limited will be able to pay its debts as and when
they become due and payable.
• at the date of this declaration, there are reasonable grounds to believe that the members of the Extended
Closed Group will be able to meet any obligations or liabilities to which they are, or may become, subject by
virtue of the deed of cross-guarantee described in note 31 to the financial statements; and
• the information disclosed in the attached consolidated entity disclosure statement is true and correct.
The directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required
by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors.
On behalf of the directors
N P Earner
Managing Director
21 August 2025
Perth
130 Alkane Resources Annual Report 2025
FINANCIAL REPORT CONSOLIDATED ENTITY DISCLOSURE STATEMENT
Consolidated Entity Disclosure Statement
As at 30 June 2025
Entity name
Entity type
Place formed /Country
of incorporation
Ownership interest
%
Tax residency
Alkane Resources Ltd*
Body Corporate
Australia
-
Australia
Tomingley Holdings Pty Ltd
Body Corporate
Australia
100
Australia
Tomingley Gold Operations
Pty Ltd
Body Corporate
Australia
100
Australia
Mitchell Creek Mining
Holdings Pty Ltd
Body Corporate
Australia
100
Australia
Mitchell Creek Mining Pty
Ltd
Body Corporate
Australia
100
Australia
1536968 B.C Ltd
Body Corporate
Canada
100
Canada
Basis of preparation
This consolidated entity disclosure statement (CEDS) has been prepared in accordance with the Corporations Act
2001 and includes information for each entity that was part of the consolidated entity as at the end of the financial
year in accordance with AASB 10 Consolidated Financial Statements.
Determination of tax residency
Section 295 (3A)(vi) of the Corporation Act 2001 defines tax residency as having the meaning in the Income Tax
Assessment Act 1997. The determination of tax residency involves judgement as there are different interpretations
that could be adopted, and which could give rise to a different conclusion on residency.
In determining tax residency, the consolidated entity has applied the following interpretations:
• Australian tax residency – The consolidated entity has applied current legislation and judicial precedent,
including having regard to the Tax Commissioner’s public guidance in Tax Ruling TR 2018/5.
• Foreign tax residency – Where necessary, the consolidated entity has used independent tax advisers in foreign
jurisdictions to assist in its determination of tax residency to ensure applicable foreign tax legislation has been
complied with (see section 295(3A)(vii) of the Corporations Act 2001).
* Alkane Resources Ltd is the parent entity.
131
Alkane Resources Annual Report 2025
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
pwc.com.au
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, Level 15, 125 St Georges Terrace, PERTH WA 6000,
GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Independent auditor’s report
To the members of Alkane Resources Ltd
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of Alkane Resources Ltd (the Company) and its controlled entities
(together the Group) is in accordance with the Corporations Act 2001, including:
a.
giving a true and fair view of the Group's financial position as at 30 June 2025 and of its financial
performance for the year then ended
b. complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The financial report comprises:
•
the consolidated balance sheet as at 30 June 2025
•
the consolidated statement of changes in equity for the year then ended
•
the consolidated statement of cash flows for the year then ended
•
the consolidated statement of profit or loss and other comprehensive income for the year then ended
•
the notes to the consolidated financial statements, including material accounting policy information
and other explanatory information
•
the consolidated entity disclosure statement as at 30 June 2025
•
the directors’ declaration.
132 Alkane Resources Annual Report 2025
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion
on the financial report as a whole, taking into account the geographic and management structure of the
Group, its accounting processes and controls and the industry in which it operates.
Audit Scope
•
Our audit focused on where the Group made subjective judgements; for example, significant
accounting estimates involving assumptions and inherently uncertain future events.
•
In establishing the overall approach to the group audit, we determined the type of work that needed to
be performed by us, as the group auditor.
133
Alkane Resources Annual Report 2025
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report for the current period. The key audit matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. Further, any commentary on the outcomes of a particular audit
procedure is made in that context. We communicated the key audit matters to the Audit and Risk
Committee.
Key audit matter
How our audit addressed the key audit matter
Capitalisation of mine related costs and
amortisation
(Refer to note 11 and note 19)
Costs were incurred during the year at Tomingley to
expand or improve access to mineral reserves and
resources, including in relation to the Tomingley
Gold Extension Project (TGEP), and to provide
enhanced facilities for extracting, treating,
gathering, transporting and storing the minerals.
These development expenditures are capitalised to
the extent that they are necessary to bring new
assets to commercial production or enhance the
productivity or future economic benefits of existing
assets and can be directly attributable to or capable
of being reasonably allocated to those activities.
This was a key audit matter due to the judgement
involved in allocating certain of the expenditure
items between mining and development activities
given the geographic proximity of the operations
and the similar nature of the relevant costs as well
the impact on the amortisation profile of mine
properties across Tomingley original and expansion
operations
In assessing the appropriateness of capitalisation of
development costs and associated amortisation we have
performed the following procedures, amongst others:
•
Evaluated management’s process of determining
whether costs should be capitalised or expensed and
the method of allocation of costs between operating
and capital as well as between the two operations.
•
Tested, on a sample basis, management’s controls
over the allocation of costs to specific projects and
monitoring of actual capitalised costs against budget.
•
Performed detailed testing on a selection of
capitalised mine development costs.
•
Considered if a selection of mine development costs
have been capitalised or expensed in accordance
with the Group’s accounting policy.
•
Assessed management’s determination of a
selection of assets which are ready for use and for
which depreciation should commence.
•
Recalculated the amortisation of mine properties for
both legacy Tomingley operations and TGEP.
134 Alkane Resources Annual Report 2025
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
Key audit matter
How our audit addressed the key audit matter
Carrying Value of Tomingley cash generating
unit (CGU)
(Refer to note 11 and note 19)
During the year, management performed a full
assessment of the recoverable amount of the
Tomingley CGU. As a result of this assessment, the
Group recognised a reversal of a historical
impairment of mine development assets within the
CGU of $7.02 million.
The recoverable amount of the CGU was
determined using a fair value less cost of disposal
(Fair Value) methodology with a valuation date of
31 March 2025 including key assumptions relating
to the forecast gold price and foreign exchange
rates.
This was a key audit matter due to the judgement
exercised by the Group in calculating the
recoverable amount of the CGU and the
significance to the financial statements of the non-
current assets within the Tomingley CGU.
We performed the following procedures, amongst others,
over the Group’s estimate of the recoverable amount of
the CGU:
•
Evaluated whether the Group’s determination of the
CGU was consistent with our understanding of the
nature of the Group’s operations.
•
Assessed the objectivity and competence of those
members of management who assisted in developing
the life of mine plan which informs management’s
Fair Value calculation.
•
Compared the forecast cash flows used in the Fair
Value calculation to the most up to date budgets and
life-of-mine plans at the valuation date.
•
Considered the methodologies and key assumptions
adopted in management’s Fair Value calculation for
appropriateness including assessing the forecast
gold price and foreign exchange rate assumptions,
by comparing them to independent consensus data.
•
Evaluated whether significant assumptions and
judgements relating to forecast production volumes
and operating costs were consistent with each other
and to those applied in the Group’s other accounting
estimates.
Other information
The directors are responsible for the other information. The other information comprises the information
included in the annual report for the year ended 30 June 2025, but does not include the financial report
and our auditor’s report thereon. Prior to the date of this auditor's report, the other information we
obtained included the Corporate Directory and Directors' Report . We expect the remaining other
information to be made available to us after the date of this auditor's report.
135
Alkane Resources Annual Report 2025
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
Our opinion on the financial report does not cover the other information and we do not and will not
express an opinion or any form of assurance conclusion thereon through our opinion on the financial
report. We have issued a separate opinion on the remuneration report.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
When we read the other information not yet received, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the directors and use our
professional judgement to determine the appropriate action to take.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report in accordance
with Australian Accounting Standards and the Corporations Act 2001, including giving a true and fair
view, and for such internal control as the directors determine is necessary to enable the preparation of
the financial report that is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
136 Alkane Resources Annual Report 2025
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at: https://auasb.gov.au/media/bwvjcgre/ar1_2024.pdf. This
description forms part of our auditor's report.
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in the directors’ report for the year ended 30 June
2025.
In our opinion, the remuneration report of Alkane Resources Ltd for the year ended 30 June 2025
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the remuneration
report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the remuneration report, based on our audit conducted in accordance with Australian
Auditing Standards.
PricewaterhouseCoopers
Ian Campbell
Perth
Partner
21 August 2025
ADDITIONAL
INFORMATION
137
Alkane Resources Annual Report 2025
138 Alkane Resources Annual Report 2025
ADDITIONAL INFORMATION SHAREHOLDER INFORMATION
Additional information not shown elsewhere in this report is as follows.
The information is current as at 19 September 2025.
Distribution of Equity Securities
Analysis of numbers of equity security holders by size of holding:
Ordinary shares
Number of holders
Number of shares
Percentage of
ordinary shares
1 - 1,000
1,720
1,026,119
0.08%
1,001 - 5,000
3,734
10,187,341
0.75%
5,001 - 10,000
1,689
13,036,496
0.95%
10,001 - 100,000
2,721
86,833,672
6.36%
100,001 and over
483
1,254,711,339
91.87%
10,347
1,365,794,967
100.00%
Shareholder Information
Minimum parcel size
Holders
Units
The number of equity security holders holding less than
a marketable parcel of securities are:
472
522
65,675
Twenty Largest Shareholders
The names of the 20 largest holders of quoted ordinary shares are:
Listed ordinary shares
Number of shares
Percentage of
ordinary shares
1
CDS & CO
326,299,386
23.89%
2
CITICORP NOMINEES PTY LIMITED
259,422,937
18.99%
3
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
190,799,235
13.97%
4
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
46,654,475
3.42%
5
ABBOTSLEIGH PTY LTD
40,232,105
2.95%
6
GARDENWAY PROPRIETARY LIMITED
22,775,000
1.67%
7
LILYCREEK PTY LTD
16,466,667
1.21%
8
MAGNABAY PTY LTD
16,466,667
1.21%
9
AUBURNVALLEY PTY LTD
16,466,666
1.21%
10
ILG ESTATE CO 3 PTY LTD
13,311,748
0.97%
11
ILG ESTATE CO 1 PTY LTD
13,311,747
0.97%
12
ILG ESTATE CO 2 PTY LTD
13,311,747
0.97%
13
ILG ESTATE CO 4 PTY LTD
13,311,747
0.97%
14
ECAPITAL NOMINEES PTY LIMITED
11,081,946
0.81%
15
BNP PARIBAS NOMS PTY LTD
10,358,052
0.76%
16
BNP PARIBAS NOMINEES PTY LTD
9,535,660
0.70%
17
ABBOTSLEIGH PTY LTD
8,600,000
0.63%
18
MR DOMINIC F DUFFY
8,434,904
0.62%
19
MR PATRICK JAMES PURCELL
6,600,000
0.48%
20
BNP PARIBAS NOMINEES PTY LTD
5,841,372
0.43%
Total
1,049,282,061
76.83
Total Remaining Holders Balance
316,512,906
139
Alkane Resources Annual Report 2025
ADDITIONAL INFORMATION SHAREHOLDER INFORMATION
Substantial Shareholders
The names of substantial shareholders who have notified the company in accordance with section 671B of the
Corporations Act 2001 are:
Number of shares
CE Mining III MND Limited
179,835,831
GMT Capital Corp
139,151,234
Ruffer LLP
119,516,599
Gardenway Pty Ltd
72,175,000
Voting Rights
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
Unquoted Securities
At 19 September 2025, the company had the following unlisted securities on issue:
Holders of 20% or more of the class
Class
Number of
Securities
Number of
Holders
Holder Name
Number of
Securities
Employee Performance Rights LTI FY2023
2,991,197
8
ED-NE Pty Ltd
1,146,657
Employee Performance Rights LTI FY2025
5,091,647
8
ED-NE Pty Ltd
2,007,126
Corporate Governance Statement
Alkane’s Corporate Governance Statement is available on our website, along with the Board charter and
details of Board sub-committees. Also listed are key policies and procedures, including those pertaining to
appointment and independence of directors, diversity, code of conduct, risk management, and anti-bribery
and corruption.
alkres.com/about/governance/
Schedule of mining tenements – as at 30 June 2025
Project/Location
Type of Licence
Tenement
Interest
Nature of interest
Peak Hill
Gold Lease
GL 5884
100%
Equity
Mining Lease
ML 6036
100%
Equity
Mining Lease
ML 6042
100%
Equity
Mining Lease
ML 6277
100%
Equity
Mining Lease
ML 6310
100%
Equity
Mining Lease
ML 6389
100%
Equity
Mining Lease
ML 6406
100%
Equity
Mining Lease
ML 1351
100%
Equity
Mining Lease
ML 1364
100%
Equity
Mining Lease
ML 1479
100%
Equity
Exploration Licence
EL 6319
100%
Equity
Tomingley
Mining Lease
ML 1684
100%
Equity through subsidiary
Mining Lease
ML 1821
100%
Equity through subsidiary
Mining Lease
ML 1858
100%
Equity through subsidiary
Exploration Licence
EL 5675
100%
Equity
Exploration Licence
EL 5942
100%
Equity
Exploration Licence
EL 6085
100%
Equity
Glen Isla
Exploration Licence
EL 8676
100%
Equity
Gundong
Exploration Licence
EL 8794
100%
Equity
Exploration Licence
EL 9597
100%
Equity
Rockley
Exploration Licence
EL 8194
100%
Equity
Exploration Licence
EL 8527
100%
Equity
Cudal
Exploration Licence
EL 7020
100%
Equity
Northern Molong Porphyry Project
Bodangora
Exploration Licence
EL 4022
100%
Equity through subsidiary
Kaiser
Exploration Licence
EL 6209
100%
Equity through subsidiary
(subject to royalty of 2% net
smelter return)
Finns Crossing
Exploration Licence
EL 8261
100%
Equity through subsidiary
Comobella North
Exploration Licence
EL 8338
100%
Equity through subsidiary
Boda South
Exploration Licence
EL 8887
100%
Equity through subsidiary
Southern Junee Porphyry Project
Exploration Licence
EL 9600
100%
Equity
Armstrongs (near Parkes)
Exploration Licence
EL 9178
100%
Equity
Mt Conqueror
Exploration Licence
EL 9107
100%
Equity
Mining Tenements
140 Alkane Resources Annual Report 2025
ADDITIONAL INFORMATION MINING TENEMENTS
New South Wales
Additional mining tenements post-merger (5 August 2025)
Project/Location
Type of Licence
Tenement
Interest
Nature of interest
Costerfield
Mining Licence
MIN4644
100%
Equity through subsidiary
Mining Licence
MIN5567
100%
Equity through subsidiary
Exploration Licence
EL6842
100%
Equity through subsidiary
Exploration Licence
EL6847
100%
Equity through subsidiary
Exploration Licence
EL8320
100%
Equity through subsidiary
Retention Licence
RL7485
100%
Equity through subsidiary
Peels Track
Exploration Licence
EL5432
100%
Equity through subsidiary
Antimony Creek South
Exploration Licence
EL5519
100%
Equity through subsidiary
Victoria
Project/Location
Type of Licence
Tenement
Interest
Nature of interest
Björkdal
Concession (Mining Licence)
Häbbersfors K nr 4
100%
Equity through subsidiary
Björkdal
Concession (Mining Licence)
Häbbersfors K nr 3
100%
Equity through subsidiary
Björkdal
Concession (Mining Licence)
Häbbersfors K nr 1
100%
Equity through subsidiary
Björkdal
Concession (Mining Licence)
Norrliden K nr 1
100%
Equity through subsidiary
Björkdal
Concession (Mining Licence)
Häbbersfors K nr 5
100%
Equity through subsidiary
Björkdal
Concession (Mining Licence)
Häbbersfors K nr 2
100%
Equity through subsidiary
Björkdal
Concession (Mining Licence)
Häbbersfors K nr 6
100%
Equity through subsidiary
Björkdal
Concession (Mining Licence)
Häbbersfors K nr 7
100%
Equity through subsidiary
Nylund
Concession (Mining Licence)
Nylund K nr 1
100%
Equity through subsidiary
Storheden
Concession (Mining Licence)
Storheden K nr 1
100%
Equity through subsidiary
Norrberget
Concession (Mining Licence)
Norrberget K nr 1
100%
Equity through subsidiary
Björkdal
Concession (Mining Licence)
Kvarnforsliden K nr 1
100%
Equity through subsidiary
Björkdal
Concession (Mining Licence)
Kvarnforsliden K nr 2
100%
Equity through subsidiary
Björkdal
Concession (Mining Licence)
Kvarnforsliden K nr 3
100%
Equity through subsidiary
Olofsberg
Exploration Licence
Olofsberg nr 102
100%
Equity through subsidiary
Björkdal
Exploration Licence
Björkdal nr 28
100%
Equity through subsidiary
Björkdal
Exploration Licence
Björkdal nr 33
100%
Equity through subsidiary
Björkdal
Exploration Licence
Björkdal nr 34
100%
Equity through subsidiary
Björkdal
Exploration Licence
Björkdal nr 41
100%
Equity through subsidiary
Lillträsket
Exploration Licence
Lillträsket nr 3
100%
Equity through subsidiary
Björkdal
Exploration Licence
Björkdal nr 35
100%
Equity through subsidiary
Björkdal
Exploration Licence
Björkdal nr 39
100%
Equity through subsidiary
Björkdal
Exploration Licence
Björkdal nr 31
100%
Equity through subsidiary
Aspliden
Exploration Licence
Aspliden
100%
Equity through subsidiary
Björkdal
Exploration Licence
Björkdal nr 36
100%
Equity through subsidiary
Sandliden
Exploration Licence
Sandliden
100%
Equity through subsidiary
Sandfors
Exploration Licence
Sandfors nr 101
100%
Equity through subsidiary
Klöverfors
Exploration Licence
Klöverfors
100%
Equity through subsidiary
Björkdal
Exploration Licence
Björkdal nr 37
100%
Equity through subsidiary
Björkdal
Exploration Licence
Björkdal nr 40
100%
Equity through subsidiary
Björkdal
Exploration Licence
Björkdal nr 29
100%
Equity through subsidiary
Malånäset
Exploration Licence
Malånäset nr 100
100%
Equity through subsidiary
Vidmyran
Exploration Licence
Vidmyran nr 101
100%
Equity through subsidiary
Sweden
141
Alkane Resources Annual Report 2025
ADDITIONAL INFORMATION MINING TENEMENTS
142
Alkane Resources Annual Report 2024