Interview with Nic Earner, Managing Director & CEO of Alkane Resources Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/alkane-mandalay-merger-reshapes-mid-tier-gold-landscape-7155

Recording date: 8th August 2025

Alkane Resources (ASX:ALK) has successfully completed its transformative merger with Mandalay Resources, establishing a dual ASX and TSX-listed gold and antimony producer operating three mines across Australia and Sweden. The strategic combination creates a mid-tier producer generating over 160,000 gold equivalent ounces annually with robust cash flow of nearly $100 million over the past twelve months.

The merged entity operates geographically diversified assets including the Tomingley gold mine in New South Wales, Costerfield gold and antimony mine in Victoria, and Björkdal gold mine in northern Sweden. This diversification across premier mining jurisdictions provides operational stability while reducing single-asset dependency risks that plague many smaller producers.

Management has outlined a clear three-pillar growth strategy focused on maximizing value from existing operations, pursuing strategic acquisitions of 80-120,000 ounce annual producers, and achieving market re-rating through enhanced scale and liquidity. CEO Nic Earner emphasized the company's commitment to operational excellence, noting "We have a culture within the group of making sure we deliver on guidance," with Alkane meeting production targets in all but one year since 2014.

The merger provides significant financial strength with pro forma cash of A$218 million and no meaningful debt obligations, enabling flexible capital allocation for organic growth and strategic acquisitions. Near-term catalysts include completing highway relocation at Tomingley, developing the True Blue extension at Costerfield, and optimizing higher-grade opportunities at Björkdal, supported by a $40 million annual near-mine exploration budget.

Management believes the combined entity's production profile and cash generation capabilities position it for valuation re-rating, with peer comparisons suggesting companies of similar scale typically trade above 1.4-1.5 billion Australian dollars in market capitalization. The dual listing strategy aims to broaden the investor base and improve liquidity, potentially facilitating inclusion in relevant mining indices and access to passive investment flows.

View Alkane Resources' company profile: https://www.cruxinvestor.com/companies/alkane-resources

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