Interview with Nic Earner, Managing Director & CEO, Alkane Resources

Our previous interview: https://www.cruxinvestor.com/posts/alkane-resources-asxalk-mid-tier-producer-born-from-strategic-mandalay-resources-merger-7637

Recording date: 8th September 2025

Alkane Resources has successfully completed its merger with Mandalay Resources, creating a debt-free gold producer targeting 160-175,000 ounces annually across three strategic mining jurisdictions. The combined entity operates mines in Australia (Tomingley & Costerfield), and Sweden (Björkdal), providing investors with geographic diversification and operational risk mitigation in an increasingly volatile global environment.

The company has eliminated its Macquarie debt facility while allocating over $80 million toward growth capital and exploration programs. Managing Director Nic Earner emphasizes the integration challenges, noting the need to harmonize "distributed management structures and styles" while adapting to dual ASX and TSX reporting requirements for both Australian and North American investor bases.

Alkane's three-asset portfolio offers compelling diversification benefits. Tomingley receives $50 million in growth capital for open-cut development, while Costerfield, the highest-grade operation producing 45-50,000 ounces annually, benefits from a $25 million exploration program targeting resource expansion. The Swedish Björkdal operation operates a substantial 1.4 million ton mill capacity, currently underutilized but positioned for expansion.

The elevated gold price environment has fundamentally transformed mine economics, enabling access to previously uneconomical mineralization. As Earner notes, "there may be mineralization at a different price you would not have bothered with, whereas now you're getting it."

Looking ahead, Alkane maintains disciplined acquisition criteria, requiring any new development to achieve production by 2027. The company targets three M&A categories: merger-of-equals transactions, developers requiring capital for near-production assets, and distressed producers facing capital constraints. With proven operational excellence—missing guidance only once in 14 years—and a clear path to exceeding 180,000 annual ounces through organic growth, Alkane positions itself as a consolidation leader in the sector's ongoing transformation.

Learn more: https://www.cruxinvestor.com/companies/alkane-resources

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