Thank you, Julia, and hello everyone. As you can hear from my accent, I'm based in Australia, and Alkane Resources is also listed on the Australian Stock Exchange. So, let's get straight into it. A copy of this presentation, of course, Renmark will distribute. You can find very similar presentations to this in terms of the slideshow on our website, alkane.com. I think a lot of investors want to say, "Hey, am I dealing with a management team that if they say they're going to do something, barring exceptional circumstances, they're going to deliver?" So, I want to tell you what I've been saying for the last 12 months. So, 12 months ago, and in numerous presentations I did in Australia and overseas, I said that we're going to merge with Mandalay Resources on the TSX. We did that. We've executed that. That's gone very well.
I said that we should produce 160,000 gold equivalent ounces in financial year 2026. Australian financial years run from 1 July to 30 June, so up to 30 June 2026. We did 168,000 oz. I said we're going to have strong cash generation. Our cash, and this is Australian dollars, I'll come to US dollars, increased from 190 to 432 million dollars across the year. We have over half a billion Australian dollars liquidity. And we have the dividend which we'll be confirming next week of 2 cents a share fully franked. That's an Australian tax credit. That's occurring. We'll have increased share trading liquidity so investors can get in and out very easily of our stock. That's gone up quite a lot across both exchanges. And I also said that we would enter the ASX 300, a very big index here for index flow funds. And not only have we done that, we've gone to the top 200. We're probably about company 150 in Australia. So, this is the kind of thing that when we say we're going to set out to do something, we deliver it. So, who are we now? Who is Alkane Resources?
So, look at that map there. You're looking at the east coast of Australia on the left-hand side. I'll get the pointer going. So, here about 4 and a half km from Sydney, you have our Tomingley gold operation. Last year, that did 83,000 oz. I will talk more about Tomingley so you can understand it. Costerfield, about an hour and a half drive north of Melbourne, very historic gold rush area in Bendigo, we produced 45,000 oz equivalent. This mine does gold and antimony. I'll talk about that. We have a really large resource project that we're in the stages of developing. I'll talk through that development. Up here, it's actually 70 km from here, but it's about, you know, 4 hours drive as well from Sydney. And then in Sweden, right at the top where this curves around into Finland, Norway is over here, inland from Skellefteå, we have our Björkdal mine which last year did 41,000 oz.
So, that's where we are. As a result of our merger, our share count went up a fair bit to 1.3 billion shares. It's a lot by US standards, I know. Our share price is at or around this $1.10, $1.12 US per share, so $1.60 Australian. And puts our market capitalization at just above 1 and a half billion US dollars. And you can see that with the gold price, it's been a pretty volatile old year for us. But certainly it was just after the merger that our share price has been — that we haven't been that low since we first did the merger. Got a lot of cash on hand like I talked about, you know, liquidity approaching 400 million US, but, you know, of that, 300 million dollars US is in cash at the moment. Broker coverage in North America, you know, probably you're most familiar with BMO and UBS. Or potentially if you get TSX research with Red Cloud. The others are Australian brokers that you can see there.
That's pretty interesting what I did. What about next year? This financial year that's just started, what are we going to do? Well, it's going to be pretty similar to what we just did. We're going to do 163 to 177,000 oz. And the first thing I want to do is reassure all of you there in America, I'm talking Australian dollars here. 2900 to 3200 Australian dollars, right? So US, typically we run in about 2/3, 70%, so you're talking just a bit above $2,000 an ounce at the bottom end of our guidance. We're going to spend Australian dollars 55 to 65 million dollars, so circa 40 to 45 million US. And our growth CapEx in US dollars is sort of circa 120 to 140 million US. And I'll talk you through that. These are the things we're doing. We're diverting a highway at Tomingley. This is where all our capital's going. We're developing into a new mine at Costerfield. We're doing a whole heap of stuff at Storheden. We're progressing Boda. I'm going to talk you through all of those. So this is what we're doing in FY27. A year like last year, strong cash generation, we're investing into the assets.
And then I mentioned before, hey, you know, this is all pretty interesting talking about a one-year merger, what you've done. But this is us, this is our last 10 years production as a company. We pretty much hit our guidance every year. Those of you who invest in mining or are involved in mining yourself know that this is no easy task trying to strike a balance between aggression and realism when you set your production plans each year, but, you know, we're pretty good at projecting our performance. So, I'm just trying to tell you I think you should have pretty strong confidence as we do in the year that's coming up. Let's talk about the assets. Tomingley in Australia, the first one I mentioned, this is one 4 and a half hours drive from Sydney. This is an underground mine where we're developing two open cuts. It's the highway we're moving in the right hand, top right hand picture. We're actually going to, you know, fast forward 80 years time again, we're talking, you'll see the start of two open cuts here and this will be a bitumen highway that we're moving. We are an owner operator, so we own our own underground fleet and we operate it ourselves. So, here we produce about 80,000 oz. We've been operating this mine since we discovered it ourselves, built it ourselves in 2013. We've been operating this mine since 2013 and poured our first gold in 2014. So, 12 years on for this mine and you can see looking at the reserves ahead of us, you know, this is a seven year mine as it stands without any further exploration. So, great asset. This is effectively the backbone of production within the company.
The next mine we have, Costerfield, very high grade gold and antimony mine. What you're seeing here is these mines were mined 100 years ago. They were mined for gold and antimony back in the day. The British war effort included antimony from these mines. But this is where we're operating at present. This is an asset operated and owned by Mandalay since 2009. So, we acquired Mandalay last year. And it is actually still the largest western producer of antimony in the world. We should be overtaken this year. There's another company in New South Wales called Lode Resources and there's a couple firing up with you guys in the States as well that should maybe — we'll do about 1,500 tons of antimony every year. So, we should see who overtakes us this year. Anyway, so we have a lot of exploration here, but it runs in a very high grade. The grades that you see there, this sort of 8.7 grams of gold and 2% antimony reserve, that is diluted grades. So, we dilute out to 1.8 m. I'll show you some intercepts on the next page on some of the exploration that we typically get. But, yeah, this is a very, very high grade vein system and we only mine 140,000 tons a year out of here. So, a lot of effort going into mine very high grade ore and we typically do around this 45,000 oz equivalent.
One of the things that we have in here is, in terms of exploration, we also have an earn-in in a joint venture 40 km — oops, I was pointing with the wrong thing — 40 km to the east-northeast of Costerfield. We are doing an 80% earn-in to another area which we hope will turn out to be a lot like Costerfield and we could potentially do some sort of hub and spoke production model there. This here is an area that we're just starting to develop. So, we've got capital allocation development to this. And this is Brunswick South. If I go back one slide, the area here that I'm talking about is just here. Just here. And I'm showing you this to show you the type of mine that it is. If you look here, this is just a vertical vein system. Infrastructure drives off to this side and you look through this. Here we are, very high grades. 50% gold, 26% antimony, 51 grams gold over a meter's true width. So, you can see these absolutely amazing grades. But then we dilute them out over 1.8 m and then we extract them. All right, so this is narrow vein mining at its finest on a very high grade deposit. The reason I want to tell you about this is if we go back one slide, you can see, hey, hang on a minute, Nic, those reserves are pretty low, right? There's only 3 or 4 years there. It's been like that since 2009. So, this type of narrow vein deposit we get new discoveries of 100, 150,000 oz every couple of years and that's exactly what we have here in Brunswick South. So, we're very bullish about the future going here. We're very bullish about the exploration that we put in place. And we expect to deliver a lot more out of here going forward. Happy to take more questions on this or on the antimony market in general. I realize I haven't gone into that that much.
Björkdal up in Sweden either looks green and lush like that or looks very snowy. So, Björkdal was an open cut mine that started in the '80s, bought by Mandalay in 2014. And this mine runs high rates, 1.4 million tons per annum on a low grade. Typically, reserves 1.3. We typically feed about a 1.1, 1.2 g deposit here. The interesting thing about this mine is it's been underground, completely another owner operator mine underground since 2019. But it only mines underground at about a million tons a year. The difference, the differential 400,000, is from a low grade 0.6 g stockpile built over a really long, built over 30 years open cut operation. So, what we're doing here is investing capital to open up a new mining front. And that new mining front is here, Storheden. As you can see the existing mine here and then across 700 m the Storheden deposit. Very high grades again. Except here we dilute out over nearly 2 and a half m minimum mining widths. And so what we have here is a large and growing resource that we intend to mine. We're developing that. We'll be mining this over the next 2 years. We intend to mine to this, increase the production rate to circa 55,000 oz or greater here at the operation. Not off the charts, but it certainly lowers the unit cost of production and does for us at the group. We're also starting a new open pit here at Njård in the interim. So both of these things give us the prospect to take this from being a low 40,000 oz mine to a mid 50,000 oz mine over the next 2 years.
Then I'll talk a little bit about Boda, it's a really large-scale development project. This project discovered by Alkane in 2019. We drilled this out to being nearly 10 million equivalent oz indicated and nearly another 5 million oz of inferred. This is a large low-grade porphyry deposit similar as you might have seen in British Columbia or the New Afton mine, or the mine Taseko that's seeking to be developed up in Canada. So large low-grade deposit just under 0.6 g per ton gold equivalent, half value in copper, half value in gold. We've done extensive metallurgical test work on it. We've done extensive drilling. We did a scoping study right back when gold was just a bit over US 2,000 an oz and copper was 10,000 bucks a ton. This would be an expensive project if we build a 20 million tons per annum, which is a very big processing plant. This would cost us $2 billion. So obviously we'd be looking for a partner in this process, but this is the slow burn we have within the project. Great internal rate of return because it was 24% back when prices were nearly half what they are now. So great returns potentially available here.
So the big gain for us is approvals. You don't often get people wanting to talk about approvals because, you know, they're long and time-consuming in a T1 jurisdiction, but nevertheless, this will be the fourth major approval that we've done in this jurisdiction in the last 13 years. So, if you look at this, stakeholder consultation means farmers. We often buy the farms that are on the line, environmental studies, flora, fauna, drill holes, looking at Aboriginal heritage, negotiating on how you get rail, power, roads. There is something that's time-consuming, necessary, and you adapt your plans to make the stakeholders. So, we'll be submitting that at the end of next year, end of 2027 for project approval. The reason I have a bar that goes back into 2027, the way it works in New South Wales, you do a lot of pre-negotiation with the government before you submit the formal approval process. So, this is something that we think we should have approved before, you know, the next 3 years is up, and then turn that into an FID, and then get amongst the build. So, bit of a sleeper for us in our share price, and a long build road ahead of us on this, where we think we can flip it from being a dollars per ounce in the ground valuation to percentage being P/NAV. So, quite excited about this project.
So, I just want to say to you guys, why else would you own us? We deliver on production. We know how to operate open cut and underground, relevant. We run our own teams, so we don't pay a margin to a contractor. We keep expanding the resources at each site. We know how to deliver growth projects, done that quite a few times. We know how to progress permitting, unglamorous, but necessary. We do sensible and accretive corporate development. I would like to take over another company similar to the older Alkane, so an 80,000 oz producer in a T1 jurisdiction. We're looking US, Canada, Scandinavia, Australia, New Zealand. We would like to do exactly the same thing. We think that there we can add value from that, and that there's strength in size. We have a sleeping giant that I was just describing, Boda, and we certainly do make cash in this environment and in lower price environments as well and we look to return that to shareholders as well. So, I hope all of those things can get your eyeballs onto us. I hope you've had a chance to learn a little bit more and I certainly welcome any of your questions.
Yeah, great question and I'll answer as explicitly, you know, as possible for someone in my role with the market and stuff like that. M&A, you know, needs to be complementary and it needs to bring value to our existing shareholders, of course, right? Which means that, you know, the true cost of capital, our cost to NAV, you know, needs to be adequate value, right? So, if we think we're undervalued to the market cost or whatever, then we need to be making a pragmatic assessment against that. So, I think the type of companies that meet that criteria then are companies a little like the old Alkane. And what I mean by that is a company with a single asset with growth but not, you know, shoot the lights out growth that has everyone super excited who are driven by growth and, you know, so let's say a 70,000 oz producer who could go to say 100,000 oz. Who needs to put money into exploration to further extend the resource life beyond 6, 7, 8 years but who is going to spend money now to achieve that, that makes their cash return not that exciting to investors. Maybe they've even had one or two missteps. We hadn't had missteps but you get where I'm going with this. And people think, "Oh, look, I'm going to come to that stock when it's proven for me. I'm not going to pay value for that now, you know." So, that type of company where then shareholders of that company and therefore the board reflecting the shareholders, we should say, you know, "What if I was part of something bigger, part of a re-rate, get a better reflection as part of a stable, not rocked as much by my own capital program, you know, I could find value and then we could find value because if their P/NAV was less than ours and with the application of capital we could speed up everything that was just being said." That's my perfect company. And it sits in a T1 jurisdiction, that's where our risk base currently sits. Of course, those things are difficult. So, you know, you wind your umbrella, maybe something a bit smaller that can go a bit bigger, something maybe a bit less loved and taking on a bit more risk. So, that's the ideal. In general, development companies at the moment, even with the pullback in gold price, the returns are so good the development companies are keen to try and chase a three or five bagger themselves rather than talking to someone like us. And yeah, other companies are prepared to have discussions and it's probably about as much as I can say, sorry.
Yeah, yeah, good point. So, our cost guidance was all in sustaining cost, Australian dollars. Australian dollars again, 2600 to 2900. We came in about 2925. This is across full fiscal year. We have a slight statutory versus full calendar because of the Mandalay takeover, that'll all be easy going forward. And then we put out our guidance for next year at 2900 to 3200. So, you can see a native $300 increase in there. So, let me address how's that. Part of that is an increase in sustaining CapEx, just as we replace some of the equipment and other stuff going on in other operations, but the main thing has been the price movements that we've seen here in Australia, a little bit labor, much more market in Western Australia than on the East Coast where we have residential sites. A little bit in power, but not much. Diesel, definitely, but diesel's only really sort of 5-7% of our cost makeup. Things that flow from diesel have been transport, explosives, flotation reagents. Absolutely, a lot of those things have gone up 15-20% and a lot of spare parts for equipment has gone up 15-20% on a combination of things. Transport, plastics, they're all material supplies, the increase in mining demand in Australia, etc. etc. So, it's those things combined just with a shift in some of our sustaining costs that have driven that.
For us as a company, if you look at our cash flows out in this coming financial year, we're putting quite a bit of money. We've made the choice to put money into things that I think will hold or reduce the cost going forward and/or bring on new mining areas like the potential for Storheden or Brunswick South. We're putting a lot of money capital, this is growth as well as CapEx. We're putting money into extending the tailings dam at Storheden. We're putting money into really increasing the turnover, so replacing faster some of the fleet, particularly at Costerfield, and that's all to try and contain costs going forward. The other thing that will affect our — so if you look at free cash at a steady-state price, so let's just forget all about all in sustaining cost and just talk all in cost, like every dollar out the door on anything for any value versus revenue in, absolutely our all in cost will fall, not this financial year but next because some of that growth stuff, which is a sort of one-off every 5 or 6 years, will be gone. And also, more importantly, the last remaining 30,000 oz of hedging that we have as a company is priced on debt that was taken out in 2023. All that will roll off, too.
