Good morning, everyone. Let me get straight into it. This presentation — I have many different versions of this presentation slowly being updated on our website at alkane.com, and of course the recording will be available from Renmark later on. So let me tell you about Alkane. We are listed on the ASX and the TSX as well as the OTC. The reason why you have the dual listing is because in August last year, in 2025, we finished a merger with Mandalay Resources, which was listed on the TSX. And so as a result, we have three mining operations, which you can see on the screen there. The first one, Tomingley in New South Wales, is about four and a half hours' drive west-northwest of Sydney.
Tomingley last year, as you can see there, did 83,000 ounces. And I'll come to next year's — or this — we're in Australia, so we do a 1 July to 30 June financial year. So this financial year that we're in, I'll come to that guidance in just a tick. We next have the mine in Victoria, Costerfield. It's about an hour and a half's drive north of Melbourne, near the very historic mining area of Bendigo. It's been running for a long time. That mine last year did 45,000 equivalent ounces, and the equivalent comes not from copper but from antimony. I will talk about that when we come to talking more about Costerfield. Then we have our Björkdal mine in Sweden, near the town of Skellefteå, right up as Sweden starts to curve around into Finland. Skellefteå is a town of nearly 50,000 people. And that mine is Björkdal, and last year that did 41,000 ounces. We'll be doing more this year. I'll talk about that. And then last but not least, about 70 kilometers to the east of Tomingley — this is back in New South Wales, a bit over four and a bit hours' drive from Sydney — we have the large Boda Kaiser copper-gold porphyry project. So I'm going to talk about all of these in much more detail, as well as our guidance for this year and, of course, how we allocate capital and what we're going to do. And very happy to answer any questions on this.
So if I look at us today, and the share price is roughly the same today — been crazy volatile. I think we'll all realize as investors over the last, I don't know, a year, but particularly this last sort of four or five months, feels really, really volatile. But we have 1.36 billion shares on issue. That's mostly because we did that merger, and that was a full scrip merger. Our share price as of last Friday was, you know, $1.10 Australian, which is really similar to Canadian, almost one for one, but we're US$0.70. That gives a market cap of about 2.6 billion Australian or just crossing over 2 billion US. You can see our low to high. The low period came just after we merged with Mandalay, and the recognition of the company that was being built, the volume that we were going to have, but particularly the index fund flows we were going to have, was only just starting to hit people. Cash and gold bullion: we have over $400 million in the bank, which is obviously great. Very little debt apart from our equipment finance. We have an undrawn revolving credit facility, and we have very good liquidity. On the Australian Stock Exchange, we do, you know, six odd million shares. On the TSX, we typically do 700,000 shares. So sort of around that, you know, one and a half to 2 million Canadian each day. BMO and UBS are probably, as well as Red Cloud, probably the research that you are most likely to look at if you're in Montreal, but the other Australian brokers are also all available. And price range — I get asked, so I'll cut that question off right at the start. Price range that people give us depends on their forward gold price deck, ranges from about $1.85 through to sort of $2.30, $2.40 is their target price on gold prices slightly lower than what we're seeing at the moment typically.
So let's get into — that's the company. Let's get into first our forecast for next year, and then we'll look at side by side as well as I'll take a very brief moment to look back historically. This is our guidance for FY27. So remember, FY27 in Australia, unlike most Canadian businesses, runs from the July that's just passed through to the 30th of June. So it's going to be a slight build on the year, and you'll see most of that build comes a little bit at Tomingley, a little bit at Björkdal. Costerfield's about steady from last year, slight cost increases from last year. Björkdal has come down, but we've seen, you know, $200 to $300 an ounce input costs on both of our Australian businesses. That's pretty typical here in Australia for over the last 12 to 18 months. And then we have really significant growth capital. I'm going to go into where all these growth projects are, but Tomingley, we're moving a major highway. We're at the tail end of that, so we'll talk about that when we get to it, and really ramping up our exploration there. Costerfield, we're going to a new mining area, Brunswick South. I'll talk about that and then continue to explore. I'll talk about why we have such a high exploration budget there. And Björkdal, we're expanding our tailings dam to add another seven years' life on that, as well as mining to a new area. I'm going to talk about the new mining area there and exploration. So our total spend — we're going to spend, you know, in growth capex, the better part of 200 to 250 million Australian/Canadian dollars in the coming year, and of course with the gold prices we generate cash beyond that. So that's our guidance. Very happy to answer any questions about why we've made different decisions when we come to the Q&A section.
I just want to talk very briefly on our history of delivery as a group of people and with the asset. This is predominantly Tomingley as an asset, and then the other two assets arrive in FY26. We're a company that prides itself on, you know, being pretty good at giving our guidance each year. As you can imagine in the mining environment, that can sometimes be a little bit stressful, but in general our businesses are very steady and we give really good guidance. So when we give the guidance for this year, we fully expect to meet that. You know, it's in our sweet spot and we have a history of doing so. So let's dive into the assets. Firstly, I'm going to talk about Tomingley, the one that was west of Sydney — uh, northwest of Sydney. This is the picture just out of pure curiosity. As we look at the picture, you've got the process plant in the foreground, and then the tailings dams off to the right, and then the original open cuts appearing in the background. But if we look here, first things to know about this mine: this was a mine that was discovered by Alkane. We discovered these mineral deposits, then we went through all the regulatory approvals, and then we built it, developed it, and we've been running it since very early 2014. We built and commissioned in 2013. Amazing as it seems now, you know, we built and commissioned this in just 10 months. And seems sort of unrealistic to even have that target nowadays, but that's what we were able to do. So this plant was designed for 1 million tonnes per annum. We typically run, as of today, 1.3, 1.4 million tonnes per annum. We did that by putting a new crushing circuit in, a mobile crushing circuit in beforehand. So as a result, we run typically at this grade of around somewhere between resources and reserves. The reserves are a bit lower because of open cut reserves. So we typically feed at the moment around 2.2 g per ton, more like the resource. And as a result, we get in this sort of 80-odd thousand ounce range.
At the moment, we only are underground at deposits to the south of our original thing. And then the top right picture is the tail end of a better part of $55 million capital works — that's 8 km of highway you can see in that Fish River picture. And we will have two new open cuts starting there within the 12-month period. So that is what we're doing there, and that has the better part of 250,000 ounces in it, and that forms, you know, that portion of our reserves. So really strong mine life here, lots of discoveries that we've made over time, and reasonable cost profile as you saw back from the guidance. And yeah, it's really the engine room of what we do. And this is the one mine where we produce doré. So this has a cyanide circuit and we produce doré, and that gets refined in Sydney. So that is Tomingley. Very happy to take more questions on that later on.
Of course, a little on the mine layout plus the exploration. So you can see there the San Antonio pits to the left. They're designed pits. The Wyoming one, Wyoming 3, CL2, they are completed pits. That is an underground drive that we did quite a few years ago down to Roswell, which is our main ore source at the moment, where we're mining typically 1.3, 1.4 million tonnes from underground. And circled in yellow are the main targets that we have, and the biggest ounces that we have coming into the schedule are in and around Millers, between Millers and CL2, particularly around Millers United, and then in depth at Roswell. The San Antonio deeps are a little trickier for us until that highway gets removed to get decent draw positions on, and we have quite a lot of intercepts around CLOM but nothing of really reasonable size and scale. What we would love to find here is a 300,000 to 500,000 ounce deposit. We're yet to find that because that would take us from the eight-year-plus mine life significantly out further and maybe even let us expand the plant. So very prospective, and we also have, you know, further exploration tenements around, but we're in a lot more grassroots stage there. So that's Tomingley, engine room, eight years' mine life, good cost base, residential mine, produces doré.
We now go to Costerfield. Remember, this is the one north of Melbourne. This is a very high-grade gold and antimony mine. That picture there is of one of the portals. There are two portals here. The portals that we have here, one is where we say Augusta mine, and the other is over where we say Brunswick mine. And the main ore bodies that we have active at the moment are around Hallett and Shepherds Flat. And then I'm going to have a picture around Brunswick. But let's have a look at interesting things. Number one here, we produce a gravity gold concentrate, so it's about 50% by mass goes across a set of tables, very old-fashioned, and then that goes to Melbourne at around 50% gold by mass, and that is refined into doré there. But we produce a gold gravity on site that takes about 70% of the gold. The other 30% of the gold and all of the antimony goes into a gold and antimony concentrate, or we would call it an antimony concentrate, and then that is sold overseas, primarily into China. We've sold it there for nearly 20 years. Very reliable offtake partner. The processing rate is low, so we do mine and mill circuit this 140 to 160,000 tonnes per annum here. But have a look at those grades. That's 8.72% antimony. You know, it ends up being around the equivalent of like mining 12 g per ton typically if you put it all into a gold equivalent basis. And so this is very, very high grades. This is narrow vein mining. The grades you see there are diluted grades, and we dilute down to 1.8 m. So mining width that we do is 1.8 m. We use single boom jumbos, very small mining equipment, bring it out the drive and aggregate it, and then truck it to surface. So this mine is very, very high grade, and at the moment it's the largest Western producer of antimony. For those familiar with the antimony, it will be overtaken by Laverton as it commissions. That's a mine up in northern New South Wales. So this is Costerfield. Costerfield, as you can see, typically has about a four-year reserve life ahead of it, but since 2009 it's had a between two and five year reserve life ahead of it.
But the kind of thing that you see at Costerfield is things like this. This is Brunswick South. So if I just come back, this is located about here within the mine. So this is a deposit that we discovered only within the last 12 months. And you can see the type of intercepts that we get in there. Very, very, very high grade. But then of course they get diluted down. So this is only 300 m from our existing drives, and we're driving across there at present because this is what happens at Costerfield. You find, you know, in this case another two years of ore supply, you drive across to it. There are exploration targets around it. You extend it, etc. You are looking there at the vein system where we're not looking — we're looking at it sort of end on, so it comes, you know, between you and me effectively. So it's just to give you an idea of the type of vein system that exists and the high grade that exists there and the way it's structured, how close is this infrastructure, and how this mine continues to operate year in year out. So we're very happy with the prospectivity, and we have quite a lot of other targets within the region, of course. And this is why we spend, like I said, circa $20 to $23 million Australian exploring here, because mine life and the capacity to then plan forwards is the biggest driver that we have here for growth and value.
If we move on to Björkdal in Sweden, this is it when it's not snowing. So this was an open cut mine that's been running since the mid-80s, owned by Mandalay since 2014, now completely underground. This mine produces four gold concentrates. One, a very, very high grade, nearly 50% by mass gold concentrate. Then a spirals middling, several thousand grams per ton. The Nelson concentrate, several thousand grams per ton. And then a flotation concentrate runs about two ounces per ton. The first three concentrates are all sold into smelters within Europe, and the final one goes just next door to the Boliden smelter, which is trucking distance only 35 km away. So this mine — you can see the open cut in the picture here, a plunging marble unit which has grade about 80 m above and below it. There are many, many, many veins. We have over 1,400 mapped veins here. And then we mine on vein density, which is how you end up with over the two-and-a-half metre diluted stoping widths. It's how you end up with the reserves at the level between that, like 1.3, 1.4 g per ton reserves, because they've been diluted out. You've got these very high-grade veins and you've diluted them out. I'm going to show you some of the intercepts at one of the deposits in just a tick.
So the big focus that we have here is to get more ore sources on and lift the grade, because part of our mill grade here — because if you do 1.4 million tonnes times 1.3, you know, hang on a minute, Nic, that is not 41,000 ounces. Well, that's because we also mill, of that 1.4, about 400, 450,000 tonnes of really low-grade surface stockpiles around 0.6 g per ton that were built through the 80s, 90s and 2000s, and we mill that now. And so replacing that with higher grade is a very, very, very big focus from us. And so what are we doing there? You can see we've had open cut commits at the ends, resource extension at Storliden. I have them on the next slide. So this is looking at that open pit from above. We have an open cut here at Nian. We will start feeding ore from that in October. 700 m from our main underground workings. We have the new deposit Storliden. We put out the mineral resource for Storliden, which you can see here. We have 125,000 ounces inferred, 87,000 ounces indicated. Remembering that each 50 to 60,000 ounces, which is the target where we're going to get to, is one year at Storliden. So we have potential for three years here. You can see really, really high grades. Again, that's not to say it's going to be those grades. Remember, we dilute out over two and a half metres. What we are seeing here is a whole new mining area. And so part of the capital I talked about at the start is we are cutting a new portal over here. We're driving from underground. And within three years, we want to be mining Storliden as a parallel source, 1.4 million tonnes per year at at least the 1.4 g and above. That's how we get to 55,000 ounces. That's how we drive down the all-in sustaining cost. That is our plan here at Björkdal. Of course, happy to take more questions on that.
We come to Boda. This is our sort of sleeping giant a little bit — a term that I tend to use a little too much. But so Boda is a large-scale development project for us. So this is the scoping study that we did in 2024, two years ago. Have a look at those prices, because that's when gold was US$2,300 and copper was US$10,000 a ton, or in Australian dollars close to Canadian, $13,500, $15,000 copper — I don't know, $21, $22,000 Australian now, and you know, gold $6,200 Australian now. So my whole point here is that these economics were done on these old prices, and there is absolutely no doubt that this is now an economic project. It's 10 million ounces indicated, 15 million indicated then inferred, but it's low grade. And you know, those of you in Canada will be quite familiar with some of these projects, that this one runs at about 0.58 equivalent, so 0.3 g per ton gold and just under 2% copper. You'll be pretty familiar with some projects like that that are economic, you know, the big price tags that exist to get these into operation, and you know, the potential revenue and the potential market cap that can come from those when they do come into operation. But the big catch is, of course, getting it permitted. It's no different really between Australia and Canada.
And so this is the timeline. This will be the fourth major project approval we've done since 2013 in this jurisdiction. And so the big, big thing that we do is, of course, we do a whole heap of environmental baseline studies at flora, fauna, water. But a big thing that we do, of course, is property negotiations. This is freehold land. There's several farmers that we need to purchase their properties. We have purchased five properties, I think, underneath this footprint. And then of course we do a whole suite of trade-off studies about the location of infrastructure, tailings dams, impacts, where are we going to get water, power, etc., etc. We're doing all that at the moment. That results in us doing a prefeasibility study in the middle of next year, the middle of calendar 2027, and submitting into our government approval by the end of 2027. The reason I have a bar overlapping in project approvals is within Australia, or within New South Wales, you have this circular loop of consultation that occurs before you put in your formal submission. Typically a two-year consideration once you have a line of sight on that bankable feasibility study, FID.
How we get this funded? We will do the normal things that you see. We'll sell down a majority, 70% say, or we sell down a minority, say 30%. We may get a very, very attractive offer to buy the whole thing. It's unlikely we would have a crack ourselves unless all completely on our own — unless, you know, commodity prices have ripped even further from where they are and people think that that's the commodity price environment that we have, because this would be a plus $2 billion Australian or Canadian build. So this, yeah, a lot of value here. Not much of this value, I think, reflected in our share price. It's very difficult to say. It depends on people's gold prices, given we're a $2.5 billion company. But certainly very happy to answer more questions on that.
If you look at why would you bother owning us and time and attention for us versus other companies, I think we're very reliable at delivering on production, our forecasts. We're experienced with both open cut and underground. This is our actual teams on site rather than sort of a management team in development. We continue to expand our mineral resources. We're very happy delivering growth projects. We progress permitting, and that's relevant for what I just talked about. We do sensible and accretive corporate investment. You know, the Mandalay transaction, very successful. We've made a couple smaller investments over the years before that. We did the demerger in 2020. So we know our way around the corporate environment as well. Definitely a sleeping giant in Boda Kaiser, and of course above all things, we're cash flow positive. And then to that end, you know, today we went — today, yesterday, today we went ex-dividend on a two-cent share dividend that the board declared, which is fully franked in Australia, not that useful in Canada. And we're also just launching — we're just finishing all the paperwork for our — we're doing a $50 million buyback as well across the next 12 months. So yeah, we're pretty focused on capital returns with some of that cash. And with that, Julia, I think I'll hand back to people. Take any questions. Nothing's off limits. Fire away.
