Alkane Resources has emerged from its merger with Mandalay Resources as a midtier gold and antimony producer with three operating mines and ambitions for re-rating as it targets entry into the ASX300.

Speaking the day after the court in British Columbia ratified the deal, Alkane CEO Nic Earner told the Diggers and Dealers Mining Forum in Kalgoorlie that the merged entity now had a proforma market capitalisation of about A$1-billion. The merged assets generated 161 000 oz of gold-equivalent production over the past 12 months and, at the end of June, the combined company has about A$100-million in the bank.

“We have just completed the merger with Mandalay –  the court in British Columbia ratified that last night. Our new board has formed and we have our first board meeting of that new board tomorrow,” said Earner.

He highlighted that on a pro forma basis, the group’s three mines – Tomingley in New South Wales, Costerfield in Victoria and Björkdal in Sweden – had been cashflow positive. "If we had been together for the last four months, this is what would have happened: We would have produced pretty much 40 000 gold-equivalent ounces per month and our cash balance would have gone up A$20-million to A$25-million. This is cash, post tax, post growth.”

Alkane will release new production guidance later this month, but indicated that 2026 output will exceed the previous year’s. The combined company is targeting 180 000 oz of gold-equivalent production in the 2026 financial year, up from 160 000 oz of gold equivalent in 2025.

“Last year, we generated A$90-million-odd cash. We should generate more this year.”

Earner positioned the group as an established multi-asset gold producer with a ten-year mine life at Björkdal, seven years at Tomingley and four years at Costerfield, all on reserve base. All have resources above that.

This merger represents a significant step forward for both companies, Earner said, citing scale, cash flow and optionality as key benefits. Internal growth remains the immediate priority, including mine-life extensions and exploration at each operation, before pursuing external acquisitions. "We really want to unlock [internal] value before we look at acquisitions, which we do want to do," he stated.

The merged Alkane is a large Western producer of antimony. While there are several other producers with projects in the pipeline and new projects will come on line, the miner is "making hay when the sun shines".

Earner urged investors to reassess their view of Australia’s East Coast mining jurisdictions, pointing out that Alkane had completed mine extensions and regulatory approvals in New South Wales and Victoria. "I challenge people to rethink their views of New South Wales and Victoria. These places are profitable, these places are stable. I encourage you to look at not just us, but assets up and down the East Coast, because they do represent value."

Calling out the company’s valuation relative to peers, Earner concluded with a challenge to the market: “There is a dislocation that exists. I encourage you to have a look at that, and then look at the fact that we are a billion-dollar market cap company.”