Mandalay-Alkane's Ambitious Merger Targets 180,000 oz. Gold Production by 2026

Mandalay Resources and Alkane Resources are set to merge in an all-share deal, creating a mid-tier miner with a pro forma market capitalization of approximately A$1.01 billion. Mandalay shareholders are expected to hold a 55% stake in the new company, while Alkane shareholders will hold 45%. The merger, expected to close in the third quarter, is strategically timed with rising gold and antimony prices. The newly formed entity will boast a clean balance sheet and cash reserves of A$188 million. With a two-year hedge program, it could have over US$100 million in net cash, which will support exploration and potential further acquisitions. The merger aims to increase annual gold-equivalent output to 160,000 ounces in the current year and 180,000 ounces by 2026, leveraging the Tomingley, Costerfield, and Björkdal mines. Management also aims to list in the GDXJ and ASX 300 indices to attract investors.