Summary of Alkane Resources Conference Call Company Overview - Alkane Resources is a mid-tier Australian gold company with three operating assets: - Tomingley mine in New South Wales (75,000-80,000 ounces production for the year) - Costerfield mine in Victoria (45,000-50,000 ounces production for the year) - Björkdal mine in Sweden (40,000-45,000 ounces production for the year) [1][2] Financial Position - Strong balance sheet with approximately AUD 160 million in cash and AUD 15 million in bullion - Debt-free except for equipment finance [1][2] - Guidance for the year is 160,000-175,000 ounces equivalent production - All-in sustaining costs are approximately USD 1,600-1,650 at Tomingley and Costerfield, and USD 2,700 at Björkdal [2][3] Growth Prospects - Significant growth projects at Tomingley and Costerfield, focusing on open cuts and drilling to expand reserves, respectively [3][4] - Tomingley has a mine life of seven years, with ongoing exploration expected to yield additional resources [4][5] - Costerfield is noted for high-grade gold and antimony, with ongoing drilling expected to add 50,000-100,000 ounces to reserves [6][8] Production and Cost Management - Last quarter production was just under 40,000 ounces equivalent, with an all-in cost of about AUD 3,000 per ounce [3] - Expected cash generation for the current quarter is between AUD 45 million and AUD 50 million [4] - Alkane has a strong track record of meeting production guidance, having only missed once in the last 13 years [14] Future Development Projects - Botokaisa project in Australia has potential for 15 million ounces equivalent, with a pre-feasibility study already completed [12] - Plans to submit for approval by 2027, with ongoing environmental studies and community engagement [13] Market Position and Strategy - Alkane is the largest supplier of antimony in the Western world, contributing 6% of revenue [10] - Actively seeking inorganic growth opportunities in Australia, New Zealand, Canada, the U.S., and Scandinavia, targeting mines with production capabilities of 70,000-120,000 ounces [16][17] - Increased liquidity with daily trading volumes of AUD 6 million-AUD 8 million, allowing larger funds to invest [17] Conclusion - Alkane Resources is in a strong financial position with significant growth potential across its assets, a solid production track record, and plans for future development projects. The company is actively seeking to expand its operations and improve its market position while maintaining a focus on cost management and cash generation [18]

Core Viewpoint - A tragic accident occurred at Hunan Xinlong Mining Co., resulting in the death of an employee due to a rockfall during operations. The company has suspended production for safety reviews and is cooperating with investigations [1][3]. Group 1: Incident Details - On August 24, an employee of Xinlong Mining was killed when a rockfall occurred while handling anchor nets in the mining area [3]. - Following the incident, Xinlong Mining activated its emergency response plan and reported the accident to relevant authorities, leading to an immediate suspension of operations [3]. - The company is currently cooperating with local emergency departments for further investigation and management of the situation [3]. Group 2: Company Response - Hunan Gold Co., the parent company, expressed deep condolences for the victim and extended apologies to the family [3]. - The company plans to enhance safety education and training, conduct thorough safety inspections, and implement timely rectifications to prevent future incidents [3]. - The timeline for resuming operations at Xinlong Mining remains uncertain due to the ongoing investigation [3]. Group 3: Company Background - Xinlong Mining was established on November 29, 2003, and has developed into a state-owned enterprise engaged in the exploration, mining, selection, processing, and sales of minerals, primarily gold and antimony [3]. - The company has previously been recognized as a "City Advanced Unit in Safety Production" [4].

Group 1: Sales and Market Outlook - In Q2, the company's antimony product sales were impacted by a decline in downstream demand, with most sales directed to intermediaries and traders [2] - Antimony exports decreased, and domestic demand also fell, leading traders and customers to adopt a wait-and-see approach [2] - Future sales strategies will be adjusted to increase antimony sales as exports recover and domestic demand improves [2] Group 2: Expansion Plans - The company plans to expand gold production capacity through several key projects, including the Gansu Jiaxin South Copper Gold Mine project, which commenced on June 26, 2025, with a mining capacity of 500,000 tons per year [3] - The company is actively communicating with the controlling shareholder and the local government regarding the resource integration project in the Wangu mining area to expedite asset acquisition [3] Group 3: Dividend Policy - The company emphasizes investor returns and plans to increase the dividend payout ratio while ensuring normal operations and long-term development [3] Group 4: Cost Changes - The company has experienced a certain degree of cost increase in recent years due to several factors, including deeper underground mining operations leading to higher system construction and safety costs [3] - The decline in ore grade at some mines has resulted in increased unit costs for products [3] - Labor costs have also risen significantly [3] Group 5: Regulatory Oversight - The Hunan Provincial State-owned Assets Supervision and Administration Commission does not directly assess the company [3]