G'day. One thing that I should note, having watched Paul's presentation, everything I'm gonna say is in Australian dollars. I'll try and convert that into US in my head and do a very poor job of it. So Alkane Resources, we have two main parts of our business. We've got an operating gold mine, this year gonna do about 75,000 ounces, which we're ramping up and spending capital on at present, and we have a large copper gold porphyry deposit that we've discovered called Boda-Kaiser. I'll tell you about both of those. First, the location that we're in. You can see in the picture of Australia, we're about, you know, 400-odd Ks to the northwest in the Lachlan Fold Belt. Typical mines in the area include, you know, Cadia and Northparkes, Cowal further to the south.
But that's the sort of area that we're in. We're a residential area, so all our workers go in and out of Dubbo or Parkes or another small town called Narromine. A little bit about us. We're held mostly by retail shareholders, so about 20% is directors and management, but 18, a bit over 18% of that is our Chairman, Mr. Ian Gandel. And then, the institutions that you see are mostly index and quant funds, so we have very few other funds in our stock. And, the other thing to note, and I'll explain a little bit more, is that for the capital expansion that we got, we have our debt position in place.
We have AUD 60 million of debt with Macquarie Bank, and we took that out a bit over a year ago, and we have a hedging position at 87,000 ounces that goes through to the middle of 2027. So across the next three financial years, we'll be paying down that debt, and we have hedgings. Roughly a flat profile that ends up being sort of 35%-38% of our production. Tomingley, our gold mine. So the chart that I've got up there is, you know, the last decade. Tomingley poured its first gold in 2014, and you can see in that chart sort of three phases of life. The first phase was when we mined our open cuts, did about 70,000 ounces a year at about AUD 1,100 an ounce, then we transitioned to underground.
And for the pre-COVID, we did about 50-60 thousand ounces a year at typically AUD 1,450 an ounce. And then recently, as we've expanded into a whole new mine area, our costs have moved to AUD 2,000 an ounce or a bit over AUD 2,000 an ounce. This year coming, and I'll talk a little bit about it, our all-in sustaining costs will be AUD 2,400 an ounce, because the decline that we're doing, we're doing both vertical up and vertical down on the new mining area that we're in. So you saw there that we had capital projects. So what are we doing? So at the moment, as well as running, we're currently at the very late stages of installing a paste plant and a flotation and regrind circuit.
Obvious to this audience, while we're installing a paste plant in our new mining area to the south, and also a flotation regrind circuit to increase recovery, and then we have, as our next phase, to move to 100,000 ounces, a whole set of open cuts to bring in, but to do that, we have to move a highway. And please note that all... everything I'm talking about already has government approval and all that sort of stuff, so we'll be moving a highway, and so that is circa AUD 50 million to move the highway, and that'll be completed through next calendar year, and then we start to develop the open cuts in 2026. So this period we're in is a bit of a transformational period for us, finally bedding in this new mining area.
So we've discovered this new mining area in 2018 and then drilled it out, you know, to a resource level, went through all the approvals process, got that approvals process in 2023, and now we're actually going through it. I've laid out there quarter by quarter what we're doing. In the new area that we're mining into is higher grade, and that's why you see production go up from sort of that, you know, 18-19,000-odd thousand ounces to the 20-22,000 ounces. We're on track in this quarter to do about 18,000 ounces. And then late in the piece, in those columns you see, is when we bring on the open cut environment, which is lower grade mined, right?
We produce about 1.1 million tons from underground, and then we add subsequently another 400,000 tons from open cut. Then over the five-year period, we start to bed in around that 100,000 ounce level, and our costs stabilize at AUD 2,000 an ounce. It's all pretty routine stuff, but you know, we're deep in that process at the moment. We do actually have production beyond that current plan. What you're looking at there in the picture on the right is just our mining area to the south. We've already got that underground decline. It's two and a half K. We're mining and stoping in that area. But the things to note are, while I've articulated a five-year plan, we have resources that go beyond that period of time. Our mining project has approval to 2032.
We have tailings dam capacity well beyond that as well, and we can apply for modifications to do it. It's not a whole new approval process; it's an extension of mine life. We obviously have resources that we're looking to expand and continue to extend the mine life there, and we have a whole heap of regional exploration as well. The second part of our business is quite an interesting one, and in fact, you know, it was at Beaver Creek here in twenty nineteen that I was first talking about that with investors. We've completed a scoping study on this. What is Boda-Kaiser? I've got some pictures coming up, but it is a 15 million ounce equivalent resource.
It's got eight million ounces of gold, one and a half million tons of copper, but the average grade is about 0.3 grams per ton gold and about 0.2% copper. So it's a large copper gold porphyry. It's about 50-50 in value at today's spot prices. And at today's spot prices, these are the rough economics you'd spend. It needs economies of scale. You'd put in a 20 million ton per annum plant. You'd spend a bit under AUD 2 billion. It's about a one for one NPV to CapEx, and you'd get decent cash on a decent IRR. That's at today's spot prices. To look at it in pit form, that's what AUD 50 million worth of drilling looks like.
So there's the Kaiser and Boda. The top bits in those pits are all indicated, and it's down at depth underneath Boda and in Boda Two, Three. That's inferred. A lot of that drilling goes down to about 1.2 kilometers below ground. In this area, we're now exploring up to the northwest. You can see from those economics, they, they're okay at today's spot prices, but they're not, you know, driving a 50% IRR. What are we looking for? We continue to look for slightly higher grades than Boda-Kaiser itself. If we use a Cadia analogy, this is sort of the Cadia Hill, and we continue to explore for the Ridgeway with the higher grade portion. We've commenced our environmental studies. Everyone knows how long it takes to go through your study processes.
We've already done three approvals for mines in the last 12 years as a company, and so we're now looking to start this approval process. So we've got water monitoring bores and a weather station and looking at flora and fauna studies and all that kind of stuff that's needed to go through. Then, once we've done some of the sterilization drilling for options for tailings dams, that's when we start to do a DFS, and then we start to put that together into an environmental impact statement. Should be submitted in three years' time, 'cause you have to have at least two years of baseline study data to progress. And we continue to do further studies on particularly bulk underground tonnage mining.
The reason why I say that is we looked at open cuts, and we looked at long-hole open stoping option, but we haven't looked at bulk underground tonnage mining. We just want to understand what that is, and we're engaging with potential partners. And what do I mean by that? A AUD 1.8 billion ticket, it's obviously unlikely we're gonna go and deliver that ourselves, and so we're talking with larger companies to see their interest in the project. Remember that we have already spent AUD 70 million here, 50 of drilling and AUD 20 million purchasing land, so we do own land underneath these deposits. The reason we own the land is we own the land under all of our deposits, and, you know, in the last decade, I think I've been involved in 30 different farm transactions.
So that's just the way it goes. And so yes, certainly in New South Wales, where you have freehold land, you need to own the land underneath. It's not leasehold land like you often see in Western Australia. So if I can revisit the company, very simple to understand. We have an existing mine that's been running for ten years, that's got another seven years ahead of it. It's currently doing about a seventy to eighty thousand ounce run rate, and that is ramping through to a hundred thousand ounces. We're spending money on our capital programs at present, and that continues for the next eighteen months. The second phase of moving the highway doesn't actually need to happen immediately. There's no compulsory need to do that.
We could defer that if we had any particular cash reason to do so, but that's what we intend to do. We have Boda-Kaiser, large resource, plenty of future ahead of it. At spot prices, if you executed it today, it would be a roughly four-year payback. We're doing all those environmental studies. We're engaging with partners, and I really want to say that, you know, we're more than capable of that as a group. They're the things that we've been our bread and butter over the last ten years. And, yeah, our stock, I think, presents a fair bit of value opportunity at the moment and, you know, look forward to telling people about it as they're interested. So thanks very much. Appreciate your time.
Thanks so much. Any questions? We have a couple more minutes, so we have a question. Yeah, if you want to stay up, we got question.
Sure, no problem. I was just trying to stay on track and not get in trouble.
Okay. Now, what's your exploration budget for the expansion?
Yeah, so for the last few years, we've typically spent about AUD 20 million a year, but over the next two years, we're spending AUD 6 million a year. About 4-4.5 million will get spent on Boda-Kaiser, and the other 1.5 million will get spent through the Tomingley region. We would spend more. So, you know, the last time we raised money was in 2019, before we spun out the rare earths project. So everything I've described in all that drilling and everything has been self-funded. So we would only look to go beyond that budget where we define something that warranted a big drill out at Boda-Kaiser, but it's typically, it'll be about AUD 6 million for the next two years, Australian. Yeah.
Okay, any more questions? Going once, going twice, sold.
Okay, thank you.
Okay, thank you. Can you give us a couple minutes here, two minutes?