Good afternoon, everyone, and thank you very much for coming along. G'day to everyone that's watching online. Alkane Resources is merging with Mandalay Resources, a TSX-listed company. That merger closes on the 5th of August , approximately. I'm going to talk to you today about the merged entity. I'll talk you through the last 12 months as if we're already merged, our future look, and introduce you to the Mandalay Resources assets because some of you won't be familiar with them. If we look at the last 12 months of our three operating mines, one in New South Wales, one in Victoria, and one in Sweden, we produced 161,000 ounces. The combined market capitalization of the company pro forma today is roughly AUD 900 million. Cash in the bank on 30th of June was AUD 218 million . We have project finance of roughly AUD 45 million.
Net cash, after all transaction costs and stuff, is circa AUD 50 million . We're bringing together the two boards and assets across the globe. I'm going to dive into this a bit and tell you more about it. First, the transaction. It's pretty much 50/50, and both groups of shareholders have to vote. That vote's Monday. All the other boxes have been ticked. Once that vote occurs, the court in British Columbia ratifies it because the structure of it is Alkane Resources taking over Mandalay Resources, even though it's a merger, basically a nil premium merger. That's on August 1st. On August 5th, you see Alkane Resources list on the TSX and take over Mandalay Resources, and everyone gets Alkane shares. We trade across both exchanges. Let's have a look at these assets. Tomingley near Dubbo, that's an existing Alkane Resources asset, been running since 2014, pouring gold.
Last year, did 70,000 ounces. Should do more this year. I'll talk more about that asset. Costerfield in Victoria, near Bendigo, 30 kilometers east of Fosterville, 50,000 ounces. Gold and antimony. I'll describe that. You've heard a lot about antimony. Costerfield is the largest Western producer of antimony, already producing antimony. I'll talk to you about that. I can talk about antimony more if people are interested at the booth. Björkdal, just below the Arctic Circle in Skellefteå, another 50,000 ounces, all gold there. We also have the very large Boda-Kaiser resource. There's our contributions for last year. If we're a merged entity, that's what it obviously I'm showing that because that's pretty much what's going to occur next year as well. Let's have a look at it.
If we look at the last 12 months, pretend we're a merged entity, fast forward, that's what's going to happen in the next 12 months. We produced 40,000 ounces equivalent quarter- on- quarter, and cash grew a bit under AUD 25 million quarter- on- quarter. Next year, should be more than that because both companies were in a pretty high growth period. Alkane Resources was expanding its operations and putting in new capital at Tomingley, and Costerfield and Björkdal were expanding their development and exploration drilling. There's still high growth spending across the next year as well, but we should see in excess of AUD 100 million cash real. This is after everything, so I'm not, you know, free cash, blah, blah, blah. This is real money in the bank that should go up by that period of time.
Let's have a look at what are we trying to do with this company in the short and medium term. The first thing we want to do is stabilize production and show mine lives. I'll explain why that is. Tomingley, roughly eight-year mine life, 70,000 ounces- 80,000 ounces. There's expansion opportunities. Björkdal, 10-year mine life, 50,000 ounces. Costerfield, four-year mine life. You can see why we want to extend that life. It's been a four-year mine life for 23 years. We obviously expect that to continue. I'll show you the resources. This is the basis for growth that we have. We don't need to borrow money. We don't need to raise money unless we want to do an acquisition. Combined, Mandalay Resources assets, 20 years operation, Tomingley, 10 years of operation, and a whole lot of discoveries that I'm going to talk to you about. First, let's look at Costerfield.
I'm going to touch on the existing Mandalay Resources assets first because it's been listed on the TSX. Australian investors are less familiar with it. Costerfield, a couple of things to point out that are interesting for us in an Australian context. 140,000 tons per year. That is not much. It is a narrow vein mining method, talked about, but successfully done here for many, many years. It's the largest Western antimony producer. Whilst that's interesting, that's just because Russia, Tajikistan, and China produce the vast majority of the world's antimony, but it is the largest producer here. If we look at the areas there, you can see on the right, Yule Shepherd, that's where we're mining at the moment, and Cuffley Deep, sub KC, we have an exploration decline, and we're drilling those out. This is part of the routine extension of mine life that Costerfield has.
Have a look at those grades. They are mining width grades. Across the stoping width, which is typically 1.8 meters- 2 meters, that is the grade delivered to the mill. When you add those together and put in equivalent, it typically delivers to the mill at 12 grams per ton. That's why it mines at 140,000 ounces and produces at 12 grams a ton. Produces a gold concentrate, it's about 40% gold that gets directly smelted, just the same as other people producing doré, and a gold antimony concentrate that's sold overseas. Why are we excited about this and its expansion potential? What you're looking at there is the planned view. You can see north is north. That's the original trend that you can see there on the right. It goes over nearly five kilometers of the existing mine, been operating now for over 20 years.
To the left, just under 2 km, just on 2 km , is the True Blue discovery that we're currently drilling out. They're the results in the top left that we typically see. 20 ounces over 0.5 a meter. Five ounces over 0.3 of a meter, that dilutes down into mining width. Over greater than mining width, a bit under an ounce, a bit under an ounce, and so on and so forth. This is very routine for this area. That's what we like about it. There is, yes, potential to expand the mill. There is potential to mine higher grade. The first thing we're going to do is prove to people that, sure, four years, we're going to show that it's seven years or more. A lot of people say, oh, you know, this is really interesting. You're making AUD 100 million, AUD 150 million free cash a year.
Are you going to keep doing that? It's like, yeah, check it out. We'll show you the life. Look at those grades. Look at our peers. Look at our value. Do your own maths. We have four rigs running there at present. I can talk about antimony out in the booth. Björkdal, northern Sweden. This mine was an open cut, now underground mine, 10 years in front of it, a low-grade mine. Just to make everybody who pays a power bill here jealous, SEK 0.03 per kilowatt hour there in Sweden. You'd think it was achievable here, but we're determined to blow our own foot off instead. That makes 1.3 grams per ton, which is mined here, profitable. We make, you know, circa AUD 30 million a year there. The thing about this is, what are we doing to increase the grade?
Because it's the grade that makes the difference, not the tonnage of mine life. Have a look at that. We've got that. That's a map. There's a marble unit, and then that's let the fluids flow through, and there's nearly 3,000 veins mapped in this area because it's been running for a very long time. You can see there are high-grade portions in this mine, and if you move this by 0.1 grams per ton, it makes a significant difference because we're at 1.3 grams per ton. This is a 50,000-ounce producer with high-grade opportunities to lock in that and maybe move it to 60,000 ounces. It's at the higher end of costs, circa typically AUD 3,000 per ounce, but very interesting in some of the high-grade areas that we have. Look, come to the booth. I'll talk you more through that. Absolutely there at Björkdal, we're looking good.
Tomingley, existing operation. The photo you can see there is the plant at the front and the newly established fine grinding circuit at the back, grinding down to 12 micron, lifting the recovery to 91%. Tomingley, mine life beyond 2030, currently about 2033. Can go longer. When we originally started that back in 2013, 2014, we had a seven-year life. It's underground. You can see in the top right, that's the old open pits. Two of them or three of them are open at depth. We have an underground decline down to Roswell. That's got a paste plant on top of it. We mine at about 1.2, 1.3 million tons per annum. We mill at 1.1 million tons per annum. We could expand it if we wished, but we want to make sure we've extended the mine lives and the other assets first. 70,000 ounces last year.
We'll do more this year. At the moment, there's a new highway that's in the process of being moved. The contractor has mobilized the site, and we are firing that in earnest in August, and that moves over the subsequent 14 months, and then we start to bring those open cuts online, which will keep the cost where it is. This is typically in the AUD 2,000-AUD 2,300 an ounce range as an operation. Been running since 2014, like I said. These are the areas where it's open at depth, particularly at Roswell. The depth that we're at at Roswell at the moment is about sort of 550 meters. The depth at Costerfield is 650 meters underground. The depth at Björkdal is sort of 400 meters. There's plenty of room under these deposits, and these are the areas that we're drilling.
We're ramping up the drilling over the next 12 months to show people the life here as well. Not so much because we need more life, but if you're going to extend a mining area here, you need a four-year lead time from a permitting perspective. We're very good at getting things permitted, which is a skill set you'd rather not have, but a very important one. Boda-Kaiser, a large copper-gold porphyry project we have, 15 million ounce equivalent in the ground. Big, big project. We'll look to JV this one day, but the thing we're doing at the moment is getting it approved because you go from being a very big resource, lots of gold in the ground, to a very big resource you can execute if you make a financial decision. That's what we're doing for this. That's the value that we can bring to shareholders.
It's really interesting. Why did Alkane Resources and Mandalay Resources come together? We're both sub-scale. Our market cap, AUD 400 million at the moment, doing 70,000 ounces. Mandalay's, similar, AUD 450 million, into AUD 500 million, doing 90,000 ounce equivalent. Both of us out of the indexes. Both liquidities, less than AUD 1 million a day. We decided to merge to create something of significance. You look at everyone else that's presented today, look at other people that are online, and you say, hang on a minute. These guys are doing 160,000 ounces plus. These guys are banking over AUD 100 million a year. These guys are involved in it. They're actually mining it. They're not talking about it. They're mining it. It's being delivered. These guys have got upside. They've got intercepts over an ounce, all through one of the deposits that exist.
Even then, if you don't like it fundamentally, because you hate making money, even then, if you don't like it, you go and you say, I'm going to go and talk to my broker, and I'm going to ask about what happens when somebody moves into the ASX 300 or someone moves into the GDXJ. I'm going to ask him that. What happens? I'll tell you what happens. Typically, passive funds buy. We are going to be a AUD 900 million company on August 5th. Nobody passive fund owns us from the ASX 300 passive fund. GDXJ, Alkane, buying only. Nobody owns the Mandalay portion, $500 million worth of that. Don't be the person next year that says, I wish I'd listened to you this year. See you then.