Our first lead out at this point is with Alkane Resources, Nic Earner, the Managing Director of the company.
Thanks very much. For anyone that's come to see Snowline, welcome. You've just had an upgrade. The disclaimer is probably the same as theirs, though. Let me tell you about Alkane. Why own us? We're an established producer. All of our mines have been producing for over 10 years. This year, we're on track to do in the middle of that guidance. Our financial year runs from 1 July to 30 June. We're generating a lot of cash. I'll talk you through that. We have antimony exposure. We continue to operate the largest Western antimony mine, which we've been running since 2008 in the Western world. It's still quite small by global standards. We had a lot of growth and mine life extension occurring. We've got this really large copper gold project, which I'll talk to you about.
We successfully completed a merger, which really springboarded us into this position in the middle of last year. Let's have a look at some of our fundamentals. First, we'll talk about where the mines are. We'll talk about where our balance sheet sits at. We've got three operating mines. Tomingley, about four hours drive west-ish of Sydney, that mine is an underground mine. It's wholly owned by us. There's no royalties on any of these mines, and we're an owner-operator, so we run our own mining underground. That produces bullion, and that bullion gets taken to Sydney where it's refined, and we sell it there just in the normal gold markets. Next, we have Costerfield. That does around 50,000 oz gold equivalent. This is the mine that produces antimony. We produce two products from there.
We produce a gold concentrate, which gets refined in Melbourne into finished product. We produce an antimony and gold concentrate, which we sell overseas, predominantly into China at present, until other smelting options become available. We have in Northern Sweden, just inland from Skellefteå near the Boliden smelter, we have a gold mine there that's also underground. It's doing in the low 40,000 oz. That produces four different concentrates, gravity gold concentrates that we sell in Europe and a flotation gold concentrate that we transport across the corridor to Boliden. We've got 1.36 billion shares on issue after the merger that we've just done. Our share price was AUD 1.80 Australian, so $1.20 odd U.S., as of last Friday. Today, it's AUD 1.82. Normally when I present, it goes down a few cents, and I'm always wrong. Happily today, we're up.
The market cap is about AUD 2.5 billion odd. One of the reasons for such a big high to low, one is the CEO is this top guy. You're seeing him today. The second reason is that we've got pre-merger and post-merger share prices within there. A big factor, one of the reasons why we came together was we wanted to increase liquidity. We wanted to get index fund inclusion in the ASX 300, and we wanted a lot of funds. I would go and meet people, and they'd say, What's your turnover? I'd say, We do AUD 2 million bucks a day." They'd say, "That's too small." Now we're doing AUD 10 million-AUD 12 million a day on the ASX and AUD a couple of million bucks on the TSX. We've had a lot more fund engagement.
As well as that, not only are we in the ASX 300, but we're actually positioned circa 170, so we're a strong chance of going to the ASX 200 in the June rebalance, which should motivate another set of passive buying. Cash and gold bullion at the moment, we got just under $250. The only finance that we have is on our equipment. We've got about AUD 30 million left to pay off. We have a revolving credit facility, completely undrawn, that's AUD 110 million. Our total liquidity is just under AUD 500,000 or just over $300. Coverage. For Australian people familiar with the Australian market, Ord Minnett, Bell Potter, Euroz Hartleys, Moelis Australia, and Red Cloud and BMO out of Toronto and Edison out of London. Let me tell you a bit about the assets where we're going.
These are the three assets. This is our guidance for the year, our all-in sustaining costs. Tomingley, we're sitting at the midpoint of all of these guidances. Tomingley, call it a $1,600 bucks an ounce U.S. mine. Costerfield, similar, another AUD 50 bucks. Björkdal is our most expensive producer, I'll talk you through what we're doing about that, at AUD 2,800 bucks an ounce. Last quarter, we added AUD 130 bucks into the bank post-growth, post-CapEx, all that sort of stuff. We're in great shape. On average, at prices about now, we bank, post all the capital you're seeing and everything, we bank about AUD 50 million bucks a quarter, which is not too bad. That's our all-in sustaining cost. Our capital underneath, I'll talk you through it, but the Tomingley capital is moving a highway to allow us to bring open cuts online.
Costerfield, almost all that's going to exploration. Björkdal, we're just starting to ramp up on mine development into a new mining area. Let's dive into the assets. Here is Tomingley at dawn. This top picture here, you can see, that is 8.5 km of highway. We're spending the better part of AUD 50 million to do it, because on the right-hand side of that picture, we're going to have two open cuts in a year's time. There's about 250,000 oz in those open cuts. That's why we're doing it. That's included in those reserves. We have about seven years of reserves ahead of us. That's included in those reserves. You can see we're well on track for our guidance. We're sort of done 60,000 oz here. Our guidance was 75-80. We're on track for the high end of this particular guidance.
This is a mine that we discovered ourselves, got approved ourselves, developed ourselves, and we've been operating it by ourselves for over a decade. Great, this is the engine room of our company at the moment. Exploration, clearly, like everybody with a small mine, we're constantly chasing how we can increase our reserves. Items three and four are right near, within 100 m of existing infrastructure at the mine. Good solid grades. Of course, I put the best ones up. I didn't bother putting the dusters that define the end of it up. Typically, Roswell has run about 2.5 g per ton, and this looks similar in these areas. We have a pretty big future here, and this range, this whole exploration belt, which we own and have operated for ages, is over 15 km in length.
We're very expectant of extending our reserve life further. Costerfield, this is the one that produces antimony in Victoria, about an hour and a half's drive north of Melbourne. This is a narrow, high-grade deposit. These are diluted grades. This runs at about 12 g per ton equivalent. The mining width that we do here is 1.8 m. I would argue that we are the best narrow vein miners in Australia. That's pretty easy to say because there's not many narrow vein mines, right? This team has been doing this for over 20 years, and dilution is a thing that we manage very closely. The mill here is only 140,000 tons per annum. Our vertical extraction rate and the way the ore body is set up, that's all we do. We do about 150,000 tons-160,000 tons per annum.
This is what gets us about this 50,000 oz. Here, typical grades, and I'll show them on the next page. We often, it's five, 10 cm, 15 cm running at 6, 7oz per ton. That's a classic grades that you see here. We have multiple mining areas, and we've been doing it for a long time. We have a joint venture with a company called Nagambie that we've just started as potential additional feed to this. It's about 40 km away. It runs lower gold, higher antimony, and we're working out what is there. It's an earn-in on exploration, AUD 25 million bucks we're spending over a period of a few years. If you look at our immediate mine exploration focus, if you look at three is actually above where I just showed you.
Again, three, four, five, all within around our existing infrastructure, but that's a classic sort of drill result that you get. 1 m, 0.5 m , 20 cm grading a lot. Right? What you end up washing out at is about this 12 per ton-15 gram per ton ore body. We see a lot of life here, and then we think we have found a repeat structure in True Blue, which is one and a half km to the west of this mine. We currently have that in for approvals at the moment. We expect to be mining that soon. Costerfield, it's been a three-year reserve for 20 years. We're very focused on extending that reserve out. Björkdal in Sweden. This ran as an open cut from the mid-1980s through to 2019. It's now underground. It has a very long reserve life.
The key here is costs. There's a 1.4 million ton per annum mill. Currently, we get out of the underground about 950,000 tons a year. The remaining 450,000 tons comes from low-grade surface stockpiles. All of our focus is on bringing on new mining areas and new resources to take that 0.5 g-0.6 g per ton and make it 1.4 g per ton, and therefore go to 50,000+ oz and therefore decrease the all-in sustaining cost. That's our big focus there at the moment. Where are we doing that? We have the Storheden resource, which we've identified, which we are currently working through the portal location and other things to develop across that area. That's one thing we're doing.
We have a small open cut to the right of the picture that we're bringing online that's got about 1.5 million tons in it that we'll use to supplant. That's three or four years of diverted feed. We have extensions at depth in both areas. Yeah, Björkdal, we're very confident that we will increase the mining rate out of there and lower the all-in sustaining cost. Very briefly, because it's topical, and it's topical worldwide, all three of our mines are grid-powered. We don't use diesel gen sets or anything like that. All three are grid-powered, two in New South Wales. This one is hydro-powered, and the cost of the hydro power is roughly AUD 0.02 a kilowatts hour. The cost in our other operations is around AUD 0.11-AUD 0.13 per kilowatts hour Australian.
Certainly, some of the news that you might see about some Australian gold producers being under threat with diesel, that is not the case for us. Now I'll talk to you about our big project that we have coming down the pipeline. Boda-Kaiser was discovered by us in 2019. We put the discovery hole in. This is 15 million ounce equivalent at just under 0.6 g per ton. It's a very big resource. We did a scoping study back when gold was free at AUD 3,500 an ounce. My wife reminds me of that. She said, You're in gold. Give me a really big, chunky gold necklace. I said, No, darling, it's AUD 3,500 bucks an ounce. There's no way I'm paying for that. Don't I look like a muppet now? Anyway, back when then.
Obviously there's a lot more revenue that can come out of this project. Clearly, it was 24% IRR at nearly half the gold price. Clearly, this is a project that will execute in this environment. This is all about the approvals. We continue to look up through this region. This is the size of our tenement. We continue to look for, is there a higher grade portion that's better than 0.6 that we can feed in? We continue to look at that. It's quite prospective. This is what we're doing. Of course, this is a grind. We absolutely get that. We have been operating in this region for the better part of 50 years, and when we get this approved, it will be the fourth major approval we've had done in 13 years. We're very used to this. We're doing all the environmental studies.
We're negotiating around buying properties or... And that's the stuff. We're selecting sites, we're negotiating rail, water. This is bread and butter, obviously, for a mining company that wants to come into production. The reason why I mention this and go on about it is if you look at our share price versus our peers in Australia, you'll see that this carries very little value in our stock price. So this is the most leveraged thing I think we can do to our market cap. If this is approved, then it can't sit at zero bucks inside the stock price. It has to be worth something. And I've watched presentations here of projects similar to this with market caps that are over a billion dollars. So I suggest it's worth zero, or maybe they're not worth a billion. You work it out. So what are we doing?
We're a production company. The biggest thing we're doing is focusing on safe and stable delivery of production because that gives the cash flow, and the cash flow gives a differentiation to a lot of other people. We'll work on the mineral resources. Particularly at Tomingley, we're moving that highway. Particularly at Costerfield, we're developing that new mining area. Particularly at Björkdal, it's the new mining areas, the open cuts, lifting the mining rate. Boda, it's all about the studies. We continue to look at inorganic growth opportunities. The merger with Mandalay is very successful for us. I think the strength of our balance sheet is enabling us to do a lot of things. We would like to do similar things again or buy another development project that fits within our existing production and Boda out in 2030.
We look in Australia, New Zealand, U.S., Canada, and Scandinavia for those opportunities, and we're nearly always in a data room. That's us. Thank you very much. I appreciate your time. Fire away with any questions.
Any questions from the audience here in the second row?
Thanks, Nic. Great presentation, and congratulations to you and the team on the merger and obviously the record share price. I just noticed in your component on Costerfield.
Yeah
You mentioned that you might have some mineralization that's similar to Southern Cross' Sunday Creek. How much effort will you be putting into chasing that, because that obviously could be game-changing?
Yeah. That's a good question. Sunday Creek obviously carries a very prospective area. It's about 45 km from here, and they appear to have stacked vein sets of a density that they're looking to mine. For us, this is probably a Tier 1 and a half target. The reason why I say that is we're an operating mine, so I'm not trying to convince you that one day I can operate. I'm not trying to get it permitted. I'm making money. That is a new area that we will eventually go into. If you look at the intercepts that Southern Cross get, they're just like these intercepts. We have those all in and around our existing operations, so that's what we're focusing on. Certainly, we'll be drilling there within the next 12 months. Absolutely. Yeah, it's an incredibly prospective area.
The issue in most of these areas in New South Wales and Victoria is landholder density. It's around where have people got farms? Have people subdivided their farms into these five-acre lots? That is tough going in there. This is an underground mine with a really small footprint, which is great. Yeah, that's the challenge. Thank you. Good question.
Another question there.
Just yell it out. You're right.
I can speak loud enough.
Yeah.
I'm very excited about.
Needs it on the mic for the audience.
I'm very excited about Southern Cross Gold as well. Victoria, possibly for good reasons, had a bit of a negative reputation for permitting and support.
Yeah.
I've heard that's changed. Can you perhaps talk on that?
Yeah, it's true. It takes a long time for perception of anywhere to change. Certainly Victoria, mostly I think driven by their pushing back on oil and gas and mineral sands, had quite a negative reputation on approvals. They've really reformed their department, and certainly, I think that we had a tailings dam here approved from application to thing in nine months. All right, that's quite quick. They're certainly doing that. I think the work that Southern Cross are doing with the regulator, they'll almost certainly get approved as well, right? Both of these things will give confidence into the marketplace. The Victorian government is incredibly proactive, and I think their balance sheet as a state would encourage them to seek investment, if people can read into that. Yeah
Certainly, across the three jurisdictions we operate, and we also work out of Western Australia, Victoria and New South Wales are really similar, Scandinavia as well. I think we all get, you can't get the benefits of a tier one jurisdiction, infrastructure, trained people, et cetera, without the cost of that, and the cost of that is that you'll go through a rigorous approval process. On the bright side, once it's approved, the odds of someone taking it off you at gunpoint is really low. That I consider to be a strength.
Any other questions out there? One right there.
Yes. On your antimony deposits.
Yep
Are you actually doing any processing and refining of those? Do you have actual customers for those?
Oh, yeah. We are right now the largest producer of antimony in the Western world, and we have been for a long time. Other people will start over the next one to two years and will pass us. We produce an antimony and gold concentrate, contains about 45% antimony by mass, contains about two to 5 oz per ton of gold. That's bagged and shipped. Predominantly, that's sold into China at present. A lot of people are working on producing Western processing capacity, but as yet there's nothing of scale. Yes, we are producing and have been for a long time. It makes up about 3% of our revenue as an entire group, makes up about 7% of the revenue of that site.
It goes to China?
Yep, predominantly, yeah.
Okay.
People that think, Oh, that's disgusting. You heathen," where else would you have me send it? It'll just be sitting on a pile somewhere. If someone else wants to process it, show me the money, and you can have it. Thanks.
That's all we have time for. Thank you very much.