ALKANE Reports December Quarter Production of 43,663 Gold Equivalent Ounces

• Quarterly gold equivalent production of 43,663 ounces at all-in sustaining costs of $2,739 per ounce
• Revenue of $256 million from 44,084 ounces sold at average gold price of $5,785 per ounce
• Cash and bullion balance of $232 million following site operating cash flow of $133 million
• Storheden deposit drilling extended depth to 464 metres with intercepts of 142.0 grams per tonne gold over 0.60 metres
• Full-year production guidance of 160,000 to 175,000 gold equivalent ounces at all-in sustaining costs of $2,600 to $2,900 per ounce

ALKANE Resources (ASX:ALK) is an Australian-based gold and antimony producer with three operating mines: the Tomingley underground gold mine in New South Wales, the Costerfield gold and antimony underground operation in Victoria, and the Björkdal underground gold mine in northern Sweden. The company conducts exploration programmes at its operating sites and holds the Boda-Kaiser gold-copper porphyry project in New South Wales.

Quarterly Production and Financial Performance

ALKANE produced 42,767 ounces of gold and 267 tonnes of antimony during the three months ending December 2025, equivalent to 43,663 gold equivalent ounces. This compared to 30,511 gold equivalent ounces in the prior quarter. Production included a full three months from Björkdal and Costerfield, compared to two months in the previous quarter following the Mandalay Resources merger on 5 August 2025. Tomingley production also increased quarter on quarter.

Revenue for the quarter was $256 million from the sale of 44,084 gold equivalent ounces. The average realised gold price was $5,785 per ounce compared to $4,896 per ounce in the prior quarter. The average realised antimony price was $41,510 per tonne.

Managing Director Nic Earner commented:

"It has been an excellent quarter for Alkane, producing 42,767 ounces of gold and 267 tonnes of antimony (43,663 ounces of gold equivalent) over the full quarter. Our site operating cashflow was $133 million for the quarter, resulting in a balance sheet with $246 million in cash, bullion and listed investments at quarter end."

All-in sustaining costs were $2,739 per gold equivalent ounce compared to $2,988 per ounce in the prior quarter. The company attributes the reduction to planned higher grades at Tomingley and Costerfield. Site operating cash flow was $133 million. After corporate expenditure and tax payments of $17 million, the cash, bullion and liquid investments balance reached $246 million, an increase of $58 million from the prior quarter. An $18 million payment from a Costerfield concentrate shipment was received in early January.

Operational Performance at Three Mine Sites

Costerfield in Victoria produced 11,686 gold equivalent ounces during the quarter at all-in sustaining costs of $2,149 per ounce. The operation processed 34,732 tonnes of ore with average gold grade of 10.44 grams per tonne and antimony grade of 0.91 per cent. Mining and milling rates exceeded budget, though stope performance varied due to ground conditions in shallow-dipping sections of the orebody. Operating cash flow for the site was $30 million.

Tomingley in New South Wales produced 22,089 ounces at all-in sustaining costs of $2,216 per ounce, compared to $2,628 per ounce in the prior quarter. The operation processed 318,851 tonnes of ore with average gold grade of 2.50 grams per tonne. A mobile crusher was installed for pre-crushing material, and milling rates reached approximately 1.3 million tonnes per annum. Site operating cash flow was $67 million. Construction of the Newell Highway realignment continued, with approximately 3.5 kilometres of pavement established before the Christmas shutdown. The project is scheduled for completion in the first half of 2027.

Björkdal in Sweden produced 9,888 ounces at all-in sustaining costs of $4,117 per ounce. The operation processed 329,652 tonnes of ore with average gold grade of 1.04 grams per tonne. Mining performance included consistent stope productivity and stable development activities. A return water system from the mine was completed, which the company states enhanced flotation performance through more stable water temperatures. Operating cash flow was $35 million. The average realised gold price at Björkdal was $6,930 per ounce, which included $9 million in provisional pricing adjustments on concentrate sales.

Exploration Results and Resource Extensions

Extension drilling at the Storheden deposit at Björkdal doubled the tested depth to 464 metres and extended the strike length to 2.7 kilometres. Intercepts included 142.0 grams per tonne gold over 0.60 metres (estimated true width 0.25 metres) and 111.0 grams per tonne gold over 0.50 metres (estimated true width 0.25 metres). The company announced these results on 19 December 2025.

Drilling at Tomingley discovered mineralisation adjacent to the McLeans deposit near existing underground infrastructure. The discovery is associated with a second andesite host rock unit termed the Western Andesite. Intercepts included 4.36 grams per tonne gold over 26 metres, with higher-grade zones of 22.8 grams per tonne gold over 3.3 metres. The company announced these results on 3 November 2025.

Costerfield exploration during the quarter focused on three areas: Brunswick South, Kendall, and Sub KC. Brunswick South drilling progressed to infill drilling late in the quarter. Kendall drilling explored vein systems above the Youle area, and Sub KC drilling aimed to infill and extend mineral resources below the Cuffley and Augusta workings. Three diamond rigs advanced the True Blue project with infill drilling. The company spent $8 million on exploration during the quarter, with $6 million at Costerfield and $2 million at Björkdal and Tomingley.

Outlook

ALKANE maintained its full-year production guidance of 160,000 to 175,000 gold equivalent ounces at all-in sustaining costs of $2,600 to $2,900 per ounce. The guidance reflects production from Costerfield and Björkdal from July 2025. The Newell Highway realignment project at Tomingley is scheduled for completion in the first half of 2027. Reclamation activities at the Lupin project are expected to take place during 2026.

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