Alkane Reports Record Quarterly Production and $374 Million in Cash, Bullion and Investments

• Alkane produced a group record of 45,776 gold equivalent ounces in the March 2026 quarter, comprising 44,669 ounces of gold and 377 tonnes of antimony, weighted by their respective average market prices and expressed as a single gold-based figure.
• Mine operating cash flow was $189 million for the quarter; after tax instalments, exploration costs and other corporate items, underlying post-tax free cash flow was $130 million.
• Revenue of $275 million was generated from sales of 43,373 gold equivalent ounces at an average realised gold price of $6,330 per ounce and an average antimony price of $34,394 per tonne.
• Alkane was added to the S&P/ASX 200 Index effective 22 April 2026, a benchmark comprising Australia's 200 largest listed companies by market capitalisation.
• Full-year production guidance is maintained at 160,000 to 175,000 gold equivalent ounces at an all-in sustaining cost (AISC) of $2,600 to $2,900 per ounce, with 119,950 gold equivalent ounces produced in the first three quarters on a statutory reporting basis.

Alkane Resources Limited (ASX:ALK; TSX:ALK; OTCQX:ALKRY) is an Australian gold and antimony producer with three wholly owned operating mines: Tomingley in central western New South Wales, Costerfield in central Victoria, and Björkdal in northern Sweden. The company completed a merger with Mandalay Resources in August 2025, through which Costerfield and Björkdal were acquired. Alkane also holds the Boda-Kaiser gold-copper porphyry project in New South Wales, for which a Scoping Study has been completed outlining an early-stage development pathway. Near-mine exploration is ongoing at each of its three producing operations.

Record Q3 FY26 Production and Cash Flow Generation

Alkane produced 44,669 ounces of gold and 377 tonnes of antimony in the March 2026 quarter, its highest quarterly output to date at 45,776 gold equivalent ounces, exceeding the 43,663 gold equivalent ounces recorded in Q2 FY26. Production increased quarter on quarter due to higher mill grades at Björkdal, while Tomingley and Costerfield maintained steady output. The AISC, which includes operating expenses, royalties and sustaining capital, was $2,928 per gold equivalent ounce for the quarter.

Gold equivalent sales of 43,373 ounces generated revenue of $275 million at an average realised gold price of $6,330 per ounce and an average antimony price of $34,394 per tonne. The increase in revenue relative to Q2 FY26, when the average realised gold price was $5,785 per ounce, was primarily attributable to the higher gold price. Mine operating cash flow was $189 million for the quarter, reflecting a realised gold price $3,402 per ounce above AISC.

After $16 million in tax instalments, exploration expenditure outside the three producing mines, costs associated with the Lupin site closure in Canada, and other corporate items, the group generated underlying post-tax free cash flow of $130 million. Total cash, bullion and listed investments were $374 million at 31 March 2026, compared with $246 million at 31 December 2025. 

Managing Director and CEO Nic Earner stated: 

"It has been another great quarter for Alkane, producing 44,669 ounces of gold and 377 tonnes of antimony (45,776 ounces of gold equivalent) over the full quarter. Our site operating cashflow was $189 million for the quarter, resulting in a balance sheet with $374 million in cash, bullion and listed investments at quarter end. Our full year guidance of 160-175kozs gold equivalent remains unchanged."

Three-Mine Operations Performance Across Australia and Sweden

Costerfield produced 11,691 gold equivalent ounces at a site cash cost of $1,567 per ounce and an AISC of $2,521 per ounce, generating $88 million in revenue and $80 million in site operating cash flow. Both ore mining and milling rates exceeded plan for the quarter, though grade variability in some areas resulted in output that differed from forecast models. The operation continued improvement programmes during the quarter, including drill-and-blast optimisation, capital development optimisation, enhanced operator training, and preparation for a transition to emulsion explosives to improve metal recovery and reduce dilution.

Tomingley produced 21,652 ounces of gold at a site cash cost of $2,021 per ounce and an AISC of $2,444 per ounce, generating $97 million in revenue and $54 million in site operating cash flow. The continued use of a mobile pre-crusher ahead of the processing circuit contributed to a milling rate of approximately 1.3 million tonnes per year. The quarter's sales included 8,700 ounces delivered into forward contracts at $2,855 per ounce. Construction on the Newell Highway diversion progressed across eight separate work fronts over a total distance of 7.2 kilometres during the quarter, with completion expected in the first half of 2027.

Björkdal produced 12,433 ounces of gold in Q3 FY26, up from 9,888 ounces in Q2 FY26, at a site cash cost of $2,506 per ounce and an AISC of $3,699 per ounce. Revenue of $91 million included a $9 million upward adjustment on provisionally priced concentrate sales, reflecting the rise in the gold price during the quarter. Site operating cash flow was $55 million. The operation trialled the processing of a parcel of ore from a nearby third-party mine during the quarter, and capital works on several tailings dam lifts commenced as seasonal conditions permitted.

Exploration Results and Corporate Developments

At Costerfield, infill and extension drilling at the Kendall prospect, located above the currently mined Youle and Shepherd orebodies, has identified and modelled 25 individual veins. Reported intersections include 132.2 g/t gold and 19.8% antimony over 1.94 metres (estimated true width of 1.04 metres), and 267.5 g/t gold and 5.6% antimony over 2.3 metres (estimated true width of 1.22 metres). Additional drill rigs were mobilised to Brunswick South during the quarter to accelerate the infill programme, while the True Blue programme, approximately 2 kilometres east of current mining, also continued.

At Tomingley, deep drilling beneath the Roswell deposit intersected gold-arsenic enriched hydrothermal breccias and veining at a seismic reflector approximately 400 metres below the current resource boundary, confirming the reflector as a gold-bearing structure. Within the existing Roswell resource, underground drilling returned intervals including 5.9 metres at 31.0 g/t gold and 17.4 metres at 4.30 g/t gold, with additional drilling commenced to accelerate the infill programme. At Björkdal, three programmes were active during the quarter: North Zone drilling progressed from growth to infill stage, the Eastern Extension programme targeted depth and lateral extensions of the Main and Central Zones, and the Storheden growth programme continued approximately one kilometre northeast of the mine.

Alkane executed an A$110 million revolving credit facility and an A$40 million contingent instrument facility under a syndicated agreement with Australia and New Zealand Banking Group, Commonwealth Bank of Australia, Macquarie Bank and Westpac. The revolving credit facility is available for general corporate purposes, and the contingent instrument facility is intended to allow cash held as security for performance guarantees to be released. Financial close is expected early in the June quarter. Separately, Alkane divested its Chilean La Quebrada exploration asset in March 2026 for US$5 million, with US$2.5 million received during the quarter and the remaining balance due upon registration of the transfer at the Chilean Commercial Registry.

Outlook

With 119,950 gold equivalent ounces produced in the first three quarters on a statutory reporting basis, the company is on track against its full-year guidance of 160,000 to 175,000 gold equivalent ounces at an AISC of $2,600 to $2,900 per ounce. Financial close on the new credit facilities is anticipated in the June quarter. Further results are expected from the Kendall infill programme at Costerfield, the Roswell infill programme at Tomingley, and the active exploration programmes at Björkdal. The remaining US$2.5 million from the La Quebrada divestment is expected to be received in Q4 FY26, and construction on the Newell Highway diversion at Tomingley is continuing toward its first-half 2027 completion target.

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