Alkane Resources - FY2026 Production and Cost Guidance

• Production guidance of 160,000-175,000 gold equivalent ounces for FY2026 across three operating mines
• All-in sustaining costs projected at A$2,600-2,900 per gold equivalent ounce on a consolidated basis
• Attributable production of 155,000-168,000 ounces due to merger completion timing on 5 August 2025
• Capital expenditure of A$81-91 million allocated for growth and exploration activities across operations
• Operations span Australia and Sweden through Tomingley, Costerfield, and Björkdal mines

Alkane Resources (ASX:ALK) is an Australian company that operates three producing mines across Australia and Sweden following its merger with Mandalay Resources Corporation completed on 5 August 2025. The company's assets include the Tomingley gold mine in New South Wales, the Costerfield gold and antimony operation in Victoria, and the Björkdal gold mine in Sweden.

The company also owns the Boda-Kaiser gold-copper porphyry project in New South Wales and maintains ongoing exploration activities within the Northern Molong Porphyry Project. Alkane has outlined an economic development pathway for Boda-Kaiser through a completed scoping study.

Financial Year 2026 Production Guidance

Alkane has provided consolidated production guidance of 160,000-175,000 gold equivalent ounces for FY2026. The Tomingley operation is expected to produce 75,000-80,000 ounces, primarily from the Roswell deposit. Production will utilise both open pit and underground mining methods.

The Costerfield mine is forecast to contribute 45,000-51,000 gold equivalent ounces from the Youle zone and Shepherd zone. The Youle zone will operate at higher antimony grades, whilst the Shepherd zone focuses on gold production. Total antimony production across the operation is projected at 800-900 tonnes.

Björkdal production is estimated at 40,000-44,000 ounces from the Main zone, Lake zone, and three levels in the lower Auroa zone. Managing Director Nic Earner noted that the guidance "demonstrates the strength of our three cash-generating assets in premier jurisdictions."

Post-Merger Operational Integration

The merger with Mandalay Resources was completed on 5 August 2025, affecting how production and costs will be reported for FY2026. Alkane's statutory reports will reflect production from Costerfield and Björkdal only from the completion date, resulting in attributable guidance of 155,000-168,000 gold equivalent ounces.

The company will present both group guidance and attributable guidance for FY2026 in investor presentations. From FY2027 onwards, reporting will incorporate full production and financial contributions from all three operations for complete financial years.

All-in sustaining costs are projected at A$2,600-2,900 per gold equivalent ounce on a consolidated basis. Björkdal's costs of A$4,050-4,450 per ounce include substantial sustaining capital expenditure, with lower costs expected in FY2027 as these investments provide multi-year benefits.

Capital Expenditure & Exploration Investment

Total growth and exploration expenditure is budgeted at A$81-91 million across the three operations. Tomingley will receive A$47-52 million, primarily for realignment and infrastructure related to the Newell Highway, plus exploration at Caloma 2, Roswell, Wyoming, and Macleans zones.

Costerfield's allocation of A$27-31 million focuses predominantly on exploration activities, including near-mine and regional drilling at True Blue, Sub KC, Brunswick South, and Kendall zones. These programmes target reserve and resource growth to support mine life extensions and potential processing expansion.

Björkdal will receive A$7-8 million for exploration expenditures, concentrating on infill and extensional drilling in North Zone, Eastern Extension, Storheden, and Norrberget areas. The programmes aim to build high-grade inventory and support future mining studies.

Looking Forward

Alkane is preparing its consolidated 2025 Annual Resources and Reserves Statement following the merger completion. The document will be released when available. From FY2027, the company will report full-year contributions from all three operations.

The guidance covers the financial year ending 30 June 2026, with production scheduled across the expanded operational footprint in Australia and Sweden.

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