Alkane Resources Quarterly Update - September 2025

• Produced 36,407 gold equivalent ounces during the September 2025 quarter, comprising 35,527 ounces of gold and 198 tonnes of antimony across three mines
• Completed merger with Mandalay Resources on 5 August 2025, adding the Björkdal mine in Sweden to the portfolio
• Repaid $45 million debt facility and incurred $25 million in one-off transaction costs, ending the quarter with $191 million in cash, bullion and listed investments
• Maintained FY2026 production guidance of 160,000 to 175,000 gold equivalent ounces at an all-in sustaining cost of $2,600 to $2,900 per ounce
• Completed hedging of 7,250 ounces of gold during the quarter

Alkane Resources (ASX:ALK) is an Australian-based gold and antimony producer with three operating mines across Australia and Sweden. The company's assets include the Tomingley open pit and underground gold mine in Central West New South Wales, the Costerfield gold and antimony underground operation in Central Victoria, and the Björkdal underground gold mine in Sweden, located northwest of Skellefteå. The company also holds the Boda-Kaiser gold-copper project in Central West New South Wales and conducts ongoing exploration at its operating sites.

Quarterly Gold and Antimony Production Results Across Three Mines

The September 2025 quarter represented the first full reporting period following the Mandalay Resources merger. Alkane reported production of 36,407 gold equivalent ounces for the full quarter across its three operations. Tomingley produced 18,335 ounces of gold, whilst Costerfield contributed 8,612 ounces of gold and 198 tonnes of antimony. The Björkdal mine produced 8,580 ounces of gold during the quarter.

Production at Björkdal was impacted by the Swedish extended summer vacation period, which occurs annually during this timeframe. The company calculates gold equivalent ounces by converting antimony production based on the average market prices for the quarter, which were US$3,457 per ounce for gold and US$21,928 per tonne for antimony. A 70% payability factor is applied to antimony in the calculation, reflecting industry standard processing and marketing arrangements.

Managing Director Nic Earner stated:

"Alkane now has three operating mines who together produced 35,527 ounces of gold and 198 tonnes of antimony (36,407 ounces of gold equivalent) over the full quarter."

Financial Position After Mandalay Merger Integration and Debt Repayment

Alkane held $191 million in cash, bullion and listed investments at the end of September 2025. The cash position comprises $160 million in cash, $14 million in bullion inventory and $17 million in listed investments. During the quarter, the company repaid its $45 million debt facility in full and incurred $25 million in one-off transaction costs related to the Mandalay merger.

The transaction costs represent expenses associated with completing the merger, including legal, advisory and regulatory filing fees. These costs are not expected to recur in subsequent quarters. The company also completed hedging of 7,250 ounces of gold during the period.

Nic Earner commented:

"With the repayment of our A$45 million debt and the one-off transaction costs of A$25 million behind us we have a very solid balance sheet with A$191 million in cash, bullion and listed investments at quarter end."

FY2026 Production Guidance Confirmation

Alkane maintained its FY2026 production guidance of 160,000 to 175,000 gold equivalent ounces at an all-in sustaining cost of $2,600 to $2,900 per ounce. The guidance reflects expected production from all three operating mines over the full financial year. All-in sustaining costs include total cash operating costs, sustaining mining capital, royalty expenses and accretion of reclamation provisions.

The guidance was initially announced on 9 September 2025 and remains unchanged following the September quarter results. The group production basis includes 100% contribution from Tomingley, Costerfield and Björkdal for the full financial year. Gold equivalent calculations apply the same methodology used for quarterly reporting, converting antimony production to gold ounces based on relative market prices.

The company indicated that additional details will be available in the full September 2025 quarterly report, scheduled for release later in October. The detailed report will provide further information on costs, capital expenditure and operational performance across the three mining operations.

Looking Ahead

Alkane has completed the integration of the Mandalay merger and eliminated its debt obligations. The company will release its full September 2025 quarterly report later in October, which will include detailed cost performance, capital expenditure and operational metrics across its three-mine portfolio. The December quarter will be the first full reporting period with normalised production from Björkdal following the Swedish summer vacation period. The company continues exploration programmes at each of its three operating sites.

‍