Alkane Resources Reports 45,776 Gold-Equivalent Ounces in the March 2026 Quarter

• Quarterly production of 45,776 gold equivalent ounces (AuEq oz) for the period 1 January to 31 March 2026, comprising 44,669 oz of gold and 377 tonnes of antimony across three mines.
• Cash and bullion closed at A$362 million at quarter end, a A$130 million increase from December 2025; total pro forma liquidity stands at A$472 million, including an undrawn A$110 million revolving credit facility.
• Only A$20 million in equipment finance recorded at 31 March 2026, with no project-level or corporate debt on the balance sheet.
• Year-to-date production of 125,846 AuEq oz through nine months of FY2026, against full-year guidance of 160,000 to 175,000 AuEq oz.
• The average gold price for the March quarter was A$7,015 per ounce, compared with A$6,299 per ounce in the December 2025 quarter and A$5,283 per ounce in the September 2025 quarter.

Alkane Resources Ltd (ASX:ALK, TSX:ALK, OTCQX:ALKRY) is an Australia-based gold and antimony producer with three wholly owned operating mines across Australia and Sweden. Its producing assets are the Tomingley open pit and underground gold mine in Central West New South Wales, the Costerfield gold and antimony underground mine in Central Victoria, and the Björkdal underground gold mine in northern Sweden. The company also holds the Boda-Kaiser gold-copper porphyry project in New South Wales, where a Scoping Study has outlined a development pathway, and conducts ongoing exploration through the Northern Molong Porphyry Project.

Q3 FY2026 Production Performance Across Three Mines

For the three months ended 31 March 2026, output was drawn from all three of the company's operating mines: Tomingley in New South Wales, Costerfield in Victoria, and Björkdal in Sweden. "Gold equivalent ounces" (AuEq oz) is a standard industry measure that converts all metal production into a single unit using prevailing commodity prices, allowing gold and antimony output to be reported on a comparable basis.

Tomingley was the largest contributor, producing 21,652 oz of gold for the quarter. Björkdal in Sweden added 12,433 oz, while Costerfield in Victoria produced 10,584 oz of gold alongside 377 tonnes of antimony, for a combined 11,691 AuEq oz. Alkane completed its merger with Mandalay Resources in August 2025, after which Costerfield and Björkdal became part of the group's operating portfolio.

Consolidated sales for the quarter totalled 42,550 oz of gold and 280 tonnes of antimony, equivalent to 43,373 AuEq oz sold. On a year-to-date basis, the group has produced 125,846 AuEq oz over the nine months to 31 March 2026. FY2026 full-year guidance of 160,000 to 175,000 AuEq oz, at an all-in sustaining cost (AISC, the total cost to produce each ounce including operating and sustaining capital expenses) of A$2,600 to A$2,900 per AuEq oz, remains unchanged.

Strong Financial Position and Liquidity

Cash, bullion and listed investments totalled A$374 million at 31 March 2026, broken down as A$328 million in cash, A$34 million in bullion, and A$12 million in listed investments. This represents a A$128 million increase over the end of the December 2025 quarter. Closing cash and bullion alone stood at A$362 million, up A$130 million from December.

Managing Director and CEO Nic Earner said: 

"Alkane has had an excellent quarter's production from our three operating mines which together produced 44,669 ounces of gold and 377 tonnes of antimony (45,776 ounces of gold equivalent) over the quarter. We have a very strong balance sheet with A$374 million in cash, bullion and listed investments at quarter end and total liquidity of $472 million including undrawn revolving credit facility."

During the quarter, the company filled hedges on 8,700 oz of gold and made tax instalments of A$15 million. The average gold market price for the March quarter was A$7,015 per oz, up from A$6,299 per oz in the December quarter and A$5,283 per oz in the September quarter, based on an AUD:USD exchange rate of 0.6946, 0.6565, and 0.6544 respectively.

Debt-Free Balance Sheet and Operational Stability

At 31 March 2026, Alkane carried only A$20 million in equipment finance, with no project-level or corporate debt on the balance sheet. In late March 2026, the company executed a A$110 million revolving credit facility, which remains undrawn and is expected to be available from June 2026, subject to conditions. Combined with closing cash and bullion of A$362 million, this brings pro forma total liquidity to A$472 million.

The company has contracts in place with fuel suppliers for regular deliveries, and diesel accounts for a small portion of total operating costs, as all three mines are underground operations drawing power from grid suppliers in Australia and Sweden.

Full-year production guidance of 160,000 to 175,000 AuEq oz at A$2,600 to A$2,900 per AuEq oz remains in place and unchanged from the September 2025 guidance announcement. The combination of no corporate debt and a growing cash balance means the company enters the final quarter of FY2026 with its balance sheet intact and operations running without interruption.

Looking Ahead

With 125,846 AuEq oz produced through the first nine months of FY2026, Alkane requires approximately 34,154 to 49,154 AuEq oz in the June quarter to meet the lower and upper ends of its full-year guidance range. The company has indicated that a full March 2026 Quarterly Report, which will include further operational and financial detail, is expected to be released later this month. Ongoing near-mine exploration continues at all three operations, while the Boda-Kaiser project in New South Wales, covered by a Scoping Study, represents the company's longer-term development pipeline.

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