Alkane Resources Reports $93 Million Net Profit for Q3 FY2026, the Highest in Company History

• Net profit of $93 million (6.81 cents per share) for Q3 FY2026, the highest quarterly result in the company's history, compared to $8.1 million in Q3 FY2025.
• Revenue of $274 million for the quarter, up from $63 million in Q3 FY2025, driven by higher production volumes following the addition of two mines to the portfolio and a realised gold price of $6,315 per ounce.
• Consolidated gold and antimony production of 44,669 ounces and 377 tonnes respectively, with the company on track to meet its FY2026 full-year guidance.
• Cash, bullion, and liquid investments totalled $374 million at quarter end, with free cash flow of $127.6 million compared to $7.7 million in Q3 FY2025.
• Capital expenditure of $46.9 million for the quarter included $10 million in growth projects and $12.5 million in exploration drilling across all three mine sites.

Alkane Resources Limited (ASX:ALK; TSX:ALK; OTCQX:ALKRY) is an Australia-based gold and antimony producer (antimony is a metalloid used primarily in flame-retardant materials and energy storage) operating three wholly owned mines: the Tomingley Gold Operations in Central West New South Wales, the Costerfield gold-antimony underground mine in Central Victoria, and the Björkdal underground gold mine in northern Sweden. The three-mine portfolio was established following Alkane's merger with Mandalay Resources, completed on 5 August 2025. The company also holds the Boda-Kaiser gold-copper porphyry project in New South Wales, for which a Scoping Study has outlined an economic development pathway, with near-mine exploration ongoing across all three operations. Alkane is listed in Australia, Canada, and the United States.

Record Q3 FY2026 Financial Performance and Profitability

Alkane reported revenue of $274.4 million for the three months to 31 March 2026, compared to $63.2 million in Q3 FY2025. The increase reflects the full quarterly contribution of Costerfield and Björkdal following the Mandalay merger, alongside a higher gold price environment. Gross profit for the quarter was $125.6 million, versus $9.8 million in Q3 FY2025.

Net profit of $93 million translated to earnings per share of 6.81 cents, compared to 1.34 cents a year earlier. On a nine-month cumulative basis, net profit stands at $157.9 million and earnings per share at 12.44 cents. EBITDA (earnings before interest, taxes, depreciation, and amortisation, a measure of underlying operating earnings) reached $161.2 million for the quarter, compared to $28.1 million in Q3 FY2025.

Managing Director and CEO Nic Earner commented:

"Alkane has just delivered the strongest quarter in its history. During a period of high gold and antimony prices, the power of our three mine portfolio delivered exceptional operating results as they produced a record 44,669 ounces of gold and 377 tonnes of antimony, which generated record profit after taxes of $93 million."

Three-Mine Portfolio Production Performance Exceeding Expectations

Consolidated gold equivalent production for Q3 FY2026 was 45,776 ounces, compared to 17,657 ounces in Q3 FY2025. Gold equivalent ounces is a measure that converts output from different metals into a single comparable figure using prevailing market prices. Tomingley produced 21,652 ounces of gold, Björkdal contributed 12,433 ounces, and Costerfield delivered 10,584 ounces of gold alongside 377 tonnes of antimony, equivalent to 11,691 gold-equivalent ounces.

Tomingley's output was supported by the introduction of a mobile crusher that increased processing capacity, lifting annualised throughput to approximately 1.3 million tonnes per year. Mill grades came in above plan at 2.41 grammes per tonne and gold recovery reached 90.1%. At Costerfield, both ore mining and milling rates exceeded planned targets, with successful pre-crushing trials conducted during the quarter to improve throughput and blend control.

Björkdal produced 12,433 gold ounces for the quarter, up from 9,888 ounces in Q2 FY2026. Mill head grades improved to 1.52 grammes per tonne from 1.04 grammes per tonne in the prior quarter, while gold recoveries also increased. The operation also trialled processing a parcel of ore sourced from a small mine to the west of Björkdal during the period.

Strong Balance Sheet and Growth Capital Investment

Alkane closed the quarter with cash, bullion, and liquid investments of $374 million, comprising $328 million in cash, $34 million in bullion on hand, and $12 million in liquid investments. Cash generated from operating activities was $161.4 million, up from $20.8 million in Q3 FY2025. Free cash flow, which is calculated as net cash from operating activities less capital expenditure and lease payments, was $127.6 million for the quarter compared to $7.7 million in Q3 FY2025.

Total capital expenditure of $46.9 million comprised $24.3 million in sustaining capital (expenditure required to maintain current production levels) and $22.6 million in non-sustaining capital. The largest single growth item was a $10 million investment in the Newell Highway realignment at Tomingley, a project due for completion in the first half of calendar 2027. Exploration investment across the three sites totalled $12.5 million, directed at $6.6 million at Costerfield, $2.8 million at Björkdal, and $3.0 million in broader regional exploration in New South Wales.

For context, AISC (all-in sustaining cost) is a non-IFRS measure reported by Alkane to reflect the cost of sustaining production at each site. Alkane reported an AISC of $2,928 per gold-equivalent ounce produced against a realised gold price of $6,315 per ounce for the quarter. The company's full definition and a reconciliation to IFRS figures are available in the accompanying MD&A.

Looking Ahead

With one quarter remaining in FY2026, Alkane has reaffirmed its full-year production guidance of 149,000 to 161,000 gold-equivalent ounces, with consolidated AISC guidance of $2,600 to $2,900 per ounce. Nine-month cumulative net profit of $157.9 million and free cash flow of $213 million reflect results through the first three quarters of the financial year. The company has outlined its remaining FY2026 priorities as continued production at Costerfield toward full-year antimony guidance of 750 to 850 tonnes, advancement of the Newell Highway realignment at Tomingley, and completion of the $78 million to $88 million full-year exploration and growth capital programme.

Managing Director and CEO Nic Earner added:

"Given the strong performance to date, we move into the second half of the year with momentum and are on track to meet our production and cost guidance for 2026."

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