Alkane Resources Reports December Quarter Production and Cash Position

• December quarter production of 43,663 gold equivalent ounces, comprising 42,767 ounces of gold and 267 tonnes of antimony
• Cash, bullion and listed investments totalled A$246 million at 31 December 2025, an increase of A$55 million from the previous quarter
• Company debt-free except for A$22 million in equipment finance
• FY2026 production guidance of 160,000 to 175,000 gold equivalent ounces at all-in sustaining costs of A$2,600 to A$2,900 per ounce unchanged
• Tomingley mine to reach 750,000 ounces cumulative gold production in January 2026

Alkane Resources (ASX:ALK, TSX:ALK, OTCQX:ALKEF) is an Australian-based gold and antimony producer operating three mines across Australia and Sweden. The company's producing assets include the Tomingley open pit and underground gold mine in Central West New South Wales, the Costerfield underground gold and antimony operation in Central Victoria, and the Björkdal underground gold mine in Sweden, located approximately 750 kilometres north of Stockholm. Alkane also owns the Boda-Kaiser gold-copper project in Central West New South Wales, where a scoping study has outlined an economic development pathway.

December Quarter Production Performance Across Three Operations

Production for the December 2025 quarter totalled 42,767 ounces of gold and 267 tonnes of antimony, equivalent to 43,663 gold equivalent ounces. Tomingley produced 22,089 ounces of gold during the quarter, bringing year-to-date production to 40,424 ounces. The operation is scheduled to pour its 750,000th ounce of gold in January 2026.

Costerfield contributed 10,790 ounces of gold and 267 tonnes of antimony during the period, representing 11,686 gold equivalent ounces. Year-to-date production from Costerfield reached 19,402 ounces of gold and 465 tonnes of antimony. Björkdal produced 9,888 ounces of gold for the quarter, with year-to-date output of 18,468 ounces.

Consolidated year-to-date production from July through December 2025 totalled 78,294 ounces of gold and 465 tonnes of antimony, or 80,070 gold equivalent ounces. Sales during the December quarter were 42,709 ounces of gold and 409 tonnes of antimony.

Managing Director Nic Earner stated:

"Alkane has had a solid quarter's production from our three operating mines which together produced 42,767 ounces of gold and 267 tonnes of antimony (43,663 ounces of gold equivalent) over the quarter."

Strengthened Financial Position and Cash Balance Growth

Cash, bullion and listed investments reached A$246 million at 31 December 2025, comprising A$218 million in cash, A$14 million in bullion, and A$14 million in listed investments. The A$55 million increase from the previous quarter occurred after the company paid A$11 million in FY25 income tax.

The company received an A$18 million provisional payment in early January 2026 from a Costerfield concentrate shipment that departed in mid-December. Payment receipt was delayed due to the Christmas holiday period. Alkane remains debt-free except for A$22 million in equipment finance at 31 December 2025.

During the quarter, the company delivered 8,200 ounces of gold against hedging contracts. Gold equivalent calculations for the December quarter used average market prices of A$6,299 per ounce for gold and A$30,245 per tonne for antimony, compared to September quarter averages of A$5,283 per ounce for gold and A$33,508 per tonne for antimony.

FY2026 Production Guidance Reaffirmation

The company maintained its FY2026 production guidance of 160,000 to 175,000 gold equivalent ounces at all-in sustaining costs of A$2,600 to A$2,900 per gold equivalent ounce. All-in sustaining costs include total cash operating costs, sustaining mining capital, royalty expenses and rehabilitation provisions. Year-to-date production of 80,070 gold equivalent ounces represents approximately 46% to 50% of the midpoint guidance range.

Gold equivalent ounces are calculated by multiplying gold and antimony quantities by their respective average market prices, adding the totals, and dividing by the average gold price for the period. The calculation applies a 70% payability factor to antimony production. On a statutory reported basis, attributable guidance for FY2026 is 155,000 to 168,000 gold equivalent ounces, reflecting the 5 August 2025 completion date of the Mandalay Resources merger.

Outlook

The company will release its full December 2025 Quarterly Report later in January. Tomingley is expected to pour its 750,000th ounce of gold during January 2026.

Mr. Earner commented:

"We have further strengthened our balance sheet over the quarter with A$246 million in cash, bullion and listed investments at quarter end."

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