Highlights

  • Alkane Resources produced 43,663 gold equivalent ounces (AuEq oz) in Q2 FY26 at an AISC of AUD 2,739/AuEq oz, with gold equivalent sales generating AUD 256 million in revenue.
  • Site operating cash flow reached AUD 133 million for the quarter, boosting cash and bullion holdings to AUD 232 million.
  • The company remains on track to achieve FY26 gold equivalent production guidance of 160-175kozs AuEq at an AISC range of AUD 2,600-2,900/AuEq oz.

Alkane Resources Limited (ASX:ALK) (TSX:ALK) (OTCQX:ALKEF) Alkane Resources remains on track to meet its FY26 gold equivalent production guidance, supported by record Q2 output, rising cash and bullion holdings, and continued exploration success.

Quarterly Production Highlights

During Q2 FY26, Alkane produced 43,663 gold equivalent ounces (AuEq oz) at an all-in sustaining cost (AISC) of AUD 2,739/AuEq oz. This represents a peak in quarterly output from its Costerfield and Björkdal operations. Gold equivalent sales totaled 44,084 ounces, generating revenue of AUD 256 million at an average gold price of AUD 5,785/oz and an average antimony price of AUD 41,510/t.

Cash and Bullion Position Strengthens

Alkane reported site operating cash flow of AUD 133 million for the quarter. The cash and bullion balance increased to AUD 232 million, reflecting an additional AUD 18 million payment received in early January from a Costerfield shipment delayed over the Christmas period. Following corporate tax payments of AUD 17 million, the quarter-end cash, bullion, and listed investments balance stood at AUD 246 million.

This financial performance has coincided with continued hedging activity, with 8,200 ounces of gold hedges filled during the quarter.

Exploration Developments and Infrastructure Updates

Exploration drilling continued across Alkane’s properties, extending known systems and uncovering new gold-rich domains. At Storheden, part of the Björkdal property, drilling doubled the depth and strike of the known system, including intercepts of 142 g/t gold over 0.6 m and 111 g/t gold over 0.5 m.

At Tomingley, new gold domains were discovered near existing underground infrastructure, including 4.36 g/t over 26 m and 22.8 g/t over 3.3 m.

Infrastructure projects also progressed, with the final portion of the Newell Highway realignment contract awarded in October, scheduled for completion in the first half of 2027.

Share Performance

Alkane’s share price on the ASX closed at AUD1.65, up 2.3% for the day, representing a 210.75% increase over the past year and a 19.35% rise on a year-to-date basis. The quarterly production and cash results have supported market confidence in the company’s ability to meet full-year guidance of 160-175kozs AuEq at an AISC range of AUD 2,600-2,900/AuEq oz.