Key Highlights

  • Revenue rose to A$935.8 million from A$262.4 million, and net profit after tax reached A$228.7 million.
  • The Mandalay Merger added Costerfield in Victoria and Björkdal in Sweden to the Tomingley operations in New South Wales.
  • FY27 guidance is for 163,000 to 177,000 gold-equivalent ounces at an All-In Sustaining Cost of A$2,900 to A$3,200 per ounce.
  • The board declared a maiden fully franked final Dividend of 2.0 cents per share.

What changes when a single-mine gold developer becomes a three-mine, two-continent producer almost overnight? For Alkane Resources (ASX:ALK), the answer is visible in its FY26 numbers: Revenue rose from A$262.4 million to A$935.8 million, net profit after tax reached A$228.7 million, and the board declared a maiden dividend. The step change follows the merger of equals with Mandalay Resources Corporation, completed on 5 August 2025, and it matters because Alkane now has to prove it can run a larger, more diversified Business while a high gold price flatters the result. The period-specific figures provide context for the company’s operating performance and execution priorities.

The central development: a merger that rewired the business

Before the merger, Alkane was largely a New South Wales story built around the Tomingley gold operations and the Boda-Kaiser porphyry gold-copper project. The Mandalay combination added Costerfield, an underground gold and antimony mine in Victoria, and Björkdal, an underground gold mine in Sweden. The company now describes itself as a three-mine producer in Australia and Sweden.

According to the company's FY26 results release of 21 August 2026, gold-equivalent production on a full-year basis, including pre-merger output from the acquired assets, was 168,337 ounces, compared with 70,120 ounces in FY25. On a statutory basis, which consolidates Mandalay only from the merger date, production was 162,440 ounces at an all-in sustaining cost (AISC) of A$2,907 per ounce, according to the 2026 annual report. Cash, bullion and listed investments stood at A$453.9 million at 30 June 2026, against A$68.3 million a year earlier.

What drives revenue and earnings

Alkane's revenue is a function of ounces sold multiplied by the price received. Two prices matter. The average realised gold price in FY26 was A$5,664 per ounce, up from A$3,770 in FY25, and the average realised antimony price was A$32,032 per tonne, according to the annual report. Antimony is a by-product at Costerfield, and it is converted into gold equivalents for reporting, so movements in that market affect both reported production and revenue.

The realised price comfortably exceeded unit costs, though the three mines had very different cost profiles in the statutory period:

Tomingley: 82,973 ounces of gold at an AISC of A$2,429 per ounce.

Costerfield: 41,225 gold-equivalent ounces at A$2,462 per ounce.

Björkdal: 38,243 ounces at A$3,979 per ounce.

Björkdal is therefore the highest-cost asset in the portfolio and the one most exposed if the gold price softens.

Results, dividend and Capital management

Basic Earnings per share rose from 5.46 cents to 17.69 cents. The board declared a maiden fully franked final dividend of 2.0 cents per share, with an ex-dividend date of 7 September 2026 and payment on 1 October 2026. Together these suggest a shift towards returning some surplus cash, although the amounts are modest relative to the cash balance.

FY27 guidance and the growth pipeline

Management guidance, reiterated with the FY26 results, is not a forecast of outcome but a statement of intent. For FY27 the company guides to:

Group gold-equivalent production of 163,000 to 177,000 ounces, split across Tomingley (78,000 to 84,000), Costerfield (44,000 to 48,000) and Björkdal (41,000 to 45,000).

Group AISC of A$2,900 to A$3,200 per ounce.

Growth capital of A$160 million to A$190 million, with the largest share (A$90 million to A$100 million) at Tomingley.

The guided midpoint of production is broadly flat on FY26, so the earnings outlook depends on prices and costs more than Volume growth. The Annual Report notes capital development at Brunswick South, part of the Costerfield system, was scheduled to begin in the first quarter of FY27, and the company released updated mineral resource and ore reserve statements on 11 September 2026.

Boda-Kaiser remains the long-dated option. The company has outlined an economic development pathway in a scoping study, and it continues exploration across the Northern Molong Porphyry area. Scoping-level work is early-stage, and it should not be read as a committed development decision or funding plan.

Sector and competitive position

Alkane's differentiators are its Diversification across three mines and two jurisdictions, its antimony exposure (relatively rare among listed peers), and a Balance Sheet that is now net cash. Against that, its mines are individually modest, and underground operations carry higher unit costs and geological risk than large open pits.

According to the annual report, Alkane was added to the S&P/ASX 200 on 22 April 2026.

Key risks

Commodity prices: Gold and antimony prices, and dollar, drive revenue.

Cost pressure: AISC guidance of A$2,900 to A$3,200 is above the FY26 statutory outcome of A$2,907 at its upper end, so Inflation in labour, power and consumables matters.

Integration: Running three mines across two continents tests management systems.

Underground development: Delays at Tomingley or Brunswick South would affect output and capital spending.

Growth project uncertainty: Boda-Kaiser carries permitting, funding and technical risks.

What to monitor

Quarterly activities reports will show whether FY27 production and cost guidance is tracking. The progress of the A$50 million buy-back, the Brunswick South development, further resource updates and any decision timetable for Boda-Kaiser are the other items worth following.