Highlights

  • Alkane Resources delivered record Q3 FY2026 Revenue of $274.4 million and net profit of $93.0 million (6.81 cents per share), driven by higher gold production and prices following the Mandalay Resources combination.
  • Moelis Australia Securities has issued a Buy rating on ALK with a price target of AUD 2.30, implying approximately 50% upside from the current trading price of AUD 1.53.
  • ALK shares have surged 112% over the past twelve months, reflecting the transformative impact of the Mandalay combination and record gold prices, with a robust cash balance of AUD 374 million and no Debt.

Alkane Resources Limited (ASX:ALK) (TSX:ALK) (OTCQX:ALKRY) is an Australian gold and antimony producer with operations spanning three continents following its transformative combination with Mandalay Resources. The enlarged group operates the Tomingley Gold Operations in New South Wales, the Costerfield gold-antimony mine in Victoria, and the Björkdal gold mine in Sweden. This multi-asset portfolio — assembled through the Mandalay combination — has fundamentally repositioned Alkane from a single-asset junior to a diversified, cash-generating mid-tier producer.

Alkane shares have risen 112% over the past twelve months to trade at AUD 1.53 on 19 May 2026, up 0.06 or 4.08% on the day. The extraordinary share price performance reflects the step-change in Earnings delivered by the expanded operations, underpinned by a record gold price environment in Australian dollar terms.

Broker Perspective: Moelis Australia Issues Buy at $2.30

Moelis Australia Securities has issued a Buy rating on Alkane Resources with a price target of AUD 2.30, implying approximately 50% upside from the current trading price of AUD 1.53. The Buy rating from Moelis reflects a combination of factors: the exceptional earnings quality of the enlarged Business, the robust cash position, the growth runway from Tomingley expansion and exploration at all three sites, and the continued strength of the Australian dollar gold price environment.

A 50% upside to the broker's target from a stock that has already doubled in twelve months is a bold projection, implying Moelis believes the market is still materially undervaluing the earnings power of the post-Mandalay Alkane business.

Q3 FY2026 Financial Results: Records Across the Board

Alkane delivered record quarterly results for Q3 FY2026 (three months ended 31 March 2026). Revenue reached $274.4 million, compared to just $63.2 million in Q3 FY2025 — a 334% increase, primarily attributable to the addition of Costerfield and Björkdal to the portfolio and a materially higher realised gold price. Gold equivalent sales of 43,373 ounces were transacted at an average realised gold price of AUD 6,315 per ounce, while 377 tonnes of antimony was sold at AUD 34,394 per tonne.

EBITDA for the quarter was $161.2 million (versus $20.8 million in Q3 FY2025), and Cash Generated from Operating Activities was also $161 million — an exceptionally high cash-to-EBITDA conversion ratio. Net profit was $93.0 million or 6.81 cents per share, compared to $8.1 million in Q3 FY2025. Free Cash Flow was $127.6 million for the quarter, adding substantially to the group's already strong Liquidity position.

The company closed Q3 FY2026 with cash, bullion, and liquid investments totalling $374 million, comprising $328 million in cash, $34 million in bullion, and $12 million in liquid investments. This cash balance — with no debt on the Balance Sheet — positions Alkane exceptionally well for future growth Investment, exploration acceleration, and potential Capital returns.

Operational Performance Across the Three Mine Portfolio

Tomingley Gold Operations in New South Wales produced gold at a cash operating cost of $2,021 per ounce in Q3 FY2026, slightly below the $2,037 per ounce recorded in Q3 FY2025 despite higher processing costs including the rental mobile crusher. Sustaining capital was lower than the prior year at Tomingley, contributing to an All-In Sustaining Cost (AISC) reduction to $2,444 per ounce from $2,590. The Newell Highway realignment project — a critical infrastructure investment to unlock deeper ore access — is on track for completion in the first half of 2027 and represents the key near-term growth catalyst for Tomingley.

Costerfield in Victoria contributed $28.0 million in operating costs and $4.6 million in sustaining capital during Q3, while Björkdal in Sweden contributed $33.8 million in operating costs and $14.5 million in sustaining capital. Exploration drilling of $12.5 million was invested across the three sites — $6.6 million at Costerfield, $2.8 million at Björkdal, and $3.0 million in non-operational NSW drilling — reflecting management's commitment to extending mine life and growing the resource base.

Nine-Month Performance and FY2026 Guidance Trajectory

Alkane noted that the company is on track to meet its FY2026 production guidance based on the nine-month result. The nine-month revenue comparison — versus Q3 2025 which included only the pre-Mandalay Tomingley operation — is not directly comparable, but the trajectory of the quarterly results clearly demonstrates the earnings transformation that has occurred. With Group All-In Sustaining Costs of $2,928 per ounce and a realised gold price of $6,315 per ounce, the Margin per ounce was approximately $3,387 — a compelling spread that underscores the profitability of the business at current gold prices.

Exploration continues to represent an important optionality layer for the Alkane investment case. The substantial $12.5 million quarterly exploration budget — including non-operational drilling in NSW — signals management's belief in the near-mine and regional discovery potential across all three operations.

Gold and Antimony Price Dynamics

The Australian dollar gold price environment has been a fundamental tailwind for Alkane and for ASX-listed gold producers broadly. The $6,315 per ounce average realised price in Q3 FY2026 compares highly favourably with the cash operating cost of approximately $2,037 per ounce, illustrating the substantial margin Leverage the business has at current prices. Antimony — a critical mineral increasingly important for flame retardants and battery technology — delivered a realised price of $34,394 per tonne, down from $42,488 per tonne in Q2 FY2026 but still well above historical averages, adding a meaningful revenue Diversification layer to the gold-dominant earnings base.

Conclusion

Alkane Resources has been one of the standout performers on the ASX over the past twelve months, delivering record quarterly earnings that validate the transformative rationale of the Mandalay Resources combination. With a $374 million net cash position, no debt, a multi-asset gold and antimony portfolio, and the Newell Highway realignment set to unlock growth at Tomingley in FY27, the investment case is underpinned by both quality and growth optionality. Moelis Australia's Buy rating at $2.30 reflects confidence that the market has not yet fully valued the earnings power of the enlarged business, particularly if Australian dollar gold prices remain elevated.