How did Alkane Resources (ASX:ALK) start FY27 with 40,740 gold equivalent ounces and early Nagambie antimony drilling?

Sonal Goyal

28 October 2026 11:24 PM AEDT

How did Alkane Resources (ASX:ALK) start FY27 with 40,740 gold equivalent ounces and early Nagambie antimony drilling?

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Key Highlights

• Alkane produced 40,740 gold equivalent ounces in the quarter at an AISC of A$2,805 per ounce, and reaffirmed FY27 guidance of 163,000 to 177,000 ounces.

• Tomingley contributed 21,506 ounces, Björkdal 10,482 ounces and Costerfield 7,835 ounces of gold plus 396 tonnes of antimony.

• The company ended the quarter with A$425 million in cash and A$15 million in bullion, and drilled 5,937 metres at Nagambie.

Alkane Resources Ltd (ASX:ALK) produced 40,740 gold equivalent ounces in the September 2026 quarter, the first quarter of its 2027 financial year, and reaffirmed full-year guidance. The quarterly report, lodged on 23 October 2026, also updated early drilling at the Nagambie gold-antimony project in Victoria.

Alkane, also listed on the Toronto Stock Exchange, operates three mines: Tomingley in New South Wales, Costerfield in Victoria and Björkdal in Sweden.

Production and costs

Tomingley contributed 21,506 ounces of gold, Björkdal 10,482 ounces and Costerfield 7,835 ounces of gold plus 396 tonnes of antimony, equivalent to 8,752 gold equivalent ounces. Group All-In Sustaining Cost (AISC) was A$2,805 per gold equivalent ounce, below the full-year guidance range of A$2,900 to A$3,200.

Costs varied by site. Tomingley's AISC was A$2,340 per ounce, while Costerfield and Björkdal ran at A$3,194 and A$3,012 respectively. Gold equivalent sales were 38,348 ounces, lower than production, and Revenue from Mining operations fell to A$205.9 million from A$257 million in the June quarter. The company reported an average realised gold price of A$5,128 per ounce and an average antimony price of A$23,842 per tonne, both below the previous quarter. Tomingley's revenue also included 7,800 ounces delivered into Forward Contracts at A$2,884 per ounce.

Balance sheet and guidance

Alkane ended the quarter with A$425 million in cash and A$15 million in bullion. Including listed investments, the total was A$459 million, up from A$454 million in June. That came after A$59 million of Capital spending, A$13 million of tax and the company's maiden two-cent fully franked dividend, paid on 1 October. Debt was limited to A$16 million of equipment financing, with a A$110 million revolving Facility undrawn. Alkane also has an on-market buyback of up to A$50 million approved in September.

The company reaffirmed guidance of 163,000 to 177,000 gold equivalent ounces for the 2027 financial year. After the September quarter, it would need to lift output in later quarters to reach the midpoint. Chief executive Nic Earner said the company was "well positioned". A final 2026 tax payment of A$55 million to A$60 million falls due in the December quarter.

Nagambie gold-antimony drilling

Under its earn-in with Nagambie Resources, Alkane drilled 5,937 metres of diamond core during the quarter using two rigs. Early results reported in October included 10.6 metres at 3.3 g/t gold and 0.7% antimony in the C3 zone, including 1.3 metres at 17.0 g/t gold and 5.9% antimony. The C2W zone returned 9.7 metres at 1.2 g/t gold and 2.5% antimony, and a zone outside the existing resource returned 42.0 metres at 1.8 g/t gold and 0.2% antimony.

The Quarterly Report did not state downhole depths or true widths for these intercepts. Alkane said the C2 zone had been extended about 115 metres below its previously known extent and described the system as similar to Costerfield, open at depth and along strike. These are early exploration results and do not yet change any resource estimate.

Why it matters and what is next

Antimony gives Alkane exposure to a critical mineral alongside gold, and Nagambie could eventually add to that if drilling confirms continuity. However, antimony prices fell during the quarter, showing that revenue stream's volatility.

Disclosed next steps include switching Newell Highway traffic to a new alignment at Tomingley in the June 2027 quarter, weather permitting, ahead of open-pit mining there. At Björkdal, first ore from the Nylunds open pit and the Storheden portal are both expected in the December quarter. Storheden currently hosts an Indicated Resource of 1.07 million tonnes at 2.51 g/t gold and an Inferred Resource of 1.85 million tonnes at 2.11 g/t gold. About 4,000 metres of RC drilling is also planned at the Northern Molong porphyry project.

FAQs

Q: How much did Alkane (ASX:ALK) produce in the quarter?

A:40,740 gold equivalent ounces across Tomingley, Costerfield and Björkdal, at an AISC of A$2,805 per gold equivalent ounce.

Q: What was drilled at Nagambie?

A:5,937 metres of diamond core with two rigs under the earn-in with Nagambie Resources. The quarterly report did not state downhole depths or true widths.

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