What Does Alkane Resources (ASX:ALK) September Quarter Update Say About Its Three Gold Mines?

Sonal Goyal

10 November 2026 05:03 PM AEDT

What Does Alkane Resources (ASX:ALK) September Quarter Update Say About Its Three Gold Mines?

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Key Highlights

• Alkane produced 40,740 gold-equivalent ounces in the three months to 30 September 2026, according to its quarterly report.

• Gold output was 39,823 ounces, and Costerfield produced 396 tonnes of antimony.

• The group's All-In Sustaining Cost (AISC) was A$2,805 per gold-equivalent ounce, which the company said sits below its full-year guidance range.

• Cash and bullion stood at A$440 million, or A$459 million including listed investments.

What does Alkane Resources (ASX:ALK)' September quarter tell investors about a gold miner that has just paid its first dividend? In short, it shows a Business generating encouraging cash at high gold prices while a weaker antimony price and a softer quarter at one mine remind shareholders that output is not a straight line. Alkane reported the figures on 23 October 2026, for the first quarter of its 2027 financial year.

The central development: a cash-rich quarter after a transformative merger

Alkane produced 40,740 gold-equivalent ounces in the three months to 30 September 2026, according to its quarterly report. Gold output was 39,823 ounces, and Costerfield produced 396 tonnes of antimony. The group's all-in sustaining cost (AISC) was A$2,805 per gold-equivalent ounce, which the company said sits below its full-year guidance range.

Cash and bullion stood at A$440 million, or A$459 million including listed investments. Mine Operating Cash Flow was A$102 million. The company also paid a maiden Dividend of 2 cents per share, fully franked, on 1 October 2026.

That matters because Alkane is a different company from the one many investors remember. It completed a Merger of equals with Mandalay Resources on 5 August 2025, creating a producer with three operating mines rather than one.

What Alkane does and where the money comes from

Alkane mines gold and a smaller amount of antimony across three sites. Tomingley is in New South Wales, Costerfield is in Victoria, and Björkdal is in Sweden. Costerfield is the only source of antimony, a metal used in flame retardants and some industrial applications.

Tomingley was the largest contributor in the quarter, producing 21,506 ounces at an AISC of A$2,340 per ounce and A$52.3 million of mine operating cash flow. Björkdal produced 10,482 ounces at A$3,012. Costerfield produced 7,835 ounces of gold, equating to 8,752 gold-equivalent ounces, at A$3,194.

Revenue is therefore driven mainly by the gold price, with antimony a secondary but meaningful influence at Costerfield. Gold and antimony are priced in US dollars, so the Exchange Rate also matters.

Results and recent announcements

For the year to 30 June 2026, Alkane reported Revenue of A$935.8 million and net profit after tax of A$228.7 million, up from A$262.4 million and A$33.0 million respectively. Full-year production was 168,337 gold-equivalent ounces on a combined basis, and the average realised gold price was A$5,664 per ounce. The merger completed in August 2025, so the comparison with the prior year is flattered.

Alongside those results on 21 August 2026, the board declared the 2 cent dividend and approved an on-market buy-back of up to A$50 million over twelve months. Cash, bullion and listed investments were A$454 million at 30 June 2026.

Guidance for FY27 is 163,000 to 177,000 gold-equivalent ounces at an AISC of A$2,900 to A$3,200 per ounce, reaffirmed in the quarterly report. Growth Capital is guided at A$160 million to A$190 million.

Operating detail: records and a few soft spots

The quarter was not uniformly encouraging. Tomingley set monthly records for Mining and milling. Costerfield also set monthly throughput records, but mined grades were below plan and ground conditions caused dilution and access restrictions. Its AISC rose from A$2,568 in the June quarter, and a lower antimony price reduced its gold-equivalent output.

Average realised prices also eased. Gold averaged A$5,128 per ounce in the September quarter, against A$5,599 in the June quarter, while antimony averaged A$23,842 per tonne, down from A$30,602. Sales of 38,348 gold-equivalent ounces generated A$206 million of revenue, compared with A$257 million on 47,411 ounces in the prior quarter.

Sector conditions and competitive position

Gold producers are benefiting from historically elevated prices, and Alkane's costs sit well below its realised prices. That Margin is the core of the Investment case, but it cuts both ways. A fall in gold would compress Earnings quickly, as it would for any peer.

Alkane is modest in scale next to the large Australian gold producers. The Diversification across jurisdictions and the antimony by-product are points of difference. The company has also partly shaped its price exposure: Tomingley has forward sales of 21,150 ounces at an average A$2,854 per ounce, and Björkdal has put options over 33,300 ounces, with strikes averaging around SEK 31,915 per ounce. Hedging protects against falls but limits participation in rises on the forward-sold ounces.

Growth projects and exploration

Much of the growth spending is directed at Tomingley, where Alkane is realigning the Newell Highway to access further ore. Traffic is planned to move to the new alignment early in the June 2027 quarter, subject to weather. At Björkdal, the Storheden portal and the Nylunds open pit are both expected to contribute ore in the December quarter, and a July 2026 resource estimate for Storheden reported 125,000 inferred ounces and 87,000 indicated ounces.

Exploration continues at Costerfield, around Peak Hill near Tomingley, and at Nagambie in Victoria.

Index membership

the update from September 2025 reported that Alkane was entering the S&P/ASX 200 after the merger.

Risks and what to watch

Commodity prices are the dominant risk. Gold and antimony prices both fell between the June and September quarters, and the company's own report notes provisional pricing adjustments and the limits of non-IFRS measures such as AISC and gold-equivalent ounces, which depend on methodology and price assumptions.

Operational risk is real. Costerfield's grade and ground conditions need to improve, and wet weather could delay the Newell Highway works. Alkane also expects to pay A$55 million to A$60 million of final FY26 income tax in the December 2026 quarter, which will reduce cash.

Upcoming items include the December quarter report, progress on the highway realignment, first ore from Storheden and Nylunds, and the pace of the A$50 million buy-back. Together they will show whether encouraging cash generation can continue as costs move towards guidance.

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