Why Alkane Resources (ASX:ALK) Reported 40,740 Ounces of Gold-Equivalent Output and Reaffirmed FY27 Guidance

Sonal Goyal

23 October 2026 05:42 PM AEDT

Why Alkane Resources (ASX:ALK) Reported 40,740 Ounces of Gold-Equivalent Output and Reaffirmed FY27 Guidance

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Key Highlights

Alkane reported gold-equivalent production of 40,740 ounces for the September 2026 quarter at an AISC of A$2,805 per ounce.
FY27 guidance was unchanged at 163,000 to 177,000 gold-equivalent ounces at an AISC of A$2,900 to A$3,200 per ounce.
Cash and bullion were A$440 million, and a maiden Dividend of 2 cents per share was paid on 1 October 2026.

Alkane Resources Limited (ASX:ALK) reported gold-equivalent production of 40,740 ounces for the September 2026 quarter, comprising 39,823 ounces of gold and 396 tonnes of antimony. All-In Sustaining Cost (AISC) was A$2,805 per gold-equivalent ounce, which the company said is below its FY27 guidance range, and cash costs were A$2,424 per ounce. It sold 38,348 gold-equivalent ounces for Revenue of A$206 million at achieved prices of A$5,128 per ounce of gold and A$23,842 per tonne of antimony. Mine Operating Cash Flow was A$102 million. Managing Director Nic Earner described the quarter as a solid start to the year.

Site results for the quarter (gold-equivalent production, AISC, mine operating cash flow):

Tomingley: 21,506 ounces, A$2,340 per ounce, A$52.3 million
Costerfield: 8,752 ounces, A$3,194 per ounce, A$29.1 million
Björkdal: 10,482 ounces, A$3,012 per ounce, A$20.9 million

Guidance reaffirmed

Group FY27 guidance was unchanged at 163,000 to 177,000 ounces of gold equivalent at an AISC of A$2,900 to A$3,200 per ounce. By site, production guidance is 78,000 to 84,000 ounces at Tomingley, 44,000 to 48,000 at Costerfield and 41,000 to 45,000 at Björkdal. Growth Capital is guided at A$160 million to A$190 million and exploration at A$45 million to A$53 million, with a further A$10 million to A$12 million for Boda-Kaiser and other work. Quarterly Capital Expenditure was A$59 million, including about A$37 million of growth spending. The company noted Costerfield head grades were below plan, and that processing set a record monthly throughput.

Balance sheet and capital returns

Cash and bullion were A$440 million, and the total including listed investments was A$459 million, up from A$454 million in June. The company paid A$13 million of tax during the quarter and expects to pay final FY26 tax of A$55 million to A$60 million in the December quarter. A maiden fully Franked Dividend of 2 cents per share was paid on 1 October 2026, about A$24 million with a further A$4 million for the Toronto-listed portion, and an on-market buyback of up to A$50 million over 12 months was approved in September. An A$110 million revolving Credit Facility is undrawn.

On hedging, 21,150 ounces of Tomingley Forward Contracts remain at an average A$2,854 per ounce, and Björkdal holds 33,300 ounces of put options with an average strike of about A$4,600 per ounce.

Projects and exploration

At Tomingley, the Newell Highway realignment is progressing, with traffic planned to move to the new alignment early in the June 2027 quarter, weather permitting. At Björkdal, Storheden's new portal and Nylunds pit ore extraction are both expected in the second quarter of FY27, and the updated Storheden Mineral Resource is 87,000 ounces Indicated and 125,000 ounces Inferred. At Peak Hill, a 1,651 metre hole intersected the continuation of an epithermal system about one kilometre below the pit, and a further 6,600 metres of drilling is planned. At the Nagambie earn-in, initial drilling reported 3.3 grams per tonne gold and 0.7 per cent antimony over 10.6 metres at the C3 zone, which the company says confirmed a Costerfield-like gold-antimony system.

Resources, conditions and next steps

Group Ore Reserves at 30 June 2026 were 25.5 million tonnes at 1.7 grams per tonne gold for 1.37 million ounces. Inferred Resources are too speculative to be considered economic, and the Boda-Kaiser Scoping Study is not sufficient to support Ore Reserves or an economic development case. Alkane Resources (ASX:ALK) also acquired a 178 square kilometre licence at the Northern Molong Porphyry project, expected to transfer next quarter, and plans about 4,000 metres of drilling there. Guidance assumes stable Commodity prices, uninterrupted production and timely approvals, and results may differ materially.

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