Why Is Alkane Resources (ASX:ALK) Reiterating FY27 Guidance in Its September Quarter Production Update?

Sonal Goyal

09 October 2026 08:28 PM AEDT

Why Is Alkane Resources (ASX:ALK) Reiterating FY27 Guidance in Its September Quarter Production Update?

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

On 9 October 2026, Alkane Resources Ltd (ASX:ALK) released a September 2026 Quarter Production Update covering the first quarter of FY27. The announcement reported gold equivalent production of 40,740 ounces, closing cash and bullion of A$440 million and a reiteration of the FY27 guidance issued on 21 August 2026.

Production and sales for the quarter

Group production was 39,823 ounces of gold and 396 tonnes of antimony, or 40,740 gold equivalent (AuEq) ounces. By mine, Tomingley produced 21,506 ounces of gold, Björkdal produced 10,482 ounces of gold, and Costerfield produced 7,835 ounces of gold and 396 tonnes of antimony, equal to 8,752 AuEq ounces.

Sales were 37,950 ounces of gold and 172 tonnes of antimony, or 38,348 AuEq ounces. The release states that AuEq is calculated using average market prices for the quarter of A$6,035 per ounce of gold and A$19,982 per tonne of antimony, with a 70% payability applied to antimony.

Cash, Dividend and balance sheet

Alkane reported cash and bullion of A$440 million, and pro forma Liquidity of A$550 million when including its undrawn A$110 million revolving Credit facility. Investments in listed securities were A$19 million, giving a cash, bullion and listed Investment balance of A$459 million.

The company said it transferred a maiden dividend payment of A$24 million toward the end of September for payment to shareholders on 1 October 2026, with A$3 million transferred for TSX shareholders on 1 October 2026. It reported that it is Debt free except for A$16 million of equipment finance at 30 September 2026, and that tax payments during the quarter totalled A$13 million.

Alkane delivered 7,800 ounces into hedges during the quarter, with 21,150 ounces remaining to be delivered over the three quarters to June 2027.

FY27 guidance reiterated

The company reiterated FY27 group guidance of 163,000 to 177,000 AuEq ounces, with All-In Sustaining Cost of A$2,900 to A$3,200 per AuEq ounce, growth Capital of A$160 million to A$190 million and exploration spending of A$45 million to A$53 million, plus A$10 million to A$12 million for Boda/Kaiser and other exploration.

Mine-level ranges are 78,000 to 84,000 ounces at Tomingley, 44,000 to 48,000 ounces at Costerfield and 41,000 to 45,000 ounces at Björkdal. Alkane said it is not aware of new information materially affecting guidance.

Reinvestment program described

The release described FY27 as a year of reinvestment, covering mine life extensions, growth projects at Tomingley (Newell Highway) and Costerfield (Brunswick South development), integration with Nylund’s open pit and the start of Storheden development at Björkdal.

Sector backdrop

Gold and antimony producers report equivalent ounces by converting a secondary metal into gold terms at average prices. Equivalent figures therefore move with relative prices, and comparing quarters requires attention to the price assumptions stated in the release.

Producers with hedge books deliver a portion of gold into Forward Contracts at pre-agreed prices, which can differ from spot prices received on unhedged sales.

Risks shareholders should weigh

The update is a production summary and does not include costs, margins or Earnings for the quarter. Detailed commentary is deferred to the activities report, so some figures may be refined.

Gold equivalent output is influenced by the antimony price and payability assumptions. Antimony contributed 396 tonnes of production and 172 tonnes of sales in the quarter, so timing differences between production and sales are visible in the data. The company has 21,150 ounces still to deliver into hedges.

Guidance includes growth capital of A$160 million to A$190 million and exploration spending, so cash will be used for projects at three operations spanning Australia and Sweden. Project delivery, mine life extensions and operating performance at each site are not assured.

What’s next

Alkane will release its September quarter activities report on Friday, 23 October 2026, with a conference call and webcast on the same day. Shareholders may wish to watch for costs, capital spending and any changes to guidance in that report.

FAQs

Q: What did Alkane produce in the September 2026 quarter?

A:Alkane reported 40,740 gold equivalent ounces, made up of 39,823 ounces of gold and 396 tonnes of antimony.

Q: What is Alkane’s cash position?

A:The company reported cash and bullion of A$440 million, and A$459 million including listed investments, at the end of the quarter.

Q: When is the full activities report due?

A:Alkane said it will release its September quarter activities report on Friday, 23 October 2026.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.