Alkane is pleased to present its Quarterly Activities Report for the period ending 30 September 2025 (Q1 FY26):
Operations
- Site operating cash flow of A$73 million for the quarter.
- Q1 FY26 record gold production of 30,511 AuEq oz @ AISC of $2,988/AuEq oz during a transitional quarter, including only two months of Björkdal and Costerfield production.1
- Full 3-month production for all operations was 36,407 AuEq oz1 at AISC of A$3,036/AuEq oz.2
- Full Year Group Guidance on track for 160-175koz AuEq at AISC A$2,600-2,900/AuEq oz reflects production from Costerfield and Björkdal from July 2025.3
- In early October Tomingley awarded the final portion of the contract to construct the Newell Highway re-alignment. Construction is expected to complete in the March quarter 2027.
Exploration
- New vein intercepted at True Blue (part of the Costerfield property) with an intercept of 11.7g/t gold and 6.5% antimony over 4.88m (estimated true width 2.06m).
- Significant high grade gold intercepts at El Paso within Tomingley of 8.2m @ 3.74g/t gold including 1m @ 25.0g/t gold (see ASX Announcement dated 14 August 2025 and titled ‘Tomingley Exploration Intersects Significant Gold at El Paso).
- Extension of the high grade breccia gold-copper mineralisation at the Boda-Kaiser porphyry deposits (see ASX Announcement dated 8 July 2025 and titled ‘Boda-Kaiser Regional Exploration Update’).
Finance
- Gold equivalent sales for the quarter of 30,010 ounces1 for revenue of A$147 million at an average gold price of A$4,896/oz and an average antimony price of A$35,646/t.
- Cash, bullion and listed investment balance of A$191 million, after the repayment of the A$45 million debt facility and one-off merger-related costs of A$25 million.
- Debt repayments of A$45 million and 7,250 ounces of hedges filled during the quarter.
Corporate
- During the quarter, Alkane and Mandalay Resources Corporation shareholders both voted to approve the “merger of equals” between the companies. The transaction was completed on 5 August 2025.
- Admitted to ASX 300 during the quarter.
- FY2026 guidance was released for the combined company during the quarter.
Managing Director, Nic Earner, commented: “It has been a significant quarter with the merger with Mandalay completing in early August. Alkane now has three operating mines that together produced 35,527 ounces of gold and 198 tonnes of antimony (36,407 ounces of gold equivalent) over the full quarter.1,2
“With the repayment of our A$45 million debt and the one-off transaction costs of A$25 million behind us, we have a very solid balance sheet with A$191 million in cash, bullion and listed investments at quarter end.“
- Gold equivalent ounces calculated by multiplying quantities of gold and antimony in period by respective average market price of commodities in period, adding the two amounts to get ‘total contained value based on market price’ and dividing that total contained value by the average market price of gold in period. I.e., AuEq = ((Au Produced x Au $/oz) + (Sb Produced pre-payability x 70% payability x Sb $/t)) / (Au $/oz). The average market prices for the quarter were A$5,283/oz Au (being the average of the daily PM price, sourced from www.lbma.org.uk) and A$33,508/t Sb (being the average Shanghai Metal Market Price sourced from www.metal.com). The average market prices for the statutory reporting period were US$5,382/oz Au (being the average of the daily PM price, sourced from www.lbma.org.uk) and A$33,859/t Sb (being the average Shanghai Metal Market Price sourced from www.metal.com). AISC is a non-IFRS measure and does not have a standardised meaning under IFRS and might not be comparable to similar financial measures disclosed by other companies. Refer to “Non-IFRS Performance Measures” at the end of this announcement.
- Group Production on basis of 100% contribution from Tomingley, Costerfield and Björkdal for the quarter. As the merger with Mandalay Resources completed on 5 August 2025, Alkane’s statutory reported production for FY2026 reflects production from Costerfield and Björkdal only from that date. Full quarter production and costs can be found at the end of this report.
- Refer to ALK Announcement dated 9 September 2025 titled ‘Alkane Announces Financial Year 2026 Guidance’ for calculation of gold equivalent ounces and definition of Group Guidance.