Alkane Resources Limited (ASX:ALK; TSX:ALK; OTCQX:ALKEF) (‘Alkane’ or ‘the Company’) is pleased to present its Quarterly Activities Report for the period ending 31 December 2025 (‘Q2 FY26’):
Operations
- Site operating cash flow of $133 million for the quarter.
- An additional $18 million payment was received in early January from a Costerfield concentrate shipment that shipped in mid-December with payment receipt delayed due to the Christmas holidays.
- Q2 FY26 record gold production of 43,663 AuEq oz @ AISC of $2,739/AuEq oz.1,2
- Full Year Group Guidance on track for 160-175kozs AuEq at AISC $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 first half of 2027.
Exploration
- Extension drilling at Storheden (part of Björkdal property) doubled depth extent to 464m and strike extent to 2.7km of the known system including intercepts of 142.0 g/t gold over 0.60 m (Estimate True Width 0.25 m) and 111.0 g/t gold over 0.50 m (ETW 0.25 m).4
- At Tomingley a gold rich domain was discovered adjacent to McLeans and close to current underground infrastructure. Assays highlights from the drilling include; 4.36g/t gold over 26m including 22.8 g/t gold over 3.3m.5
Finance and Corporate
- Gold equivalent sales for the quarter of 44,084 ounces1 for revenue of $256 million at an average gold price of $5,785/oz and an average antimony price of $41,510/t.
- Cash, bullion and listed investment balance of $246 million after $17 million of corporate income tax payments during the quarter.
- 8,200 ounces of hedges filled during the quarter.
Managing Director, Nic Earner, commented:
“It has been an excellent quarter for Alkane, producing 42,767 ounces of gold and 267 tonnes of antimony (43,663 ounces of gold equivalent) over the full quarter.1 Our site operating cashflow was $133 million for the quarter, resulting in a balance sheet with $246 million in cash, bullion and listed investments at quarter end. Our full year guidance of 160-175kozs gold equivalent remains unchanged.3”- 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 December quarter were A$6,299/oz Au (being the average of the daily PM price, sourced from www.lbma.org.uk) and A$30,245/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.
- 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. Production guidance on a statutory reported basis (‘Attributable Guidance’) is 155 – 168koz AuEq for FY2026.
- Refer to ALK Announcement dated 19 December 2025 titled ‘Alkane Doubles the Tested Depth Extent of the Storheden Deposit at Björkdal.”
- Refer to ALK Announcement dated 3 November 2025 titled ‘Tomingley Drilling Discovers New Mineralisation at McLeans.