Alkane Resources (ALK) Q1 2026 TU earnings summary

Executive summary

• Completed transformational merger with Mandalay Resources in August 2025, creating a group with three operating mines in Australia and Sweden and entry into the ASX 300.

• Achieved record quarterly gold equivalent production of 30,511 oz, up from 18,418 oz year-over-year, and strong operational performance across all mines.

• Revenue rose to A$147 million, driven by higher gold and antimony prices and increased production.

• Closed the quarter with A$191 million in cash, bullion, and liquid investments after repaying A$45 million in debt and incurring A$25 million in one-off merger costs.

• Robust free cash flow and a strengthened balance sheet position the company for aggressive organic growth and exploration.

Financial highlights

• Consolidated revenue reached A$147 million, a record, with an average realised gold price of A$4,896/oz and antimony price of A$35,646/t.

• Cash operating costs were A$2,215 per gold equivalent ounce; AISC for the quarter was A$2,988–3,036/oz.

• Operating cash flow from all operations was A$73 million; mine operating cash flow was A$71.9 million.

• Adjusted net profit was $2.3 million, down from $11.3 million year-over-year, reflecting higher costs and merger-related expenses.

• Capital expenditure totaled A$27 million, including A$6 million for growth projects and A$6 million for exploration.

Outlook and guidance

• FY2026 group production guidance: 155,000–175,000 gold equivalent ounces, including 155,000–170,000 oz gold and 750–900 t antimony.

• All-in sustaining cost guidance: A$2,600–2,900 per gold equivalent ounce.

• Growth capital and exploration spend expected to be A$78–88 million, focused on mine development and resource expansion.

• Construction of the Newell Highway realignment at Tomingley expected to complete in March quarter 2027.

• Targeting a run rate above 180,000 gold equivalent ounces before end of 2026.