Alkane Resources (ALK) Q1 2027 earnings summary

Executive summary

• Q1 FY27 production was 40,740 AuEq oz; revenue was A$205.9m and mine operating cash flow was A$102.4m.

• Group AISC was A$2,805/oz; FY27 production and cost guidance remained unchanged.

• Closing cash, bullion and listed investments totaled A$459m, with available liquidity of A$569m; a maiden fully franked dividend of 2 cents per share was paid.

Financial highlights

• AuEq sales were 38,348 oz; realized prices were A$5,128/oz for gold and A$23,842/t for antimony.

• Mine operating cash flow was A$102.4m, with an achieved margin of A$2,323/AuEq oz over AISC.

• Q1 AISC was A$2,805/oz AuEq; sustaining capex was A$12.6m, growth capex A$37.3m and exploration expense A$9.1m.

• 7,800 oz of gold hedges were delivered at just under A$2,900/oz; 21,000 oz remained for delivery in FY27 at around A$2,850/oz.

Outlook and guidance

• FY27 production guidance remains 163–177 koz AuEq at A$2,900–3,200/oz AISC; growth capital is guided at A$160–190m and exploration at A$45–53m.

• FY27 mine production guidance: Tomingley 78–84 koz Au, Björkdal 41–45 koz Au and Costerfield 44–48 koz AuEq.

• FY27 mine AISC guidance: Tomingley A$2,600–2,900/oz, Björkdal A$3,300–3,700/oz and Costerfield A$2,700–3,000/oz.

• Tomingley traffic is planned to switch to the diverted Newell Highway alignment early in Q3 FY27, subject to weather; open-pit mining is planned to follow.

• Boda-Kaiser environmental baseline work continued; approval application is targeted for end-2027, with approval expected around mid-2029 and FID later in 2029, subject to the approval process.