PERTH, Australia – Alkane Resources Limited (ASX:ALK; TSX:ALK; OTCQX:ALKRY) has released its Quarterly Activities Report for the period ending 31 March 2026 (Q3 FY26), highlighting record production and strong operational cash flow.
Operational Highlights
Site operating cash flow reached $189 million for the quarter. The company achieved a record quarterly gold production of 45,776 gold equivalent ounces (AuEq oz) at an all-in sustaining cost (AISC) of $2,928 per AuEq oz. Full-year group guidance remains unchanged at 160,000 to 175,000 AuEq oz with an AISC of $2,600 to $2,900 per AuEq oz, reflecting production from Costerfield and Björkdal since July 2025.
Exploration Success
At Costerfield, extension and infill drilling above the current workings at Youle and Shepherd identified 25 additional veins within the Kendall prospect near the historic Costerfield mine. Notable results include 132.2 grams per tonne (g/t) gold and 19.8% antimony over 1.94 meters (estimated true width of 1.04 meters), and 267.5 g/t gold with 5.6% antimony over 2.3 meters (estimated true width of 1.22 meters). At Tomingley, deep drilling detected a seismic reflector indicating a gold-bearing structure 400 meters below the current Roswell resources.
Financial and Corporate Update
Gold equivalent sales for the quarter totaled 43,373 ounces, generating revenue of $275 million at an average gold price of $6,330 per ounce and an average antimony price of $34,394 per tonne. Cash, bullion, and listed investments stood at $374 million after $16 million in corporate income tax payments during the quarter. The company also filled 8,700 ounces of hedges and executed a $110 million revolving credit facility along with a $40 million contingent instrument facility. Post-quarter, S&P Dow Jones Indices announced Alkane's inclusion in the S&P/ASX 200, effective from 22 April 2026.
Managing Director and CEO Nic Earner commented: “It has been another great quarter for Alkane, producing 44,669 ounces of gold and 377 tonnes of antimony (45,776 ounces of gold equivalent) over the full quarter. Our site operating cash flow was $189 million for the quarter, resulting in a balance sheet with $374 million in cash, bullion, and listed investments at quarter end. Our full-year guidance of 160-175 kozs gold equivalent remains unchanged.”
Group Production Summary
Alkane produced 44,669 ounces of gold and 377 tonnes of antimony in Q3 FY26, marking the highest quarterly gold and antimony production to date. This resulted in a group record of 45,776 gold equivalent ounces (compared to 43,663 AuEq oz in Q2 FY26) at an AISC of $2,928 per AuEq oz (versus $2,739 in Q2 FY26). The production increase was driven by improved output at Björkdal due to higher mill grades, while Tomingley and Costerfield maintained stable production quarter-over-quarter.
The company processed a total of 674,011 tonnes of ore at an average gold grade of 2.40 g/t, yielding 44,669 ounces of gold. Tomingley processed 314,997 tonnes at an average grade of 2.41 g/t. At Costerfield, the average gold grade was 10.21 g/t, with an antimony grade of 1.21%, processing 35,598 tonnes of ore. Björkdal processed 323,417 tonnes at an average gold grade of 1.52 g/t.
