Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) delivered record quarterly gold-equivalent production in the December 2025 quarter, supported by higher output across its three operating assets and a stronger gold price environment.
The company produced 43,663 gold equivalent ounces (AuEq) during the quarter at an all-in sustaining cost (AISC) of $2,739/AuEq oz, marking its highest quarterly production to date. Mine operating cash flow reached $133 million, underpinning a $58 million increase in cash and bullion over the period.
Operations: higher output across all sites
Gold and antimony production increased materially quarter-on-quarter, driven by improved performance at Tomingleyand the first full quarter of production contributions from Costerfield and Björkdal following Alkane’s merger with Mandalay Resources.
Total gold production reached 42,767 ounces, alongside 267 tonnes of antimony, with ore processed averaging 2.20 g/t gold across the group. Tomingley remained the largest contributor, pouring 22,089 ounces of gold, while Costerfield delivered 11,686 AuEq ounces and Björkdal added 9,888 ounces.
Group guidance for FY26 remains unchanged at 160,000–175,000 AuEq ounces at an AISC of $2,600–$2,900/AuEq oz, reflecting production from all three assets.
Financials: strong margins and cash build
Gold-equivalent sales totalled 44,084 ounces, generating $256 million in revenue at an average realised gold price of $5,785/oz and an average antimony price of $41,510/t.
Group AISC improved from the prior quarter, while cash operating costs declined to $2,031/AuEq oz, reflecting higher grades and increased throughput. Sustaining, growth and exploration capital expenditure totalled $38 million during the quarter.
Alkane closed the period with $246 million in cash, bullion and listed investments, after $17 million in tax payments. An additional $18 million from a Costerfield concentrate shipment was received in early January, following a timing delay over the Christmas period.
Exploration: near-mine success at Tomingley and Björkdal
Exploration activity during the quarter delivered encouraging results, particularly near existing infrastructure.
At Tomingley, drilling at McLeans identified a new gold-rich domain within the Western Andesite, with standout intercepts including 26 metres at 4.36 g/t gold, including 3.3 metres at 22.8 g/t.
At Björkdal, extension drilling at the Storheden deposit doubled the tested depth extent to 464 m and extended strike length to 2.7 kilometres, returning high-grade intercepts such as 142 g/t gold over 0.60 metres.
Outlook
Alkane enters the March 2026 quarter with a strengthened balance sheet, stable production outlook and ongoing exploration momentum across its operating portfolio. Management expects the Newell Highway realignment project at Tomingley to be completed in the first half of 2027, while near-mine drilling continues to target mine life extensions across all assets.