Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has delivered record operating and financial results for the first half of the financial year, buoyed by high gold and antimony prices and a full-quarter contribution from its expanded three-mine portfolio.
For the six months to December 31, 2025, the gold and antimony producer reported record revenue of $404 million from gold equivalent sales of 74,094 ounces, at an average realised gold price of $5,421 per ounce and antimony price of $41,023 per tonne.
Production for the half totalled 72,732 ounces of gold and 391 tonnes of antimony, with the company confirming it remains on track to meet full-year FY2026 guidance.
Record quarter underpinned by portfolio expansion
The second quarter was particularly strong, with revenue of $256.7 million compared with $59.2 million in the prior corresponding period, reflecting higher production, stronger commodity prices, and the addition of Costerfield and Björkdal following the Mandalay combination.
Gold equivalent production in Q2 reached 43,663 ounces, up from 30,511 ounces in Q1, as the newly acquired mines contributed a full three months of output.
Adjusted underlying earnings (EBITDA) for the half came in at $185 million, with $147.2 million generated in Q2 alone. Net profit for the half was $65 million, or 5.32 cents per share, while second-quarter consolidated net profit totalled $67.6 million.
Cash generated from operating activities reached $154 million for the half, and free cash flow in Q2 was $65.4 million, reversing a $5.5 million outflow in the prior corresponding quarter.
Alkane ended December with a robust liquidity position of $246 million, comprising $218 million in cash, $14 million in bullion and $14 million in listed investments.
Managing director Nic Earner noted that Alkane “has just delivered the strongest quarter in its history”, with a strong cash position able to support its growth plans.
“Given the strong performance to date, we move into the second half of the year with momentum and are on track to meet our production goals and cost guidance for 2026,” he said.
Costs ease as production lifts
Cash operating costs per gold equivalent ounce in Q2 were $2,031, down 8% from Q1, while all-in sustaining costs (AISC) declined 8% quarter-on-quarter to $2,739 per ounce.
At Tomingley in NSW, gold production rose to 22,089 ounces for the quarter, supported by higher throughput and mill head grades following commissioning of the paste plant and fine grind circuit in the prior year. Cash costs fell 19% year-on-year to $1,811 per ounce, while AISC declined to $2,216 per ounce.
Costerfield in Victoria produced 11,686 gold equivalent ounces, with site cash costs of $1,701 per AuEq ounce and AISC of $2,149. The operation benefited from steady mining and milling rates, with improvement programs focused on drill and blast optimisation and recovery enhancements.
Björkdal in Sweden produced 9,888 ounces of gold in the quarter. Cash costs were $2,910 per ounce and AISC $4,117, with improved recoveries supported by the commissioning of a return water system that enhanced process stability.
Investment in growth and exploration
Total capital expenditure in Q2 was $40.8 million, including $9 million directed towards growth projects, primarily the Newell Highway realignment at Tomingley, which is due for completion in the first half of 2027.
Sustaining capital for the quarter was $20.3 million, reflecting the inclusion of the acquired operations, while $11.2 million was invested in exploration drilling across the portfolio, including Costerfield, Tomingley, Björkdal and non-operational targets in NSW.
With strong first-half production, disciplined cost management and ongoing investment in sustaining and growth capital, Alkane expects to meet its FY2026 production and cost guidance.