Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) earlier this week reported that it ended FY2026 in the top half of production guidance, supported by a strong June quarter and a sizeable increase in closing cash.
The company produced 42,491 gold-equivalent ounces in the June quarter and 168,337 gold-equivalent ounces for the full year, placing it in the upper half of its 160,000 to 175,000-ounce guidance range. Closing cash rose by $104 million to $432 million.
Managing director and CEO Nic Earner told Proactive the result reflected a strong operating performance across Alkane’s three mines: Tomingley in New South Wales, Costerfield in Victoria and Björkdal in Sweden.
“We’re really happy with how we’ve gone for the year,” Earner said, adding that the company’s production teams had delivered “excellent work” across all three sites.
A key feature of the year was the bedding down of the company’s merger with Mandalay Resources, which was completed at the start of August last year. Earner said FY2026 represented the first almost 12 months of consolidated production and that Alkane had been pleased with how the integration had progressed.
He said the company had delivered “just under 170,000 ounces across the group” for the 12 months, alongside a “great cash build”. He also pointed to strong gold prices and free cash flow, saying Alkane was “very, very happy” with how the company was performing and with the amount of cash it had built.
Potential catalysts include the upcoming full quarterly report, targeted for July 21, which is expected to include guidance. Earner said Alkane was steady state across all three operations and added that he expected guidance to be broadly similar to the latest financial year.
Exploration also remains a focus. Earner discussed the True Blue deposit, around two kilometres from Costerfield, where Alkane has been working on a parallel strike structure. While he said he “would have loved higher grade”, he also said the company was “still very encouraged” by what it was seeing.
Further catalysts are expected over the next couple of months, with exploration results due across most operations and reserve and resource updates also planned. Earner said investors should be encouraged by the results and by the company’s investment in maintaining resources and seeking step-out extensions across all three deposits.
Interview highlights
- Alkane Resources ended FY2026 in the top half of its production guidance range.
- The company delivered 42,491 gold-equivalent ounces in the June quarter.
- Full-year production reached 168,337 gold-equivalent ounces, compared with guidance of 160,000 to 175,000 ounces.
- Closing cash increased by $104 million to $432 million.
- Production came from Alkane’s three operating mines: Tomingley in New South Wales, Costerfield in Victoria and Björkdal in Sweden.
- Managing director and CEO Nic Earner said the company was “really happy” with its performance for the year.
- Earner said the company had integrated well following its merger with Mandalay Resources at the start of August last year.
- Alkane expects to release its full quarterly report and guidance around July 21.
- Earner said guidance was expected to be broadly similar to the latest financial year.
- Exploration work continues at the True Blue deposit, around two kilometres from Costerfield.
- Alkane expects exploration updates across most operations over the next month.
- The company is also preparing reserve and resource updates over the next couple of months.
Proactive: Alkane Resources has ended FY2026 in the top half of production guidance after delivering 42,491 gold-equivalent ounces in the June quarter and lifting closing cash by $104 million to $432 million.
To discuss these results is Nic Earner. Nic, good to see you.
Nic Earner: Good morning, Jonathan. Great to see you too, mate.
Proactive: So talk us through these results and what they say about the performance of the group across the year.
Nic Earner: We’re really happy with how we’ve gone for the year. Excellent work by our production teams at all three sites.
People will remember that at the very start of August last year, we completed our merger with Mandalay. So this is the first almost 12 months of consolidated production, and we’ve been really happy with how we’ve integrated, how we’ve bedded down.
So, just under 170,000 ounces across the group for the 12 months. Great cash build. Of course, we all remember the incredibly lofty gold prices. So, really solid performance. We’re very, very happy with how we’re going and with the amount of cash and free cash flow that we have.
Proactive: And you’ve got the full quarterly coming out shortly. Is this a run rate you expect to maintain?
Nic Earner: We’ll put out our guidance in our quarterly, so that’ll be on the 21st of July. That is the 21st of July we’re targeting for that.
We’re steady state at all three operations. I think people who are very familiar with the industry will understand just how hard you run continually to stay where you are, let alone grow, which is our intention, particularly at Björkdal.
Broadly, I expect our guidance to be similar to this year again.
Proactive: And you mentioned those three. That’s Tomingley, Costerfield and Björkdal. You’ve just this week delivered results two kilometres from Costerfield. Can you talk us through what’s going on at that True Blue deposit?
Nic Earner: True Blue is something we’ve been working on, a whole parallel strike structure to Costerfield.
Good results here. I’d have loved higher grade. We all continually chase a Fosterville-style Swan Zone in that region. But solid, very high-grade things. Things are complex there, so not quite as good as I’d like, but we’re still very encouraged by what we’re seeing.
We’re stepping out along strike. Over this next month, we should have results coming out across most of the operations as we update exploration at the start of the new year.
Then, of course, we’re rolling into updating all our reserves and resources over the next couple of months.
So, people should be pretty encouraged by the results we’re seeing and by just the volume of money that we’re putting into both maintaining resources and looking for step-out extensions at all three deposits.
Proactive: Nic, plenty to look forward to and plenty to come as well. Thanks for your time this morning, and we’ll talk again in a couple of weeks.
Nic Earner: Thanks, Jonathan. Look forward to it. Cheers.