Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has delivered record FY26 profit and revenue in its first year as a three-mine gold and antimony producer, prompting the board to declare the company’s first dividend and approve an on-market share buy-back of up to A$50 million.
Net profit after tax for the year ended June 30, 2026, rose 592% to A$228.7 million, while revenue increased 257% to A$935.8 million. Basic earnings per share climbed 224% to 17.69 cents.
Full-year gold equivalent production reached a record 168,337 ounces, up 140% from 70,120 ounces in FY25, supported by Alkane’s merger with Mandalay Resources Corporation in August 2025 and an average realised gold price of A$5,664 per ounce compared with A$3,770 a year earlier. Alkane finished FY26 with A$454 million in cash, bullion and listed investments.
Maiden dividend and A$50 million buy-back
The board declared a fully franked final dividend of 2.0 cents per share, Alkane’s first dividend, with a record date of September 8 and payment scheduled for October 1, 2026.
Alongside the dividend, Alkane approved an on-market share buy-back of up to A$50 million to be undertaken at the company’s discretion over the next 12 months. The potential purchases represent less than 3% of shares on issue and do not require shareholder approval.
Managing director Nic Earner said FY26 marked a major change in the scale of the business following the Mandalay merger.
“FY26 was a transformational year – we completed the merger of equals with Mandalay Resources, brought together three operating mines across two continents, and delivered record production, revenue and profit in our first year as a combined group,” he said.
Three operations underpin production growth
The enlarged Alkane portfolio comprises Tomingley in New South Wales, Costerfield in Victoria and Björkdal in Sweden.
Tomingley produced 82,973 ounces of gold in FY26, exceeding its 75,000-80,000-ounce guidance and setting records for annual production, underground ore mined and mill throughput. All-in sustaining costs (AISC) were A$2,429 per ounce.
Costerfield produced 44,527 gold equivalent ounces for the full year, including 40,103 ounces of gold and 1,298 tonnes of antimony, while Björkdal produced 40,837 ounces of gold.
Tomingley extension project advances
Work on the Tomingley Gold Extension Project centred on realigning the Newell Highway during FY26, a key step required before planned open-pit mining can begin in FY28.
Despite wet-weather delays, works extended across 7.2 kilometres and the project remained on track for completion in the first half of calendar 2027. Alkane spent A$29.0 million in growth capital at Tomingley during FY26, primarily on the highway realignment.
FY27 outlook
Alkane reiterated FY27 group guidance of 163,000-177,000 gold equivalent ounces at an AISC of A$2,900-A$3,200 per ounce.
The company expects growth capital expenditure of A$160-A$190 million across its three mines and exploration spending of A$45-A$53 million, with a further A$10-A$12 million allocated to Boda-Kaiser and other exploration.