Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has delivered annual production in the upper half of guidance, generated record cash flow and proposed its first dividend following a strong finish to the 2026 financial year.
The gold and antimony producer generated 42,491 gold equivalent ounces in the June quarter at an all-in sustaining cost (AISC) of A$3,011 per ounce, taking full-year production to 168,337 gold equivalent ounces at an AISC of A$2,925 per ounce.
Quarterly mine operating cash flow reached A$174 million, contributing to a post-tax free cash build of A$104 million. Alkane ended June with A$432 million in cash and A$454 million in combined cash, bullion and listed investments.
Reflecting the strengthened balance sheet, the board has proposed a maiden fully franked dividend of 2 cents per share, subject to completion of the audit, statutory dividend tests and final board approval.
Strong sales and operating cash flow
Alkane sold 47,411 gold equivalent ounces during the quarter, generating A$257 million in revenue at an average realised gold price of A$5,442 per ounce and an average realised antimony price of A$24,276 per tonne.
Production comprised 40,949 ounces of gold and 456 tonnes of antimony. Output was below the March quarter due primarily to planned grade variations across the company's three operating mines.
Managing director and CEO Nic Earner said the result demonstrated the strength of Alkane's expanded operating portfolio.
"Our site operating cash flow was $174 million for the quarter, resulting in a balance sheet with $454 million in cash, bullion and listed investments at quarter end," Earner said.
"Reflecting this strong financial position and our confidence in the business, the Board has proposed Alkane's first ever dividend of 2 cents per share, fully franked — a significant milestone for the Company and a tangible return to the shareholders who have supported our growth."
Three-mine portfolio delivers
Tomingley Gold Operations in New South Wales produced 20,896 ounces during the quarter and generated A$76 million in operating cash flow.
The mine achieved record annual gold production, underground ore tonnes and mill throughput during FY26, while work continued on the Newell Highway diversion required to support the operation's expansion.
At the Costerfield gold-antimony operation in Victoria, Alkane produced 11,659 gold equivalent ounces and generated A$50 million in operating cash flow.
Exploration drilling at Brunswick South extended the high-grade gold-antimony trend, with notable results including 2.17 metres at 50.1 g/t gold and 26.2% antimony, and 0.65 metres at 109.9 g/t gold and 3.1% antimony.
Björkdal in Sweden produced 9,935 ounces of gold and contributed A$49 million in operating cash flow. Exploration continued along the northern and eastern extensions of the mine and at the nearby Storheden deposit.
Boda-Kaiser exploration advances
At the Northern Molong Porphyry Project in New South Wales, drilling between the Boda and Kaiser deposits intersected further gold-copper mineralisation within an intrusive-hydrothermal breccia system.
Results included 23.5 metres at 0.17 g/t gold and 0.14% copper and 42.1 metres at 0.16 g/t gold and 0.14% copper.
A mobile magnetotelluric survey also identified six high-priority porphyry targets north of Boda-Kaiser, including targets at Driell Creek, Murga, Gollan North, One Tree and Old Station. Ground validation has begun ahead of further drill targeting.
FY27 guidance and next steps
Alkane has forecast FY27 production of between 163,000 and 177,000 gold equivalent ounces at an AISC of A$2,900 to A$3,200 per ounce.
The company expects to spend A$55 million to A$65 million on exploration and A$160 million to A$190 million on growth capital.
Key programs include the Newell Highway diversion at Tomingley, development of Brunswick South at Costerfield, initial development at Storheden, expansion of Björkdal's tailings facilities and equipment replacement across the group.
About Alkane Resources
Alkane Resources is an Australian-based gold and antimony producer operating the Tomingley gold mine in New South Wales, the Costerfield gold-antimony mine in Victoria and the Björkdal gold mine in Sweden.
The company also owns the large Boda-Kaiser gold-copper porphyry project within the Northern Molong Porphyry Project in Central West New South Wales.
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