Alkane Resources Reports FY26 Gold Production, Record Cashflow, and Announces First Dividend

FY26 Production Achieves Upper Guidance Range

Alkane Resources delivered FY26 gold equivalent production of 168,337 ounces at an AISC of $2,925 per ounce, placing the company’s output in the top half of its guidance. This result was supported by diversified production from its three operating mines: Tomingley and Costerfield in New South Wales, and Björkdal in Sweden. Q4 FY26 production totaled 42,491 gold equivalent ounces, including 40,949 ounces of gold and 456 tonnes of antimony, at an AISC of $3,011 per ounce. The slight decline in quarterly production compared to the previous quarter was attributed to normal and planned grade variations across operations.

Operational details highlight Alkane’s geographic and commodity diversification. Tomingley processed 325,689 tonnes of ore with an average gold grade of 2.27 g/t and a gold recovery rate of 87.66%. Costerfield processed 36,441 tonnes of ore with average grades of 9.32 g/t gold and 1.40% antimony, achieving gold and antimony recoveries of 95.24% and 91.10%, respectively. Björkdal processed 331,477 tonnes of ore at an average gold grade of 1.08 g/t with an 85.61% gold recovery. The company did not disclose total ore mined for FY26 in this release.

Record Quarterly Cashflow and Robust Balance Sheet Demonstrate Financial Strength

Alkane reported a record site operating cashflow of $174 million in Q4 FY26, significantly strengthening its balance sheet. Cash, bullion, and listed investments reached $454 million at quarter-end, up $104 million during the quarter despite $18 million in corporate income tax payments. This improvement reflects operational efficiency and disciplined capital management, providing financial flexibility for exploration, asset maintenance, and shareholder returns.

During Q4 FY26, gold equivalent sales totaled 47,411 ounces, generating $257 million in revenue at an average realised gold price of $5,442 per ounce and an average antimony price of $24,276 per tonne. The company hedged 8,500 ounces of gold in the quarter as part of its risk management strategy. The balance sheet’s composition of cash, bullion, and investments supports a conservative capital approach and downside protection against commodity price volatility. Specific allocations among these holdings were not disclosed.

First Fully Franked Dividend Proposed Reflecting Confidence and Shareholder Value

The board has proposed Alkane’s maiden fully franked dividend of 2 cents per share for FY26, pending audit completion, compliance with Corporations Act dividend tests, and final board approval. This dividend marks a significant corporate milestone, signaling confidence in sustainable cashflow and operational performance. The fully franked dividend offers Australian shareholders franking credits, enhancing after-tax returns. The company cautioned that the final dividend amount, timing, and declaration are not guaranteed.

This dividend proposal reflects Alkane’s transition to a mature, cash-generative phase, following prior reinvestment of cashflows into exploration, development, and balance sheet strengthening. The timing aligns with meeting full-year production guidance and establishing a strong cash buffer. Details on record, ex-dividend, and payment dates will be announced after audit and statutory approvals.

FY27 Production Guidance Indicates Stable Outlook

Alkane’s FY27 production guidance anticipates 163,000 to 177,000 gold equivalent ounces at an AISC of $2,900 to $3,200 per ounce. This outlook reflects expectations of stable operational performance across its diversified asset base. The guidance range is consistent with FY26’s 168,337 ounces, indicating steady mine performance year-on-year. The AISC range accounts for moderate inflation and reasonable commodity price assumptions for gold and antimony.

Managing Director and CEO Nic Earner stated the company expects consistent performance in FY27. The guidance does not specify production targets by mine or capital expenditure, exploration spend, or results expectations. All guidance is subject to typical operational risks including grade variability, processing performance, and commodity price fluctuations.

Exploration at Northern Molong Porphyry Project Yields Promising Results

Drilling at the Northern Molong Porphyry Project (NMPP) intersected additional gold-copper mineralisation between the Boda and Kaiser deposits. Notable intercepts included magmatic-hydrothermal breccias averaging 23.5 metres grading 0.17 g/t gold and 0.14% copper, and a separate 42.1-metre interval averaging 0.16 g/t gold and 0.14% copper. These results indicate continuity of mineralisation and potential resource expansion in the Boda-Kaiser corridor.

A Mobile Magnetotellurics (MMT) geophysical survey completed over the NMPP identified new target areas for exploration. This modern technique maps subsurface electrical conductivity linked to copper-porphyry systems, suggesting further upside potential. Detailed exploration results were previously disclosed in the 10 June 2026 update titled "Boda-Kaiser Regional Exploration Update." No resource estimates or development timelines were provided in this quarterly report.

S&P/ASX 200 Inclusion Boosts Liquidity and Institutional Access

S&P Dow Jones Indices included Alkane Resources in the S&P/ASX 200 index effective 22 April 2026, marking a significant growth milestone. Inclusion typically enhances liquidity through index fund inflows, broadens the investor base, and raises the company’s profile in the Australian market. This addition occurred about three months before this quarterly report’s release.

Index inclusion improves equity market accessibility and visibility, often supporting share price stability and trading volumes. The announcement did not disclose specific impacts on trading or shareholder composition. No forward-looking statements on benefits or shareholder structure changes were provided. This announcement was released on 21 July 2026, nearly three months after index inclusion.

Q4 FY26 Hedging and Commodity Price Realisations

In Q4 FY26, Alkane hedged 8,500 ounces of gold as part of its commodity price risk management. The average realised gold price was $5,442 per ounce, reflecting spot prices and hedging effects. The average antimony price realised was $24,276 per tonne. These prices contributed to quarterly revenue of $257 million on 47,411 gold equivalent ounces sold. The hedging activity reflects a balanced approach to risk management while maintaining upside exposure.

The hedged ounces represent about 19.7% of quarterly gold equivalent sales, indicating a moderate hedge ratio. The company did not disclose strike prices, instruments used, or hedge book details. No information on hedging policy or IFRS 9 accounting treatment was provided. Realised prices blend spot sales and prior hedging positions.

Geographic and Geological Diversification Across Operations

Alkane operates a diverse portfolio across Australia and Sweden with three mines: Tomingley (primary Australian gold), Costerfield (antimony-gold), and Björkdal (Swedish gold). This multi-jurisdictional setup offers operational diversification across regulatory regimes, geological settings, and commodity exposures.

Managing operations in two countries involves navigating different mining regulations, environmental standards, and tax systems. Currency fluctuations between the Australian dollar, US dollar, and Swedish krona impact Björkdal’s profitability and consolidated financials. The company did not disclose currency hedging strategies or foreign exchange impacts on AISC. No detailed production contributions by mine were provided.

Operational Consistency Supports Stable Cost and Margin Profile

Meeting FY26 production guidance at an AISC of $2,925 per ounce reflects consistent operational execution. Q4 FY26 AISC was $3,011 per ounce, slightly higher than Q3’s $2,928, due to normal variations in grade, ore hardness, processing rates, and recoveries. The company processed 693,607 tonnes of ore in Q4 at an average gold grade of 2.07 g/t. Processing and recovery rates influence quarterly AISC fluctuations.

Cost discipline and operational reliability underpin Alkane’s AISC performance. Costerfield’s high gold grades and antimony output offset costs through secondary commodity value. Tomingley’s moderate grades are balanced by large reserves and established infrastructure. Björkdal’s high throughput at lower grades supports a large-scale, low-cost model. No forward projections on grade, throughput, or recovery changes were disclosed.