Alkane Resources (ASX:ALK) Eyes FY26 Growth with AUD 91 Million Exploration and Development Budget

Highlights

• Alkane’s FY25 revenue rose 52% to AUD 262.4 million due to higher gold production.
• In Q1 FY26, Alkane produced 36,407 AuEq ounces, maintaining guidance for full-year output.
• Exploration at Tomingley confirmed new gold mineralisation and identified a "Western Andesite" zone.

Alkane Resources Ltd (ASX:ALK) is an Australian gold and antimony producer with three wholly owned mines in Australia and Sweden, including Tomingley (NSW), Costerfield (Victoria), and Björkdal (Sweden). The company also holds exploration projects, notably the Boda-Kaiser gold-copper project in New South Wales.

Financial Update

For the financial year (FY25), the company reported revenue of AUD 262.4 million, up 52% from AUD 172.9 million in FY24. The increase was primarily driven by higher gold production, which rose 23% YoY to 70,120 ounces, supported by the Tomingley Gold Extension Project that improved gold recovery and extended the mine’s operational life. Despite higher production, the company maintained disciplined cost management, with an all-in sustaining cost of approximately AUD 2,561 per ounce in FY25. During the same period, gross profit increased to AUD 56.6 million up 64% from AUD 34.6 million in FY24. Total comprehensive income attribute to ALK reached AUD 35.3 million, up 287% from AUD 9.13 million in FY24.

Business Update

ALK will release its Q1 FY2026 operating and financial results on 13 November 2025, followed by a conference call with CEO Nic Earner and CFO James Carter.

Earlier, the company reported encouraging drilling results from its Tomingley Gold Operations in NSW. Nine holes at the McLeans deposit (3,247 m) confirmed new gold mineralisation, including 26 m @ 4.36 g/t Au and 3.3 m @ 22.8 g/t Au, and revealed a new "Western Andesite" zone 150 m west of the current resource. Further drilling is planned to test both Andesite zones for updated resource estimates.

Key Positives and Negatives

In FY25, the company’s EBITDA margin rose to 38.3% from 34.4% in FY24. Return on equity improved to 10.1% in FY25 from 5.8% in FY24. The current ratio declined to 1.08x in FY25 from 1.38x in FY24 and the asset turnover ratio declined to 0.53x compared to industry median of 0.60x.

Business Outlook

In Q1 FY26, ALK produced 30,511 AuEq ounces at an AISC of AUD 2,988/oz, generating AUD 73 million in operating cash flow. Full-quarter production reached 36,407 AuEq ounces at AUD 3,036/oz, keeping FY26 guidance of 160–175 koz AuEq at AUD 2,600–2,900/oz on track. Quarterly sales totaled 30,010 AuEq ounces for AUD 147 million in revenue, with AUD 191 million in cash, bullion, and investments.

Key exploration highlights included high-grade gold at Tomingley’s El Paso, True Blue, and Boda-Kaiser extensions. The quarter also saw the completion of the Mandalay Resources merger and ASX 300 inclusion.

For FY26, the company targets 160–175koz AuEq production at an AISC of AUD 2,600-2,900 per oz, supported by Tomingley, Björkdal, and higher antimony grades at Costerfield, with AUD 81–91 million allocated for growth and exploration across all operations.

Share Performance of ALK

ALK’s shares were trading at AUD 1.100 per share on 12 November 2025 with an intraday loss of 0.45%. ALK’s stock price jumped 34.14% in last three months, gained 50.68% over the six months, and decline by 122.22% over the past year. ALK’s 52-week high is AUD 1.224, recorded on 14 October 2025 and 52-week low is AUD 0.460, recorded on 14 January 2025.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 12 November 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Disclaimer

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