Alkane’s Strong Quarter Masks Risks Ahead for FY2026 Production Targets
Alkane Resources delivered a robust December quarter with 43,663 ounces of gold equivalent production and a significant increase in cash and bullion holdings to A$246 million. The company maintains its FY2026 production guidance amid ongoing exploration and development.
- Q2 production of 43,663 gold equivalent ounces from three mines
- Cash, bullion, and listed investments rose to A$246 million
- Sales included 42,709 ounces of gold and 409 tonnes of antimony
- FY2026 production guidance steady at 160,000–175,000 AuEq ounces
- Debt-free status maintained except for A$22 million in equipment finance
Solid Quarterly Production Across Three Mines
Alkane Resources has reported a solid performance for the December 2025 quarter, producing 43,663 ounces of gold equivalent from its trio of operating mines – Tomingley in New South Wales, Costerfield in Victoria, and Björkdal in Sweden. This output reflects a steady contribution from each site, with Tomingley leading at over 22,000 ounces of gold, underscoring the mine’s ongoing operational strength.
The company’s ability to maintain consistent production levels across geographically diverse assets is a testament to its operational management and the resilience of its mining portfolio in a fluctuating commodities market.
Strengthened Financial Position
Alkane’s financial position has notably improved, with cash, bullion, and listed investments climbing to A$246 million by the end of the quarter, an increase of A$55 million compared to the previous quarter. This growth comes despite an A$11 million income tax payment for FY25, highlighting strong cash flow generation. The company remains effectively debt free, carrying only A$22 million in equipment finance, which provides flexibility for future investments or exploration activities.
Sales figures for the quarter included 42,709 ounces of gold and 409 tonnes of antimony, reflecting solid market demand and efficient sales execution, even with some payment delays due to holiday season timing.
Maintaining Guidance Amid Exploration and Development
Alkane has reaffirmed its FY2026 production guidance of 160,000 to 175,000 gold equivalent ounces, with an all-in sustaining cost (AISC) range of A$2,600 to A$2,900 per ounce. This steady outlook suggests confidence in operational continuity and cost management despite the inherent volatility in commodity prices.
Beyond production, Alkane continues to invest in exploration and development, particularly at its Boda-Kaiser gold-copper project and the Northern Molong Porphyry project in New South Wales. These initiatives could enhance the company’s resource base and underpin future growth, reinforcing its position in the Australian and global mining sectors.
Managing Director Nic Earner highlighted the milestone of Tomingley’s upcoming 750,000th ounce pour, a significant achievement that reflects the mine’s long-term value contribution.
Looking Ahead
With a strong balance sheet, consistent production, and ongoing exploration, Alkane Resources appears well positioned to navigate the challenges and opportunities of 2026. Investors will be watching closely for the full December quarterly report and any updates on resource estimates or project developments that could influence the company’s trajectory.
Bottom Line?
Alkane’s steady production and robust cash position set the stage for growth, but market dynamics and exploration results will be key to watch.
Questions in the middle?
- How will fluctuations in gold and antimony prices impact Alkane’s cost structure and margins?
- What progress and timelines can be expected from the Boda-Kaiser and Northern Molong Porphyry projects?
- Will Alkane revise its FY2026 guidance in response to operational or market changes?
