Alkane Resources delivered 45,776 ounces of gold equivalent in Q3 2026, boosted cash and bullion holdings to $362 million, and maintained its full-year production guidance amid stable operations.
- Q3 2026 gold equivalent production of 45,776 ounces from three mines
- Cash, bullion and listed investments increased to $374 million
- Undrawn $110 million revolving credit facility expected by June 2026
- FY2026 production guidance maintained at 160,000 to 175,000 AuEq ounces
- Operations unaffected by diesel supply disruptions
Quarterly Production Performance
Alkane Resources Ltd (ASX:ALK) reported a consolidated production of 45,776 ounces of gold equivalent (AuEq) for the quarter ending 31 March 2026. This output was generated across its three operating mines: Tomingley in New South Wales, Costerfield in Victoria, and Björkdal in Sweden. The breakdown included 44,669 ounces of gold and 377 tonnes of antimony, which together contributed to the AuEq figure.
Specifically, Tomingley produced 21,652 ounces of gold, Costerfield delivered 10,584 ounces of gold and 377 tonnes of antimony (equivalent to 11,691 AuEq ounces), and Björkdal contributed 12,433 ounces of gold. Year-to-date production since July 2025 totals 125,846 AuEq ounces, reflecting the combined output of these assets.
Financial Position and Liquidity
At the end of the quarter, Alkane held cash, bullion, and listed investments totalling A$374 million, marking an increase of A$128 million from the previous quarter. The company’s cash and bullion alone stood at A$362 million. Alkane also has an undrawn revolving credit facility of A$110 million, expected to be available by June 2026, which would bring total pro forma liquidity to A$472 million. The company remains free of debt aside from A$20 million in equipment finance.
This strong liquidity position follows the recent secured revolving credit facility that supports Alkane’s operational and growth initiatives across its mining portfolio.
Operational Stability and Cost Guidance
Alkane confirmed that its operations have not been disrupted by diesel supply issues, with contracts in place ensuring regular fuel deliveries. Diesel costs represent a small portion of total expenses, as the company’s mines are underground and power is sourced from grid suppliers in Australia and Sweden.
The company reiterated its FY2026 production guidance of 160,000 to 175,000 AuEq ounces, with an all-in sustaining cost (AISC) range of A$2,600 to A$2,900 per ounce. This guidance remains unchanged from previous announcements.
Strategic Outlook and Exploration
Alkane continues to operate three producing mines and is advancing exploration near these sites to enhance resources. The company also holds the Boda-Kaiser gold-copper porphyry project in New South Wales, with a scoping study outlining an economic development pathway. Ongoing exploration in the Northern Molong Porphyry Project aims to further establish the region’s significance for gold, copper, and antimony production.
Managing Director Nic Earner highlighted the company’s strong balance sheet and steady production, noting the quarter’s results reflect operational consistency and financial strength.
Bottom Line?
Alkane’s March quarter results demonstrate operational resilience and robust liquidity, positioning the company to navigate market uncertainties while pursuing growth opportunities.
Questions in the middle?
- How will fluctuations in gold and antimony prices impact Alkane’s full-year production economics?
- What are the timelines and conditions for drawing on the undrawn revolving credit facility?
- How might ongoing exploration at Boda-Kaiser and Northern Molong influence Alkane’s resource base and future production?