Alchemy reports $3.84 million FY2026 loss and $817,682 cash balance
Alchemy Resources finished FY2026 with a sharply wider loss, lower cash and a smaller asset base, even as drilling delivered strong copper-gold results at Yellow Mountain and high-grade iron results at Valley Bore. The explorer has reshaped its portfolio, but its next phase still depends on exploration success and further funding.
- FY2026 loss widened to $3.84 million from $1.30 million
- Cash fell to $817,682 while net assets declined to $8.44 million
- Yellow Mountain returned a 113-metre intercept grading 1.17% copper equivalent
- Newcam now holds 60% of the Bryah iron ore assets, with Alchemy free-carried at 40%
- Karonie and Lake Rebecca were sold for Forrestania shares and a retained royalty
Loss widens as cash reserves tighten
Alchemy Resources Limited (ASX:ALY) has posted a $3.84 million loss for the year ended 30 June 2026, nearly three times the $1.30 million loss recorded a year earlier. The result included a $1.72 million loss on financial assets, principally reflecting the market value of shares received from Forrestania Resources, alongside $1.56 million in exploration and evaluation costs written off.
Cash fell from $1.23 million to $817,682, while net assets declined to $8.44 million from $11.99 million. The balance sheet does, however, include $3.28 million of Forrestania shares received for the sale of the Karonie and Lake Rebecca projects. Alchemy also retained a 1% net smelter royalty, subject to an exclusion covering the first 110,000 ounces of gold from the Parmelia, KZ5 and Taupo deposits.
Yellow Mountain delivers the strongest exploration signal
The most consequential exploration result came from Yellow Mountain in New South Wales, where a five-hole reverse circulation program confirmed broad polymetallic mineralisation in a district last drilled in 1986. Hole YMRC004 returned 113 metres at 1.17% copper equivalent from 43 metres, including 10 metres at 2.16% copper equivalent, while YMRC005 returned 31 metres at 1.54% copper equivalent from just four metres.
Those figures are company-calculated metal-equivalent grades, combining copper, gold, silver, lead and zinc using stated prices and recoveries. Alchemy says the results remain preliminary and that comprehensive metallurgical testing is still required. An induced polarisation survey also identified two untested chargeability targets, one extending about 250 metres and another about 750 metres, with heritage work and access planning completed for follow-up drilling.
Portfolio reshaped around funded partnerships
At Bryah, Newcam Minerals exercised its option to acquire 60% of the Valley Bore and Old Highway iron ore assets after a 15-hole program returned a standout 50-metre intercept grading 62.5% iron from 17 metres, or 64.4% on a calcined basis. Newcam is now managing the joint venture, while Alchemy retains a 40% interest free-carried to a Decision to Mine. The arrangement also delivered a further $500,000 option-exercise payment and a subscription for 10 million Alchemy shares at 2.5 cents each.
The result is a more concentrated portfolio, but not a lower-risk one. JOGMEC is funding lithium exploration at Roe Hills under a $6 million farm-in that could earn it 51%; 211 aircore holes defined five follow-up targets, yet four RC holes into the primary target intersected pegmatites less than one metre wide and produced no significant lithium results. In the Catalyst-operated Bryah gold joint venture, 22 RC holes were completed without significant results.
Alchemy's mineral resource estimates were unchanged during the year, including the 342,000-ounce gold-equivalent Inferred resource at Overflow, the 111,100-ounce Inferred resource at Karonie and the West Lynn nickel and Summervale alumina estimates. The company states that additional equity or debt funding may be required if cash generation does not keep pace with exploration plans. That makes the coming Yellow Mountain drilling, Newcam's progress towards feasibility work and the JOGMEC earn-in important tests of whether the reshaped portfolio can produce results before the balance sheet becomes the story again.
Bottom Line?
Alchemy has improved portfolio focus and secured partners for iron ore and lithium, but its $817,682 cash balance leaves little room for sustained exploration disappointment.
Questions in the middle?
- Can Yellow Mountain's untested IP anomalies convert strong intercepts into a coherent mineralised system?
- Will Newcam advance Valley Bore towards feasibility and a Decision to Mine within the joint venture timetable?
- How long can Alchemy maintain its planned exploration program before another capital raise becomes necessary?
