Alkane Resources has opened FY27 with 40,740 gold equivalent ounces of production and $440 million in cash and bullion. The miner has maintained its full-year guidance while funding mine extensions, growth projects and its maiden dividend.
- 40,740 gold equivalent ounces produced in the September quarter
- $440 million in cash and bullion, with $550 million of pro forma liquidity
- Tomingley contributed 21,506 ounces of gold
- 21,150 ounces remain to be delivered into hedges by June 2027
- FY27 production and cost guidance reiterated
September quarter production reaches 40,740 ounces
Alkane Resources (ASX:ALK) has started FY27 with 40,740 gold equivalent ounces of production, including 39,823 ounces of gold and 396 tonnes of antimony. The group sold 38,348 gold equivalent ounces during the September quarter, comprising 37,950 ounces of gold and 172 tonnes of antimony.
Tomingley was the largest contributor at 21,506 ounces of gold, followed by Björkdal with 10,482 ounces. Costerfield produced 7,835 ounces of gold and 396 tonnes of antimony, equivalent to 8,752 gold equivalent ounces under Alkane's stated calculation methodology.
Cash position supports a heavy reinvestment year
Alkane ended September with $440 million in cash and bullion, alongside $19 million in listed investments. Including its undrawn $110 million revolving credit facility, pro forma liquidity stood at $550 million.
The balance sheet remains largely unlevered, with only $16 million of equipment finance outstanding. That liquidity is being put to work: FY27 growth capital is guided at $160 million to $190 million, with spending earmarked for the Newell Highway project at Tomingley, the Brunswick South development at Costerfield and Björkdal's Nylund integration and Storheden development. The company also paid its first $24 million dividend to the share registry near the end of September, with a further $3 million transferred for TSX shareholders on 1 October. The cash position therefore provides room for expansion, but it is being drawn against several competing uses.
The reinvestment program comes after Alkane's FY26 profit and maiden dividend, when the company reported a $228.7 million profit after tax and set broadly stable FY27 production guidance.
Guidance holds while hedge deliveries continue
Alkane reiterated group FY27 production guidance of 163,000 to 177,000 gold equivalent ounces, with all-in sustaining costs guided at A$2,900 to A$3,200 per ounce. The company expects Tomingley to produce 78,000 to 84,000 ounces, Costerfield 44,000 to 48,000 ounces and Björkdal 41,000 to 45,000 ounces.
It delivered 7,800 ounces into hedges during the quarter and has 21,150 ounces still due over the three quarters to June 2027. The filing says Alkane is not aware of new information materially affecting guidance and that the underlying assumptions continue to apply. The September result is roughly one-quarter of the annual production range, although the update does not provide the operating-cost or mine-by-mine detail needed to judge how evenly the year is tracking.
Storheden is also moving from resource-building towards development, following the Storheden resource expansion that increased the gold resource near Björkdal by 26%. The next detailed test of production, costs and project spending will come with Alkane's September quarter activities report on 23 October.
Bottom Line?
Alkane has entered FY27 with substantial liquidity and unchanged targets, but the year will test whether production, hedge commitments and expansion spending can advance together.
Questions in the middle?
- Will the remaining 21,150 ounces of hedge deliveries affect realised prices or cash generation as gold prices move?
- How quickly will the Newell Highway, Brunswick South and Storheden projects convert reinvestment into additional mine life or production?
- Will the detailed September activities report show costs tracking within the A$2,900 to A$3,200 group AISC range?