Alkane Resources posts strong March quarter production, boosts cash position to $374 million Proactive uses images sourced from Shutterstock

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has delivered a solid March quarter, lifting production across its three operating mines while significantly strengthening its balance sheet, as the gold and antimony producer continues to build momentum following last year’s portfolio expansion.

The company reported quarterly production of 45,776 ounces of gold equivalent (AuEq), supported by contributions from its Tomingley, Costerfield and Björkdal operations, while cash, bullion and listed investments rose to $374 million at the end of March, with closing cash and bullion at $362 million.

The result marks a $128 million increase in closing investment balance from the December quarter, underpinned by strong operating cash flow and disciplined capital management, with Alkane remaining effectively debt free aside from $20 million in equipment finance.

Production steady across expanded portfolio

Group gold production for the quarter totalled 44,669 ounces, alongside 377 tonnes of antimony, reflecting consistent output across the company’s now-diversified asset base.

Tomingley in New South Wales remained a key contributor, producing 21,652 ounces of gold for the quarter, while the Costerfield operation in Victoria delivered 10,584 ounces of gold and 377 tonnes of antimony. The Björkdal gold mine in Sweden added a further 12,433 ounces.

On a year-to-date basis, Alkane has produced 125,846 ounces of gold equivalent, keeping it on track to meet its full-year guidance.

Managing director Nic Earner described the period as “an excellent quarter’s production,” highlighting the contribution from all three operations and the benefits of the company’s expanded footprint following its merger with Mandalay Resources last year.

Sales and guidance unchanged

Alkane reported sales of 42,550 ounces of gold and 280 tonnes of antimony for the quarter, generating 43,373 ounces of gold equivalent sold.

Importantly, the company reaffirmed its FY2026 production guidance of 160,000 to 175,000 AuEq ounces, with all-in sustaining costs (AISC) expected to remain in the range of A$2,600 to A$2,900 per ounce.

The steady outlook comes despite broader cost pressures across the mining sector, with Alkane noting that its operations have not been impacted by diesel supply concerns.

The company said it has secured fuel supply contracts and remains relatively insulated from volatility in diesel prices, given its reliance on grid power across its underground operations in Australia and Sweden.

Balance sheet strengthens alongside growth plans

The sharp increase in cash and bullion positions Alkane with one of the stronger balance sheets among mid-tier gold producers, providing flexibility to fund ongoing development and exploration activities.

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Pro forma liquidity rises to $472 million when including an undrawn $110 million revolving credit facility, expected to be available from June, further enhancing funding capacity.

The result builds on recent financing initiatives, including a $150 million syndicated debt package announced in late March, which supports the company’s broader growth strategy across both producing assets and development projects.

Alkane continues to advance its Boda-Kaiser gold-copper project in New South Wales alongside ongoing exploration across its Northern Molong Porphyry Project, while near-mine drilling programs aim to extend mine life at its existing operations.

With production tracking in line with guidance and a strengthened financial position, the company appears well placed to sustain output and pursue further growth opportunities through FY2026 and beyond.

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