Sep 2025

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# Sep 2025

Source: https://investors.alkres.com/site/pdf/bfea15c9-92d5-4c70-aab6-a00bb51b470a/Quarterly-Activities-Report.pdf?Platform=ListPage
Published: 2025-10-29T00:00:00+00:00
Fetched: 2026-05-12T14:06:46.064+00:00
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## Content

# Sep 2025
INVESTOR ANNOUNCEMENT and MEDIA RELEASE
29 October 2025
Record quarterly operational cash build
$1.0B Merger lifts Alkane into ASX 300
Perth, Western Australia - Alkane Resources Limited’s (ASX:ALK; TSX:ALK; OTCQX:ALKEF) (‘Alkane’ or ‘the
Company’) is pleased to present its Quarterly Activities Report for the period ending 30 September 2025 (‘Q1 FY26’):
Operations
• Site operating cash flow of A$73 million for the quarter.
• Q1 FY26 record gold production of 30,511 AuEq oz @ AISC of $2,988/AuEq oz during a transitional quarter
including only 2 months of Björkdal and Costerfield production. 1
• Full 3 month production for all operations was 36,407 AuEq oz1 at AISC of A$3,036/AuEq oz. 2
• Full Year Group Guidance on track for 160-175kozs AuEq at AISC A$2,600-2,900/AuEq oz reflects production
from Costerfield and Björkdal from July 2025. 3
• In early October Tomingley awarded the final portion of the contract to construct the Newell Highway re-
alignment. Construction is expected to complete in the March quarter 2027.
Exploration
• New Vein intercepted at True Blue (part of the Costerfield property) with an intercept of 11.7g/t gold and 6.5%
antimony over 4.88m (estimated true width 2.06m).
• Significant high grade gold intercepts at El Paso within Tomingley of 8.2m @ 3.74g/t gold including 1m @ 25.0g/t
gold (see ASX Announcement dated 14 August 2025 and titled ‘Tomingley Exploration Intersects Significant Gold
at El Paso).
• Extension of the high grade breccia gold-copper mineralisation at the Boda-Kaiser porphyry deposits (see ASX
Announcement dated 8 July 2025 and titled ‘Boda-Kaiser Regional Exploration Update’).
Finance
• Gold equivalent sales for the quarter of 30,010 ounces1 for revenue of A$147 million at an average gold price of
A$4,896/oz and an average antimony price of A$35,646/t.
• Cash, bullion and listed investment balance of A$191 million, after the repayment of the A$45 million debt
facility and one-off merger related costs of A$25 million.
• Debt repayments of A$45 million and 7,250 ounces of hedges filled during the quarter.
Corporate
• During the quarter, Alkane and Mandalay Resources Corporation shareholders both voted to approve the “merger
of equals” between the companies. The transaction was completed on 5 August 2025.
• Admitted to ASX 300 during the quarter.
• FY2026 guidance was released for the combined company during the quarter.
1
Gold equivalent ounces calculated by multiplying quantities of gold and antimony in period by respective average market price of commodities in period, adding the two amounts to get
‘total contained value based on market price’ and dividing that total contained value by the average market price of gold in period. I.e., AuEq = ((Au Produced x Au $/oz) + (Sb Produced
pre-payability x 70% payability x Sb $/t)) / (Au $/oz). The average market prices for the quarter were A$5,283/oz Au (being the average of the daily PM price, sourced from www.lbma.org.uk)
and A$33,508/t Sb (being the average Shanghai Metal Market Price sourced from www.metal.com). The average market prices for the statutory reporting period were US$5,382/oz Au
(being the average of the daily PM price, sourced from www.lbma.org.uk) and A$33,859/t Sb (being the average Shanghai Metal Market Price sourced from www.metal.com). AISC is a
non-IFRS measure and does not have a standardised meaning under IFRS and might not be comparable to similar financial measures disclosed by other companies. Refer to "Non-IFRS
Performance Measures" at the end of this announcement.
2
Group Production on basis of 100% contribution from Tomingley, Costerfield and Björkdal for the quarter. As the merger with Mandalay Resources completed on 5 August 2025, Alkane’s
statutory reported production for FY2026 reflects production from Costerfield and Björkdal only from that date. Full quarter production and costs can be found at the end of this report.
3
Refer to ALK Announcement dated 9 September 2025 titled ‘Alkane Announces Financial Year 2026 Guidance’ for calculation of gold equivalent ounces and definition of Group
Guidance.
CONTACT: NIC EARNER, MANAGING DIRECTOR & CEO, ALKANE RESOURCES LTD, TEL +61 8 9227 5677
INVESTORS & MEDIA : NATALIE CHAPMAN, CORPORATE COMMUNICATIONS MANAGER, TEL +61 418 642 556
Level 4, 66 Kings Park Rd, West Perth WA 6005, AUSTRALIA (PO Box 768, West Perth WA 6872, AUSTRALIA)
Telephone: +61 8 9227 5677 alkres.com mail@alkres.com
Managing Director, Nic Earner, commented: “It has been a significant quarter with the merger with Mandalay
completing in early August. Alkane now has three operating mines who together produced 35,527 ounces of gold and
198 tonnes of antimony (36,407 ounces of gold equivalent) over the full quarter.1,2 With the repayment of our A$45
million debt and the one-off transaction costs of A$25 million behind us we have a very solid balance sheet with A$191
million in cash, bullion and listed investments at quarter end.”
GROUP SUMMARY STATUTORY REPORTING PERIOD
Gold-Antimony Production
During the quarter, Alkane produced a Group record quarterly production of 30,511 gold equivalent ounces at an AISC
of $2,988/AuEq oz.1 This was a transitional quarter with only 2 months of production from Björkdal and Costerfield.
Alkane produced 29,965 ounces of gold and 124 tonnes of antimony in Q1 FY26, its highest quarterly gold and antimony
production yet. This period included the expected slower production at Björkdal over the Swedish extended summer
vacation period. Additionally, this result was from three months of production from the Tomingley operation (18,335 gold
ounces) but only two months of production from the Costerfield (6,189 gold equivalent ounces1) and Björkdal (5,987
gold ounces) operations.
Alkane processed 571,429 tonnes of ore in total at an average gold grade of 2.27g/t Au producing 29,965 ounces of
gold. Tomingley processed 314,970 tonnes of ore with an average gold grade of 2.15g/t. At Costerfield, the average
grade of gold was 8.48g/t and the average grade of antimony was 0.68% over 22,671 tonnes of ore processed over two
months while Björkdal processed 233,789 tonnes of ore with an average gold grade of 0.94g/t, also only over two
months.
Table 1: September 2025 statutory reporting period operational performance summary1
Revenue
Gold equivalent sales for the quarter of 30,010 ounces1 for revenue of A$147 million at an average gold price of
A$4,896/oz and an average antimony price of A$35,646/t. Revenue from Tomingley includes 7,250 ounces delivered
into forward contracts at an average A$2,832/ounce. Björkdal´s average realised gold price at A$6,335/oz is a simple
average for the quarter of recognised revenue divided by ounces sold for the quarter. Provisionally priced concentrate
sales are revalued at each reporting date by using the current market price at the end of each reporting period, which
increased notably during the quarter leading to the recognition of additional revenue without recognising additional
ounces, increasing the realised gold price per ounce.
2/14
Alkane Resources Limited – 30 September 2025 Quarterly Report – 29 October 2025
Operating Costs, Cash Operating Costs per Gold Equivalent Ounce Produced, All-In Sustaining Costs (‘AISC’)
per Gold Equivalent Ounce Produced and Capital Expenditures
Consolidated AISC of A$2,988/AuEq1 oz for the quarter. Consolidated operating cash costs of A$2,215/AuEq1 oz for the
quarter.
Capital expenditure during Q1 FY26 of A$27 million including A$6 million investment in growth projects, mainly at
Tomingley for the Newell Highway realignment and Biodiversity Offset fencing projects. During the quarter, A$6 million
of investment in exploration drilling was made including drilling at Costerfield totalling A$4 million, which focused on four
key areas - close to the mine the Brunswick South, Sub KC and Kendal drilling look to adding to immediate mine life
and 2 km to the west the True Blue program continued with three drill rigs infilling and extending resources. At Björkdal,
there was A$2 million worth of drilling focused on three programs - the North Zone and Eastern extension programs
continued aiming to extend reserves of the Björkdal Mine and the Storheden (~1km to the north-east) drilling looked to
extend the resources at depth.
Table 2: September 2025 statutory reporting period financial performance summary1
Financials Units Costerfield Tomingley Björkdal Total
Gold equivalent sold oz 5,273 18,456 6,281 30,010
Average realised gold price A$/oz 5,361 4,284 6,335 4,896
Average realised antimony price A$/oz 35,646 - - 35,646
Revenue A$'000 28,379 79,058 39,792 147,229
Mining A$'000 6,964 22,565 10,381 39,910
Processing A$'000 2,551 12,545 3,976 19,072
G&A A$'000 2,408 3,754 2,436 8,598
Cash cost A$'000 11,923 38,863 16,793 67,580
Inventory movements A$'000 (241) 913 (765) (93)
Royalties A$'000 998 2,605 85 3,688
Corporate costs A$'000 - - - 3,813
Rehabilitation A$'000 13 816 34 863
Sustaining Capital A$'000 2,475 4,989 7,859 15,323
All-in sustaining cost A$'000 15,168 48,186 24,007 91,175
Exploration A$'000 3,697 383 1,546 5,626
Growth capital A$'000 124 6,028 - 6,152
All-in cost A$'000 18,989 54,597 25,553 102,953
Gold produced oz 5,643 18,335 5,987 29,965
Antimony produced t 124 - - 124
Gold equivalent produced oz 6,189 18,335 5,987 30,511
Cash cost A$/oz 1,927 2,120 2,805 2,215
All-in sustaining cost A$/oz 2,451 2,628 4,010 2,988
All-in cost A$/oz 3,068 2,978 4,268 3,374
Mine operating cash flow A$'000 20,357 39,112 13,808 73,277
Mine Operating Cashflow: Statutory operating cashflow (including royalties and working capital adjustments) excluding capital expenditure.
3/14
Alkane Resources Limited – 30 September 2025 Quarterly Report – 29 October 2025
Cash flow
Alkane closed the quarter with cash, bullion and liquid investments of A$191 million – comprising $160 million in total
cash, bullion ($14 million) and liquid investments ($17 million). This result was driven by record Group gold sales at
30,010 gold equivalent ounces1 and an increase in realised gold price to A$4,896/oz and a realised antimony price of
A$35,646/t generating $147 million in revenue partly offset by A$45 million debt repayment and one-off transaction and
tax costs of A$25 million from the merger with Mandalay incurred during the quarter. Alkane´s operations generated
A$73 million of mine operating cashflows with the achieved gold price $1,908/AuEq oz over AISC.
September Quarter 2025 Cash Movement
14
20
39 (15)
(12) 231
(13)
150 198 (24)
160
(48)
Underlying post tax free
cashflow of $33.0 m
48
One offs and capital
structure cashflows
4/14
Alkane Resources Limited – 30 September 2025 Quarterly Report – 29 October 2025
OPERATIONS AND PROJECTS
Costerfield Gold-Antimony Operations - Victoria (Costerfield)
Mandalay Resources Costerfield Operations Pty Ltd (100%)
Costerfield gold-antimony operations is a wholly owned operation of Alkane. Costerfield is located within the Costerfield
mining district of Central Victoria, Australia, approximately 10 km northeast of the town of Heathcote and 50 km east of
the city of Bendigo.
The Property encompasses the underground infrastructure supporting the Augusta, Cuffley, Brunswick, Youle and
Shepherd deposits; the Augusta Mine Site (Augusta), the Brunswick Processing Plant; the Splitters Creek Evaporation
Facility; the Brunswick and Bombay Tailings Storage Facilities (TSF) and associated infrastructure.
Operations Performance
Costerfield delivered steady operational performance during the quarter, maintaining strong mining productivity while
advancing several initiatives to improve ore quality and recovery. Mining focused on achievement of planned high priority

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