Mar 2026

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# Mar 2026

Source: https://investors.alkres.com/site/pdf/4104e706-72c8-4a04-9c76-457f94794f38/Quarterly-Activity-Report.pdf?Platform=ListPage
Published: 2026-01-27T00:00:00+00:00
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# Mar 2026
ASX Release | December 2025 Quarterly Report
27 January 2026
Record quarterly production & operational cash build
Cash & Bullion $232 million – $58 million increase for the quarter
Perth, Western Australia - Alkane Resources Limited (ASX:ALK; TSX:ALK; OTCQX:ALKEF) (‘Alkane’ or ‘the
Company’) is pleased to present its Quarterly Activities Report for the period ending 31 December 2025 (‘Q2 FY26’):
Operations
• Site operating cash flow of $133 million for the quarter.
• An additional $18 million payment was received in early January from a Costerfield concentrate shipment that
shipped in mid-December with payment receipt delayed due to the Christmas holidays.
• Q2 FY26 record gold production of 43,663 AuEq oz @ AISC of $2,739/AuEq oz. 1,2
• Full Year Group Guidance on track for 160-175kozs AuEq at AISC $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 first half of 2027.
Exploration
• Extension drilling at Storheden (part of Björkdal property) doubled depth extent to 464m and strike extent to 2.7km
of the known system including intercepts of 142.0 g/t gold over 0.60 m (Estimate True Width 0.25 m) and 111.0 g/t
gold over 0.50 m (ETW 0.25 m). 4
• At Tomingley a gold rich domain was discovered adjacent to McLeans and close to current underground
infrastructure. Assays highlights from the drilling include; 4.36g/t gold over 26m including 22.8 g/t gold over 3.3m. 5
Finance and Corporate
• Gold equivalent sales for the quarter of 44,084 ounces1 for revenue of $256 million at an average gold price of
$5,785/oz and an average antimony price of $41,510/t.
• Cash, bullion and listed investment balance of $246 million after $17 million of corporate income tax payments
during the quarter.
• 8,200 ounces of hedges filled during the quarter.
Managing Director, Nic Earner, commented: “It has been an excellent quarter for Alkane, producing 42,767 ounces
of gold and 267 tonnes of antimony (43,663 ounces of gold equivalent) over the full quarter.1, Our site operating cashflow
was $133 million for the quarter, resulting in a balance sheet with $246 million in cash, bullion and listed investments at
quarter end. Our full year guidance of 160-175kozs gold equivalent remains unchanged.3”
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 December quarter were A$6,299/oz Au (being the average of the daily PM price, sourced from
www.lbma.org.uk) and A$30,245/t Sb (being the average Shanghai Metal Market Price sourced from www.metal.com).
2
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.
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.
Production guidance on a statutory reported basis (‘Attributable Guidance’) is 155 – 168koz AuEq for FY2026.
4
Refer to ALK Announcement dated 19 December 2025 titled ‘Alkane Doubles the Tested Depth Extent of the Storheden Deposit at Björkdal.”
5
Refer to ALK Announcement dated 3 November 2025 titled ‘Tomingley Drilling Discovers New Mineralisation at McLeans.”
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
GROUP SUMMARY STATUTORY REPORTING PERIOD1,2
Gold-Antimony Production
Alkane produced 42,767 ounces of gold and 267 tonnes of antimony in Q2 FY26, its highest quarterly gold and antimony
production yet, resulting in a Group record quarterly production of 43,663 gold equivalent ounces (Q1 FY26: 30,511
AuEq oz) at an AISC of $2,739/AuEq oz (Q1 FY26: $2,988/AuEq oz). The production during the quarter was significantly
higher than Q1 FY26, driven by improved output at Tomingley and 3 full months of production from Björkdal and
Costerfield as compared to only 2 months of reported production in the previous quarter following the merger with
Mandalay completing in early August 2025.
Alkane processed 683,235 tonnes of ore in total at an average gold grade of 2.20g/t Au producing 42,767oz of gold.
Tomingley processed 318,851 tonnes of ore with an average gold grade of 2.50/t. At Costerfield, the average grade of
gold was 10.44g/t and the average grade of antimony was 0.91% over 34,732 tonnes of ore processed while Björkdal
processed 329,652 tonnes of ore with an average gold grade of 1.04g/t.
Table 2: FY26 statutory reporting period operational performance summary6
Operations Units Costerfield Tomingley Björkdal Total
Ore mined t 64,530 576,771 419,520 1,060,821
Mined ore gold grade g/t 8.42 2.43 1.27 2.33
Mined ore antimony grade % 0.86 - - 0.86
Processed ore t 57,403 633,821 563,441 1,254,664
Processed ore - milled head grade gold g/t 9.67 2.33 1.00 2.07
Processed ore - milled head grade antimony % 0.82 - - 0.82
Recovery gold % 93.45% 87.81% 86.68% 89.31%
Recovery antimony % 84.85% - - 84.85%
Gold produced oz 16,433 40,424 15,875 72,732
Antimony produced t 391 - - 391
Gold equivalent produced oz 17,875 40,424 15,875 74,174
Ore stockpiles - contained gold oz 7,823 7,597 20,443 35,864
Ore stockpiles - contained antimony t 349 - - 349
Gold equivalent in circuit, finished concentrate and bullion oz 3,432 2,171 1,938 7,541
6
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 year production and costs can be found at the end of this report.
Alkane Resources Limited – 31 December 2025 Quarterly Report P a g e |2
Revenue
Gold equivalent sales for the quarter of 44,084 ounces1 (Q1 FY26: 30,010 AuEq oz) for revenue of $256 million (Q1
FY26: $147m) at an average gold price of $5,785/oz (Q1 FY26: $4,896/oz) and an average antimony price of $41,510/t
(Q1 FY26: $35,646/oz). The increase in revenue was mainly due to the Group’s increased gold sales volume following
the improved production output at Tomingley and the inclusion of 3 full months of production at Björkdal and Costerfield,
combined with the higher gold price. Revenue from Tomingley includes 8,200 ounces delivered into forward contracts
at $2,843/ounce.
Björkdal´s average realised gold price at $6,930/oz is a simple average for the quarter of revenue divided by ounces
sold for the quarter. Sales revenue for the quarter at Björkdal includes adjustments to provisionally priced concentrate
sales which are then revalued at each reporting date (by using the current market price at the end of each reporting
period). The gold price increased notably during the quarter leading to the recognition of $9 million additional revenue
without recognising additional ounces, therefore increasing the realised gold price per ounce.
Operating Costs, Cash Operating Costs per Gold Equivalent Ounce Produced, All-In Sustaining Costs (“AISC”)
per Gold Equivalent Ounce Produced and Capital Expenditures
Group AISC was $2,739/AuEq oz for the quarter and group cash costs were $2,031/AuEq oz for the quarter. These
were lower than Q1 FY26 AISC of $2,988/AuEq oz and operating cash costs of $2,215/AuEq oz primarily due to planned
higher grades at Tomingley and Costerfield resulting in higher increased gold equivalent production.
Total operations sustaining, growth and exploration expenditure during Q2 FY26 was $38 million.
Sustaining capital was $20 million. This included $10 million for capital development mainly at Björkdal and $4 million
for mining ancillary equipment purchases at Tomingley and Björkdal.
Growth capital of ~$9 million was mainly at Tomingley for the Newell Highway realignment. This project is due for
completion in the first half of 2027.
Exploration expenditure of ~$8 million was split between $6 million at Costerfield and $2 million at Björkdal and
Tomingley. Costerfield drilling was predominantly close to the operating mine with the Brunswick South, Sub KC and
Kendal drilling programs progressed with the aim to add immediate mine life. Three drill rigs also progressed the True
Blue program with predominantly infill drilling.
Newell Highway works looking east.
Alkane Resources Limited – 31 December 2025 Quarterly Report P a g e |3
Table 3: December quarter 2025 financial performance summary
Financials Units Costerfield Tomingley Björkdal Total
Gold equivalent sold oz 12,417 22,491 9,176 44,084
Average realised gold price $/oz 6,333 5,048 6,930 5,785
Average realised antimony price $/t 41,510 - - 41,510
Revenue for the quarter $'000 79,026 113,534 54,827 247,386
Gold provisional pricing adjustments $'000 1,496 - 8,758 10,254
Antimony provisional pricing adjustments $'000 (1,141) - - (1,141)
Total revenue from mining operations $'000 79,380 113,534 63,585 256,498
Mining $'000 12,530 23,532 16,873 52,934
Processing $'000 3,733 13,779 7,391 24,903
G&A $'000 3,614 2,699 4,514 10,826
Cash cost $'000 19,877 40,009 28,777 88,663
Inventory movements $'000 (475) 1 (879) (1,353)
Royalties $'000 1,908 3,806 79 5,792
Corporate costs $'000 - - - 4,813
Rehabilitation $'000 623 606 181 1,409
Sustaining Capital $'000 3,182 4,522 12,553 20,257
All-in sustaining cost $'000 25,115 48,944 40,710 119,582
Exploration $'000 5,884 1,013 1,126 8,023
Growth capital $'000 1,385 6,389 1,640 9,414
All-in cost $'000 32,384 56,346 43,476 137,019
Gold produced oz 10,790 22,089 9,888 42,767
Antimony produced t 267 - - 267
Gold equivalent produced oz 11,686 22,089 9,888 43,663
Cash cost $/oz 1,701 1,811 2,910 2,031
All-in sustaining cost $/oz 2,149 2,216 4,117 2,739
All-in cost $/oz 2,771 2,551 4,397 3,138
Mine operating cash flow $'000 29,822 67,299 35,379 132,500
Q2 FY26 All in sustaining and All in cost ($/oz)
5,000
4,397
4,500 4,117
4,000
3,500
$/ounce
3,138
3,000 2,771 2,739
2,551
2,500 2,149 2,216
2,000
1,500
1,000
Costerfield Tomingley Björkdal Total
All-in sustaining cost All-in cost
Alkane Resources Limited – 31 December 2025 Quarterly Report P a g e |4
Table 4: FY26 statutory reporting period financial performance summary6
Financials Units Costerfield Tomingley Björkdal Total
Gold equivalent sold oz 17,690 40,947 15,457 74,094
Average realised gold price $/oz 6,035 4,703 6,688 5,225
Average realised antimony price $/t 40,254 - - 40,254
Revenue for the quarter $'000 107,387 192,591 89,213 389,191
Gold provisional pricing adjustments $'000 1,736 - 14,163 15,899
Antimony provisional pricing adjustments $'000 (1,363) - - (1,363)
Total revenue from mining operations $'000 107,759 192,591 103,376 403,727
Mining $'000 19,494 46,097 27,254 92,845
Processing $'000 6,284 26,324 11,367 43,975
G&A $'000 6,022 6,452 6,950 19,424
Cash cost $'000 31,800 78,872 45,571 156,243
Inventory movements $'000 (716) 914 (1,644) (1,446)
Royalties $'000 2,905 6,411 164 9,481
Corporate costs $'000 - - - 8,625
Rehabilitation $'000 636 1,42

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