Alkane Resources posts record FY26 cash flow, flags maiden dividend

Source: Proactive

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has delivered annual production in the upper half of guidance, generated record cash flow, and proposed its first dividend following a strong finish to the 2026 financial year.

The gold and antimony producer generated 42,491 gold equivalent ounces in the June quarter at an all-in sustaining cost (AISC) of A$3,011 per ounce, taking full-year production to 168,337 gold equivalent ounces at an AISC of A$2,925 per ounce.

Quarterly mine operating cash flow reached A$174 million, contributing to a post-tax free cash build of A$104 million. Alkane ended June with A$432 million in cash and A$454 million in combined cash, bullion and listed investments.

Reflecting the strengthened balance sheet, the board has proposed a maiden fully franked dividend of 2 cents per share, subject to completion of the audit, statutory dividend tests and final board approval.

Strong Sales and Operating Cash Flow

Alkane sold 47,411 gold equivalent ounces during the quarter, generating A$257 million in revenue at an average realised gold price of A$5,442 per ounce and an average realised antimony price of A$24,276 per tonne.

Production comprised 40,949 ounces of gold and 456 tonnes of antimony. Output was below the March quarter due primarily to planned grade variations across the company's three operating mines.

Managing director and CEO Nic Earner said the result demonstrated the strength of Alkane's expanded operating portfolio.

"Our site operating cash flow was $174 million for the quarter, resulting in a balance sheet with $454 million in cash, bullion and listed investments at quarter end."

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"Reflecting this strong financial position and our confidence in the business, the Board has proposed Alkane's first ever dividend of 2 cents per share, fully franked — a significant milestone for the Company and a tangible return to the shareholders who have supported our growth."

Three-Mine Portfolio Delivers

Tomingley Gold Operations (New South Wales)

• Produced 20,896 ounces during the quarter
• Generated A$76 million in operating cash flow
• Achieved record annual gold production, underground ore tonnes and mill throughput during FY26
• Work continued on the Newell Highway diversion required to support the operation's expansion

Costerfield Gold-Antimony Operation (Victoria)

• Produced 11,659 gold equivalent ounces
• Generated A$50 million in operating cash flow
• Exploration drilling at Brunswick South extended the high-grade gold-antimony trend, with notable results including:
• 2.17 metres at 50.1 g/t gold and 26.2% antimony
• 0.65 metres at 109.9 g/t gold and 3.1% antimony

Björkdal (Sweden)

• Produced 9,935 ounces of gold
• Contributed A$49 million in operating cash flow
• Exploration continued along the northern and eastern extensions of the mine and at the nearby Storheden deposit

Boda-Kaiser Exploration Advances

At the Northern Molong Porphyry Project in New South Wales, drilling between the Boda and Kaiser deposits intersected further gold-copper mineralisation within an intrusive-hydrothermal breccia system. Results included:

• 23.5 metres at 0.17 g/t gold and 0.14% copper
• 42.1 metres at 0.16 g/t gold and 0.14% copper

A mobile magnetotelluric survey also identified six high-priority porphyry targets north of Boda-Kaiser, including targets at Driell Creek.