Record quarterly production & operational cash build Cash & Bullion $232 million – $58 million increase for the quarter
Record quarterly production & operational cash build
Cash & Bullion $232 million – $58 million increase for the quarter
PERTH, Australia, Jan. 29, 2026 -- 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”
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 1: December quarter 2025 operational
performance summary
Operations Units Costerfield Tomingley Björkdal Total
Ore mined t 39,698 275,079 266,217 580,994
Mined ore gold grade g/t 8.36 2.61 1.27 2.39
Mined ore antimony grade % 0.93 - - 0.93
Processed ore t 34,732 318,851 329,652 683,235
Processed ore - milled head
grade gold g/t 10.44 2.50 1.04 2.20
Processed ore - milled head
grade antimony % 0.91 - - 0.91
Recovery gold % 93.94% 89.84% 87.43% 90.40%
Recovery antimony % 86.77% - - 86.77%
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
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
3,364
Table 2: FY26 statutory reporting period operational performance summary 6
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
Revenue
Gold equivalent sales for the quarter of 44,084 ounces 1 (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.
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
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 1,422 214 2,272
Sustaining Capital $'000 5,658 9,510 20,412 35,580
All-in sustaining cost $'000 40,283 97,130 64,717 210,756
Exploration $'000 9,582 1,395 2,673 13,650
Growth capital $'000 1,508 12,418 1,640 15,566
All-in cost $'000 51,373 110,943 69,029 239,971
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
Cash cost $/oz 1,779 1,951 2,871 2,106
All-in sustaining cost $/oz 2,254 2,403 4,077 2,841
All-in cost $/oz 2,874 2,745 4,348 3,235
Mine operating cash flow $'000 50,011 106,411 51,288 207,709
Cash flow
Alkane closed the quarter with cash, bullion and liquid investments of $246 million – comprising $218 million in total cash,
bullion ($14 million) and liquid investments ($14 million). This result was driven by record Group gold sales at 44,084 gold
equivalent ounces and an increase in realised gold price to $5,785/oz (Q1 FY26: $4,896/oz) and a realised antimony price of
$41,510/t (Q1 FY26: $35,646/t) generating $256 million in revenue. Alkane´s operations generated $133 million of mine
operating cashflows with the achieved gold price $3,046/AuEq oz over AISC.
Tax outflows were $17 million during the quarter, $11 million of which related to FY25 on completion of the tax return with the
remainder being monthly instalments on future tax obligations. Corporate and other cashflows were $20 million. This includes
$7 million of corporate cash outflows, $6 million for a cash backed bond related to the Newell Highway project, $3 million of
Boda & regional NSW exploration and $2 million on Lupin closure costs. Notably, 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.
OPERATIONS AND PROJECTS
Costerfield Gold-Antimony Operations - Victoria
Mandalay Resources Costerfield Operations Pty Ltd (100%)
Costerfield Gold-Antimony Operations ( Costerfield) 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, with both ore mining and milling rates being in excess
of budget. Mining continued to focus on achieving mining of planned high priority areas, with some variability in stope
performance due to challenging ground conditions and overbreak in complex shallow dipping parts of the orebody in the Youle-
Shepherd transition. The operation continues to work on targeted improvement programs including drill and blast optimisation,
enhanced operator training, and the move to emulsion explosives to improve recovery and reduce dilution.
Processing focused on blend control to maximise throughput, recoveries and produced metal. Trials will occur in Q3 to
determine potential benefits of pre crushing ore feed to further improve throughput, crusher downtime and blend control.
Processing operations performed reliably, with higher mill throughput supported by improved crushing circuit availability.
Continuous optimisation of blending and recovery continue to be a focus. Work continues to prioritise operational consistency
across all aspects of the operation.
A total of 11,686 gold equivalent ounces1 was produced during the quarter (Q1 FY26: 6,189 AuEq oz). The site cash costs for
the quarter were $1,701/AuEq oz (Q1 FY26: $1,927/AuEq oz) with an AISC of $2,149/AuEq oz (Q1 FY26: $2,451/AuEq oz). 2
Gold sold for the quarter was 11,042 ounces at an average sales price of $6,333/oz and antimony sold for the quarter was 409
tonnes (228 tonnes post payability) at an average sales price of $41,510/t, generating revenue of $79 million. Finished product
stocks were 3,364 ounces. The site’s operating cash flow was $30 million for the quarter.
Exploration
At Costerfield during Q2 FY26, near mine drilling continued on three main focus areas. Brunswick South drilling looked to build
on high grade intercepts discovered earlier in the year with a progression to infill drilling late in the quarter. The Kendall drilling
program explored a series of veins above the currently active Youle, and the Sub KC drilling aimed to both infill and extend
mineral resources below the Cuffley and Augusta workings.
Additionally True Blue was progressed with three diamond rigs predominantly focused on infill drilling.
Geological map of Costerfield showing areas of exploration during Q2 FY26.
Tomingley Gold Operations - NSW
Tomingley Gold Operations Pty Ltd (100%)
Tomingley Gold Operations ( Tomingley ) is a wholly owned operation of Alkane, located near the village of Tomingley,
approximately 50km southwest of Dubbo in Central Western New South Wales. Tomingley has been operating since 2014.
Mining occurs underground on four gold deposits (Wyoming One, Caloma One, Caloma Two and Roswell).
Operations Performance
The primary source of ore continues to be from Roswell. During the quarter the ore production was constrained primarily due to
multiple smaller issues including shotcreter downtime delaying paste fill, lower development led to lower development ore, and
redesigned stope shape for lode recovery.
Processing continues to perform well with milling in excess of budget primarily as a result of the insertion of a mobile crusher
to pre-crush material prior to entering the processing circuit. Mill grade and recovery were as per budget. Pre-crushing of
material to sub 10mm prior to entering the circuit has seen a nominal increase in milling rates to approximately 1.3mtpa, work
is continuing in this area.
A total of 22,089 ounces of gold was poured for the quarter (Q1 FY26: 18,335oz). The site cash costs for the quarter were
$1,811/oz (Q1 FY26: $2,120/oz) with an AISC of $2,216/oz (Q1 FY26: $2,628/oz). 2 Gold sold for the quarter was 22,491
ounces at an average sales price of $5,048/oz, generating revenue of $114 million. Bullion stocks were 2,171 ounces. The
site’s operating cash flow was $67 million for the quarter.
Works continued on the Newell Highway diversion during the quarter with approximately 3.5kms of pavement established to
varying thicknesses prior to the Christmas shutdown (19 December 2025). Work commenced on the Kenilworth access,
required to allow heavy vehicle access into site and is expected to be completed late January 2026.
Exploration
Resource expansion drilling continues at Tomingley outside existing resources and nearby to underground infrastructure. The
drilling has led to discovering a new zone of mineralisation that is associated with a second andesite host at McLeans. The
recently discovered Western Andesite is intersected by several drill holes returning significant gold intercepts including drill
hole MCLUG013D with 26m grading 4.36g/t Au including 3.3m grading 22.8g/t Au (see ASX Announcement dated 3 November
2025 and titled ‘Tomingley Drilling Discovers New Mineralisation at McLeans’)
Björkdal Gold Operations - Sweden
Björkdalsgruvan AB (100%)
Björkdal Gold Operations ( Björkdal) is a wholly owned operation of Alkane. The Björkdal property, containing both the
Björkdal mine and the Storheden and Norrberget deposits, is located in Västerbotten County in northern Sweden. Björkdal is
located approximately 28 km northwest of the municipality of Skellefteå and approximately 750 km north of Stockholm. The
Björkdal property is accessible via Swedish national road 95 or European highway route E4 followed by all-weather paved
roads.
Operations Performance
Björkdal delivered another quarter of solid mining performance with ore production supported by consistent stope productivity
and stable development activities. The operation also benefited from planned replacements of critical equipment, which
improved machine availability. However, certain equipment deliveries were postponed by manufacturers and are now expected
in the March 2026 quarter.
Mill throughput was slightly lower than the previous quarter, primarily due to mill linings not wearing at the anticipated rate,
which limited the maximum allowable mill load. The completion and commissioning of the return water system from the mine
has had a positive impact on flotation performance to date. The more stable water temperature compared with variable
temperatures in river-sourced raw water enhanced process stability. This new water redundancy also reduces the mill’s
vulnerability to seasonal fluctuations in river conditions. The operation achieved improved recoveries during the quarter as a
result.
A total of 9,888 gold ounces was produced during the quarter (Q1 FY26: 5,987oz). The site cash costs for the quarter were
$2,910/oz (Q1 FY26: $2,805/oz) with an AISC of $4,117/oz (Q1 FY26: $4,010/oz). 2 Gold sold for the quarter was 9,176
ounces at an average sales price of $6,930/oz, generating revenue of $64 million. Finished product stocks were 1,938 ounces.
The site’s operating cash flow was $35 million for the quarter.
Exploration
At Björkdal there were two programs progressed during the quarter. Both programs aim to extend the orebody that is currently
being mined with the focus on the northern and eastern depth extensions.
Additionally, in December, the results of the recent Storheden drilling were released (see ASX announcement dated 19
December 2025 and titled ‘Alkane Doubles the Tested Depth Extent of the Storheden Deposit at Björkdal’). Highlights of the
release include an extension of the known depth to 464m and Strike length to 2.7km with a series of Björkdal style veins
interpreted across three main target domains. Assays highlights include, 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).
Excerpt from the Storheden news release showing significant recent drilling results. Selected significant intercepts are
annotated.
Northern Molong Porphyry Project (NMPP) (gold-copper)
Alkane Resources Ltd 100%
During the quarter, exploration recommenced with the flying of a MobileMT survey over the majority of the NMPP. Inversion and
interpretation of the MMT survey data is ongoing. Reconnaissance drilling for a total 4,500 metres commenced late in the
quarter with the mobilisation of one air-core, one high-capacity RC, and one diamond core drill rigs. Exploration results are
expected to be reported in Q3.
Environmental baseline studies to inform the development approval of the Boda-Kaiser Au-Cu resources continued in the
quarter.
Lupin Reclamation Project
Lupin Mines Inc 100%