The Mandalay merger, strong cash and bullion, and robust gold sales have delivered Alkane Resources a strong first quarter of the 2026 financial year.
Alkane generated $147 million in revenue, closing the period with $191 million in cash, bullion and investments, as it simultaneously transitions into a diversified international gold and antimony producer.
This quarter marked Alkane’s first reporting period as a combined group with Mandalay Resources, contributing full results from the Tomingley gold mine in New South Wales (NSW), Costerfield in Victoria (VIC), and Björkdal in Sweden. Each site, respectively, contributed revenues of $79.1 million, $28.4 million and $39.8 million.
The group gold equivalent sales for the quarter (Q1) were 30,010 ounces to hit the revenue mark, at an average gold price of $4896 per ounce and an average antimony price of $36,646 per tonne.
Combined gold production reached 30,511 ounces, supported by strong output from Tomingley and steady integration of the new operations.
Alkane managing director Nic Earner said the quarter had been “significant”, especially coming off the merger with Mandalay in August.
“Alkane now has three operating mines that together produced 29,965 ounces of gold and 124 tonnes of antimony over the quarter,” he said.
“With the repayment of $45 million bank debt and the one-off transaction costs of $25 million behind us, we have a very solid balance sheet with $191 million in cash, bullion and listed investments at quarter end.”
Alkane recorded a net loss of $2.7 million, primarily due to the $25 million in merger costs and what Earner mentioned as the company’s debt repayments.
However, adjusted earnings before taxes, depreciation and amortisation (EBITDA) rose 66 per cent to $36.9 million, underpinned by higher realised gold prices and new production sources.
Its consolidated cash operating cost was $2215 per ounce of gold equivalent, accompanied by an all-in sustaining cost (AISC) of $2988 per gold equivalent ounce.
Looking closer at Alkane’s sites, Tomingley produced 18,335 ounces of gold, Costerfield with 5643 ounces, and Björkdal with 5987, marking a significant 65.6 per cent jump from Q1 2025, primarily from the addition of two months’ worth of production from the acquired sites.
Ongoing near-mine regional exploration continues to grow for these three sites, just as Alkane outlined an economic development pathway and scoping study for its gold-copper porphyry Boda-Kaiser project in NSW.
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