PERTH, Australia, July 24, 2026 (GLOBE NEWSWIRE) -- Alkane Resources Limited (ASX:ALK; TSX:ALK; OTCQX:ALKRY) ("Alkane" or "the Company") reported results for the quarter ended June 30, 2026, the fourth quarter of fiscal year 2026, saying it achieved its annual production targets, generated record operating cash flow, and proposed its first dividend.

Operations

Gold equivalent production for the fourth quarter totaled 42,491 AuEq ounces at an AISC of $3,011 per ounce AuEq. Full-year fiscal 2026 gold equivalent production was 168,337 AuEq ounces at an AISC of $2,925 per ounce AuEq, placing output in the upper half of guidance.

Gold equivalent ounces allow Alkane to report gold and antimony production on a common value basis, while AISC is a non-IFRS measure that includes cash operating costs, sustaining capital, royalties, and reclamation contributions.

Operating cash flow reached $174 million for the quarter. Alkane issued fiscal 2027 production guidance of 163,000–177,000 gold equivalent ounces, with AISC expected at $2,900–$3,200 per ounce.

Exploration

At the Northern Molong Porphyry Project (NMPP), additional gold and copper mineralization was encountered through drilling between the Boda and Kaiser deposits. Key results included intersections of magmatic-hydrothermal breccias between Boda and Kaiser, with grades of 23.5 meters at 0.17 g/t Au and 0.14% Cu, and 42.1 meters at 0.16 g/t Au and 0.14% Cu. A mobile magnetotelluric survey over NMPP also identified new target areas for evaluation.

Financial and Corporate

Gold equivalent sales for the quarter totaled 47,411 ounces, generating revenue of $257 million, based on an average realized gold price of $5,442/oz and an average realized antimony price of $24,276/tonne. Cash, gold holdings, and listed investments totaled $454 million after payment of $18 million in corporate tax during the quarter.

Alkane settled 8,500 ounces in hedge contracts during the quarter. S&P Dow Jones Indices announced that Alkane would be included in the S&P/ASX 200 effective before market open on Wednesday, April 22, 2026, adding the Company to a widely followed Australian equity benchmark.

The Board proposed a first-ever dividend with full franking credits of 2 cents per share for fiscal year 2026. In Australia, franking credits represent tax credits attached to dividends paid from profits on which company tax has already been paid.

Managing Director and CEO Nic Earner commented: "It has been another outstanding quarter for Alkane, with production of 40,949 ounces of gold and 456 tonnes of antimony (42,491 gold equivalent ounces) for the quarter, bringing full-year FY2026 production to 168,337 gold equivalent ounces, which is in the upper half of guidance. Operating cash flow from operations was $174 million for the quarter, delivering a balance sheet of $454 million in cash, precious metals, and listed investments at quarter-end. 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. We expect to deliver solid results again next year. Our full-year 2027 guidance is 163,000–177,000 gold equivalent ounces at an AISC of $2,900–$3,200 per ounce."

Q4 FY2026 Results Webcast

Managing Director and CEO Nic Earner and CFO James Carter held a conference call and webcast to discuss the results. The accompanying presentation material was made available on the Company's website, and the webcast was made available for replay.

Group Overview — Statutory Reporting Period

Alkane produced 40,949 ounces of gold and 456 tonnes of antimony during the fourth quarter, representing 42,491 gold equivalent ounces, compared with 45,776 AuEq ounces in Q3 FY2026. Production was lower than the prior quarter due to normal, planned variations in ore grade across the group.

The Company processed 693,607 tonnes of ore with an average gold grade of 2.07 g/t Au. Tomingley processed 325,689 tonnes at 2.27 g/t Au; Costerfield processed 36,441 tonnes at 9.32 g/t Au and 1.40% antimony; and Björkdal processed 331,477 tonnes at 1.08 g/t Au.

Quarterly gold equivalent sales of 47,411 ounces generated revenue of $257 million, compared with $275 million in Q3 FY2026. The lower revenue was primarily due to a lower realized gold price. Revenue from Tomingley included 8,500 ounces delivered under forward contracts at $2,870 per ounce. Metal price declines during the quarter resulted in negative provisional pricing adjustments of $6 million at Björkdal and $4 million at Costerfield.

Group AISC was $3,011/oz AuEq for the quarter, while group cash costs were $2,346/oz AuEq. These were higher than Q3 FY2026 levels, primarily due to lower throughput rates overall and externally driven price increases. Full-year FY2026 AISC came in slightly above the upper end of guidance.

Total capital expenditure on operations, growth, and exploration during Q4 FY2026 was $52 million. Sustaining capital totaled $21 million, growth capital was approximately $20 million, and exploration expenditure was approximately $11 million. Growth capital included $8 million for the Newell Highway realignment at Tomingley and $5 million for construction of a tailings storage facility at Björkdal.

Alkane ended the quarter with $454 million in cash, precious metals, and liquid investments, comprising $432 million in cash, $7 million in precious metals, and $15 million in liquid investments. Tax outflow was $18 million during the quarter, and corporate and other cash flows totaled a $20 million outflow. The Group received $20 million in cash from asset-backed bonds during the quarter.

Operations and Projects

Tomingley Gold Operations — NSW

Tomingley is wholly owned by Alkane and is located near the village of Tomingley, approximately 50 km southwest of Dubbo in central western New South Wales. The operation has been producing since 2014, with underground mining across the Wyoming One, Caloma One, Caloma Two, and Roswell deposits.

The primary ore source remained Roswell. Underground mined ore volume exceeded plan at 392,323 tonnes, a quarterly record, supported by multiple ore sources and bulk stoping. Processing volumes also exceeded plan, helped by a mobile crusher that pre-crushes material before milling. Tomingley set new records for annual production in ounces, tonnes of ore mined underground, and processing plant throughput during fiscal 2026.

Total gold production for the quarter was 20,896 ounces, compared with 21,652 ounces in Q3 FY2026. Cash costs were $2,227/oz and AISC was $2,481/oz. Gold sales totaled 24,924 ounces at an average sales price of $5,131/oz, generating revenue of $128 million. Operating cash flow was $76 million.

Work on the Newell Highway realignment continued during the quarter, with the project estimated for completion in the first half of calendar 2027. Exploration drilling targeted near-mine and regional prospects, including the northern extension of Caloma, a potential southern extension toward Roswell, areas between Roswell and Wyoming One, Wyoming Three, Patons, Tomingley One and Two, Peak Hill, and Glen Isla.

Costerfield Gold-Antimony Operations — Victoria

Costerfield is wholly owned by Alkane and is located in central Victoria, approximately 10 km northeast of Heathcote and 50 km east of Bendigo. The underground gold-antimony operation includes infrastructure supporting the Augusta, Cuffley, Brunswick, Youle, and Shepherd deposits.

Costerfield delivered stable operating performance during the quarter, with ore mining and processing above planned levels, although mined ore grades were below plan. The operation continued targeted improvement programs including drill-and-blast optimization, transition to owner-operated capital equipment, improved operator training, enhanced mine planning, and a shift to emulsion explosives.

Total production was 11,659 gold equivalent ounces, broadly in line with Q3 FY2026 production of 11,691 AuEq ounces. Cash costs were $1,898/oz AuEq and AISC was $2,568/oz AuEq. Gold sales totaled 10,522 ounces at an average price of $6,160/oz, while antimony sales amounted to 535 tonnes, or 384 tonnes post-payable, at an average price of $24,276/tonne. Revenue was $74 million and operating cash flow reached $50 million.

Exploration activity comprised approximately 26,670 meters of diamond drilling across multiple deposits and targets. Drilling at Brunswick South demonstrated that the high-grade gold vein extends further than previously assumed. Notable intersections included 50.1 g/t Au and 26.2% Sb over 2.17 m in BD468; 109.9 g/t Au and 3.1% Sb over 0.65 m in BD433; and 50.2 g/t Au and 33.3% Sb over 0.86 m in BD424.

Björkdal Gold Operations — Sweden

Björkdal is wholly owned by Alkane and is located in Västerbotten in northern Sweden, approximately 28 km northwest of Skellefteå and approximately 750 km north of Stockholm. The property includes the Björkdal mine and the Storheden and Norrberget deposits.

The operation delivered another quarter of stable mining, with ore grades in line with plan and stable processing capacity. Investment in raises for the tailings dam facilities intensified during the quarter.

Total gold production was 9,935 ounces, compared with 12,433 ounces in Q3 FY2026. Cash costs were $3,121/oz and AISC was $4,184/oz. Gold sales totaled 10,154 ounces at an average price of $5,462/oz, generating revenue of $55 million. Operating cash flow was $49 million.

Exploration continued in the northern and eastern extensions of the Björkdal mine and at Storheden. A program was also initiated to expand the skarn deposit, focusing on the down-dip extension of the Lake Zone discovered in 2025.

Northern Molong Porphyry Project

Exploration around the Boda-Kaiser gold-copper deposits continued during the quarter, with 2,555 meters of drilling testing for new gold and copper mineralization. Diamond core drilling encountered a magmatic root zone in an intrusive hydrothermal breccia with two significant intersections: 23.5 m at 0.17 g/t Au and 0.14% Cu, and 42.1 m at 0.16 g/t Au and 0.14% Cu. Further drilling is planned to determine the extent of the breccia along strike and up-dip.

Regional exploration included four RC drill holes totaling 1,258 meters at the Comobella intrusive complex, with a best interval of 3 meters at 1.74 g/t Au and 0.07% Cu. A mobile magnetotelluric survey identified six high-priority porphyry targets at Driell Creek, Murga, Gollan North, One Tree, and Old Station. Baseline environmental studies supporting approval for extraction of the Boda-Kaiser gold-copper resources continued during the quarter.

Nagambie Project

Under the Earn-in Agreement between Nagambie Resources and Alkane Resources, two LM90 drill rigs were mobilized at the Nagambie mine during the quarter. A total of 527 meters of diamond drilling was completed in June, focused on resource delineation drilling of ore veins within the established gold-antimony resource.

Lupin Reclamation Project

Lupin is conducting final closure and reclamation work. During the quarter, costs were incurred for earthworks and demolition, procurement, engineering services and project management, facility operations, and water supply. Reclamation work to satisfy the majority of closure requirements is expected to be completed during calendar 2026. As of June 30, 2026, approximately $12 million in restricted cash served as security for certain reclamation cost obligations.

La Quebrada Exploration Project

The Company divested this non-core asset on March 18, 2026, by selling all shares in Minera Mandalay San Geronimo for $5 million USD.

Corporate

Following a year of record production and strong cash flow, the Board proposed Alkane's first-ever dividend of 2 cents per share, fully franked, for fiscal year 2026. The Company does not have a formal dividend policy, and the proposed dividend remains subject to completion of the audit, compliance with Section 254T of the Corporations Act, and final Board approval.

For FY2027, Alkane guided to production of 163,000–177,000 gold equivalent ounces at AISC of $2,900–$3,200 per ounce. Group exploration expenditure is projected at $55–$65 million, and group growth capital is expected at $160–$190 million. Key growth projects include the Newell Highway realignment at Tomingley, development of Brunswick South at Costerfield, the start of development at Storheden, expansion of the tailings dam at Björkdal, and replacement of mining equipment across the Group.

At quarter-end, Alkane had $17 million in mobile equipment financing. The Company entered into a $110 million revolving credit facility and a $40 million conditional instrument facility under a coordinated credit agreement with Australia and New Zealand Banking Group Limited, Commonwealth Bank of Australia, Macquarie Bank Limited, and Westpac Banking Corporation. Financial close for utilization of the facilities occurred on May 8, 2026.

Alkane held approximately 9 million shares in Sky Metals (ASX:SKY) valued at $1.9 million, 30 million shares in Medallion Metals Limited (ASX:MM8) valued at $11.7 million, and approximately 166.7 million shares in Nagambie Resources (ASX:NAG) valued at $1.5 million. Björkdal's operations held 43,800 ounces of put options expiring between July 2026 and June 2027 at an average strike price of 31,611 SEK/oz, or approximately $4,720/oz.

About Alkane Resources

Alkane Resources (ASX:ALK; TSX:ALK; OTCQX:ALKRY) is an Australian gold and antimony company with three active mines in Australia and Sweden: Tomingley in New South Wales, Costerfield in Victoria, and Björkdal in Sweden. Alkane also owns the Boda-Kaiser gold-copper porphyry project in central western New South Wales and conducts ongoing exploration within the surrounding Northern Molong Porphyry Project.

Disclosure Notes

Alkane is subject to Australian disclosure requirements including the Corporations Act 2001, ASX Listing Rules, and the JORC Code. It is also subject to certain Canadian disclosure requirements due to its TSX listing, including National Instrument 43-101. Alkane said it is now a "designated foreign issuer" under National Instrument 71-102, meaning it is subject to foreign disclosure requirements applicable on the ASX and through ASIC instead of certain Canadian continuous disclosure requirements.

The Company stated that information describing exploration results, mineral resources, and ore reserves is based on information compiled by Chris Davis, a member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Alkane Resources Limited, who qualifies as a Competent Person under the JORC Code and a Qualified Person under NI 43-101.

This announcement contains forward-looking information and references to non-IFRS measures, including AISC, which may not be comparable to similar measures reported by other issuers. Gold equivalent ounces are calculated using the quantities of gold and antimony produced, their respective average market prices, and the average market price of gold.

This document was approved for publication by Managing Director and CEO Nic Earner.

Contact: Nic Earner, Managing Director & CEO, Alkane Resources Ltd, TFN +61 8 9227 5677. Investors & Media: Natalie Chapman, Corporate Communications Manager, TFN +61 418 642 556.

Source: GlobeNewswire