Alkane results for the September 2026 quarter showed A$440 million in cash and bullion after payment of its maiden dividend, with production costs below its full-year guidance range. The gold and antimony miner produced 40,740 gold-equivalent ounces and reaffirmed its FY27 outlook, although revenue fell from the preceding quarter as sales volumes and achieved metal prices declined.
Key Takeaways
- Quarterly all-in sustaining costs of A$2,805 per gold-equivalent ounce were below the FY27 guidance range.
- Revenue fell to A$206 million from A$257 million in the June quarter, while mine operating cash flow reached A$102 million.
- Alkane paid its first fully franked dividend and expects A$55–60 million of final FY26 tax payments in the December quarter.
Table of Contents
- Alkane results keep full-year production guidance intact
- Lower sales and prices weigh on quarterly revenue
- Dividend paid as tax and capital commitments approach
- Tomingley roadworks set the next development milestone
- Conclusion
Alkane results keep full-year production guidance intact
For the three months ended September 30, 2026, Alkane produced 39,823 ounces of gold and 396 tonnes of antimony. The combined gold-equivalent total measures both metals on a common value basis rather than representing gold output alone.
In its September 2026 quarterly operating update, published on October 23, Alkane reaffirmed FY27 production guidance of 163,000–177,000 gold-equivalent ounces at all-in sustaining costs of A$2,900–A$3,200 per ounce.
The first-quarter cost result was below that annual range, but management did not lower its full-year cost guidance. Chief Executive Nic Earner pointed to monthly mining and processing records at Tomingley and successive monthly throughput records at Costerfield.
All-in sustaining cost is a non-IFRS measure that may not be directly comparable across companies. Alkane's mine operating cash flow also excludes income tax, interest received and sustaining, growth and exploration capital expenditure.
| Item | Details |
|---|---|
| Tomingley | September-quarter gold-equivalent production: 21,506 ounces; AISC: A$2,340 per ounce. |
| Costerfield | September-quarter gold-equivalent production: 8,752 ounces; AISC: A$3,194 per ounce. |
| Björkdal | September-quarter gold-equivalent production: 10,482 ounces; AISC: A$3,012 per ounce. |
Lower sales and prices weigh on quarterly revenue
Gold-equivalent sales declined to 38,348 ounces from 47,411 ounces in the June 2026 quarter. The average achieved gold price fell to A$5,128 an ounce from A$5,599, while the average antimony sales price declined to A$23,842 a tonne from A$30,602.
Those lower volumes and achieved prices accompanied a A$51 million sequential decline in revenue. Tomingley's sales included 7,800 ounces delivered into forward contracts at A$2,884 an ounce, meaning part of the quarter's gold sales reflected previously agreed prices.
Provisional concentrate pricing adjustments also affected revenue. Björkdal recorded a positive adjustment of about A$10 million, reflecting upgraded concentrate shipments and a higher quarter-end gold price. Costerfield recorded a negative adjustment of about A$1 million, mainly linked to weaker antimony prices.
Dividend paid as tax and capital commitments approach
Including A$19 million of listed investments, Alkane's quarter-end cash, bullion and investment balance was A$459 million. The company paid A$13 million in income tax during the quarter and anticipates a further A$55–60 million in final FY26 tax payments in the December quarter.
The maiden fully franked dividend was 2 Australian cents per share. Dividend cash outflows were A$24 million during the September quarter, with a further A$4 million TSX portion paid on October 1 and therefore falling into the December quarter. A A$50 million buyback was approved in September; approval does not mean the repurchases have been completed.
Operational sustaining, growth and exploration capital expenditure totalled A$59 million. Growth spending included A$16 million for the Newell Highway realignment at Tomingley, A$10 million for mobile equipment purchases and rebuilds, and A$4 million for Björkdal's tailings storage facility.
Tomingley roadworks set the next development milestone
Tomingley continued work on the Newell Highway diversion and Kyalite bridge during the quarter, although wet weather caused some delays. Current plans call for traffic to move onto the new highway alignment early in the June 2027 quarter, subject to weather, with open-pit mining to begin afterward.
At Björkdal, initial surface-material removal for the new Storheden portal was completed and underground lateral development toward the deposit began. Tailings dam wall lifts remained on budget and schedule.
Conclusion
Alkane enters the rest of FY27 with unchanged production guidance and first-quarter costs below its annual target range. The next scheduled cash commitments include the December-quarter tax payments, while the planned highway traffic switch remains a key milestone for Tomingley's open-pit development.
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