Alkane Resources has announced a record quarterly operational cash build for the September quarter, with its $1 billion Mandalay Resources merger lifting the company into the ASX 300.
Alkane managing director Nic Earner said it had been a significant quarter for the business after completing the merger in early August. Both Alkane and Mandalay shareholders voted to approve the “merger of equals” between the companies.
“Alkane now has three operating mines, which together produced 35,527 ounces of gold and 198 tonnes of antimony (36,407 ounces of gold equivalent) over the full quarter,” Earner said.
“With the repayment of our $45 million 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.”
The company recorded site operating cash flow of $73 million for the quarter. It reported record gold production of 30,511 gold-equivalent (AuEq) ounces at an all-in sustaining cost (AISC) of $2988 per AuEq ounce during a transitional quarter that included only two months of production from its Björkdal (Sweden) and Costerfield sites.
The full three-month production for all operations was 36,407 AuEq ounces at an AISC of $3036 per AuEq ounce.
Full-year group guidance remains on track at 160,000–175,000 AuEq ounces at an AISC of $2600–2900 per AuEq ounce, reflecting production from Costerfield and Björkdal from July 2025.
In early October, the company awarded the final portion of the contract to construct the Newell Highway realignment for its Tomingley site in New South Wales. Construction is expected to be completed in the March quarter 2027.
Capital expenditure during the quarter totalled $27 million, including a $6 million investment in growth projects, mainly for the Newell Highway realignment and biodiversity-offset fencing. A further $6 million was invested in exploration drilling, including $4 million at Costerfield.
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