Alkane Resources Ltd. has reported a record quarterly operational cash build for the fiscal first quarter as its AU$1 billion merger with Mandalay Resources lifted the company into the ASX 300.
The company’s gold production for the quarter ended September 30 was 30,511 gold-equivalent (AuEq) ounces at an all-in sustaining cost (AISC) of $2988 per AuEq. The result was reached during a transitional quarter, which only included two months of production from its Björkdal (Sweden) and Costerfield sites.
Alkane Managing Director Nic Earner said: “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.”
“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.”
Gold equivalent sales for the quarter reached 30,010 ounces for revenue at AU$147 million at an average gold price of AU$4,896 per ounce and an average antimony price of A$35,646 per tonne.
Cash, bullion and listed investment balance was AU$191 million, after the repayment of AU$45 million debt facility and one-off merger costs of AU$25 million.
Full-year group guidance remains on track at 160,000 to 175,000 AuEq ounces at an AISC of AU$2600 to AU$2900 per AuEq ounce, reflecting production from Costerfield and Björkdal from July 2025. The company awarded the final portion of the contract to construct the Newell Highway realignment.
Construction is expected to be complete in the March quarter of 2027.
