Alkane Resources has reported a strong first quarter, supported by the Mandalay merger, strong cash, bullion and listed investment balance sheet and robust gold sales.
Alkane reported revenue of AU$147 million, up from A$62.3 million in the prior-year period. The company said the increase in revenue was due to the group’s increased production and sales following the addition of Costerfield and Björkdal to the portfolio.
The group’s cash, bullion and listed investment balance came in at AU$191 million for the quarter ending September 30. This result was driven by record group sales generating AU$147 million in revenue, offset by AU$45 million in debt repayment and one-off transaction and tax costs of AU$25 million from the merger with Mandalay.
The group’s gold equivalent sales for the quarter were 30,010 ounces at an average gold price of AU$4,896 per ounce and an average antimony price of AU$36,646 per tonne.
Alkane Managing Director, Nic Earner, said: “It has been a significant quarter with the merger with Mandalay completing in early August.
“Alkane now has three operating mines that together produced 29,965 ounces of gold and 124 tonnes of antimony (30,511 ounces of gold equivalent) over the quarter.
“With the repayment of AU$45 million bank debt and the one-off transaction costs of AU$25 million behind us, we have a very solid balance sheet with AU$191 million in cash, bullion and listed investments at quarter end.”
Alkane said its consolidated cash operating cost for the quarter stood at AU$2,215 per ounce of gold equivalent production. Its all-in sustaining cost was AU$2,988 per gold equivalent ounce.
The company reported consolidated gold equivalent production of 30,511 ounces in the first quarter, up from 18,418 ounces in the first quarter of fiscal 2025, driven by the addition of two months of production from Björkdal and Costerfield following the combination with Mandalay.
