Alkane Resources Limited reported a strong Q1 FY26 with a site operating cash flow of A$73 million and record gold production of 30,511 AuEq oz. Full-year guidance is on track for 160-175kozs AuEq at AISC A$2,600-2,900/AuEq oz. Exploration activities yielded positive results, including high-grade gold intercepts at El Paso within Tomingley. The quarter also saw the completion of the merger with Mandalay Resources Corporation and the approval of the “merger of equals.” Alkane closed the quarter with cash, bullion, and listed investments totaling A$191 million, a solid balance sheet.

In operations, Costerfield delivered steady performance, while Tomingley faced challenges with ore production due to explosives quality. Björkdal saw strong mining performance despite processing interruptions. Exploration efforts are ongoing across all operations, with new veins intercepted at Costerfield and significant mineralization at Boda 2-3 and Driell Creek.

Financially, gold equivalent sales for the quarter totaled 30,010 ounces, generating revenue of A$147 million. AISC for the quarter was A$2,988/AuEq oz. Capital expenditures during the quarter amounted to A$27 million, including investments in growth projects and exploration. The quarter ended with a positive operating cash flow of A$73 million.

Alkane closed the quarter with a strong capital structure, including banking facilities and investments in other companies. The company continues to focus on operational consistency and grade control to ensure production targets are met. The quarter also marked progress on reclamation activities at the Lupin project and the evaluation of non-core assets like the La Quebrada exploration project.

Read more at GlobeNewswire: Record quarterly operational cash build