Up 125% in a year, guess which ASX 300 gold stock more than doubled its Q1 revenue

The ASX 300 gold miner is ramping up production following a successful merger.

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Key points

  • Alkane Resources’ share price is up 124.5% over the past 12 months despite a 3.7% dip today.
  • The company completed its merger with Mandalay Resources in Q1 FY26, leading to a significant revenue increase of 136% to $147.2 million, driven by new mine acquisitions and a higher gold price.
  • Despite increased operating costs and reporting a $2.7 million net loss for Q1 FY26, management highlights a strong financial position with reduced debt and substantial cash reserves.

S&P/ASX 300 Index (ASX: XKO) gold stock Alkane Resources Ltd (ASX: ALK) has had a heck of a run this past year.

Despite slipping today, the Alkane Resources share price remains up 124.5% since this time last year.

Today's 3.7% slide to $1.06 a share comes amid Friday's broader market sell down, which is hitting gold stocks particularly hard with the gold price also down overnight.

For some context, the ASX 300 is down 1.5% at the time of writing, while the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down a sharp 3.9%.

Alkane Resources shares, then, are modestly outperforming the All Ords Gold Index at the time of writing following the release of the miner's September quarter (Q1 FY 2026) results.

Here are the highlights.

ASX 300 gold stock reports post-merger results

Among the highlights of the quarter, Alkane completed its merger with Mandalay Resources Corporation in August.

The miner also officially became an ASX 300 gold stock on September 22, following its admission to the index as part of the S&P Dow Jones Indices quarterly rebalance.

With the Mandalay merger occurring during the quarter, the results reflect three months of financial and operating results from the company's Tomingley mine but only two months of results from its newly acquired Bjorkdal and Costerfield mines.

As for those results, Alkane Resources reported gold equivalent sales for the quarter of 30,010 ounces. The miner achieved an average gold price of $4,896 per ounce and reported an all-in sustaining cost (AISC) of $2,988 per gold equivalent ounce.

This saw revenue for the ASX 300 gold stock leap to $147.2 million, up 136% from Q1 FY 2025.

Management credited the big revenue boost to increased production and sales following the addition of the Costerfield and Bjorkdal gold mines, combined with the higher realised gold price.

Operating costs surged as well, coming in at $104.9 million for Q1 FY 2026, compared to $36.7 million in Q1 FY 2025. The increased costs were mainly driven by the combination with Mandalay.

On the bottom line, the consolidated net loss for the quarter was $2.7 million, down from an $11.3 million profit in the first quarter of FY 2025.

What did management say?

Commenting on the results for the ASX 300 gold stock, Alkane managing director Nic Earner said, "It has been a significant quarter with the merger with Mandalay completing in early August."

Earner added:

Alkane now has three operating mines who 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 $45 million bank 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.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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