Shares in Alkane Resources Ltd (ASX: ALK) were trading higher on Tuesday after the company announced record gold production in the second quarter of the year.
The Perth-based company also increased its cash and bullion on hand by $58 million during the quarter to $232 million.
In addition to this, the company said in a statement to the ASX on Tuesday that it would receive another $18 million in January for payment for a shipment from its Costerfield mine in Victoria, which was delayed due to the Christmas holidays.
Alkane said it produced a record amount of gold in its second quarter, with the total coming in at 43,663 ounces of gold equivalent -including antimony sales – at an all-in sustaining cost of $2739 per ounce.
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Guidance unchanged
The company said its guidance remained on track to come in at 160,000-175,000 ounces of gold equivalent at an all-in sustaining cost of $2600-$2900 per ounce.
Gold equivalent sales for the quarter came in at 44,084 ounces at an average gold price of $5785 per ounce and an average antimony price of $41,510 per tonne.
Alkane Managing Director Nic Earner said it was a solid result.
It has been an excellent quarter for Alkane, producing 42,767 ounces of gold and 267 tonnes of antimony (43,663 ounces of gold equivalent) over the full quarter. Our site operating cashflow was $133 million for the quarter, resulting in a balance sheet with $246 million in cash, bullion and listed investments at quarter end. Our full year guidance of 160-175kozs gold equivalent remains unchanged.
Improvement quarter on quarter
Alkane said its second-quarter production was significantly higher than the first quarter due to improved output at its Tomingley mine and three full months of production from its Björkdal and Costerfield mines, as compared to only two months of production in the previous quarter, following the merger with Mandalay, which was completed in early August 2025.
The company said re the production results:
Alkane processed 683,235 tonnes of ore in total at an average gold grade of 2.20g/t Au producing 42,767oz of gold. Tomingley processed 318,851 tonnes of ore with an average gold grade of 2.50/t. At Costerfield, the average grade of gold was 10.44g/t and the average grade of antimony was 0.91% over 34,732 tonnes of ore processed while Björkdal processed 329,652 tonnes of ore with an average gold grade of 1.04g/t.
Alkane shares were 1.5% higher at $1.63 in early trade, not far off their 12-month highs of $1.64. The company's shares have more than tripled from lows of 51.5 cents over the past year.
Alkane was valued at $2.19 billion at the close of trade on Friday.
