ASX materials stock Alkane Resources Ltd (ASX: ALK) is in focus today after it received a reiterated buy recommendation from Bell Potter.
The broker also raised its price target on the gold exploration and production company following its quarterly update last week.
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What did the company report?
On April 23, this ASX materials stock released a Quarterly Activity Report for the period ending 31 March 2026.
It reported:
- Site operating cash flow of $189 million for the quarter
- Q3 FY26 record gold production of 45,776 AuEq oz at AISC of $2,928/AuEq oz
- Full Year Group Guidance remains at 160-175kozs AuEq at AISC $2,600-2,900/AuEq oz, reflecting production from Costerfield and Björkdal from July 2025
Managing Director and CEO, Nic Earner, commented:
It has been another great quarter for Alkane, producing 44,669 ounces of gold and 377 tonnes of antimony (45,776 ounces of gold equivalent) over the full quarter.1 Our site operating cashflow was $189 million for the quarter, resulting in a balance sheet with $374 million in cash, bullion and listed investments at quarter end. Our full year guidance of 160-175kozs gold equivalent remains unchanged.
Despite the positive results, this ASX materials stock fell 10% last week. This included a 5% dip after the company released its quarterly report.
It remains up 100% over the past 12 months.
Bell Potter maintains positive view
Following the quarterly update, Bell Potter released updated guidance on this ASX materials stock.
The broker said the March quarter production beat its forecasts and guidance.
This was another strong quarter from ALK that has extended the record-breaking start of the merged asset portfolio. While partially offset by higher input costs and reduced antimony prices in the Mach 2026 quarter, the operational and financial performance to date has been a clear validation of the merger strategy.
The market's ongoing rerating of the stock and the recent inclusion of ALK in the ASX200 Index reinforces this further. The successful operational delivery has ALK well-placed to meet FY26 guidance (unchanged) and sustain the strong financial performance.
Healthy upside
Based on this guidance, Bell Potter has reiterated its buy recommendation on Alkane Resources shares.
It also increased its price target to $2.10 (previously A$1.95).
From last week's closing price of $1.60, this indicates an upside potential of 31%.
ALK offers multimine gold and antimony exposure across three attractive jurisdictions, a strong balance sheet and an operating platform focused on organic and inorganic growth options.
