Guess which ASX 200 stock is dropping despite record quarterly profit

It was a record-breaking quarter for this company.

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Alkane Resources Ltd (ASX: ALK) shares are falling on Friday morning.

At the time of writing, the ASX 200 stock is down 1% to $1.54.

A man in a suit looks surprised as he looks through binoculars.

Image source: Getty Images

Why is this ASX 200 stock falling?

Investors have been selling the gold miner's shares after a pullback in the gold price overshadowed the release of third quarter results revealing the strongest quarterly performance in its history.

According to the release, Alkane delivered record revenue of $274.4 million for the three months ended 31 March 2026. This compares to revenue of $63.2 million in the prior corresponding period.

The increase was driven by higher gold equivalent sales, the addition of the Costerfield and Björkdal operations following its merger with Mandalay Resources, and stronger realised gold prices.

Alkane sold 43,373 gold equivalent ounces during the quarter at an average realised gold price of $6,315 per ounce and an average realised antimony price of $34,394 per tonne.

Record production

Production was also strong. Alkane produced 44,669 ounces of gold and 377 tonnes of antimony during the quarter. On a gold equivalent basis, production reached 45,776 ounces, supported by contributions from Tomingley, Costerfield, and Björkdal.

The ASX 200 stock's EBITDA came in at a record $161.2 million, compared to $20.8 million a year earlier.

Most notably, net profit increased to a record $93 million. This compares with a profit of $8.1 million in the prior corresponding period.

Free cash flow was also very strong at $127.6 million, up from $7.7 million in the third quarter of FY 2025.

Management commentary

The ASX 200 stock's managing director, Nic Earner, was pleased with the quarter. He said:

Alkane has just delivered the strongest quarter in its history. During a period of high gold and antimony prices, the power of our three mine portfolio delivered exceptional operating results as they produced a record 44,669 ounces of gold and 377 tonnes of antimony, which generated record profit after taxes of $93 million.

The Company ended the quarter in with cash and bullion of $362 million which will provide the support for Alkane's growth plans. Given the strong performance to date, we move into the second half of the year with momentum and are on track to meet our production and cost guidance for 2026.

Outlook

Alkane confirmed that it remains on track to meet its FY 2026 guidance.

This is gold equivalent production of 155,000 to 168,000 ounces with all-in sustaining costs of $2,600 to $2,900 per ounce.

Motley Fool contributor James Mickleboro 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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