Alkane Resources Ltd (ASX: ALK) has built its cash pile to $432 million and is now proposing to pay a maiden dividend as a result.
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Strong production bolsters balance sheet
The company said in a statement to the ASX that its cash holdings increased by $104 million for the quarter, allowing it to initiate the new capital management plan.
Alkane said it produced 42,491 ounces of gold equivalent for the quarter at an all-in sustaining cost of $3011 per ounce, bringing full-year gold production to 168,337 ounces.
The company said it expected gold production for the current year to come in at 163,000 to 177,000 ounces of gold equivalent at an all-in sustaining cost of $2900 to $3200 per ounce.
Managing director Nic Earner said it was a good end to the year for the company.
It has been another great quarter for Alkane, producing 40,949 ounces of gold and 456 tonnes of antimony (42,491 ounces of gold equivalent) over the full quarter, which places full year FY26 production at 168,337 ounces of gold equivalent, in the top half of guidance. Our site operating cashflow was $174 million for the quarter, resulting in a balance sheet with $454 million in cash, bullion and listed investments at quarter end. Reflecting this strong financial position and our confidence in the business, the Board has proposed Alkane's first ever dividend of 2 cents per share, fully franked — a significant milestone for the Company and a tangible return to the shareholders who have supported our growth.
Exploration success building for the future
Alkane also recently announced more exploration success at its Costerfield operation in central Victoria.
The company said on 14 July it had drilled 91 holes targeting the Brunswick South Deposit, and the drilling had identified a high-grade antimony and gold grade connection between the recently discovered gold-dominant zone at depth and the historical surface workings.
The company added:
Drilling is continuing to identify extensions to the deeper gold dominant zone (Kiwi zone) with recent geological interpretation indicating the setting for mineralisation is similar to that of the Youle deposit currently being mined.
Mr Earner said regarding the results:
Focused extension and infill drilling at Brunswick South over the previous year has produced highly encouraging results. This newly defined deposit not only contains pockets of high gold endowment, but critically a significant quantity of antimony. Excitingly Brunswick South can be brought online without extensive access requirements as it is situated 200m from existing development. We are commencing development towards Brunswick South in the current quarter and are looking to establish it as a primary production source for Costerfield.
Alkane is valued at $1.78 billion.
