December 2025 Quarterly Production Update

The most recent news release (January 8, 2026) reports a strong Q2 FY2026 production performance following the transformational merger with Mandalay Resources. Alkane produced 43,663 gold equivalent (AuEq) ounces during the quarter, bringing the year-to-date total closer to its annual guidance. The company’s liquidity position has surged to A$246 million in cash, bullion, and listed investments, up from A$191 million in the previous quarter. Management reaffirmed FY2026 guidance of 160,000 to 175,000 oz AuEq. Notably, the Tomingley operation is set to reach a milestone of 750,000 ounces poured in January 2026. The company also received an A$18 million provisional payment for concentrate in early January, which was not included in the December 31 cash balance.

• Cash Flow Generation: The A$55 million increase in liquid assets over a single quarter (from A$191M to A$246M) demonstrates significant operational cash build. This validates the "merger of equals" with Mandalay Resources as a value-accretive move that has provided the scale necessary to generate meaningful surplus capital.
• Guidance Reliability: Reaffirming the annual production target of 160k-175k oz AuEq suggests the three operating mines (Tomingley, Costerfield, Bjorkdal) are integrated and performing predictably. Q2 production (43.6k oz) is exactly 25% of the upper guidance limit, indicating no current slippage.
• Cost Profile Concerns: While production and cash are high, the reaffirmed All-In Sustaining Cost (AISC) remains high at A$2,600 to A$2,900 per ounce. At current high gold prices, the margin is healthy, but the company remains sensitive to price corrections due to its relatively high-cost base, particularly at the Bjorkdal mine in Sweden (which reported a Q1 AISC of A$4,010/oz).
• Exploration Upside: Material drilling results from December 2025 at the Storheden Deposit (Sweden) and November 2025 at McLeans (Australia) suggest that the current 1.3 Moz gold reserve has significant expansion potential. High-grade intercepts at Storheden (up to 142 g/t Au) are particularly notable for potential grade-sweetening in future production years.

Alkane Resources is an Australian-based gold producer that recently transformed into a multi-asset international miner through its merger with Mandalay Resources. - Tomingley Gold Operations (NSW, Australia): The flagship asset, an open pit and underground operation with a 1 Mtpa plant. It is currently expanding into the Roswell and San Antonio deposits to extend mine life beyond 2030. - Costerfield (Victoria, Australia): A high-grade underground gold-antimony mine. - Bjorkdal (Sweden): A long-life gold mine. - Boda-Kaiser (NSW, Australia): A massive, low-grade gold-copper porphyry discovery that represents the company's long-term "tier-1" growth potential.