Alkane Resources Limited

Q1 FY2026 Operating & Financial Results

PERTH, Australia, Nov. 13, 2025 (GLOBE NEWSWIRE) -- Alkane Resources Limited (“Alkane” or the “Company”) (ASX: ALK, OTC: ALKEF, TSX: ALK) is pleased to announce financial results for the first quarter ended 30 September 2025 (the “quarter” or “Q1 2026”).

The Company’s condensed and consolidated interim financial result for the quarter, together with its Management’s Discussion and Analysis (“MD&A”) for the corresponding period, can be accessed under Alkane’s profile on www.sedar.com, on the Australian Securities Exchange (“ASX”) and on Alkane’s website at www.alkres.com. All currency references in this press release are in Australian dollars except as otherwise indicated.

First Quarter 2026 Highlights:

• Strengthened Balance Sheet: Cash, bullion and listed investment balance of $191 million, after the repayment of the $45 million debt facility and one-off merger related costs of $25 million.
• Merger with Mandalay Resources Corporation (“Mandalay”): Admitted to ASX 300 during the quarter. The Q1 2026 result is based upon three months of financial and operating results from Tomingley but only two months of results from Björkdal and Costerfield.
• Robust Revenue Generation: Gold equivalent sales for the quarter of 30,010 ounces¹ for revenue of $147 million at an average gold price of $4,896/oz and an average antimony price of $35,646/t;
  • Tomingley revenue of $79.1 million;
  • Costerfield revenue of $28.4 million; and
  • Björkdal revenue of $39.8 million.

• Cost Performance: Consolidated cash operating cost of $2,215 per ounce of gold equivalent production. All-in sustaining cost of $2,988 per gold equivalent ounce.¹
  

Managing Director, Nic Earner, commented:

“It has been a significant quarter with the merger with Mandalay completing in early August. Alkane now has three operating mines who together produced 29,965 ounces of gold and 124 tonnes of antimony (30,511 ounces of gold equivalent) over the quarter.² With the repayment of $45 million bank debt and the one-off transaction costs of $25 million behind us we have a very solid balance sheet with $191 million in cash, bullion and listed investments at quarter end.”

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¹ Gold equivalent ounces is calculated by multiplying quantities of gold and antimony in the period by respective average market price of commodities in period, adding the two amounts to get ‘total contained value based on market price’ and dividing that total contained value by the average market price of gold in period. I.e., AuEq = ((Au Produced x Au $/oz) + (Sb Produced pre-payability x 70% payability x Sb $/t)) / (Au $/oz). The average market prices for the statutory reporting period were AS$5,382/oz Au (being the average of the daily PM price, sourced from www.lbma.org.uk) and $33,859/t Sb (being the average Shanghai Metal Market Price sourced from www.metal.com). Gold equivalent ounce, cash operating cost and all-in sustaining cost (AISC) are non-IFRS performance measures with no standard definition under IFRS. For more details refer to the Non-IFRS Performance Measures section at the end of this press release.
² As the combination with Mandalay completed on 5 August 2025, Alkane’s statutory reported production for Q1 2026 reflects production from Costerfield and Björkdal only from that date.

First Quarter 2026 Financial Summary

The following table summarises the Company’s consolidated financial results for the three months ended 30 September 2025 and 30 September 2024:

1. Adjusted EBITDA, adjusted net profit and adjusted net profit per share are non-IFRS performance measures with no standard definition under IFRS. Refer to “Non-IFRS Performance Measures” at the end of this press release for further information.
   

In Q1 2026, Alkane generated consolidated revenue of $147.2 million, $85.0 million more than the $62.3 million the Company generated in Q1 2025, the increase in revenue was due to the Group’s increased production and sales following the addition of Costerfield and Björkdal to the portfolio, combined with the higher realised gold price.

Operating costs totalled $104.9 million during Q1 2026, compared to $36.7 million in Q1 2025 with the $68.2 million increase mainly reflecting the larger Company following the combination with Mandalay (Costerfield $29.7 million and Björkdal $29.8 million) including a $33.3 million change in inventory mainly because of fair value uplift of stockpiles being expensed at Costerfield and Björkdal of $27.2 million during the quarter following the provisional acquisition accounting.

Alkane generated adjusted EBITDA of $36.9 million in the first quarter of 2026 compared to $22.2 million in the first quarter of 2025. Adjusted EBITDA was negatively affected by the $27.2 million of additional cost of sales attributed to the expensed inventory discussed above. Consolidated net loss was $2.7 million for the first quarter of 2026, versus $11.3 million profit in the first quarter of 2025.

Alkane closed the quarter with cash, bullion and liquid investments of $191 million – comprising $160 million in total cash, bullion ($14 million) and liquid investments ($17 million). This result was driven by the record Group sales generating $147 million in revenue partly offset by $45 million debt repayment and one-off transaction and tax costs of $25 million from the combination with Mandalay incurred during the quarter.

First Quarter 2026 Operational Summary^1,2

The table below summarises the Company’s production, capital expenditures and operational unit costs for the three months ended 30 September 2025 and 30 September 2024:

1. Cash operating cost and all-in sustaining cost are non-IFRS performance measures with no standard definition under IFRS. Refer to “Non-IFRS Performance Measures” at the end of this press release for further information.
2. Refer to Note 1 on page 1 of this press release for gold equivalent calculation.
3. Includes exploration costs related to NSW.
   

Consolidated gold equivalent production in Q1 2026 was 30,511 ounces compared to 18,418 ounces in Q1 2025, mainly due to the addition of two months’ worth of production from Björkdal and Costerfield following the combination with Mandalay. The Q1 2026 result is based upon three months of gold equivalent production from Tomingley (18,335oz) but only two months of gold production from Björkdal (5,987oz) and gold equivalent production from Costerfield (6,189 AuEq oz).

Cash operating costs per ounce of gold equivalent produced was $2,215 in Q1 2026 compared to $1,819 in Q1 2025. Tomingley’s cash operating costs per ounce of gold during the quarter was $2,120 compared to $1,819 in Q1 2025, a 17% increase due to higher processing costs. The increase in the group cash operating costs was further exacerbated by the addition of Björkdal ($2,805/oz) and Costerfield ($1,927/AuEq oz) to the group in August 2025.

All-in sustaining costs per ounce of gold equivalent produced was $2,988 in Q1 2026, compared to $2,157 in Q1 2025. The AISC per ounce at Tomingley increased to $2,628 for the quarter from $2,157/oz in Q1 2025, mainly due to the aforementioned increased cash operating costs.

Tomingley Gold Operations - NSW (Tomingley)
Tomingley Gold Operations Pty Ltd (100%)

The primary source of ore continues to be from Roswell. During the quarter the ore production was negatively impacted by short term problems with explosives quality. Site has engaged with the supplier to rectify this issue in order to minimise potential impacts in the future.

A total of 18,335 ounces of gold was poured for the quarter, in line with the 18,418 ounces poured in Q1 2025. The site cash costs for the quarter were $2,120/oz with an AISC of $2,628/oz as compared to cash costs for Q1 2025 which was $1,819/oz with an AISC of $2,157/oz, the increases were both mainly due to higher processing costs including a hire mobile crusher which was used to increase crushing post a successful trial resulting in increased mill throughput. Gold sold for the quarter was 18,456 ounces at an average sales price of $4,284/oz as compared to 18,208 ounces sold at an average of $3,422/oz in Q1 2025. Tomingley generated revenue of $79 million during the quarter, an increase of 27% as compared to $62 million in Q1 2025 due to the higher realised gold price. Bullion inventory were 2,417 ounces.

Costerfield Gold-Antimony Operations - Victoria (Costerfield)
Mandalay Resources Costerfield Operations Pty Ltd (100%)

Costerfield delivered steady operational performance during the quarter, maintaining strong mining productivity while advancing several initiatives to improve ore quality and recovery. Mining focused on achievement of planned high priority areas, with some variability in stope performance due to challenging ground conditions and overbreak in complex shallow dipping parts of the orebody in the Youle-Shepherd transition. The operation has implemented targeted improvement programs including drill and blast optimisation, enhanced operator training, and the move to emulsion explosives to improve recovery and reduce dilution. Processing operations performed reliably, with higher mill throughput supported by improved crushing circuit availability. Continuous optimisation of blending and recovery remains a focus. The site continues to prioritise operational consistency and grade control to underpin strong production outcomes over the coming quarters.

A total of 6,189 gold equivalent ounces was produced during August and September. The site cash costs for the quarter were $1,927/AuEq oz with an AISC of $2,451/AuEq oz. Gold sold for the quarter was 5,273 gold equivalent ounces at an average sales price of $5,361/AuEq oz, generating revenue of $28 million. Finished product inventory were 4,521 ounces.

Björkdal Gold Operations - Sweden (Björkdal)
Björkdalsgruvan AB (100%)

Björkdal achieved strong mining performance during the quarter, with good ore production supported by solid stope productivity and increased development activity. The operation benefited from improved workforce planning throughout the summer holiday period, contributing to steady underground output and improved flexibility in the mine plan. Processing was affected by a series of external and maintenance-related interruptions, including storm-related power outages. Despite these impacts, metallurgical recoveries remained stable. The major maintenance shutdown was completed safely and as scheduled, positioning the plant for improved throughput in the next quarter. Work is continuing to optimise flotation performance and manage ore variability through targeted field trials and enhanced metallurgical support.

A total of 5,987 gold ounces was produced during August and September. The site cash costs for the quarter were $2,805/oz with an AISC of $4,010/oz. Gold sold for the quarter was 6,281 ounces at an average sales price of $6,335/oz, generating revenue of $40 million. Finished product inventory were 1,211 ounces.

Conference Call

The Managing Director & CEO, Mr Nic Earner, and CFO, Mr James Carter, will host a conference call and webcast for investors and analysts. Details to participate are as follows:

This document has been authorised for release to the market by Nic Earner, Managing Director & CEO.

ABOUT ALKANE ‐ www.alkane.com.au ‐ ASX:ALK | TSX: ALK | OTCQX: ALKEF

Alkane Resources (ASX:ALK; TSX:ALK; OTCQX:ALKEF) is an Australia-based gold and antimony producer with a portfolio of three operating mines across Australia and Sweden. The Company has a strong balance sheet and is positioned for further growth.

Alkane’s wholly owned producing assets are the Tomingley open pit and underground gold mine southwest of Dubbo in Central West New South Wales, the Costerfield gold and antimony underground mining operation northeast of Heathcote in Central Victoria, and the Björkdal underground gold mine northwest of Skellefteå in Sweden (approximately 750km north of Stockholm). Ongoing near-mine regional exploration continues to grow resources at all three operations.

Alkane also owns the very large gold-copper porphyry Boda-Kaiser Project in Central West New South Wales and has outlined an economic development pathway in a Scoping Study. The Company has ongoing exploration within the surrounding Northern Molong Porphyry Project and is confident of further enhancing eastern Australia’s reputation as a significant gold, copper and antimony production region.

Forward-Looking Statements

Certain statements contained in this document constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressly stated or implied by such forward-looking statements. Such factors include, among others, the following: mining industry risks; fluctuations in the market price of mineral commodities; project development; expansion targets and operational delays; environmental risks and hazards; requirement of additional financing; health and safety; uncertainty as to calculations of mineral deposit estimates; marketability; licenses and permits; title matters; governmental regulation of the mining industry; cybersecurity events; current global financial conditions including inflation; currency risk; uninsured risks; competition; repatriation of earnings; properties without known mineral reserves; dependence upon key management personnel and executives; dependence on major customers; infrastructure; litigation; potential volatility of market price of common shares; possible conflicts of interest of directors and officers of the Company; risk of dilution; payment obligations relating to properties; instability of political and economic environments; and integration of acquisitions. Specific reference is made to the Annual Information Form for a discussion of some of the factors underlying forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

Non-IFRS Performance Measures

Investors should be aware that financial data in this press release includes Non-IFRS performance measures under Regulatory Guide 230 Disclosing Non-IFRS Financial Information published by the Australian Securities and Investments Commission and Non-GAAP performance measures within the meaning of National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure published by the Canadian Securities Administrators. This press release may contain references to adjusted EBITDA, adjusted net profit, free cash flow, cash operating cost per ounce of gold equivalent produced and all-in sustaining cost all of which are Non-IFRS/Non-GAAP performance measures and do not have standardised meanings under IFRS. Therefore, these measures may not be comparable to similar measures presented by other issuers.

Management uses adjusted EBITDA and free cash flow as measures of operating performance to assist in assessing the Company’s ability to generate liquidity through operating cash flow to fund future working capital needs and to fund future capital expenditures, as well as to assist in comparing financial performance from period to period on a consistent basis. Management uses adjusted net profit in order to facilitate an understanding of the Company’s financial performance prior to the impact of non-recurring or special items. The Company believes that these measures are used by and are useful to investors and other users of the Company’s financial statements in evaluating the Company’s operating and cash performance because they allow for analysis of its financial results without regard to special, non-cash and other non-core items, which can vary substantially from company to company and over different periods.

The Company defines adjusted EBITDA as income from mine operations, net of administration costs, and before interest, taxes, non-cash charges/(income), intercompany charges and finance costs. The Company defines adjusted net profit as net profit before special items. Special items are items of income and expense that are presented separately due to their nature and, in some cases, expected infrequency of the events giving rise to them. A reconciliation between adjusted EBITDA and adjusted net profit, on the one hand, and consolidated net profit, on the other hand, is included in the MD&A.

The Company defines free cash flow as a measure of the Company’s ability to generate and manage liquidity. It is calculated starting with the net cash flows from operating activities (as per IFRS) and then subtracting capital expenditures and lease payments. Refer to “Non-IFRS Financial Performance Measures” section of the MD&A for a reconciliation between free cash flow and net cash flows from operating activities.

For Costerfield, gold equivalent ounces are calculated by multiplying quantities of gold and antimony in the period by respective average market price of commodities in period, adding the two amounts to get ‘total contained value based on market price’ and dividing that total contained value by the average market price of gold in period. I.e., Gold equivalent = ((Au Produced x Au $/oz) + (Sb Produced pre-payability x 70% payability x Sb $/t)) / (Au $/oz). The average market price for gold is the average of the daily PM price, sourced from www.lbma.org.uk. and the average market price for antimony is the average Shanghai Metal Market Price sourced from www.metal.com. The cash operating cost excludes royalty expenses. Site all-in sustaining costs include total cash operating costs, sustaining mining capital, royalty expense and accretion of reclamation provision. Sustaining capital reflects the capital required to maintain each site’s current level of operations. The site’s all-in sustaining cost per ounce of gold equivalent in a period equals the all-in sustaining cost divided by the equivalent gold ounces produced in the period.

For Björkdal and Tomingley, the total cash operating cost associated with the production of gold ounces produced in the period is then divided by the gold ounces produced to yield the cash operating cost per gold ounce produced. The cash operating cost excludes royalty expenses. Site all-in sustaining costs include total cash operating costs, sustaining mining capital, royalty expense and accretion of reclamation provision. Sustaining capital reflects the capital required to maintain each site’s current level of operations. The site’s all-in sustaining cost per ounce of gold in a period equals the all-in sustaining cost divided by the gold ounces produced in the period.

For the Company as a whole, cash operating cost per gold equivalent ounce is calculated by summing the gold equivalent ounces produced by each site and dividing the total by the sum of cash operating costs at the sites. Consolidated cash operating cost excludes royalty and corporate level general and administrative expenses. All-in sustaining cost per ounce gold equivalent in the period equals the sum of cash operating costs associated with the production of gold equivalent ounces at all operating sites in the period plus corporate overhead expense in the period plus sustaining mining capital, royalty expense, and accretion of reclamation provision, divided by the total gold equivalent ounces produced in the period. A reconciliation between cost of sales and cash operating costs, and also cash operating cost to all-in sustaining costs are included in the MD&A.

CONTACT:  NIC EARNER, MANAGING DIRECTOR & CEO, ALKANE RESOURCES LTD, TEL +61 8 9227 5677
INVESTORS & MEDIA:  NATALIE CHAPMAN, CORPORATE COMMUNICATIONS MANAGER, TEL +61 418 642 556