Alkane Resources — Material EPS upgrade

Alkane’s Q226 quarterly activities report revealed record quarterly gold production of 43,663oz AuE (174,652oz pa annualised cf FY26 guidance of 160–175koz) at an all-in sustaining cost (AISC) of A$2,739oz AuE (cf FY26 guidance of A$2,600–2,900/oz), generating A$133m in aggregate site operating cash flows (but could have been A$151m except for the timing of a final payment in January for a shipment of concentrate made in December) to leave the company with cash, bullion and listed investments as at 31 December of A$246m after A$17m in corporate income tax payments. At the mine level, Tomingley had an excellent quarter and produced 1,925oz Au (9.5%) above our prior estimate, while Costerfield’s grade returned to over 10g/t and Björkdal’s to over 1.00g/t. As a result – and in deference to the continued strength in the gold price – we have increased our FY26 EPS estimate by 105.0% and our FY27 estimate by 68.6%.