Alkane Resources Delivering Value in Strong Gold and Antimony Markets

CEO.CA Jun 22, 2026 6:30

Summary

Alkane's cost base looks durable: management says the company stays profitable and cash-generative even with gold off roughly $1,000 an ounce.

The $93 million quarterly profit came from strong gold and antimony prices; management expects gold volatility, not cost pressure, to drive margins.

Underground resource extensions at Tomingly lead the drilling plan, with a new exploration drive aimed at a few hundred thousand ounces.

Exploration spend of about $10 million each at Tomingly and Björkdahl, and $25 million at Costa Field, its highest-grade, shortest-life operation.

Index inclusion lifts passive demand and daily trading liquidity, and the board is weighing a first shareholder return in the September quarter.

The guest reports Alkane delivered $93 million of profit in the quarter just past, driven by strong gold and antimony prices, and argues the cost base is sustainable even with gold about $1,000/oz below that quarter's level.
He says the Mandalay merger significantly transformed the company, and that inclusion in the ASX 200 brings passive index buying that pushed liquidity to over $10–15 million a day, which he expects to rise further.
At Tomingley he points to underground resource extensions and the Roswell area 2.5 km to the south, joined by an underground exploration and production drive, with exploration looking for a new resource of a couple of hundred thousand ounces.
Exploration capital is allocated aggressively — around $10 million at Tomingley, $25 million at Coster Field (the shortest mine life but highest grade operation), and close to $10 million each at Björkdahl and in Sweden — with no new development projects currently.
His stated end-2026 priorities are to substantially finish the highway move at Tomingley that opens two new open-cut areas holding 200,000 ounces, start development of the Swedish deposit that comes online in 2029, and find a new significant discovery at Coster Field.

Top takeaway Earner argues Alkane's cost base is sustainable and that the company remains very profitable and a strong cash generator even after gold came off roughly $1,000/oz from the prior quarter.
He says the main opportunity to extend mine life at Tomingley is underground resource extension work, including linking the older underground area with Roswell, where exploration targets a new couple-of-hundred-thousand-ounce resource.
He expects the market to work through what it has missed: the Mandalay assets, the exploration potential across each of the three sites, and the fund access gained from ASX 200 inclusion.
He frames exploration as capable of extending existing mine lives rather than doubling production, and notes investors new to the story tend not to look back at a decade of delivery.
For end-2026 he wants the Tomingley highway move substantially finished, development started on the Swedish deposit, and a new significant discovery at Coster Field, which he calls the trickier of the three.