Alkane Resources Shares Gain 7.6% as Gold Producer Rides Bullion Rebound After Maiden Dividend, Strong Quarter

Alkane Resources Ltd shares rose more than 7% on Tuesday. The gold producer, which paid its first-ever dividend this month, gained alongside other gold stocks as bullion prices steadied after last week's slide.

Alkane shares rose 11 Australian cents, or 7.64%, to close at A$1.55. In the session they traded between A$1.44 and A$1.555. About 7.8 million shares changed hands, and the company's market value rose to about A$2.1 billion.

The stock is up about 50% over the past year.

The broader S&P/ASX 200 rose 0.46% to 8,850.1. Materials stocks led the market early in the session.

Alkane did not release any market-sensitive news on Tuesday.

Gold steadies

Gold traded around US$4,013 an ounce overnight, up about 0.5%. Bullion had dropped below US$4,000 last week for the first time in about three months. Lower oil prices on Monday eased inflation concerns before the U.S. Federal Reserve's policy decision on Wednesday, which supported gold.

Several Australian gold stocks rose on Tuesday, including PDI Gold and Minerals 260.

Solid quarter

Alkane reported last week that it produced 40,740 gold-equivalent ounces in the September quarter, the first quarter of its 2027 financial year. That included 39,823 ounces of gold and 396 metric tons of antimony.

Output by mine:

Tomingley, New South Wales: 21,506 ounces of gold at an all-in sustaining cost of A$2,340 an ounce Costerfield, Victoria: 8,752 gold-equivalent ounces, including 7,835 ounces of gold and 396 tons of antimony, at A$3,194 an ounce Björkdal, Sweden: 10,482 ounces of gold at A$3,012 an ounce

Group all-in sustaining costs were A$2,805 per gold-equivalent ounce. The company sold 38,348 gold-equivalent ounces at an average gold price of A$5,128 an ounce. Revenue was A$206 million.

The mines generated A$102.4 million in operating cash flow. Alkane ended the quarter with A$440 million in cash and bullion.

"It has been a solid start to FY27 for Alkane," Managing Director Nic Earner said.

First dividend

Alkane paid its first dividend during the period, 2 cents a share, fully franked, at a cost of about A$28 million including the portion paid to Toronto Stock Exchange holders.

"Paying Alkane's first ever dividend of 2 cents per share, fully franked, is a significant milestone for the Company," Earner said.

The company also approved an on-market share buyback of up to A$50 million over 12 months in September.

Guidance reaffirmed

Alkane reaffirmed its full-year guidance of 163,000 to 177,000 gold-equivalent ounces, at an all-in sustaining cost of A$2,900 to A$3,200 an ounce.

"We are well positioned and reaffirm our full year FY27 guidance of 163-177koz gold equivalent," Earner said.

It plans to spend A$160 million to A$190 million on growth projects and A$45 million to A$53 million on exploration this year.

The company expects final tax payments for fiscal 2026 of A$55 million to A$60 million in the December quarter.

Diversified producer

Alkane became a multi-mine producer through its merger with Mandalay Resources, which brought the Costerfield gold and antimony mine in Victoria and the Björkdal gold mine in Sweden. The company is listed on both the ASX and the Toronto Stock Exchange.

Costerfield's antimony output gives Alkane exposure to a critical mineral used in batteries, flame retardants and defense applications. Antimony prices have risen sharply because of supply restrictions from China, the dominant producer. Alkane received an average of A$23,842 a ton for antimony in the quarter.

Outlook

The company's results are closely tied to the gold price, which reached record highs this year before its recent pullback. Analysts said continued strength in bullion would support cash flow and capital returns, while costs remain a key focus across the Australian gold sector.

Investors will be watching for progress on growth projects, including the Boda-Kaiser copper-gold prospects in New South Wales, and any further capital returns.