Alkane proposes maiden dividend on record cashflow

Alkane Resources has proposed its first-ever dividend, rewarding investors as record operational cashflows solidify the Australian miner’s balance sheet. The board declared a fully franked 2 cents per share payout after generating $174 million in site operating cashflow during the fourth quarter of fiscal 2026.

The payment marks a significant milestone for a company that has historically focused on capital reinvestment. Alkane closed the period with $454 million in cash, bullion and liquid investments. This financial firepower provides a substantial buffer against a volatile pricing environment, with both gold and antimony retreating over the quarter.

Full-year production reached 168,337 gold equivalent ounces, landing in the top half of the company's guidance. However, the final quarter saw output dip to 42,491 gold equivalent ounces from 45,776 ounces in the prior quarter. Management attributed the sequential decline to normal, planned grade variations across its mining operations.

Falling commodity prices weighed on the top line. Quarter four revenue fell to $257 million, down from $275 million in the third quarter, as the average realised gold price dropped to $5,442 per ounce. Antimony prices also retreated, averaging $24,276 per tonne. Declining prices forced $10 million in negative provisional pricing adjustments across the Costerfield and Björkdal operations.

Rising costs compounded the pricing pressure. Group all-in sustaining costs (AISC) increased to $3,011 per gold equivalent ounce, up from $2,928 in the prior quarter. The company cited lower feed grades and external price inflation as the primary drivers, noting that full-year AISC pushed just above the top end of guidance.

Despite these headwinds, individual operations delivered strong physical results. The Tomingley Gold Operations in New South Wales set annual records for gold production, underground ore mined, and mill throughput. The site mined a quarterly record of 392,323 tonnes of underground ore, driving site operating cashflow to $76 million.

Looking ahead, Alkane forecast steady operational momentum. Management guided for fiscal 2027 production of 163,000 to 177,000 gold equivalent ounces at an AISC of $2,900 to $3,200 per ounce.

"Reflecting this strong financial position and our confidence in the business, the Board has proposed Alkane's first ever dividend of 2 cents per share, fully franked — a significant milestone for the Company and a tangible return to the shareholders who have supported our growth," said Managing Director and CEO Nic Earner.

Total capital expenditure for the quarter reached $52 million, split between sustaining, growth, and exploration projects. Major spending included $8 million for the Newell Highway realignment at Tomingley, scheduled for completion in the first half of 2027, and $5 million for tailings storage facility construction at Björkdal.