Alkane Resources Limited (ASX: ALK) declared a 2.0 cents per share fully franked maiden final dividend for FY26 and approved an on-market share buyback program of up to A$50 million.

The capital return initiatives follow the company’s record financial performance for the year ended June 30, 2026, which saw net profit surge 592% to A$228.7 million driven by the merger with Mandalay Resources.

Capital Allocation Strategy

The Board established three capital allocation pillars in order of priority: re-investment in the business, increasing shareholder returns, and maintaining a strong balance sheet.

Managing Director Nic Earner stated the dividend and buyback signal confidence in Alkane’s ability to generate future cash flows while preserving balance sheet strength for organic growth. The company closed FY26 with cash, bullion, and listed investments totaling A$454 million.

Dividend and Buyback Details

The maiden dividend is payable on October 1, 2026, to shareholders on the register as of September 8, 2026. The ex-dividend date is September 7, 2026.

The A$50 million share buyback will be executed at the company’s discretion via on-market purchases over the next 12 months. The program represents less than 3% of shares on issue and does not require shareholder approval under the Corporations Act 2001.

Financial Highlights

The full-year results reflect the operational scale achieved through the consolidation of Tomingley, Costerfield, and Björkdal operations.

Gold equivalent production reached 168,337 ounces, up 140% year-on-year. Revenue rose to A$935.8 million, supported by higher production volumes and an improved average realized gold price of A$5,664 per ounce compared to A$3,770 in FY25.

What the Numbers Show

The disproportionate growth in net profit relative to revenue highlights the leverage effect of the realized gold price increase. While revenue grew 257%, net profit expanded by 592%, indicating that the higher average realized price of A$5,664 per ounce significantly outpaced cost inflation or operational scaling expenses. This margin expansion underscores the profitability resilience of the combined entity’s asset base under current commodity pricing.

FY27 Guidance

Alkane reiterated its FY27 guidance released on July 21, 2026. The company expects group gold equivalent production of 163,000–177,000 ounces at an all-in sustaining cost (AISC) of A$2,900–3,200 per ounce.

Guidance by operation includes:

• Tomingley: 78,000–84,000 oz at AISC of A$2,600–2,900/oz
• Costerfield: 44,000–48,000 oz at AISC of A$2,700–3,000/oz
• Björkdal: 41,000–45,000 oz at AISC of A$3,300–3,700/oz

Growth capital expenditure is guided at A$160–190 million, while exploration spending is expected to range between A$45–53 million, excluding an additional A$10–12 million for Boda/Kaiser and other exploration projects.

Alkane Resources Limited has materially expanded the Mineral Resource at its Storheden Deposit, located approximately 700 m north of its Björkdal Operation in northern Sweden. The updated estimate, released on July 28, 2026, reports Indicated Resources of 1.07 Mt grading 2.51 g/t Au containing 87 koz, alongside Inferred Resources of 1.85 Mt grading 2.11 g/t Au containing 125 koz. This represents a significant step up from the previous Inferred-only resource of 99 koz, driven by 28 additional diamond drill holes completed during 2025 and early 2026 that improved geological confidence and defined higher-grade domains.

The resource expansion is underpinned by high-grade intercepts from the recent exploration campaign, which targeted zones defined by prior drilling. Notable results include 107.0 g/t Au over 0.4 m in hole SH26-011, 50.9 g/t Au over 0.95 m in SH26-010, and 39.2 g/t Au over 0.6 m also in SH26-010. These intercepts demonstrate the continuity of gold-bearing Quartz veins along a 2.7 km strike length and to a depth of 464 m. The mineralisation remains open in all directions, suggesting further upside potential for the deposit.

Updated Mineral Resource Estimate

The following table details the Mineral Resources at Storheden as of June 7, 2026, reported in accordance with the JORC Code (2012).

Drilling Program and Geological Context

Sixteen extensional diamond drill holes were completed at Storheden between January and March 2026, totaling 7,965 m. The program focused on Target Zones A and B, situated close to existing mine infrastructure. Hole SH26-013 depth-tested Target Zone B, intercepting multiple veins with visible gold, although current data is insufficient to define a resource in this specific zone. The drilling has refined the understanding of lithostructural controls, identifying massive mafic sills as focal points for deformation and fluid flow.

Nic Earner, Managing Director and CEO of Alkane Resources, stated that Storheden represents an exciting new growth prospect at Björkdal. He noted that the positive drilling results begin to demonstrate the scale of the deposit, with portions now drilled to a density sufficient for Indicated Resource estimation. Alkane plans to continue defining the extents of the deposit while commencing mine development to Storheden and progressing permitting requirements for extraction.

Forward-Looking Exploration Plans

Alkane has outlined plans for additional surface drilling at Storheden, with an initial 10,000 meters planned for FY2027. This campaign aims to grow the resource base and delineate the limits of the system. Furthermore, development of an underground exploration drive is scheduled to commence in September 2026. This drive will provide a platform for depth-testing the Storheden Deposit and conducting infill drilling, designed to support potential future production. Regional exploration will also focus on satellite deposits that can complement the Björkdal mine, leveraging the structural similarities observed between Storheden and the main Björkdal deposit.