Alkane Resources (ASX: ALK) Is Quietly Turning Gold into Cash - And Scale
In a market where most gold juniors are chasing narratives, Alkane Resources is delivering what matters most real ounces, rising cash, and a long-term growth engine. The March 2025 quarter wasn’t a showpiece, but it was solid where it counts: operations, margins, and momentum. And for serious investors, that’s what separates potential from performance.
Gold Output That Converts into Real Value
Alkane is one of the best gold companies to invest in, having produced 17,657 ounces of gold during the March quarter, taking the FY25 year-to-date total to 50,927 ounces. But the real strength came from pricing power. The company sold 16,513 ounces at an average realised price of $3,839 per ounce a massive improvement over last year’s average of $3,004. With an all-in sustaining cost of $2,770 per ounce, Alkane is running a positive margin machine. This cost discipline, especially after higher underground activity and mill reconfigurations, speaks volumes about the operational team’s delivery. Total revenue for the quarter stood at $63.4 million, with operating cash flow from site activities coming in at $29 million. Even with elevated industry-wide costs, Alkane managed to hold its margin line - a trait that sets serious producers apart from speculative players.
Infrastructure Is No Longer a Promise - It’s Paying Off
After two quarters of capital-heavy upgrades, the company is now seeing clear returns on its investments. The flotation and fine grind circuit, which had faced commissioning setbacks in January and February, finally delivered in March contributing close to 7,000 ounces to overall production. This turnaround was crucial and proves the asset is technically capable. Additionally, the newly commissioned paste plant has exceeded design expectations, streamlined underground operations and improved material handling efficiency. These aren’t vanity builds; they are well-timed, cash-flow accretive decisions that are now supporting production and setting the base for a stronger second half.
Cash Position Strengthens as Liquidity Improves
Alkane, one of the best gold stocks, ended the quarter with $50.5 million in cash and bullion, up $11 million from December. Including listed investments, total liquidity stood at $58.6 million. This growth in cash was not accidental it was the result of controlled costs, elevated gold pricing, and disciplined asset execution. The company also generated $8.4 million in free cash flow pre-tax, despite servicing income tax liabilities and lease repayments. In short, Alkane is operating cash-positive, improving its balance sheet, and reducing forward leverage exactly what you want to see in a capital-intensive industry like gold mining.
Smart Hedging, Not Over-Protection
Where many peers over-hedge and limit their upside, Alkane has struck a smart balance. The company has locked in 68,800 ounces through forward contracts at an average of $2,852 per ounce and has additional put options for 111,000 ounces at a strike of $3,000 per ounce. This gives Alkane security on the downside while still leaving the door open to capitalise on record AUD gold prices. The approach is measured, risk-aware, and fits perfectly with the company’s recent financial conservatism.
Exploration and M&A Are Laying Down the Next Chapter
Beyond operations and cash, Alkane is preparing its next growth leg. Exploration at Roswell has already yielded ore-grade hits outside the current mine plan, showing the asset still has room to extend. An aircore program from San Antonio to Peak Hill has been completed, and RC/core drilling is scheduled to begin at El Paso. These are near-mine targets fast to convert and low-cost to exploit. Add to that the announced merger with Mandalay Resources (TSX: MND), and the story gets much bigger. The combined entity would have three producing mines, broader commodity exposure (gold and antimony), and a much stronger platform for scale, optionality, and lower overall costs. This isn’t a roll-up it’s a structural repositioning.
Final Word: Alkane Is Delivering, Not Just Drilling
Alkane isn’t betting on future prices or blue-sky upside. It’s delivering ounces today, locking in margins, and building a model that can scale without burning through capital. With infrastructure now operating at full tilt, gold margins protected through strategic hedging, and serious organic and inorganic growth levers in play, Alkane stands out in a crowded gold sector. For anyone serious about catching the upside in this AUD gold cycle this is a name that deserves a spot on the radar.
Caprice Resources (ASX: CRS) Is Drilling into Gold with Grade, Strike and Momentum
Caprice Resources is starting to look like the kind of gold story that delivers results before it delivers hype. While most juniors talk targets, Caprice has quietly pulled off a rare combination aggressive drilling, high-grade hits, and expansion potential right next to processing mills. And now with a fresh $7 million in the bank and assays incoming, the story just flipped from potential to progress.
Drilling Deeper, Hitting Harder
The Island Gold Project in WA’s Murchison goldfields has become the company’s main value driver. In just the past quarter, Caprice completed over 7,000m of drilling with assay results returning thick, shallow and consistent high-grade intercepts. At the Vadrians prospect, one standout hole intersected 28 metres at 6.4 g/t gold, including multiple stacked lenses like 12 metres at 7.8 g/t and 4 metres at 16.4 g/t. Follow-up hits from surface including 11 metres at 6.7 g/t confirm this is not a one-hole wonder. The structure runs 250 metres in strike, remains open down dip, and shows clear structural control hosted in BIFs - a geological setup synonymous with some of the Murchison’s biggest historic deposits.
What makes it more compelling is the discovery of a new mineralised zone just 250 metres south of Vadrians, with 22 metres at 2.3 g/t including 2 metres at 14.1 g/t. This new zone could well be a parallel repeat of the same structure with zero drilling around it so far. Add in additional hits at Baxter and Golconda, including 10 metres at 3.0 g/t from just 13 metres depth, and you’ve got a gold corridor that’s quickly becoming a discovery field.
Fully Funded, Drilling Fast
Caprice didn’t wait for a bull market to raise capital. A strategic $7 million placement was completed in June, backed by Australian institutions and long-only resource funds. The raise was done at a modest 14.8% discount and leaves Caprice with approximately $8.5 million in cash. The company also executed a $1 million drill-for-equity agreement with Topdrill, locking in up to 30,000m of future drilling capacity without diluting shareholder value immediately. That’s smart capital management in a market where juniors are bleeding just to keep rigs turning.
Five Kilometres of Untested Gold Strike
The true potential of Caprice’s Island Gold Project lies in what hasn’t been tested yet. The company has over five kilometres of prospective strike with only 500 metres drilled so far. Early drilling confirms stacked, plunging high-grade lodes that mirror the structural styles of Musgrave’s Break of Day and Westgold’s Cuddingwarra systems. Most of the mineralisation sits within trucking distance (25-60km) of two large gold mills - Ramelius' 1.9Mtpa Mt Magnet plant and Westgold’s 1.4Mtpa Tuckabianna facility creating a very real near-term development optionality.
With more than 30 untested high-priority structural targets already identified and Phase 3 drilling underway, Caprice is positioning itself for not one but multiple discoveries across a single corridor.
Expanding the Footprint and Vision
Caprice recently applied for two additional tenements adjoining the Island Gold Project, effectively doubling its land position in the area. These new tenements share the same BIF-hosted geology and structural fabric meaning the exploration blueprint is already validated. Meanwhile, work is progressing at Cuddingwarra, where surface gold and mapped quartz veins are about to be tested by aircore drilling in Q2. And in the background, Caprice still holds one of the largest land positions in the underexplored West Arunta region, prospective for REE and copper-gold systems.
Final Word: Caprice Is Getting It Done, While Others Just Plan
Caprice isn’t pitching a story. It’s already drilling, already hitting, and already funded to push deeper. The company is transitioning from explorer to resource-builder in a high-grade, low-capex region with infrastructure ready to go. With assays due shortly, new gold zones emerging, and a big runway of untested targets, this is one gold junior that deserves to be on every watchlist.
(Source: Company Announcements)
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