Alkane Resources (ALK)

Business description

Alkane Resources is a multi-commodity explorer and developer, with projects in the central west region of New South Wales in Australia. Alkane owns the Tomingley Gold Operation and DZP rare metal and rare earths projects (both 100%).

Stock data

Market cap.A$121.3m
Last closeA$0.24
High / Low (52 weeks)A$0.6 / A$0.2
Stock market listingAU
Forecast net cash (A$m)9.4
Forecast gearing ratio (%)N/A
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual0.0(14.3)17.1
Relative *0.7(13.7)6.2

* % Relative to local index

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Company news

Alkane Resources Limited share price rises on guidance upgrade

Tue, 27 Jun 2017 04:18:45 GMT

1.81

Sat, 21 May 2011 13:30:44 GMT

Alkane Resources Ltd signs MOU as share price continues upswing

Tue, 25 Oct 2016 04:13:05 GMT

Follow Up On Alkane Resources

Sun, 25 Dec 2016 08:03:45 GMT

Alkane Resources final planning before full commercial rare earth mine

Wed, 23 Nov 2016 19:47:12 GMT

Y/E Jun Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (c) P/E (x) P/CF (x)
2015A 101.8 26.5 0.1 1.0 24.0 3.5
2016A 109.6 40.9 11.0 2.2 10.9 2.7
2017E 98.0 14.8 (17.7) (1.5) N/A 9.5
2018E 104.3 48.8 (16.2) (1.2) N/A 9.0

Last updated on 23/05/2017

Investment summary

Alkane has provided a pre-quarterly update for its Tomingley Gold Operation (TGO). Strong production performance of 17koz of gold produced across April and May has led the company to revise upwards its H217 production target from 31-36koz, to 43-45koz. H217 all-in sustaining costs (AISC) are also estimated to come down from A$1,350-1,550/oz published by Alkane in January, to A$1,000-1,100/oz. This is expected to have a positive effect on the company’s cash flow, which will be confirmed via its FY17 financials due out mid-July.

Last updated on 27/06/2017

Industry outlook

Updated guidance from ALK indicates that it expects to come in at the higher end of production guidance and the lower end of AISC guidance, owing to higher pit grade reconciliations. This latter fact also bodes well for the extensive exploration being undertaken over the TGO to test and increase confidence in underground resource sections. We expect the company to convert its current (positive) drill results into a firm understanding of TGO underground mining viability in the coming months.

Last updated on 01/06/2017

Key management

Ian Chalmers, MD

Company address

65 Burswood Road
Burswood
WA 6100
Australia
+61-8-92275677
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