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$123.8m
Last closeA$0.25
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

Price performance

Relative *(0.6)(26.5)13.7

* % Relative to local index

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Company news

Alkane Resources Ltd's gold production prompts Speculative Buy from broker

Thu, 21 Jul 2016 01:01:39 GMT

Alkane Resources Ltd kicks off large exploration program at Tomingley

Thu, 22 Sep 2016 02:02:13 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

Highlighting Dividend Growth For Alkane Resources Limited (ASX:ALK)

Wed, 24 May 2017 02:15:00 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 24.5 3.6
2016A 109.6 40.9 11.0 2.2 11.1 2.8
2017E 98.0 14.8 (17.7) (1.5) N/A 9.7
2018E 104.3 48.8 (16.2) (1.2) N/A 9.2

Last updated on 15/05/2017

Investment summary

After a testing H117 at the Tomingley Gold Operation (TGO) due to high levels of rainfall that affected gold production, Alkane’s third quarter results show a return to profitable operations, with net cash flow from operations of A$6.5m reducing after delayed December 2016 payments to a net A$2.0m at quarter’s end. As weather conditions improved in NSW, Q317 gold production recorded a q-o-q increase of 59%, with 18,721ozs Au produced at AISC costs of A$1,201/oz. Sales of 16,303ozs Au at an average realised gold price of A$1,694/oz resulted.

Last updated on 15/05/2017

Industry outlook

ALK guides that it expects to come in at the higher end of production guidance and lower end of AISC guidance, due 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 of UG resource sections. A positive grade reconciliation between actual tonnes mined against the original resource model means that previous geostatistical estimations underestimated the amount of gold in-situ. We expect the company to convert its current (positive) drill results into a firm understanding of TGO UG mining viability in the coming months.

Last updated on 02/05/2017

Key management

Ian Chalmers, MD

Company address

65 Burswood Road
WA 6100
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