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$166.7m
Last closeA$0.33
High / Low (52 weeks)A$0.6 / A$0.2
Stock market listingAU
Forecast net cash (A$m)42
Forecast gearing ratio (%)N/A
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual23.426.924.5
Relative *23.528.320.9

* % Relative to local index

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Company news

Alkane Resources reveals epithermal style gold from Northern Molong Porphyry ...

Tue, 15 Aug 2017 00:22:30 GMT

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 discovers more gold at Tomingley after record production quarter

Thu, 10 Aug 2017 04:32:05 GMT

Alkane Resources Ltd to reveal product marketing for Dubbo Zirconia Project

Mon, 15 Aug 2016 00:58:32 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 33.0 4.8
2016A 109.6 40.9 11.0 2.2 15.0 3.7
2017E 117.8 47.9 17.8 2.2 15.0 5.3
2018E 102.6 25.9 (38.7) (3.5) N/A 19.1

Last updated on 27/07/2017

Investment summary

Following a rain sodden H1 FY17, the second half saw a remarkable turnaround in gold production at the Tomingley Gold Operation (TGO), and brought down unit costs markedly as a result. With a similar production and cost guidance to FY17 targeted for FY18 at the TGO, key catalysts for Alkane will come from matters relating to the Dubbo Project. Commentary by Alkane that key product markets (eg certain rare earths, zircon/zirconium) are recovering from their multi-year lows signals a potential return to fortune for the company’s flagship project.

Last updated on 03/08/2017

Industry outlook

Alkane expects to produce 65-70koz of gold in FY18 at an AISC of between A$1,100/oz and A$1,200/oz. We expect to revise our base case valuation for the TGO, and Alkane’s shares, pending its release of formal revised underground mine plans for the TGO, sometime towards the end of H118 (H2 CY17). This will follow the completion of current drilling activities and a revised resource and reserve statement for the TGO.

Last updated on 03/08/2017

Key management

Ian Chalmers, MD

Company address

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