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$138.9m
Last closeA$0.28
High / Low (52 weeks)A$0.6 / A$0.2
Stock market listingAU
Forecast net debt (m)N/A
Forecast gearing ratio (%)N/A
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual(15.4)(12.7)25.0
Relative *(17.5)(14.6)9.9

* % 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

Trading Focus on Shares of Alkane Resources Limited (ASX:ALK)

Wed, 29 Mar 2017 09:56:15 GMT

Alkane Resources Ltd kicks off large exploration program at Tomingley

Thu, 22 Sep 2016 02:02:13 GMT

Alkane Resources Ltd to reveal product marketing for Dubbo Zirconia Project

Mon, 15 Aug 2016 00:58:32 GMT

Alkane Resources Ltd secures deal to toll process rare earths in Vietnam

Thu, 07 Apr 2016 04:56:47 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 27.5 4.0
2016A 109.6 40.9 11.0 2.2 12.5 3.1
2017E N/A N/A N/A N/A N/A N/A
2018E N/A N/A N/A N/A N/A N/A

Last updated on 22/02/2017

Investment summary

Alkane's Q2 quarterly report indicates that continued wet weather has further affected production by delaying ore releases across all pits. However, Alkane states that the TGO still generated a net operating cash flow after development costs of A$4.8m. As a further result of the continued wet weather and as previously stated by Alkane, production guidance has now been revised for the remainder of FY17. Alkane now guides to 53koz to 58koz of gold for FY17 at AISC costs of A$1,600/oz to A$1,750/oz. Our forecasts are currently under review.

Last updated on 02/03/2017

Industry outlook

Second quarter results indicated gold production of 11,756 ounces at cash costs of A$1,597/oz, and AISC of A$1,803/oz. Operating costs directly reflect the impact of the aforementioned continued wet weather affecting the TGO. Gold sales were 12,519oz for Q2 resulting in A$20.9m in revenue. Alkane’s gold forward contracts at 31 December were 43koz at an average forward price of A$1,715/oz. Alkane’s group cash position at end December totalled A$24.5m.

Last updated on 02/03/2017

Key management

Ian Chalmers, MD

Company address

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