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$149.3m
Last closeA$0.30
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
Actual(19.1781)(1.6667)(44.8598)
Relative *(21.7194)(4.6433)(48.9431)

* % 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 maintains focus to refresh board

Tue, 17 Oct 2017 00:56:52 GMT

2.30

Sat, 21 May 2011 13:30:44 GMT

Alkane Resources Ltd kicks off large exploration program at Tomingley

Thu, 22 Sep 2016 02:02:13 GMT

Follow Up On Alkane Resources

Sun, 25 Dec 2016 08:03:45 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 29.5 4.3
2016A 109.6 40.9 11.0 2.2 13.4 3.3
2017E 117.8 47.9 17.8 2.2 13.4 4.7
2018E 102.6 25.9 (38.7) (3.5) N/A 17.0

Last updated on 19/09/2017

Investment summary

The Tomingley Gold Operation’s (TGO) resource and reserve statements have been updated. The record total mineral resources across all categories of 9.23Mt at 1.7g/t Au for 508koz and total ore reserves of 2.68Mt at 1.9g/t for 166koz. Importantly, UG reserves are included, as the company previously stated in December 2015 that additional drilling is required to underpin a revised feasibility study on the UG phase at the TGO. Underground reserves are 0.524Mt at 3.7g/t Au for 62koz and the orebody is still open and being drill-tested to potentially increase this number. Aside from the TGO, Alkane should reach conclusion on a number of Dubbo Project milestones by year-end, and we look to these catalysts as the springboard for the company to develop its flagship project.

Last updated on 03/10/2017

Industry outlook

The TGO produced 68,836oz for A$117.3m in revenue in FY17, at an all-in sustaining cost (AISC) of A$1,335/oz. FY17 operating cash flow after development costs was A$32.7m, and a PAT of A$17.1m. The company guides to 65koz to 70koz of gold produced for the TGO at an AISC of between A$1,100/oz and A$1,200/oz.

Last updated on 03/10/2017

Key management

Ian Chalmers, MD

Company address

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