Alkane Resources

AU: ALK

AU$101.2m market cap

AU$0.2 last close

Alkane Resources is an Australian production and development company. It previously produced 70,000oz Au pa from its open pit operations at Tomingley but is transitioning to underground operations and expects to produce c 32,000oz Au pa. It is seeking funding to move its Dubbo Polymetallic project into production.

Investment summary

Alkane Resources is a well-funded gold production company with A$73.7m in cash and no debt. It is seeking to leverage its cash balance and extensive expertise in gold mining and exploration through a strategy of investing in junior gold companies and projects that meet its investment criteria. Alongside this, the company is transitioning from open pit mining to underground mining at its Tomingley gold project and is pursuing the finance required to develop its Dubbo polymetallic project.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 117.8 49.3 6.6 2.23 9.0 N/A
2018A 130.0 68.6 31.5 4.87 4.1 N/A
2019E 73.9 20.7 14.3 2.15 9.3 N/A
2020E 47.9 11.5 1.7 (1.30) N/A N/A
Last updated on 20/02/2019
Industry outlook

Alkane continues to market the strategic Dubbo project (DP) asset to a wide range of potential customer/investors across Europe, Asia and the US. The current US-China trade war and general US protectionist stance towards its industries, bodes well for development of non-Chinese production of rare metals from projects such as the DP.

Last updated on 20/02/2019
Share price graph
Balance sheet
Forecast net cash (A$m) 66.5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 0.0 (11.1) (29.8)
Relative* (3.8) (17.1) (31.3)
52-week high/low A$0.3/A$0.2
*% relative to local index
Key management
Ian Gandel Chairman
Nic Earner MD
Ian Chalmers Technical director

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