Alkane Resources

AU: ALK

Market CapAU$468m

Last Close AU$0.79

Alkane Resources has two main assets in Central West New South Wales: the Tomingley gold mine, where recent exploration has increased the mine life by at least eight years, from FY23 to FY31, and its Boda prospect at Northern Molong, which is shaping up to be a tier 1 alkalic porphyry district.

More Alkane Resources content >

Investment summary

Alkane exceeded the upper end of its guidance range in FY22 by 11% at an all-in sustaining cost (AISC) of A$1,460/oz (cf guidance of A$1,500–1,650/oz). Exploration at San Antonio and Roswell has already led to an increase in Tomingley’s life from CY23 until CY31 at production levels up to 115koz pa and AISC down to A$1,350–1,450/oz. Subsequent exploration has increased the Roswell resource by 37% as well as delineating a maiden resource of 5.2Moz Au or 10.1Moz AuE at Boda.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2020A 72.5 29.4 20.6 2.48 32.7 15.7
2021A 127.8 70.5 46.3 5.30 15.3 6.7
2022E 162.3 73.3 42.4 1.71 47.4 3.5
2023E 140.1 69.2 37.8 4.39 18.5 7.0
Industry outlook

Our valuation of Alkane continues to be underpinned by Tomingley (A$0.57/share). Liquid assets contribute a further A$0.06/share and Boda a further A$0.31/share. As such, we calculate that Alkane’s share price is now more than 100% covered by the value of tangible assets, with up to an additional A$0.59/share available in the form of further exploration success at the Northern Molong Porphyry Project as well as the gold price and the ever-increasing probability that the Roswell underground extension will be sanctioned.

Last updated on 12/08/2022
Content on Alkane Resources
Alkane Resources – Coming to fruition
Metals & mining | research Outlook | 7 July 2022
Alkane Resources – Boda resource estimate within five months
Metals & mining | research Update | 16 November 2021
Alkane Resources – Boda and Tomingley continue to deliver
Metals & mining | research Update | 1 September 2021
View more
Register to receive research on Alkane Resources as it is published
Sector
Metals & mining
Access more Metals & mining content
Share price graph
Balance sheet
Forecast net cash (A$m) 57.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 16.5 (14.7) (23.9)
Relative* 10.7 (14.2) (17.7)
52-week high/low A$1.3/A$0.6
*% relative to local index
Key management
Ian Gandel Chairman
Nic Earner MD
Ian Chalmers Technical director

You may also be interested in…