Alkane Resources

AU: ALK

AU$301.1m market cap

AU$0.6 last close

Alkane Resources is an Australian production and development company. It previously produced 70,000oz Au pa from its open pit at Tomingley, but is now transitioning to underground operations and expects to produce around 32,000oz Au pa.

Investment summary

Alkane Resources is a well-funded gold production and exploration company with A$80.8m in cash, bullion and listed investments 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 continued exploration around its existing mining operation. The company is also transitioning from treating the mid-grade stockpile 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 2.2 27.0 5.4
2018A 130.0 68.6 31.5 4.9 12.1 5.5
2019E 92.1 34.9 28.4 4.2 14.2 10.4
2020E 57.3 21.0 7.7 (0.5) N/A 27.7
Last updated on 13/09/2019
Industry outlook

This month Alkane agreed to invest up to A$6m in gold explorer, Genesis Minerals (GMD.ASX). Genesis’s flagship asset is the Ulysses Gold Project, which is located 30km south of Leonor. Ulysses has a resource estimate of 760,000oz Au at a grade of 3.3g/t. Alkane also announced the initial results from a resource drill programme at its San Antonio and Roswell prospects.

Last updated on 13/09/2019
Share price graph
Balance sheet
Forecast net cash (A$m) 59.6
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 35.2 36.8 183.3
Relative* 32.7 33.6 160.9
52-week high/low A$0.6/A$0.2
*% relative to local index
Key management
Ian Gandel Chairman
Nic Earner MD
Ian Chalmers Technical director

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