AU$121.5m market cap
AU$0.24 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.
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 | 10.8 | N/A |
| 2018A | 130.0 | 68.6 | 31.5 | 4.87 | 4.9 | N/A |
| 2019E | 73.9 | 20.7 | 14.3 | 2.15 | 11.2 | N/A |
| 2020E | 47.9 | 11.5 | 1.7 | (1.30) | N/A | N/A |
| Last updated on 17/04/2019 | ||||||
Industry outlook
At Tomingley, operations are transitioning from open pit to underground. Over the next four years we forecast the mine to produce an average of 32,000oz Au pa and generate an average EDITDA of A$34m pa. The cash flow from Tomingley will fund ongoing exploration to potentially extend the life of the mine, corporate overheads and could contribute to the development of the Dubbo project.
Last updated on 17/04/2019
Sector |
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| Metals & mining |
Share price graph
Balance sheet |
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| Forecast net cash (A$m) | 66.5 |
| Forecast gearing ratio (%) | N/A |
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Key management |
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| Ian Gandel | Chairman |
| Nic Earner | MD |
| Ian Chalmers | Technical director |
