Alkane Resources

AU: ALK

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
Share price graph
Balance sheet
Forecast net cash (A$m) 66.5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 9.1 20.0 (15.8)
Relative* 7.6 11.7 (21.3)
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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