Alkane Resources

AU: ALK

AU$111.3m market cap

AU$0.22 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

Q319 was a strong quarter for Alkane Resources, with gold production from the stockpile at Tomingley Gold Mine above expectations. As a result, we have increased forecast gold production for FY19 to 44,000oz from 40,000oz and increased gold sold to 48,800oz from 41,500oz. We have also decreased our forecast all-in sustaining cost to A$1,059/oz Au from A$1,108/oz Au.

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 9.9 N/A
2018A 130.0 68.6 31.5 4.87 4.5 N/A
2019E 85.1 29.9 23.5 3.45 6.4 N/A
2020E 57.3 21.0 10.6 (0.07) N/A N/A
Last updated on 17/05/2019
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 17/05/2019
Share price graph
Balance sheet
Forecast net cash (A$m) 68.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (8.3) 12.8 (24.1)
Relative* (9.9) 7.4 (27.2)
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

Content on Alkane Resources