Alkane Resources

AU: ALK

AU$197.4m market cap

AU$0.39 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’ successful drill programme during H119 at the Tomingley Gold Project has resulted in the generation of an exploration target ranging from 860,000oz Au to 1,680,000oz Au. Importantly, this exploration target lies within 8km of Alkane’s operational Tomingley gold processing plant. Successful resource drilling of the exploration target, followed by positive feasibility studies, could extend the life of the gold operations at Tomingley beyond 2022.

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 17.7 3.5
2018A 130.0 68.6 31.5 4.9 8.0 3.6
2019E 92.1 34.9 28.4 4.2 9.3 6.8
2020E 57.3 21.0 7.7 (0.5) N/A 18.2
Last updated on 16/07/2019
Industry outlook

In our 7 June update note we upgraded our FY19 gold production estimates from Tomingley to 48,000oz with gold sales of 52,800oz. Positive exploration results have continued extending the total strike length of gold mineralisation within 8km of the plant at Tomingley to 2.5km. Alkane also signed a binding agreement with Zirconium Technology Corporation to fund a pilot plant operation to convert metal oxides into metals.

Last updated on 16/07/2019
Share price graph
Balance sheet
Forecast net cash (A$m) 59.6
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (6.0) 62.5 90.2
Relative* (7.6) 52.9 79.1
52-week high/low A$0.5/A$0.2
*% relative to local index
Key management
Ian Gandel Chairman
Nic Earner MD
Ian Chalmers Technical director

Content on Alkane Resources