Alkane Resources

AU: ALK

AU$318.8m market cap

AU$0.63 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 has A$73.9m in cash, bullion and listed investments and no debt (as at September 2019). It is seeking to leverage its cash balance and expertise by pursuing a strategy of investing in junior gold companies and projects that meet its investment criteria at the same time as exploring the immediate environs of its existing mining operation. Concurrently, it is transitioning from treating the mid-grade stockpile to underground mining at its Tomingley gold project and is looking at a potential demerger of its Dubbo rare earth project (where a pilot plant is under construction).

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (c)
P/E (x)
P/CF (x)
2018A 128.8 67.4 31.5 4.70 13.4 N/A
2019A 92.5 30.5 26.2 4.55 13.8 N/A
2020E 63.7 28.6 20.7 2.97 21.2 N/A
2021E 76.9 31.6 23.6 4.50 14.0 N/A
Industry outlook

Alkane produced 7,497oz gold in Q120, which caused it to increase its production guidance for FY20 to 30–35koz at an AISC of A$1,250–1,400/oz. Previously, it reported exceptional drill results from its Northern Molong Gold-Copper Porphyry Project (eg 502m at a grade of 0.48g/t Au and 0.20% Cu). It has also continued local and regional resource drilling to the south of Tomingley between El Paso and Peak Hill.

Last updated on 21/11/2019
Share price graph
Balance sheet
Forecast net cash (A$m) 49.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (16.6) 59.5 193.0
Relative* (16.8) 54.7 147.4
52-week high/low A$0.8/A$0.2
*% relative to local index
Key management
Ian Gandel Chairman
Nic Earner MD
Ian Chalmers Technical director

Content on Alkane Resources