Alkane Resources


AU$210m market cap

AU$0.42 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 is a well-funded gold production and exploration company with A$80.8m in cash, bullion and listed investments 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 continued exploration around its existing mining operation. The company is also transitioning from treating the mid-grade stockpile 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$m)
PBT (A$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 117.8 49.3 6.6 2.2 18.9 3.8
2018A 130.0 68.6 31.5 4.9 8.5 3.8
2019E 92.1 34.9 28.4 4.2 9.9 7.3
2020E 57.3 21.0 7.7 (0.5) N/A 19.3
Last updated on 15/08/2019
Industry outlook

In July Alkane established an exploration target within 8km of the Tomingley Gold Mine ranging from 860,000oz Au to 1,680,000oz Au. With successful resource drilling of this exploration target, followed by positive feasibility studies, this latest discovery could extend the life of the gold operations at Tomingley beyond 2022. During H119, Alkane produced 48,969oz Au from Tomingley at an AISC of A$947/oz.

Last updated on 15/08/2019
Share price graph
Balance sheet
Forecast net cash (A$m) 59.6
Forecast gearing ratio (%) N/A
Price performance
Actual 6.4 102.4 124.3
Relative* 10.6 98.7 121.7
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

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