Alkane Resources (ASX: ALK)

Last close As at 27/03/2024

AUD0.58

−0.01 (−1.69%)

Market capitalisation

AUD357m

Alkane Resources has two main assets in Central West New South Wales: the Tomingley gold mine, where recent exploration has increased the mine life by at least eight years, from FY23 to FY31, and its Northern Molong Porphyry project, which is shaping up to be a tier 1 alkalic porphyry district.

Our valuation of Alkane continues to be underpinned by Tomingley (A$0.60/share). Liquid assets contribute a further A$0.01/share, with the value of Boda and Kaiser now estimated at a combined A$0.50/share. We also estimate A$0.48 per share in potential upside in the event of further exploration success at Boda and Kaiser and another A$0.65/share in the event of metals prices remaining at current levels, rather than reverting to our somewhat conservative longer-term numbers.

Latest Insights

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Metals & Mining | Update

Alkane Resources — Boda continuing to add value

Metals & Mining | Update

Alkane Resources — The Bodas continue to grow

Metals & Mining | Update

Alkane Resources — Expanding its resources

Metals & Mining | Flash note

Alkane Resources — Guidance increased again

Alkane-Resources_resized

Equity Analyst

Lord Ashbourne

Lord Ashbourne

Director of Content, Mining

Key Management

  • Ian Chalmers

    Technical director

  • Ian Gandel

    Chairman

  • Nic Earner

    MD

Balance Sheet

Forecast net cash (A$m)

34.3

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 18.0 (10.6) (20.8)
Relative 16.1 (14.0) (29.7)
52 week high/low A$0.9/A$0.5

Financials

Interim H124 production figures at Tomingley of 29,057oz at an AISC of A$2,177/oz compare with FY24 guidance of 60–65koz production at an AISC of A$1,750–2,100/oz. Tomingley’s mine life has already been increased from CY23 to at least CY31 and subsequent exploration has delineated a resource, so far, at Boda of 10.9Moz gold equivalent (AuE) and one of 4.7Moz AuE at Kaiser with work ongoing. A resource update is anticipated at Kaiser later in Q1 CY24 with a conceptual Boda-Kaiser mine plan thereafter.

Y/E Jun Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (fd) (c) P/E (x) P/CF (x)
2022A 165.0 87.5 52.1 3.63 16.0 N/A
2023A 190.5 94.9 60.6 7.00 8.3 N/A
2024E 182.1 76.1 52.6 6.05 9.6 N/A
2025E 236.9 89.5 65.6 7.55 7.7 N/A

Research

Alkane-Resources_resized

Flash note

Metals & Mining

Alkane Resources — Guidance increased again

Alkane-Resources_resized

Outlook

Metals & Mining

Alkane Resources — A self-sufficient outlook

Alkane-Resources_resized

Flash note

Metals & Mining

Alkane Resources — Continuing to turn hope into reality

Flash note

Metals & Mining

Alkane Resources — Tomingley Gold Extension Project approved

Flash note

Metals & Mining

Alkane Resources — Production impresses at Tomingley

Flash note

Alkane Resources — A strong opening

Outlook

Metals & Mining

Alkane Resources — Coming to fruition

Update

Metals & Mining

Alkane Resources — Boda resource estimate within five months

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