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Currency in AUD
Last close As at 09/06/2023
AUD0.71
▲ −0.01 (−1.39%)
Market capitalisation
AUD427m
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$0.61/share). Liquid assets contribute a further A$0.03/share and Boda A$0.31/share. An additional A$0.12/share is added by the maiden resource at Kaiser and potentially up to a further A$0.56/share from exploration at Boda Two and Boda Three (also in the Northern Molong Porphyry Project). As such, we calculate that Alkane’s share price is 131% covered by the value of tangible assets. The rising gold price only serves to increase this further.
Metals & Mining
Metals & Mining
Metals & Mining
Metals & Mining
Director, Energy & Resources
Ian Chalmers
Technical director
Ian Gandel
Chairman
Nic Earner
MD
Forecast net cash (A$m)
76.5
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | (18.4) | 8.4 | (26.0) |
| Relative | (16.3) | 11.6 | (25.4) |
| 52 week high/low | A$0.9/A$0.5 |
Following its Q323 results, in which production reached 54,431oz year to date, Alkane expects to reach the upper end of its FY23 guidance range of 65,000–73,000oz at an anticipated all-in sustaining cost of A$1,550–1,800/oz. Following exploration, Tomingley’s mine life has been increased from CY23 to at least CY31; subsequent work has delineated a maiden resource at Boda of 10.1Moz gold equivalent (AuE) and identified an inferred mineral resource of 4.7Moz AuE at Kaiser.
| Y/E Jun | Revenue (A$m) | EBITDA (A$m) | PBT (A$m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2021A | 127.8 | 70.5 | 46.3 | 5.30 | 13.4 | 5.9 |
| 2022A | 165.0 | 87.5 | 52.1 | 3.63 | 19.6 | 3.1 |
| 2023E | 182.8 | 85.9 | 49.1 | 5.74 | 12.4 | 4.9 |
| 2024E | 166.5 | 68.0 | 58.5 | 6.75 | 10.5 | 6.2 |
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