Alkane Resources (ASX: ALK)

Last close As at 21/05/2024

AUD0.63

−0.01 (−0.79%)

Market capitalisation

AUD372m

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 — Kaiser takes on the World

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

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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 debt (A$m)

1.1

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (4.5) 19.8 (20.1)
Relative (8.2) 16.6 (26.6)
52 week high/low A$0.8/A$0.5

Financials

As with Boda before it, April’s resource update at Kaiser saw substantially all of its resource promoted from the inferred to the indicated category at a materially higher grade of both gold and copper. The close-spaced nature of the drilling required to achieve this will now allow these resources to be quickly and easily promoted to reserve status for the purpose of Alkane’s scoping study – or preliminary economic assessment – to be announced later this quarter.

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 17.4 2.7
2023A 190.5 94.9 60.6 7.00 9.0 4.0
2024E 186.2 70.5 40.0 4.68 13.5 5.4
2025E 247.4 98.7 67.5 7.72 8.2 3.8

Research

Alkane-Resources_resized

Update

Metals & Mining

Alkane Resources — Expanding its resources

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Flash note

Metals & Mining

Alkane Resources — Guidance increased again

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Outlook

Metals & Mining

Alkane Resources — A self-sufficient outlook

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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

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