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Alkane Resources (ASX: ALK)

Last close As at 26/07/2024

AUD0.50

▲ −0.03 (−4.76%)

Market capitalisation

AUD302m

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). Combined, we value Boda and Kaiser at A$0.40-0.50/share as an in-situ resource or A$0.45/share as a producing asset. In addition, Alkane has a number of ‘contingent assets’ dependent on future exploration success, which we estimate could add a further A$0.53/share to its valuation. Finally, valuing its assets at current metals prices takes the total to A$2.95/share.

Latest Insights

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Metals & Mining | Update

Alkane Resources — Kaiser a winner

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
Alkane-Resources_resized
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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)

11

Forecast gearing ratio (%)

3

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (5.7) (23.7) (34.6)
Relative (5.9) (25.1) (39.0)
52 week high/low A$0.8/A$0.5

Financials

Since our last update note on 20 May, Alkane has announced 1) the results of its scoping study on the Boda-Kaiser project, 2) FY24 production of 57,217oz Au at an all-in sustaining cost (AISC) guidance of A$2,150–2,350/oz, 3) an updated five-year mining plan at Tomingley and 4) regional exploration results from the Northern Molong Porphyry Project (NMPP). This note updates our valuation of the company for each of these developments, of which the most important are the results of the Boda-Kaiser scoping study.

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 13.8 2.2
2023A 190.5 94.9 60.6 7.00 7.1 3.1
2024E 175.8 60.5 29.9 3.53 14.2 5.0
2025E 251.7 43.4 0.4 0.04 1250.0 6.9

Research

Update

Metals & Mining

Alkane Resources — Kaiser takes on the World
Alkane-Resources_resized

Update

Metals & Mining

Alkane Resources — Boda continuing to add value

Metals & Mining

Update

Alkane Resources — Kaiser a winner
Alkane-Resources_resized

Update

Metals & Mining

Alkane Resources — The Bodas continue to grow
Alkane-Resources_resized

Update

Metals & Mining

Alkane Resources — Expanding its resources
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
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