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Alkane Resources (ASX: ALK)

Last close As at 22/11/2024

AUD0.50

▲ 0.01 (1.01%)

Market capitalisation

AUD303m

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.

In the wake of the Boda-Kaiser scoping study, we value Tomingley (plus cash) at A$0.34/share plus a further A$0.40–0.50/share for Boda-Kaiser as a resource or A$0.43/share for it as a producing asset (risked to its current stage of development). In addition, we estimate that ongoing exploration could add a further A$0.51/share to Alkane’s valuation, while performing all valuations at current metals prices increases it by a further A$1.25/share.

Latest Insights

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Metals & Mining | Update

Alkane Resources — Seamlessly shifting to Roswell

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
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)

61.5

Forecast gearing ratio (%)

19

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (9.2) 15.1 (22.0)
Relative (9.5) 10.1 (34.0)
52 week high/low A$0.7/A$0.4

Financials

Alkane has announced the results of a scoping study on the Boda-Kaiser project and an updated five-year plan at Tomingley. The Boda-Kaiser scoping study posited a 20Mtpa processing operation producing an average of 225koz gold equivalent (AuE) for 17 years at an AISC of US$1,268/oz and a capital cost of US$1,337m to generate a pre-tax NPV(7%) of US$1,206m and a pre-tax internal rate of return of 24.0%. Assuming mining tax at 30%, we estimate this translates into a post-tax NPV (7%) of US$697m, or US$1.16/share (A$1.72/share) on an unrisked basis.

Y/E Jun Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (fd) (c) P/E (x) P/CF (x)
2023A 190.5 94.9 60.6 7.00 7.1 3.1
2024A 173.0 59.8 24.3 2.87 17.4 5.0
2025E 244.8 84.0 30.6 3.52 14.2 3.6
2026E 269.5 104.4 33.9 3.89 12.9 2.9

Research

Update

Metals & Mining

Alkane Resources — Kaiser a winner

Update

Metals & Mining

Alkane Resources — Kaiser takes on the World

Metals & Mining

Update

Alkane Resources — Seamlessly shifting to Roswell
Alkane-Resources_resized

Update

Metals & Mining

Alkane Resources — Boda continuing to add value
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
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