Alkane Resources - Edison Group

Overview
Price performance
Financials
Research
Sector insights
Thematics

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

16.10.24

Alkane Resources — Seamlessly shifting to Roswell

Metals & Mining |
Update

24.07.24

Alkane Resources — Kaiser a winner

Metals & Mining |
Update

20.05.24

Alkane Resources — Kaiser takes on the World

Metals & Mining |
Update

02.01.24

Alkane Resources — Boda continuing to add value

Alkane-Resources_resized

Sector

Metals & Mining

Equity Analyst

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

Flash note

17.10.22

Alkane Resources — A strong opening

Outlook

Metals & Mining

07.07.22

Alkane Resources — Coming to fruition

Update

Metals & Mining

16.11.21

Alkane Resources — Boda resource estimate within five months

Update

Metals & Mining

01.09.21

Alkane Resources — Boda and Tomingley continue to deliver

Outlook

Metals & Mining

09.07.21

Alkane Resources — Revealing the fruits of its labours

Update

Metals & Mining

08.12.20

Alkane Resources — Boda bodes well

Update

Metals & Mining

03.09.20

Alkane Resources — Reborn

Update

Metals & Mining

23.04.20

Alkane Resources — 007 strikes it rich

Update

Metals & Mining

24.09.19

Alkane Resources — Genesis of a golden opportunity

Flash note

Metals & Mining

09.07.19

Alkane Resources — 0.9–1.7Moz exploration target

edison tv

Metals & Mining

25.06.19

Executive interview – Alkane Resources

Update

Metals & Mining

07.06.19

Alkane Resources — Another forecast upgrade and an investment

Update

Metals & Mining

02.05.19

Alkane Resources — Forecast and valuation upgraded

Update

Metals & Mining

01.03.19

Alkane Resources — Profit after tax decreases by 10% y-o-y

edison tv

Metals & Mining

20.02.19

Bitesize briefing – Alkane Resources

Outlook

Metals & Mining

12.02.19

Alkane Resources — Cashed up and hungry for investments

Update

Metals & Mining

04.05.18

Alkane Resources — Poised for the next stage

Update

Metals & Mining

23.11.17

Alkane Resources — The final countdown

Update

Metals & Mining

27.07.17

Alkane Resources — TGO shows it can, and Dubbo’s value re-emerges

Flash note

Metals & Mining

27.06.17

Alkane Resources — Finishing the year with a flourish

Update

Metals & Mining

15.05.17

Alkane Resources — Getting back on track at the TGO

Update

Metals & Mining

19.12.16

Alkane Resources — Update 19 December 2016

Flash note

Metals & Mining

25.10.16

Alkane Resources — Update 25 October 2016

Flash note

Metals & Mining

16.08.16

Alkane Resources — Update 16 August 2016

Update

Metals & Mining

26.07.16

Alkane Resources — Update 26 July 2016

Update

Metals & Mining

14.04.16

Alkane Resources — Update 14 April 2016

Flash note

Metals & Mining

15.03.16

Alkane Resources — Update 14 March 2016

Update

Metals & Mining

01.02.16

Alkane Resources — Update 31 January 2016