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$2.95/share.
Metals & Mining |
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Metals & Mining |
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Metals & Mining |
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Metals & Mining |
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Ian Chalmers
Technical director
Ian Gandel
Chairman
Nic Earner
MD
Forecast net debt (A$m)
1.1
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (9.6) | (12.7) | (26.4) |
Relative | (9.9) | (12.6) | (33.4) |
52 week high/low | A$0.8/A$0.5 |
A period of intense exploration activity at Alkane has resulted in an updated Kaiser resource of 3.74Moz AuE to add to an updated Boda resource of 10.9Moz AuE, a doubling in the underground ore reserve at Roswell and a 36% increase in the overall reserve. These last two give the company more than enough reserves and resources to execute the Tomingley Gold Extension Project and almost enough reserves to execute the Roswell underground extension project as well. In the meantime, a scoping study at Kaiser-Boda is anticipated imminently.
Y/E Jun | Revenue (A$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 | 13.4 | 2.1 |
2023A | 190.5 | 94.9 | 60.6 | 7.00 | 6.9 | 3.0 |
2024E | 186.2 | 70.5 | 40.0 | 4.68 | 10.4 | 4.1 |
2025E | 247.4 | 98.7 | 67.5 | 7.72 | 6.3 | 3.0 |
thematic
Metals & Mining