Alkane Resources
Primary ticker: ASX:ALK
Stage of development: Exploration, Production
Primary minerals: Gold
Project to promote: Tomingley and Boda
Project location: Australia
Website: www.alkane.com.au
Alkane Resources is an Australian gold producer and explorer with the majority of its’ activities in the central west region of New South Wales. Alkane’s Tomingley gold mine, operating since 2014, is currently undergoing expansion to lift production from 60,000 ozpa to 100,000 oz pa by 2025. Alkane’s major exploration project is the Boda & Kaiser porphyry deposits, with over 15 million oz equivalent (Au and Cu) in indicated and inferred resource.
Cash: AUD$61M
Debt: AUD$12M
Major shareholders:
Ian Gandel – 18.3%
Chapelgreen Pty Ltd – 9.0%
Van Eck Associates Corp – 3.6%
Dimensional Fund Advisors – 3.3%
The Vanguard Group – 2.5%
Management Ownership – 20.3%
Financials
Management Profile
Nic Earner – Managing Director
Nic is a chemical engineer with over 25 years’ experience in technical and operational optimisation and management. He has held several executive roles in mining and processing, including the COO of Alkane and has been the Managing Director since 2017.
What is your rationale for taking part in 121 Mining Investment?
We are looking to increase our institutional shareholding.
What recent news would you like to highlight to investors attending?
14 Dec 2023 – Boda Resource Update Increases Gold and Copper Grades
27 Feb 2024 – Tomingley Gold Extension Project Reserves Lift to 664,000oz
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Release Kaiser Indicated Resource. Release Boda and Kaiser Scoping Study. Release updated Tomingley mine production plan.
6 Months:
Commence stoping and commission paste fill at new mining area, Roswell.
12 Months:
Commission flotation and fine grind circuit at Tomingley, commence further production upgrades. Show flow through of value drivers to share price.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Risks – Australian input costs and mine expansion. Long dated contracts, local workforce (not FIFO), close project and debt management.
What do you think makes your company such a compelling investment?
Tomingley is a reliable producing and profitable asset that is expanding. The Kaiser and Boda porphyry projects are large scale with tier one potential. Compared to its peers with shorter mine lives and higher costs, Alkane appears relatively undervalued.
What are the top 3 key investor takeaways?
Tomingley is a long life profitable mine that is increasing in gold production. The Boda and Kaiser deposits are large porphyry systems that continue to grow. The Alkane team has a track record of exploration and corporate success.