Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ALKANE RESOURCES LTD. We currently have 7 research reports from 1 professional analysts.
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Research reports on
ALKANE RESOURCES LTD
ALKANE RESOURCES LTD
Staged DZP plan de-risks financing and off-take
19 Dec 16
Alkane’s (ALK’s) recently announced revised execution plan for the DZP provides for a significant re-rating of the project’s value. We calculate that the new modular design, where two trains of 0.5Mtpa will be constructed between end 2017 and 2023, will yield the same 1Mtpa size project as before but by using a staged capex spend will result in a c 16% uplift to our fully diluted (at a share price of A$0.40) DDF value of ALK’s shares. We view this plan as pivotal to the DZP’s successful execution and something that reduces risk in a multitude of areas, such as lower financing risk and construction costs from building components in lower-cost jurisdictions. Customer participation should also be improved by lowering commitments in off-take agreements geared to initially smaller production.
MoU signed with Siemens
25 Oct 16
Alkane has announced that it has signed an MoU (via its wholly owned subsidiary Australian Zirconia) with Siemens relating to its flagship Dubbo Zirconium Project (DZP). The purpose of the MoU is to advance the DZP, in particular to state each party's intention with respect to the procurement of Siemens’ equipment and operational solutions, and future offtake of products produced by the DZP. This follows Alkane’s 16 August announcement relating to a major zirconium agreement with a UK specialist chemicals firm. In our view, both agreements de-risk financing of the estimated A$1.3bn capex requirement for DZP and move it closer to the construction phase.
TGO in line with guidance, DZP shovel ready
26 Jul 16
The TGO gold mine continues to perform well, helped in no small part by a resurgent gold price during H216, and despite unseasonably high rainfall persisting through Q416. Stronger cash flows resulted and we expect the TGO to continue at similar operating levels (to FY16) through FY17. The DZP continues to advance, albeit with a number of concurrent project elements requiring completion before financing can be finalised.
Clear path to financing and securing off-takes
15 Mar 16
Alkane’s wholly owned subsidiary, Australian Zirconia, has been granted an Environmental Protection Licence (EPL). This finalises the approval process for the Dubbo Zirconia Project (DZP) and significantly de-risks the path towards financing. With all the development permits now in place, Alkane can provide assurance to its finance team that no fundamental obstacle, whether technical, commodity price (the DZP is robustly profitable at current commodity prices), governmental or otherwise, can hinder the project’s development post financing being secured.
Gold production on target, costs within budget
01 Feb 16
Alkane reports a second cash flow-positive quarter after the high amounts of waste required to be mined during H215 made the TGO cash flow negative. Gold production remains on track for 60-70koz by end FY16, with AISC costs in a range of A$1,200-1,300/oz ytd. Costs compare to an Australian dollar gold price of c A$1,570/oz. Progress on developing the DZP is also highlighted, with the key mining lease achieved during the quarter. We maintain our view that the DZP, through its diversified product suite and very advanced stage of engineering and product offtake arrangements, remains the strongest non-Chinese contender for exposure to the strategically important REE (and other speciality metals) space.
Ready to develop with more value to come
19 Oct 15
Our value of Alkane's flagship DZP project has improved by 32% based on the completed FEED design (released in August 2015) and conservative (2020e) product prices, when compared to the value provided in its 2013 DFS. The three main reasons are inclusion of a hafnium revenue stream, improved metal recovery factors, providing more metal to sell, and a weakened A$ aiding US$-priced revenues against domestic priced operating costs. When remaining offtake agreements and project permits have been received, Alkane will aim to finalise its long-established financing strategy to fund development of this unique (A$1.3bn) diversified-commodity project. This note focuses solely on the DZP, with the Tomingley Gold Operation referenced only in our SOTP valuation.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
GMP FirstEnergy ― UK Energy morning research package
06 Dec 16
Transglobe Energy (TGL CN); BUY, C$5.25: Homeward bound… back to Canada | Great Eastern Energy Corporation (GEEC LN) (not covered): Reserves update in India | BP (BP LN) (not covered): Acquiring interest in Tangguh in Indonesia | Exillon Energy (EXI LN) (not covered): Production update in Russia | Genel Energy (GENL LN); SPECULATIVE BUY, £2.60: Receipt of payment for Taq Taq export in Kurdistan | ExxonMobil (XOM US) (not covered): Relinquishing blocks in Kurdistan
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.