Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ALKANE RESOURCES LTD. We currently have 6 research reports from 1 professional analysts.
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ALKANE RESOURCES LTD
ALKANE RESOURCES LTD
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.
TGO hits targets, DZP hafnium aids upside
03 Aug 15
The Tomingley Gold Operation (TGO) hit its FY15 production target and mining has followed plans with production reconciling well with resource models. Coupled with a significantly weaker Australian dollar and well managed costs, the TGO generated A$23.7m in cash flow in FY15 (after operating and development costs), A$15m of which was invested straight back into the Dubbo Zirconium Project (DZP). In our view, the market’s slight negative reaction to Alkane’s Q4 results relates to a broad pessimism towards commodities and a view on quarterly financials rather than considering the full-year performance data – which shows the TGO to be a solid, profitable gold mine operating in line with expectations.
30 Nov 16
Abzena (ABZA): Interim results indicate happy customers (BUY) | Horizonte Minerals* (HZM): Fund raise completed (CORP) | SacOil* (SAC): Half-year trading statement (CORP) | Revolution Bars (RBG): New openings (BUY) | Amino Technologies* (AMO): Multi operator FUSION roll out (CORP)
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.
24 Nov 16
Quixant* (QXT): Gaming gains (CORP) | SCISYS* (SSY): Bringing good news from Germany (CORP) | Hayward Tyler Group*: Contract wins (CORP) | Sound Energy (SOU): TE-7 flow rate and fund raise (BUY) | Water Intelligence* (WATR): Growth and improving returns in a defensive market (CORP) | Imaginatik* (IMTK): Interim trading update (CORP)
Small Cap Breakfast
28 Nov 16
Warpaint London—Schedule one update. Raising £2.5m at 97p. Expected mkt cap £62.6m vs revenues of £22.3m Walls & Futures REIT — Has raised £1m at £1 to acquire, refurbish or develop residential properties in the UK . Due to arrive on ISDX on 29 November Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.