Section 1: Company Overview and Fundamentals
1.1 Company Overview:
Alkane Resources Limited (ASX: ALK) is engaged in the mining operations at the Tomingley Gold Operation, exploration and evaluation activities on tenements and pursuing strategic investments in gold exploration companies.
1.2 The Key Positives, Negatives, Investment Highlights and Risks
1.3 Top 10 Shareholders: The top 10 shareholders together form ~41.13% of the total shareholding. Gandel (Ian Jeffrey) and Van Eck Associates Corporation hold a maximum stake in the company at ~22.13% and ~3.63%, respectively.
1.4 Key Metrics:
During 1HFY22, the company recorded a current ratio of 2.20x against the industry median of 2.04x. In addition, the debt-to-equity ratio for 1HFY22 stood at 0.08x as compared to 0.18x of the industry median.
Section 2: Business Updates and Financial Highlights
2.1 Business Updates:
2.2 Insights of Q3FY22:
Section 3: Key Risks and Outlook:
Section 4: Stock Recommendation Summary:
4.1 Price Performance and Technical Summary:
4.2 Fundamental Valuation
Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)
Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: The reference data in this report has been partly sourced from REFINITIV
Note 2: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest.
Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.
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