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Highlights

  • Alkane is an ASX-listed gold exploration, production and development firm
  • In FY23, ALK’s revenue surged by over 15% YoY to AUD 190.5 million
  • Gandel (Ian Jeffrey) has highest stake in ALK with a shareholding of ~18.25%

Alkane Resources Limited (ASX: ALK) is a gold exploration, development, and production company based in Australia. Established in 1969, the company's main projects and operations are situated in central western New South Wales.

In the financial year 2023 (FY23), the company recorded more than 15% YoY increase in revenue to AUD 190.5 million and 5.4% YoY increase in gold sales to 70,498 ounces. During the reported period, gold production stood at 70,253 ounces, compared to 66,802 ounces in the previous year, exceeding the production guidance for the year. The production momentum continued in the first half of FY24 as Tomingley met production guidance for the first half, taking the first half gold production to 29,037 ounces.

In FY23, profit after tax dropped by 39.5% YoY to AUD 42.5 million.

Top 10 shareholders of ALK

The top 10 shareholders of ALK have around 36.41% shareholding in the company, while the top four have nearly 26.98% shareholding. The top two shareholders of ALK are Gandel (Ian Jeffrey) and Van Eck Associates Corporation with a shareholding of ~18.25% and ~3.28%, respectively.

Recent business update

On 12 February 2024, the company reported higher grades from surface in assays from shallow infill drilling at Kaiser. The results point towards the continuity of mineralisation at depth. In March 2024, the final results are anticipated.

The company had released December quarter update on 15 January 2024. During the quarter, gold production and sales stood at 13,182oz and 14,507oz, respectively, while revenue from gold sales was AUD 42.4 million.

The company ended the quarter with AUD 73.4 million in cash, bullion and listed investments.

Outlook

In FY24, the expected gold production from Tomingley is 60 – 65koz at an AISC of AUD 1,750 – 2,100 per ounce. The commitment is to conduct drilling for additional resources across all its projects.  

Drilling at Roswell is progressing and in CY24, underground production is anticipated.

The company is focused to expand studies at the Boda-Kaiser Ag-Cu deposit and assessing partnering opportunities for boda.

Share performance of ALK

ALK shares closed 2.75% lower at AUD 0.53 apiece on 20 February 2024. With this, ALK’s share price has decreased by almost 16.54% in the past 12 months and has dropped by 31.17% in the last nine months.

The 52-week high of ALK is AUD 0.955, recorded on 14 April 2023, while the 52-week low is AUD 0.52, recorded on 15 February 2024.

ALK Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 20 February 2024. The reference data in this report has been partly sourced from REFINITIV.