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ALK

Alkane ResourcesASX:ALK Stock Report

Market Cap

AU$530.1m

7D

-5.3%

1Y

-27.7%

Updated

26 Oct, 2021

Data

Company Financials +
ALK fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends0/6

ALK Overview

Alkane Resources Limited operates as a multi-commodity exploration and development company in Australia.

Alkane Resources Competitors

Newcrest Mining

ASX:NCM

AU$20.6b

Northern Star Resources

ASX:NST

AU$11.3b

Evolution Mining

ASX:EVN

AU$7.0b

Perseus Mining

ASX:PRU

AU$2.0b

Price History & Performance

Summary of all time highs, changes and price drops for Alkane Resources
Historical stock prices
Current Share PriceAU$0.90
52 Week HighAU$0.66
52 Week LowAU$1.40
Beta0.41
1 Month Change11.11%
3 Month Change-17.05%
1 Year Change-27.71%
3 Year Change318.60%
5 Year Change68.22%
Change since IPO500.00%

Recent News & Updates

Mar 25
These 4 Measures Indicate That Alkane Resources (ASX:ALK) Is Using Debt Reasonably Well

These 4 Measures Indicate That Alkane Resources (ASX:ALK) Is Using Debt Reasonably Well

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Mar 07
How Many Alkane Resources Limited (ASX:ALK) Shares Have Insiders Sold, In The Last Year?

How Many Alkane Resources Limited (ASX:ALK) Shares Have Insiders Sold, In The Last Year?

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be...

Shareholder Returns

ALKAU Metals and MiningAU Market
7D-5.3%-0.4%0.8%
1Y-27.7%15.6%24.4%

Return vs Industry: ALK underperformed the Australian Metals and Mining industry which returned 15.6% over the past year.

Return vs Market: ALK underperformed the Australian Market which returned 24.4% over the past year.

Price Volatility

Is ALK's price volatile compared to industry and market?
ALK volatility
ALK Beta0.41
Industry Beta0.97
Market Beta1

Stable Share Price: ALK is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ALK's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1969n/aNic Earnerhttps://www.alkane.com.au

Alkane Resources Limited operates as a multi-commodity exploration and development company in Australia. It explores for gold, copper, zinc, titanium, nickel, cobalt, and rare earth elements. The company owns an interests in the Tomingley Gold project that consists of four gold deposits; and the Northern Molong Porphyry Project, which covers an area of 115 square kilometers located in the Central West of New South Wales.

Alkane Resources Fundamentals Summary

How do Alkane Resources's earnings and revenue compare to its market cap?
ALK fundamental statistics
Market CapAU$530.07m
Earnings (TTM)AU$33.57m
Revenue (TTM)AU$127.83m

16.0x

P/E Ratio

4.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALK income statement (TTM)
RevenueAU$127.83m
Cost of RevenueAU$66.49m
Gross ProfitAU$61.35m
ExpensesAU$27.78m
EarningsAU$33.57m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.056
Gross Margin47.99%
Net Profit Margin26.26%
Debt/Equity Ratio0%

How did ALK perform over the long term?

See historical performance and comparison

Valuation

Is Alkane Resources undervalued compared to its fair value and its price relative to the market?

15.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALK (A$0.9) is trading above our estimate of fair value (A$0.25)

Significantly Below Fair Value: ALK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ALK is poor value based on its PE Ratio (16x) compared to the Australian Metals and Mining industry average (14.6x).

PE vs Market: ALK is good value based on its PE Ratio (16x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: ALK is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: ALK is overvalued based on its PB Ratio (2.8x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is Alkane Resources forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALK's forecast earnings growth (6.9% per year) is above the savings rate (1.9%).

Earnings vs Market: ALK's earnings (6.9% per year) are forecast to grow slower than the Australian market (12.4% per year).

High Growth Earnings: ALK's earnings are forecast to grow, but not significantly.

Revenue vs Market: ALK's revenue (12.7% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: ALK's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALK's Return on Equity is forecast to be low in 3 years time (9.2%).


Past Performance

How has Alkane Resources performed over the past 5 years?

45.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALK has a high level of non-cash earnings.

Growing Profit Margin: ALK's current net profit margins (26.3%) are higher than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: ALK's earnings have grown significantly by 45.7% per year over the past 5 years.

Accelerating Growth: ALK's earnings growth over the past year (151.5%) exceeds its 5-year average (45.7% per year).

Earnings vs Industry: ALK earnings growth over the past year (151.5%) exceeded the Metals and Mining industry 35.3%.


Return on Equity

High ROE: ALK's Return on Equity (17.5%) is considered low.


Financial Health

How is Alkane Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ALK's short term assets (A$33.1M) exceed its short term liabilities (A$18.2M).

Long Term Liabilities: ALK's short term assets (A$33.1M) exceed its long term liabilities (A$26.5M).


Debt to Equity History and Analysis

Debt Level: ALK is debt free.

Reducing Debt: ALK has no debt compared to 5 years ago when its debt to equity ratio was 0.02%.

Debt Coverage: ALK has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ALK has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Alkane Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ALK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ALK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ALK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ALK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALK's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Nic Earner

4.08yrs

Tenure

AU$1,335,675

Compensation

Mr. Nicolas Paul Earner, also known as Nic, BEng (hons), has been Managing Director and Director of Alkane Resources Ltd. since September 1, 2017. He has been an Independent Non-Executive Director of Austr...


CEO Compensation Analysis

Compensation vs Market: Nic's total compensation ($USD1.00M) is above average for companies of similar size in the Australian market ($USD723.99K).

Compensation vs Earnings: Nic's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ALK's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: ALK's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alkane Resources Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Alkane Resources Limited
  • Ticker: ALK
  • Exchange: ASX
  • Founded: 1969
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$530.069m
  • Shares outstanding: 595.58m
  • Website: https://www.alkane.com.au

Location

  • Alkane Resources Limited
  • 66 Kings Park Road
  • Level 4
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 07:01
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.