ASX:ALK

Stock Analysis Report

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Executive Summary

Alkane Resources Limited operates as a multi-commodity mining and exploration company in the Central West of New South Wales in eastern Australia.


Snowflake Analysis

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

How has Alkane Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.6%

ALK

1.1%

AU Metals and Mining

4.6%

AU Market


1 Year Return

162.9%

ALK

1.3%

AU Metals and Mining

-10.5%

AU Market

Return vs Industry: ALK exceeded the Australian Metals and Mining industry which returned 3.8% over the past year.

Return vs Market: ALK exceeded the Australian Market which returned -10.6% over the past year.


Shareholder returns

ALKIndustryMarket
7 Day7.6%1.1%4.6%
30 Day31.4%15.9%9.0%
90 Day22.7%9.3%-9.4%
1 Year163.1%162.9%6.7%1.3%-6.8%-10.5%
3 Year275.9%275.5%63.1%40.6%11.7%-3.1%
5 Year201.9%201.6%93.3%54.3%29.3%1.4%

Price Volatility Vs. Market

How volatile is Alkane Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

25.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALK (A$0.92) is trading above our estimate of fair value (A$0.03)

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 (25.2x) compared to the Metals and Mining industry average (9.8x).

PE vs Market: ALK is poor value based on its PE Ratio (25.2x) compared to the Australian market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: ALK is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ALK is overvalued based on its PB Ratio (2.1x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALK's forecast earnings growth (13.7% per year) is above the savings rate (2.3%).

Earnings vs Market: ALK's earnings (13.7% per year) are forecast to grow slower than the Australian market (15% per year).

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

Revenue vs Market: ALK's revenue (12.6% per year) is forecast to grow faster than the Australian market (4.3% per year).

High Growth Revenue: ALK's revenue (12.6% 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 (11%).


Next Steps

Past Performance

How has Alkane Resources performed over the past 5 years?

48.1%

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 (24.5%) are higher than last year (18.8%).


Past Earnings Growth Analysis

Earnings Trend: ALK has become profitable over the past 5 years, growing earnings by 48.1% per year.

Accelerating Growth: ALK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ALK had negative earnings growth (-19.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-7.9%).


Return on Equity

High ROE: ALK's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is Alkane Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ALK's short term assets (A$86.5M) exceed its short term liabilities (A$10.1M).

Long Term Liabilities: ALK's short term assets (A$86.5M) exceed its long term liabilities (A$26.9M).


Debt to Equity History and Analysis

Debt Level: ALK is debt free.

Reducing Debt: ALK had no debt 5 years ago.

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


Next Steps

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?

2.4yrs

Average management tenure


CEO

Nic Earner

2.58yrs

Tenure

AU$1,049,024

Compensation

Mr. Nicolas Paul Earner, also known as Nic, has been Managing Director and Director of Alkane Resources Ltd. since September 1, 2017. Mr. Earner has experience in technical and operational optimization and ...


CEO Compensation Analysis

Compensation vs Market: Nic's total compensation ($USD696.47K) is about average for companies of similar size in the Australian market ($USD767.91K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nicolas Earner
MD & Director2.58yrsAU$1.05m0.028% A$151.8k
James Carter
CFO & Joint Company Secretary1.58yrsAU$308.98kno data
David Chalmers
Technical Director & Director33.83yrsAU$249.12k0.078% A$413.7k
Alister MacDonald
General Manager of Marketing3.17yrsAU$525.83k0.31% A$1.7m
Dennis Wilkins
Company Secretary2.17yrsAU$169.44kno data
Simon Parsons
General Manager of Operations1.58yrsno datano data
Brendan Ward
General Manager of Legal & Commercial0.58yrno datano data
Natalie Chapman
Corporate Communications Manager8yrsno datano data

2.4yrs

Average Tenure

56yo

Average Age

Experienced Management: ALK's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicolas Earner
MD & Director2.58yrsAU$1.05m0.028% A$151.8k
David Chalmers
Technical Director & Director33.83yrsAU$249.12k0.078% A$413.7k
Anthony Lethlean
Senior Independent Directorno dataAU$87.50k0.12% A$662.5k
Ian Gandel
Independent Non-Executive Chairman2.58yrsAU$147.92kno data
Gavin Smith
Non-Executive Director2.42yrsAU$85.00k0.057% A$305.3k

2.6yrs

Average Tenure

62yo

Average Age

Experienced Board: ALK's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 14.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Alkane Resources Limited
  • Ticker: ALK
  • Exchange: ASX
  • Founded:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$533.631m
  • Shares outstanding: 580.03m
  • Website: https://www.alkane.com.au

Location

  • Alkane Resources Limited
  • 89 Burswood Road
  • Ground Floor
  • Burswood
  • Western Australia
  • 6100
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALKASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
ALKE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
AK7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
ALKCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Alkane Resources Limited operates as a multi-commodity mining and exploration company in the Central West of New South Wales in eastern Australia. The company operates through two segments, Gold Operations and Rare Metals. It explores for gold, copper, zirconium, hafnium, niobium, tantalum, yttrium, and rare earth elements. The company owns interest in the Tomingley Gold project that consists of four exploration licenses and the Dubbo project located in New South Wales. Its exploration projects comprise the Bodangora, Kaiser, Finns Crossing, Cudal, Peak Hill, Wellington, Elsienora, Rockley, and Orange East projects. The company is headquartered in Burswood, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 10:32
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.