ASX:ALK

Stock Analysis Report

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 and fair value.


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

2.7%

ALK

-1.8%

AU Metals and Mining

-2.0%

AU Market


1 Year Return

178.0%

ALK

20.1%

AU Metals and Mining

16.7%

AU Market

Return vs Industry: ALK exceeded the Australian Metals and Mining industry which returned 20.1% over the past year.

Return vs Market: ALK exceeded the Australian Market which returned 16.7% over the past year.


Shareholder returns

ALKIndustryMarket
7 Day2.7%-1.8%-2.0%
30 Day-15.6%-1.3%0.1%
90 Day48.1%-1.2%0.4%
1 Year178.3%178.0%28.9%20.1%22.5%16.7%
3 Year39.2%39.0%53.6%32.6%35.4%16.8%
5 Year171.7%171.4%105.1%56.6%60.6%24.4%

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?

12.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALK (A$0.57) is trading above our estimate of fair value (A$0.15)

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


Price To Earnings Ratio

PE vs Industry: ALK is good value based on its PE Ratio (12.4x) compared to the Metals and Mining industry average (13.4x).

PE vs Market: ALK is good value based on its PE Ratio (12.4x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ALK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ALK is good value based on its PB Ratio (1.3x) 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 1 analyst?

-11.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ALK's forecast earnings growth is above the savings rate (1.1%).

Earnings vs Market: Insufficient data to determine if ALK's earnings are forecast to grow faster than the Australian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ALK's revenue is expected to decline over the next 3 years (-11% per year).

High Growth Revenue: ALK's revenue is forecast to decline over the next 3 years (-11% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ALK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Alkane Resources performed over the past 5 years?

45.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALK has high quality earnings.

Growing Profit Margin: ALK's current net profit margins (24.8%) 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 45.1% 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 (-4.8%) over the past year, making it difficult to compare to the Metals and Mining industry average (7.8%).


Return on Equity

High ROE: ALK's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alkane Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ALK's short term assets (A$76.5M) exceed its short term liabilities (A$12.4M).

Long Term Liabilities: ALK's short term assets (A$76.5M) exceed its long term liabilities (A$22.4M).


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

Inventory Level: ALK has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ALK's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

What is the CEO of Alkane Resources's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Nic Earner 0

2.3yrs

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 ($USD718.90K) is above average for companies of similar size in the Australian market ($USD480.16K).

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


Management Age and Tenure

2.0yrs

Average Tenure

56yo

Average Age

Experienced Management: ALK's management team is considered experienced (2 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

62yo

Average Age

Experienced Board: ALK's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: ALK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$98,68518 Sep 19
Gavin Smith
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares153,000
Max PriceAU$0.65
BuyAU$1,076,78613 Sep 19
Abbotsleigh Pty Ltd.
EntityCompany
Shares2,000,000
Max PriceAU$0.54

Ownership Breakdown

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


Management Team

  • Ian Chalmers (70yo)

    Technical Director & Director

    • Tenure: 33.5yrs
    • Compensation: AU$249.12k
  • Jim Carter (49yo)

    Chief Financial Officer

    • Tenure: 1.2yrs
    • Compensation: AU$308.98k
  • Dennis Wilkins (56yo)

    Company Secretary

    • Tenure: 1.8yrs
    • Compensation: AU$169.44k
  • Nic Earner

    MD & Director

    • Tenure: 2.3yrs
    • Compensation: AU$1.05m
  • Brendan Ward

    General Manager of Legal & Commercial

    • Tenure: 0.3yrs
  • Natalie Chapman

    Corporate Communications Manager

    • Tenure: 7.6yrs
  • Alister MacDonald

    General Manager of Marketing

    • Tenure: 2.8yrs
    • Compensation: AU$525.83k
  • Simon Parsons

    General Manager of Operations

    • Tenure: 1.2yrs

Board Members

  • Tony Lethlean (56yo)

    Senior Independent Director

    • Tenure: 0yrs
    • Compensation: AU$87.50k
  • Ian Chalmers (70yo)

    Technical Director & Director

    • Tenure: 33.5yrs
    • Compensation: AU$249.12k
  • Ian Gandel (62yo)

    Non-Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: AU$147.92k
  • Nic Earner

    MD & Director

    • Tenure: 2.3yrs
    • Compensation: AU$1.05m
  • Gavin Smith

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$85.00k

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$296.066m
  • Shares outstanding: 506.10m
  • 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
ALKNBASX (Australian Securities Exchange)NPV DFD 19/12/19(EX-RIGHTS)AUAUDNo data
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
ANLK.YOTCPK (Pink Sheets LLC)SPON ADR EA REPR 10 ORD SHSUSUSDOct 2010

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 10:32
End of Day Share Price2019/12/06 00:00
Earnings2019/06/30
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.