Alkane Resources Ltd.

Alkane Resources Ltd. is a multicommodity mining and exploration company with a focus on gold, copper, zirconium, niobium and rare earths. Its projects and operations are located in the central west of New South Wales, in eastern Australia. Alkane commenced gold production in early 2014, after commissioning its Tomingley gold project in February, on time and on budget. The company is also developing the Dubbo zirconia project, with operations scheduled for 2016. This will position Alkane as a strategic and significant world producer of zirconium products and heavy rare earths. Several other copper-gold exploration projects in the region are being evaluated. The company is heavily committed to safe environmental practices and local community wellbeing.

Expert Comments:

Tom Hayes, Edison Investment Research (1/29/15)
"Alkane Resources Ltd.'s Q2/15 quarterly report shows Tomingley Gold Operations (TGO) continuing to produce gold ahead of budget. . .since it started operating, TGO ores have continually provided greater gold grades than originally estimated in the reserve. Total gold ounces (Caloma and Wyoming Three pits) are 30% ahead of the original budget year-to-date."

Tom Hayes, Edison Investment Research (11/28/14)
"Alkane Resources Ltd.'s Tomingley gold operations (TGO) continue to outperform, with gold production ahead of our Q1/15 estimate and at low quartile total cash operating costs. . .continued positive mine-to-mill reconciliations have now resulted in the company reviewing its resource base and mine planning with a view to optimizing the TGO's future production profile."

"Alkane Resources Ltd. is producing and selling gold. It has an offtake for its REEs. Alkane is moving along, going into production." read more >

Vincent Pisani, Shaw Stockbroking (11/5/14)
"Alkane Resources Ltd.'s Tomingley gold operations performed well in Q3/14 with gold production of 22,363 oz. . .gold revenues totaled AU$33.4M. . .Tomingley is a cash cow and will assist the company to further fund studies and market the Dubbo zirconia project."

Tom Hayes, Edison Investment Research (10/15/14)
"Alkane Resources Ltd.'s Tomingley gold operations (TGO) continue to outperform, with gold production ahead of our Q1/15 estimate and at low quartile total cash operating costs of AU$867/oz. Continued positive mine-to-mill reconciliations have now resulted in Alkane reviewing its resource base and mine planning with a view to optimising the TGO's future production profile."

"In the zirconia, ferroniobium and rare earth element space, we continue to like Alkane Resources Ltd.'s Dubbo Zirconia project, which is probably the most intriguing resource we have encountered in Australia and can be thought of as an exchange-traded fund for the specialty metal space. The New South Wales Planning and Environmental departments have just conditionally approved the Dubbo Zirconia project, which clears the way for existing memorandums of understanding with off-take and processing partners to be converted into contracts, and enables Alkane to commence the financing and development stages for the slightly less than $1 billion project. Helping to fund these efforts, Alkane's Tomingley gold project is performing above design specifications, and the company has reduced all-in cash costs to approximately $900/oz and increased gold reserves by 47% this year. As the ratio of tons mined (overburden) to tons milled is optimized, which is expected to be completed by Q1/15, profitability should increase further—all things being equal. Tomingley will produce roughly $15M in free cash flow this year and then $20–25M per year over the next eight years of visible mine life." read more >

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Investing Highlights
 
Multi-commodity miner: gold, zirconium, niobium and rare earths
 
Successful mining track record
 
Next heavy rare earth project
catalyst Calendar
Q1
2015
Dubbo Zirconia Project (DZP) Approval
Q2
2015
Initial DZP Funding, Continuing off-take agreements
Q3
2015
DZP construction commences, Financial year results for TGO
Q4
2015
DZP construction advances, Full funding arrangements for DZP
Alkane Resources Ltd. Content