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 (11/24/16)
"Alkane Resources Ltd. highlighted the potential to develop its flagship Dubbo project in a modular way, thereby getting production and cash flow off the ground at initially less than half (US$480m/A$639m) of the total(US$977m/A$1.3bn). . .Alkane has maintained its current FY17 production guidance of 65-72koz Au at an AISC of production of A$1,200/oz to A$1,300/oz. . . Alkane’s TGO gold mine produced in line with guidance during FY16 and contributed towards the company’s end year cash position of A$24.6m and a pre-tax profit of A$14.3m."

Alkane Resource's flagship Dubbo Zirconium Project moved closer to production after the company announced a Memorandum of Understanding between its wholly owned subsidiary Australian Zirconia and German engineering and technology giant Siemens.
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Tom Hayes, Edison Investment Research (10/25/16)
"Alkane Resources Ltd. has announced that it has signed an MoU (via its wholly owned subsidiary Australian Zirconia)with Siemens relating to its flagship Dubbo Zirconium Project (DZP). . .the purpose of the MoU is to advance the DZP, in particular to state each party's intention with respect to the procurement of Siemens' equipment and operational solutions, and future offtake of products produced by the DZP. . .this MoU details Alkane's and Siemens' joint intention to enter into separate agreements for the purpose of progressing and implementing business opportunities such as offtake agreements for DZP products." v

Tom Hayes, Edison Investment Research (9/29/16)
"Alkane Resources Ltd. is also developing a more active exploration programme over its extensive NSW land holdings and we believe its long-held tenements are prospective enough to yield to further gold resources as evidenced by its two gold mines and major 3.0moz deposit sale to Regis Resources for an attributable A$73.5m in 2012. . .Resources now stand at 10.32Mt at 1.75g/t Au for 579koz, with total ore reserves of 0.524Mt at 3.7g/t for 61.6koz. These resource and reserve numbers support our fully diluted company valuation of A$0.75 per share (TGO + DZP), and our TGO only valuation of A$0.45 per share (at a 10% discount rate)."

Tom Hayes, Edison Investment Research (8/25/16)
"Alkane Resources Ltd. has signed an exclusive worldwide marketing, sales and distribution agreement with UK based specialist chemicals firm, Minchem, for its entire annual DZP zirconium output. The agreement covers all of the DZP's planned annual zirconium production of 16,000t, which represents c A$100m-120m in project revenues per year based on current spot prices for the DZP's suite of zirconium products. . .this a major de-risking event that should provide key assurances for project financing."

Tom Hayes, Edison Investment Research (8/16/16)
"Alkane Resources Ltd. signed an exclusive worldwide marketing, sales and distribution agreement with UK based specialist chemicals firm, Minchem, for its entire annual DZP zirconium output. . .We consider this a major key de-risking event that should provide key assurances for project financing. . .Minchem is a technical ceramics marketing and manufacturing business involved in zirconium chemicals and zirconium dioxide material. Its 40 years of experience and worldwide reach should give the DZP the technical and marketing expertise required to promote and sell its range of specialty zirconium and associated rare earth products."

"One project that has decent chance of loosening the Chinese stranglehold on the REE market. Alkane Resources Ltd.'s Dubbo Zirconia Project (DZP), which has both zirconosilicates hosting zirconium, hafnium, yttrium and heavy REE as well as natroniobite and calcian bastnsite hosting niobium, tantalum and light REE respectively in rural New South Wales, Australia. . .Alkane's polymetallic DZP has all of the infrastructure others lack as well as a revenue stream spread between both light REE (22% neodymium & praseodymium) and heavy REE (15% terbium, dysprosium & yttrium), which are quite profitable at current REE prices, and in-demand specialty metals, zirconium (31%), ferroniobium (16%), and hafnium (9%), which should render market shocks and price manipulation less of an existential threat. . .in early 2014, the 60,000-ounce-per-year Tomingley project went into production, ahead of schedule and under budget, and Alkane has used the roughly $25M of free cash flow Tomingley generates annually ever since to advance the DZP." read more >

More Expert Comments

Experts Following This Company

Christopher Ecclestone, Equities Strategist – Hallgarten & Co., MEDITERRANEAN RESOURCES LTD., Geodex Minerals Ltd.
Charles Gibson, Director, Mining – Edison Investment Research
Tony Hayes – Euro Pacific Canada
Timothy Hayes – Davenport & Co.
Tom Hayes, Analyst – Edison Investment Research
Richard Karn, Founder/Editor – Emerging Trends Report
Mike Millikan, Resources Analyst – Hartleys

The information provided above is from analysts, newsletters, the company and other contributors.

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Investing Highlights
Multi-commodity miner: gold, zirconium, niobium and rare earths
Successful mining track record
Next heavy rare earth project