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 (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 >

Tom Hayes, Edison Investment Research (7/26/16)
"Alkane Resources Ltd.'s TGO gold mine continues to perform well, helped in no small part by a resurgent gold price during H2/16, and despite unseasonably high rainfall persisting through Q4/16. Stronger cash flows resulted and we expect the TGO to continue at similar operating levels (to FY/16) through FY/17. . .Alkane has actively explored its tenements throughout the recent downturn and we expect this ramp up in activity to provide the gold resources to extend the TGO’s mine life in excess of 10 years."

Christopher Ecclestone, Hallgarten & Co. (7/19/16)
"We are initiating coverage on Alkane Resources Ltd., whose Dubbo Zirconia Project (DZP) is akin to having several horses running in the same race. It has Rare Earths, Zirconium, Niobium and Hafnium in its mix, all of these being metals that have registered high demand and prices at varying times over the last decade. . .the company's cash position at end of June totaled AUD$29.8mn, making this one of the most cashed up REE plays. . .Alkane has separated itself out from the rest of the REE pack who have been unable to self-fund development in a tough market."

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
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