ALK:ASX
ANLKY:OTCQX

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 (6/25/15)
"Australian Zirconia, the wholly owned subsidiary of Alkane Resources Ltd., has been granted the long-awaited planning consent for its flagship Dubbo zirconia project (DZP). The market's reaction to the news has so far been moderate, underlining the importance of Alkane providing concrete offtake agreements (guaranteeing DZP revenues), as well as financing and final permitting news for its flagship project. News concerning these should start to be conveyed to the market during H2 CY/15."

Tom Hayes, Edison Investment Research (6/3/15)
"Alkane Resources Ltd.'s wholly owned subsidiary, Australian Zirconia, has been granted the long-awaited planning consent for its flagship Dubbo zirconia project. . .the planning consent now received for the Dubbo zirconia project qualitatively derisks development of the company's flagship asset, which we currently value at AU$0.68/Alkane share."

"Alkane Resources Ltd.'s Dubbo Zirconia project (DZP) is a greenfield project. The company received the last of its approvals from the New South Wales government in April. The Emerging Trends Report has long maintained that Alkane Resources is a de facto exchange-traded fund for the Australian specialty metal sector in that its Dubbo Zirconia project will produce roughly 20 of the 50 specialty metals we believe to be under long-term supply threat. Alkane also happens to own and operate the Tomingley gold project effectively as a sideline—one that is throwing off about $20M a year in free cash flow—while it pursues the development of the DZP. Exemplifying how poorly understood the specialty metal space remains, as well as the Alice-through-the-looking-glass markets today, fund managers are openly assigning a negative value to the DZP, which has resulted in Alkane trading for less than the net present value of its producing gold mine.

The simple truth is that the DZP is a difficult but arguably the most promising, and certainly the most interesting, specialty metal project on the planet. The DZP's unique trachyte volcanic intrusive ore body hosts zirconium, niobium, light and heavy rare earth elements plus yttrium in a remarkably homogenous form that is readily soluble in sulfuric acid for processing. It is a monster deposit with an 80-year mine life and a megaproject price tag of $1 billion. That makes the name something of a misnomer: zirconium and zirconia products constitute about two-thirds of Alkane's product line by volume but only approximately 33% of its projected profit stream.

I won't pretend to tell you how it dord it, but the fact that Alkane has a process that can now recover a high-purity hafnium oxide product will make Alkane the world's first primary mine supplier of hafnium. And that is a big deal. Myriad new and expanded uses await increased hafnium supply, and Alkane is uniquely positioned to become the first company to offer primary mine supply of roughly 200 tpa at the cost of little more than another circuit in its processing plant. Hafnium oxide trades for roughly half the price of the metal, or $600/kg. . .the addition of hafnium to Alkane's product suite, and its importance to the aerospace industry, may well be the catalyst that gets the DZP funding commitments across the line. And once Alkane secures funding, the rerating of the stock will be substantial and will take the market by surprise—and Alkane will become another overnight success 15 years in the making." read more >

Tom Hayes, Edison Investment Research (5/6/15)
"Alkane Resources Ltd.'s Q3/15 results indicate that the Tomingley Gold Operation remains on track to meet its FY2015 gold production target (65–75 Koz). The Wyoming Three pit is currently advancing through a scheduled lower-grade zone, and pit-to-resource reconciliations remain positive. Developments in the rare earth sector, primarily linked to China's revised REE export policies, have forced the company's flagship project Dubbo Zirconia (DZP) back into the spotlight. Near-term DZP catalysts are linked to final government planning approval (expected in May 2015) and commercialization of its product offtake agreements (expected during H2/15)."

Giles Kerr, Seeking Alpha (4/9/15)
"Alkane Resources Ltd. is a potential elusive tenbagger. Significant interest exists in the Dubbo Zirconia project (DZP) as a strategic long-term supplier of rare earths, zirconium and niobium backed by a 36-year mine life. Increasing rare earth prices, a proven product with offtake partners, and the importance of alternative supply to China suggests the DZP will inevitably be developed and the nascent value will be released to Alkane shareholders."

"Alkane Resources Ltd., which is in the Advanced Rare Earth Projects Index, is funding the Dubbo Zirconia project with nearby gold production. It's a great idea. I had the chance to visit the deposit and demo plant in Australia a few years ago. I've always liked that project from a technical point of view. Alkane has the process locked in and it knows exactly what it needs to do. If you have another project that can generate cash flow that's a great thing, and Alkane's Tomingley gold project has been operating very well, but the Dubbo project still needs more money than what Tomingley alone can generate. Ultimately there are very few junior mining companies in the REE sector that are generating revenues. I think that's a plus. It's ready to go once Alkane has the financing. . .Alkane was recently informed by the local plan assessment commission that the environmental permits have been approved, subject to the usual conditions. I am not aware of any major issues. Dubbo will produce not just rare earths, but zirconium and niobium, so there's a medley of metals. Alkane will not only rely on REEs to generate revenue." read more >

More Expert Comments

Experts Commenting on This Company

Christopher Ecclestone, Equities Strategist – Hallgarten & Co., MEDITERRANEAN RESOURCES LTD., Geodex Minerals Ltd.
Gareth Hatch, Founding Principal – Technology Metals Research
Tom Hayes, Analyst – Edison Investment Research
Timothy Hayes – Davenport & Co.
Richard Karn, Founder/Editor – Emerging Trends Report
Jack Lifton – Jack Lifton - Metals Consultant
Vincent Pisani, Senior Resource Analyst – Shaw Stockbroking

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Investing Highlights
 
Multi-commodity miner: gold, zirconium, niobium and rare earths
 
Successful mining track record
 
Next heavy rare earth project
catalyst Calendar
Alkane Resources Ltd. Content