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Alkane Resources Ltd (AU:ALK)
ASX:ALK

Alkane Resources Ltd (ALK) AI Stock Analysis

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AU

Alkane Resources Ltd

(Sydney:ALK)

Rating:60Neutral
Price Target:
AU$1.00
▲(44.93%Upside)
Alkane Resources Ltd's overall stock score reflects its strong balance sheet and cash generation ability, which are offset by declining revenue and profitability margins. The technical indicators suggest bearish short-term trends, and while the stock is fairly valued, the absence of a dividend yield limits its appeal for income investors.

Alkane Resources Ltd (ALK) vs. iShares MSCI Australia ETF (EWA)

Alkane Resources Ltd Business Overview & Revenue Model

Company DescriptionAlkane Resources Limited operates as a gold production company in Australia. It explores for gold, copper, nickel, zinc, and silver deposits. The company holds various interests in the Tomingley Gold project that consists of four gold deposits; and the Northern Molong Porphyry Project, which covers an area of 115 square kilometers located in the Central West of New South Wales. Its exploration projects comprise Boda and Kaiser, Cudal, Peak Hill, Elsienora, Rockley, Armstrongs, Trangie, and Mt Conqueror projects. The company also invests in junior gold mining companies and projects. Alkane Resources Limited was incorporated in 1969 and is headquartered in West Perth, Australia.
How the Company Makes MoneyAlkane Resources Ltd generates revenue primarily through the production and sale of gold from its Tomingley Gold Operations. The company extracts gold ore from its mining sites, processes it into gold bullion, and sells it on the global market. Additionally, Alkane has exploration and development projects targeting other commodities, such as rare earth elements, which could provide future revenue streams. The company's financial performance is influenced by factors such as global gold prices, production costs, and the successful advancement of its exploration projects. Strategic partnerships and joint ventures in exploration activities also play a role in its revenue generation strategy.

Alkane Resources Ltd Financial Statement Overview

Summary
Alkane Resources Ltd demonstrates resilience with a strong balance sheet and adequate cash generation capabilities. However, declining revenue and profitability margins, coupled with substantial capital expenditures, have impacted free cash flow and profitability ratios. While the company has a solid equity position, the challenges in maintaining revenue growth and profitability highlight areas for improvement.
Income Statement
65
Positive
Alkane Resources Ltd has shown fluctuating revenue trends over the past few years, with a notable decline from 2023 to 2024. The gross profit margin has experienced a decline from 33.8% in 2023 to 19.9% in 2024, indicating increased cost pressure. The EBIT and EBITDA margins have also decreased, reflecting reduced operational efficiency. Despite these challenges, the company has maintained profitability, albeit at a lower net profit margin of 10.2% in 2024 compared to 22.3% in 2023.
Balance Sheet
75
Positive
The company's balance sheet remains relatively strong with a debt-to-equity ratio of 0.16 in 2024, indicating low leverage. The equity ratio has improved to 66.6% in 2024 from 70.5% in 2023, showcasing a strong equity base. However, the return on equity has decreased to 5.7% in 2024 from 14.1% in 2023, reflecting lower profitability relative to equity.
Cash Flow
60
Neutral
Alkane Resources Ltd has experienced a significant decline in free cash flow, from a positive $3.7 million in 2023 to a negative $82.6 million in 2024, largely due to increased capital expenditures. The operating cash flow to net income ratio stands at 2.99 in 2024, indicating strong cash generation relative to net income. However, the negative free cash flow presents potential liquidity concerns moving forward.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue205.43M172.99M190.53M165.01M127.83M72.55M
Gross Profit35.69M34.45M71.22M62.65M61.34M39.68M
EBITDA67.02M62.93M97.75M137.32M71.12M29.54M
Net Income18.41M17.68M42.45M70.25M55.70M12.76M
Balance Sheet
Total Assets488.36M464.70M425.77M367.85M236.22M327.71M
Cash, Cash Equivalents and Short-Term Investments34.99M45.52M80.29M77.89M18.99M48.34M
Total Debt62.67M49.02M13.55M15.05M9.22M6.61M
Total Liabilities167.91M155.32M125.78M98.98M44.65M60.33M
Stockholders Equity320.45M309.37M300.00M268.87M191.56M267.39M
Cash Flow
Free Cash Flow-45.26M-82.59M3.75M2.96M-15.00M-38.17M
Operating Cash Flow51.50M52.90M95.55M86.48M71.12M28.54M
Investing Cash Flow-125.66M-123.52M-91.43M-33.24M-102.73M-77.30M
Financing Cash Flow51.85M35.84M-1.72M5.67M2.26M46.06M

Alkane Resources Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.69
Price Trends
50DMA
0.75
Negative
100DMA
0.70
Negative
200DMA
0.61
Positive
Market Momentum
MACD
-0.01
Positive
RSI
36.19
Neutral
STOCH
16.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ALK, the sentiment is Negative. The current price of 0.69 is below the 20-day moving average (MA) of 0.73, below the 50-day MA of 0.75, and above the 200-day MA of 0.61, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 36.19 is Neutral, neither overbought nor oversold. The STOCH value of 16.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ALK.

Alkane Resources Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUALK
60
Neutral
$417.82M22.625.86%10.37%-39.24%
44
Neutral
C$982.42M-6.71-13.24%2.54%17.20%-32.72%
$407.29M2.50140.63%
$205.05M-15.72%
€234.48M-7.25%
€288.28M-40.25%
AUBC8
44
Neutral
AU$576.65M-7.78%-875.00%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ALK
Alkane Resources Ltd
0.69
0.18
35.29%
KSKGF
Kingsgate Consolidated Limited
1.40
0.32
29.63%
STBMF
St. Barbara
0.21
0.06
40.00%
DE:1KX0
Meeka Gold Limited
0.07
0.05
250.00%
DE:MN4A
Turaco Gold Ltd
0.25
0.12
92.31%
AU:BC8
Black Cat Syndicate Ltd.
0.82
0.47
134.29%

Alkane Resources Ltd Corporate Events

Alkane Resources Director Increases Shareholding
Jun 27, 2025

Alkane Resources Ltd has announced a change in the director’s interest, with Gavin Murray Smith acquiring an additional 68,493 ordinary fully paid shares in the company, bringing his total direct holding to 228,243 shares. This acquisition, made through an on-market purchase valued at $50,054.89, reflects a strategic move that could potentially impact the company’s market positioning and stakeholder interests by increasing the director’s stake in the company.

The most recent analyst rating on (AU:ALK) stock is a Buy with a A$1.12 price target. To see the full list of analyst forecasts on Alkane Resources Ltd stock, see the AU:ALK Stock Forecast page.

Alkane Resources to Acquire Mandalay Resources in Strategic Arrangement
Jun 26, 2025

Alkane Resources Ltd is involved in a plan of arrangement to acquire all issued and outstanding shares of Mandalay Resources Corporation through its wholly-owned subsidiary, 1536968 B.C. Ltd. This acquisition will result in Mandalay becoming an indirect wholly-owned subsidiary of Alkane, with Alkane’s shares expected to be listed on the Toronto Stock Exchange. The board of Mandalay has unanimously recommended shareholders vote in favor of this arrangement, which is anticipated to complete in the third quarter of 2025, subject to regulatory approvals and shareholder consent.

The most recent analyst rating on (AU:ALK) stock is a Buy with a A$1.12 price target. To see the full list of analyst forecasts on Alkane Resources Ltd stock, see the AU:ALK Stock Forecast page.

Alkane Resources Advances Merger with Mandalay Resources
Jun 25, 2025

Alkane Resources Ltd has announced an update on its planned merger with Mandalay Resources Corporation, which aims to create a diversified gold and antimony producer with a strong balance sheet and three operating mines. The merger, subject to shareholder and regulatory approvals, is expected to enhance Alkane’s market profile and trading liquidity, with completion anticipated in early August 2025. The merger has garnered strong investor interest, with extensive joint marketing efforts by the leadership of both companies.

The most recent analyst rating on (AU:ALK) stock is a Buy with a A$1.12 price target. To see the full list of analyst forecasts on Alkane Resources Ltd stock, see the AU:ALK Stock Forecast page.

Alkane Resources Updates on Proposed Securities Issue and Key Approvals
Jun 25, 2025

Alkane Resources Limited has announced an update regarding its proposed issue of securities, with key dates set for its General Meeting and Mandalay Resources Corporation’s Special Meeting on July 28, 2025. The company has also received approval from the Swedish Inspectorate of Strategic Products, which may have implications for its operations and stakeholder interests.

The most recent analyst rating on (AU:ALK) stock is a Buy with a A$1.12 price target. To see the full list of analyst forecasts on Alkane Resources Ltd stock, see the AU:ALK Stock Forecast page.

Alkane Resources Ltd Announces Upcoming General Meeting
Jun 25, 2025

Alkane Resources Ltd has announced a General Meeting scheduled for July 28, 2025, at Quest Kings Park in West Perth. Shareholders are encouraged to participate either in person or by proxy vote, with all resolutions to be conducted by poll. The company emphasizes its commitment to reducing environmental impact by urging shareholders to opt for electronic communications, aligning with its sustainability goals.

The most recent analyst rating on (AU:ALK) stock is a Buy with a A$1.04 price target. To see the full list of analyst forecasts on Alkane Resources Ltd stock, see the AU:ALK Stock Forecast page.

Alkane Resources’ Merger with Mandalay Gains Swedish Approval
Jun 18, 2025

Alkane Resources Ltd has received Swedish regulatory approval for its proposed merger with Mandalay Resources Corporation, a move that will create a diversified Australian-centric gold and antimony producer. The merger is expected to enhance Alkane’s industry positioning by combining resources and expanding its portfolio to include three operating mines, although it still requires further approvals from various stakeholders.

The most recent analyst rating on (AU:ALK) stock is a Buy with a A$1.12 price target. To see the full list of analyst forecasts on Alkane Resources Ltd stock, see the AU:ALK Stock Forecast page.

Alkane Resources Ltd Announces Proposed Securities Issue
Apr 27, 2025

Alkane Resources Ltd has announced a proposed issue of up to 768,031,285 fully paid ordinary securities. This move is part of a placement or other type of issue, with the proposed issue date set for July 18, 2025. This issuance could potentially impact the company’s capital structure and market positioning, offering opportunities for growth and expansion in its mining operations.

Alkane Resources Enters Arrangement Agreement with Mandalay Resources
Apr 27, 2025

Alkane Resources Ltd has entered into an arrangement agreement with 1536968 B.C. Ltd. and Mandalay Resources Corporation, dated April 27, 2025. This agreement outlines the terms and conditions under which the companies will proceed with their arrangement, including meetings, court proceedings, and the payment of consideration. The announcement is significant for Alkane Resources as it may impact its operational strategies and market positioning, potentially affecting stakeholders involved.

Alkane Resources and Mandalay Resources Announce Strategic Merger
Apr 27, 2025

Alkane Resources Ltd has announced a merger with Mandalay Resources Inc., creating a combined entity aimed at expanding their production capabilities in gold and antimony. This merger is expected to enhance the scale of operations and provide benefits to all shareholders, positioning the merged company for growth in the competitive mining sector.

Alkane and Mandalay Announce Strategic Merger to Boost Gold and Antimony Production
Apr 27, 2025

Alkane Resources Ltd and Mandalay Resources Corporation have announced a merger of equals, creating a diversified gold and antimony producer with three cash-generating mines. The merger is expected to enhance growth prospects, increase production to over 180,000 ounces by 2026, and improve trading liquidity, potentially leading to a valuation re-rate. The combined company will have a strong balance sheet with significant cash reserves and will be led by Alkane’s Managing Director, Nic Earner. This merger positions the company as a significant player in the mining industry, benefiting shareholders with a projected market capitalization of approximately A$1,013 million.

Alkane Resources Corrects Director Interest Notice Error
Apr 16, 2025

Alkane Resources Ltd announced a correction to a previously reported Change of Directors Interest Notice due to a minor mathematical error in the calculation of long-term performance rights (FY25 LTIs) issued to directors. The error, caused by a spreadsheet rounding issue, affected the Volume Weighted Average Price (VWAP) calculation, leading to a slight adjustment in the number of performance rights allocated to directors David Ian Chalmers and Nicholas Earner. This correction ensures accurate reporting and compliance with ASX listing rules, maintaining transparency and trust with stakeholders.

Alkane Resources Reports High-Grade Gold Intercepts at Tomingley
Apr 6, 2025

Alkane Resources Ltd has announced significant results from its underground expansion and pre-mine grade control drilling at the Tomingley Gold Operations. The drilling at Caloma and Roswell deposits has revealed high-grade gold intercepts, indicating substantial resource expansion potential. These results will be evaluated for economic recovery potential and may lead to further drilling to include new lodes into reserves. This development underscores the ongoing potential for resource growth and high-grade mineralization at Tomingley, which is crucial for the company’s future mining plans.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2025