Alkane Resources Ltd (ALK) AI Stock Analysis

• Market Cap: $1.47B
• Dividend Yield: N/A
• Average Volume (3M): 6.30M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 1.19
• Revenue Growth: 51.66%
• EPS Growth: 86.35%
• Country: AU
• Employees: 105
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Gold
• EPS (TTM): <0.01
• Shares Outstanding: 1,365,794,900
• 10 Day Avg. Volume: 8,487,220
• 30 Day Avg. Volume: 6,305,000
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 8.36
• Enterprise Value/Ebitda: 4.44
• 1Y Price Target: $1.25
• Price Target Upside: 16.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: AU$1.00 ▼(-7.41% Downside)

Alkane Resources Ltd demonstrates strong revenue growth and a stable financial position, but faces challenges with declining margins and cash flow. The technical analysis indicates bullish momentum, though overbought signals suggest caution. Valuation is reasonable, but the lack of a dividend yield may deter some investors.

Alkane Resources Ltd Business Overview & Revenue Model

Company Description

Alkane 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 Money

Alkane Resources Ltd generates revenue primarily through the extraction and sale of gold from its Tomingley Gold Operations. The company monetizes its gold production by selling it directly to gold markets and refining partners. Alkane also invests in exploration activities to identify and develop new mineral resources, which can lead to future revenue streams. Additionally, the company may enter into joint ventures or strategic partnerships to advance its exploration projects, thereby potentially sharing costs and profits with other entities. While gold remains the primary revenue driver, Alkane's involvement in exploring rare earth elements and zirconium presents opportunities for diversification and additional income sources.

Alkane Resources Ltd Financial Statement Overview

Summary

Alkane Resources Ltd shows strong revenue growth and a stable balance sheet with low leverage. However, declining margins and cash flow challenges present potential risks. The company needs to focus on improving profitability and cash flow generation to sustain its growth trajectory.

Income Statement

Alkane Resources Ltd has demonstrated strong revenue growth of 27.71% in the latest period, indicating a positive trajectory. The company maintains healthy margins with a Gross Profit Margin of 19.66% and a Net Profit Margin of 12.59%. However, these margins have decreased compared to previous years, suggesting some pressure on profitability. Overall, the income statement reflects solid growth but with some margin compression.

Balance Sheet

The balance sheet shows a stable financial position with a low Debt-to-Equity Ratio of 0.17, indicating conservative leverage. The Return on Equity is moderate at 9.56%, reflecting decent profitability. The Equity Ratio stands at a healthy level, suggesting a strong equity base. However, the decline in ROE from previous years highlights potential challenges in maintaining profitability.

Cash Flow

The cash flow statement reveals a concerning decline in Free Cash Flow, with a negative growth rate of -130.77%. The Operating Cash Flow to Net Income Ratio is close to 1, indicating adequate cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio is low at 0.19, suggesting limited free cash flow generation. Overall, cash flow management appears to be an area needing improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	262.36M	262.36M	172.99M	190.53M	165.01M	127.83M
Gross Profit	53.77M	51.59M	29.85M	71.22M	57.30M	57.37M
EBITDA	101.34M	103.03M	62.93M	97.75M	137.32M	71.12M
Net Income	33.04M	33.04M	17.68M	42.45M	70.25M	55.70M
Balance Sheet
Total Assets	543.29M	543.29M	464.70M	425.77M	367.85M	236.22M
Cash, Cash Equivalents and Short-Term Investments	48.09M	48.09M	45.52M	80.29M	77.89M	18.99M
Total Debt	59.32M	59.32M	49.02M	13.55M	15.05M	9.22M
Total Liabilities	197.60M	197.60M	155.32M	112.19M	86.81M	44.65M
Stockholders Equity	345.69M	345.69M	309.37M	300.00M	268.87M	191.56M
Cash Flow
Free Cash Flow	11.07M	13.93M	-82.59M	3.75M	2.96M	-15.00M
Operating Cash Flow	71.98M	71.98M	52.90M	95.55M	86.48M	71.12M
Investing Cash Flow	-78.66M	-78.66M	-123.52M	-91.43M	-33.24M	-102.73M
Financing Cash Flow	9.25M	9.25M	35.84M	-1.72M	5.67M	2.26M

Alkane Resources Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ALK, the sentiment is Positive. The current price of 1.08 is above the 20-day moving average (MA) of 1.03, above the 50-day MA of 0.85, and above the 200-day MA of 0.69, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 55.56 is Neutral, neither overbought nor oversold. The STOCH value of 37.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ALK.

Alkane Resources Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALK	64 Neutral	$1.47B	19.69	9.84%	―	51.66%	86.35%
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
KSKGF	―	$528.66M	29.53	10.01%	―	―	―
STBMF	―	$265.30M	―	-15.01%	―	―	―
1KX0	―	€305.64M	―	-7.25%	―	―	―
MN4A	―	€294.24M	―	-40.25%	―	―	―
BC8	51 Neutral	AU$794.20M	―	-7.78%	―	―	-875.00%

Alkane Resources Ltd Corporate Events

Alkane Resources Reports Strong Quarter and Nears Completion of Mandalay Merger

Alkane Resources Ltd reported solid performance for the quarter ending June 2025, with gold production at Tomingley Gold Operations reaching 19,193 ounces and maintaining production and cost guidance for FY2025. The company is nearing completion of a merger with Mandalay Resources, which will create a larger gold and antimony business, enhancing its scale, financial strength, and growth opportunities. The merger is expected to be finalized by early August 2025, and the combined entity will release its FY2026 guidance in the September quarter.

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 Advances Merger with Mandalay Resources

Alkane Resources Ltd announced that all resolutions at its General Meeting of Shareholders were passed, including those related to its merger with Mandalay Resources Corporation. This merger is expected to enhance Alkane’s production capabilities in gold and antimony, positioning the company for growth in the mining sector. The successful passing of resolutions reflects strong shareholder support, and the merger is anticipated to be finalized following further approvals in Canada.

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 Ltd Transitions Share Registry to Computershare

Alkane Resources Ltd has announced a change in its share registry management, transferring from Automic Registry Services to Computershare Investor Services Pty Limited, effective from August 4, 2025. This transition aims to enhance shareholder experience by providing a more efficient and accessible online platform for managing holdings through Computershare’s Investor Centre, ensuring seamless access to shareholder information and services.

The most recent analyst rating on (AU:ALK) stock is a Buy with a A$0.97 price target. To see the full list of analyst forecasts on Alkane Resources Ltd stock, see the AU:ALK Stock Forecast page.

Alkane Resources Meets FY2025 Gold Production Guidance, Strengthens Market Position

Alkane Resources Ltd reported that its Tomingley Gold Operations achieved its FY2025 production guidance, producing 70,120 ounces of gold. The company saw a significant increase in its cash and bullion balance, ending the quarter with A$68.3 million. The successful year was attributed to increased production from the Roswell underground and new infrastructure developments. Alkane’s merger with Mandalay Resources positions it as a mid-tier gold company on the ASX, enhancing its market presence and shareholder value.

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 Director Increases Shareholding

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

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

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

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

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

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.