Alkane Resources Ltd (ALK) AI Stock Analysis

• Market Cap: $466.27M
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 25.2
• Beta (1Y): 1.13
• Revenue Growth: 10.37%
• EPS Growth: -39.24%
• Country: AU
• Employees: 105
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Gold
• EPS (TTM): 0.03
• Shares Outstanding: 605,541,900
• 10 Day Avg. Volume: 1,749,762
• 30 Day Avg. Volume: 2,108,631
• PEG Ratio: 8.55
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.11
• Price Target Upside: 43.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: ―

Alkane Resources Ltd shows strength with a solid balance sheet and positive technical indicators. However, the decline in revenue and profitability, alongside high capital expenditures, poses challenges. Valuation concerns due to a high P/E ratio and lack of dividend yield further impact the attractiveness of the stock.

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 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

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

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

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.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
205.43M	172.99M	190.53M	165.01M	127.83M	72.55M
	Gross Profit
35.69M	34.45M	64.46M	57.30M	57.37M	28.04M
	EBIT
24.89M	24.30M	58.87M	52.28M	51.21M	20.28M
	EBITDA
67.02M	62.93M	95.42M	87.50M	71.12M	29.54M
	Net Income Common Stockholders
18.41M	17.68M	42.45M	70.25M	55.70M	12.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.99M	45.52M	80.29M	77.89M	18.99M	48.34M
	Total Assets
488.36M	464.70M	425.77M	367.85M	236.22M	327.71M
	Total Debt
62.67M	49.02M	13.55M	15.05M	9.22M	6.61M
	Net Debt
27.68M	3.50M	-66.75M	-62.85M	-9.78M	-41.73M
	Total Liabilities
167.91M	155.32M	125.78M	98.98M	44.65M	60.33M
	Stockholders Equity
320.45M	309.37M	300.00M	268.87M	191.56M	267.39M
Cash Flow		Free Cash Flow
-45.26M	-82.59M	3.75M	2.96M	-15.00M	-38.17M
	Operating Cash Flow
51.50M	52.90M	95.55M	86.48M	71.12M	28.54M
	Investing Cash Flow
-125.66M	-123.52M	-91.43M	-33.24M	-102.73M	-77.30M
	Financing Cash Flow
51.85M	35.84M	-1.72M	5.67M	2.26M	46.06M

Alkane Resources Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 0.77 is above the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.73, and above the 200-day MA of 0.57, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.74 is Neutral, neither overbought nor oversold. The STOCH value of 65.16 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	67 Neutral	$466.27M	25.25	5.86%	―	10.37%	-39.24%
Sector *	51 Neutral	$2.01B	-1.11	-21.16%	3.67%	2.69%	-30.65%
KSKGF		$356.77M	2.39	140.63%	―	―	―
STBMF		$239.25M	―	-15.72%	―	―	―
1KX0		€236.27M	―	-7.25%	―	―	―
MN4A		€267.27M	―	-40.25%	―	―	―
BC8	49 Neutral	AU$601.30M	―	-7.78%	―	―	-875.00%

Alkane Resources Ltd Corporate Events

Alkane Resources Ltd Announces Proposed Securities Issue

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

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

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

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

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

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.