IR-Center Handelsblatt
Unternehmenssuche:

Edison Investment Research Limited (UK)

News Detail

EQS-News News vom 09.07.2021

Alkane Resources (ALK): Revealing the fruits of its labours

Edison Investment Research Limited
09-Jul-2021 / 21:00 GMT/BST

 

London, UK, 9 July 2021

 

Alkane Resources (ALK): Revealing the fruits of its labours

On 3 June, Alkane revealed the fruits of its labours at Roswell and San Antonio by announcing an updated mine plan at Tomingley extending its life at least into 2031 (cf 2023 previously), while simultaneously expanding its throughput rate from c 1Mtpa to 1.5Mtpa. From 50-60koz pa in FY22-23, production is expected to almost double to 107.5koz pa in the period FY25-27 at an all-in sustaining cost of c A$1,400/oz and a capital cost of A$87m (representing a capital intensity of US$888 per average annual ounce of production). Although output is scheduled to drop back to c 60koz pa after FY27, the implementation of the Roswell underground extension would see it recovered back up to the 100koz pa level once again in FY28-31. Approval for the project is being targeted for Q3 CY22.

 

Our 'base case' valuation of the expanded and extended Tomingley operation is 32 Australian cents per share (cf 18c for the shortened mine life previously), to which may be added (as contingencies) a further 5c for the eventual development of the Roswell underground extension (see Exhibit 5) and potentially 13c given the current level of the gold price. To this total of 50c, an additional 4c may be added to reflect the value of residual (unmined) resources plus 3c for ongoing exploration success at Roswell, San Antonio and El Paso to take the total for the wider Tomingley operation to 57c (including cash held centrally). Beyond that, we value Alkane's interests in Calidus and Genesis at 8c per share and the exploration completed to date at Boda and Boda Two within the Northern Molong Porphyry Project at anything up to 60c with plenty of blue-sky upside still remaining to take the total up to 125c. 


Click here to view the full report or here to sign up to receive research as it is published.

 

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Charles Gibson +44 (0)20 3077 5724 mining@edisongroup.com

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        www.linkedin.com/company/edison-group-/

Twitter           www.twitter.com/Edison_Inv_Res

YouTube       www.youtube.com/edisonitv



Dissemination of a CORPORATE NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


End of Announcement - EQS News Service

show this