Stock data
| Market cap. | A$316.1m |
| Last close | A$1.18 |
| High / Low (52 weeks) | A$2.6 / A$0.9 |
| Stock market listing | ASX |
| Forecast net debt (A$m) | 497.6 |
| Forecast gearing ratio (%) | 784 |
| Team | Resources - Mining |
| Sector | Mining |
Price performance
| % | 1m | 3m | 12m |
|---|---|---|---|
| Actual | 24.339 | 6.818 | 1.293 |
| Relative * | 19.175 | 6.582 | 15.734 |
* % Relative to local index
Other companies covered in sector
| Y/E Dec | Revenue (A$m) | EBITDA (A$m) | PBT (A$m) | EPS (c) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2009A | 4.7 | 2.2 | 2.4 | 0.99 | 119.2 | N/A |
| 2010A | 10.1 | 7.6 | 7.9 | 3.18 | 37.1 | N/A |
| 2011E | 0.1 | (2.0) | (2.1) | (0.80) | N/A | N/A |
| 2012E | 39.0 | 7.9 | (14.6) | (5.43) | N/A | 515.3 |
Last updated on 27/01/2012
Latest research
Dubbo very robust
Update | Mining | 26/01/2012
Further MoU signed
Update | Mining | 26/10/2011
First agreement signed
Update | Mining | 27/05/2011
Further price increases
Update | Mining | 23/03/2011
Positive re-rating
Update | Mining | 20/12/2010
Alkane shows its metal
Outlook | Mining | 23/07/2010
Investment summary
Media attention concerning the rare earth group of elements has dragged negative sentiment towards Alkane’s flagship Dubbo Zirconia Project (DZP). Indeed, prices for the DZP basket of goods (Zr, Nb, LREE and HREE based concentrates) decreased in Q411 (resulting in a 40% and 22% decrease in LREE and HREE Dubbo concentrate prices respectively between Q311 and Q411). However, our base case valuation (A$3.02/share excluding McPhillamys value of A$0.42) is based on significantly more conservative price estimates (indicative of those seen in Q111), and, maybe surprisingly, if we apply the ‘depressed’ rare earth prices seen in Q411, our base case increases by 129% to A$7.05/share.
Last updated on 26/01/2012
Industry outlook
We value ALK at A$3.33/share (inc A$0.42 for McPhillamys).
Last updated on 09/12/2011
Key management
| John Stuart Ferguson Dunlop, Chairman |
| Ian Chalmers, MD |
Company address
| PO Box 4384 Victoria Park WA 6979 Australia +61-8-92275677 View website |
