Australian is the world's biggest free online database of information on Australian resource companies.

This website has up-to-date details on over 1000 separate listed and unlisted organisations, including what they mine (or explore) for, how much of any given resource they have in the ground, or in reserve, the location of their operations, corporate details, news, links and history. Find out more

Australian Shares

Australian Shares Sparty's Blog

Comments on this blog should never be taken as investment advice

Posts on this website are general "tips" and nothing more than that and should never be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. Sparty's posts nearly always relate to companies that he either holds, has held or intends to hold.

Main ForumAlkane Net Present Value $4.80 Petra Capital

  • The prediction by Petra Capital reproduced below is featured in today's and several other resource focused newsletters.

    Petra indicates a net present value on Alkane of $A4.86 a share, compared to Friday 3/2/2012 1.30pm price of $1.185 up from last Friday's close of A$0.94.

    Alkane Resources Set for significant re-rating
    Alkane is on the verge of becoming a significant player in the zirconia and rare earths markets with its Dubbo Zirconia Project (DZP) – 100%.

    Having operated a demonstration plant for over 3 years, the company has a proven flowsheet and is confident of a transition to commercial scale.

    The DFS was completed in September 2011 with an initial mine life of 20 years from Q2 2014.

    Upside also exists from the Tomingley gold project which is targeting ~50kozpa from Q1 2013. We recommend buying ALK with 373% upside to our NPV of A$4.82/share. The valuation includes, of course, Alkane’s gold projects in NSW. But it (Petra) likes the stock because 70 per cent of the Dubbo deposit comprises heavy rare earths, some 60 per cent of Dubbo’s overall production will consist of zirconium and niobium (metals that will provide a hedge against any fall in REE prices), and because Alkane has done its project estimates based on REE prices well below present levels and even Petra’s conservative forecasts.

    Previous Alkane posts

    I hold ALK

Want to take part in this discussion? Click one of these: Sign In Apply for Membership

Australian Shares Forum Options


Howdy, Stranger!

It looks like you're new here. If you want to take part in the discussions, click one of these buttons!

Sign In Apply for Membership