Alkane Resources - First cash flows by end of 2013
Feb 27th 2013 - Edison Investment Research today published a report on Alkane Resources entitled "First Cash Flows By End Of 2013". In summary, the report says:
Alkane’s recent market valuation has suffered from the current economic backdrop and sentiment towards mining juniors in general, but also, in our view, a misunderstanding of its future revenue split. The Dubbo Zirconia Project (DZP) is a title that risks misrepresenting the company’s spread of activities, considering that in 2018 (when the DZP reaches steady-state production) zirconium based products only constitute c 24% of company revenues. Further, the Tomingley Gold Project (TGP), which constitutes around 15% of group revenues in 2018, has been granted its mining licence allowing Alkane to aggressively target first gold production and production revenues by the end of 2013. Alkane’s current share price is more indicative of its book value at the end of FY12 than...
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