* Reviewing Financial Reports, in the excerpt below I see that...

* Reviewing Financial Reports, in the excerpt below I see that in 2020 the annual Profit was the lowest of the last five years ($12,762,000), but the share price was the highest of the past five years ($1.21)
* The second lowest profit is this year - 2024 ($17,677,000), and the share price is the lowest of the past five years (($0.50).



* In trying to evaluate company performance, it is clear that 2020 is greatly impacted by the impending float of ASM - which occurred in July 2020. After all the share price on June 30th 2019 was around $0.20. Participation in the ASM float was based upon share ownership at the time of float - and Rare Earths were buoyant at the time. Were you to review HC posts from back then, and you would have found numbers of posts from people saying they were holding for the ASM float.
* Apart from the ASM float, in 2020 there was considerable additional hype around the Boda porphyry - the significant discovery hole having been made on only September 9th 2019. Alkane won the explorer of the year award for this discovery, and hopes were high for a repeat of the Newcrest Cadia porphyry.

Under normal circumstances, a lower profit results in a lower share price - unless there are exceptional circumstances - like there was in 2020 (e.g. Boda and ASM float clearly inflated the share price. Remember 2020 was the lowest profit of the past five years).

This year, and next year Alkane is spending significant money, while selling about one third of their sales into a hedge which is $900 below the current gold price. Apart from this, they are beginning to repay the $60m in loans that they have committed to. Numbers of other gold producers are unhedged, which makes them more attractive propositions in a rising gold price market.

We might criticize Alkane Management for entering into these, but I believe (albeit without proof) that Ian Gandel does not wish to put more cash into any cap raise - and nor does he wish to dilute his holding. Therefore we have debt, and hedges. Given his holding, it is unfair to blame the rest of the board and management for this. We need to face the fact that we on a slower boat than some others, although when we have repayed the debt in about two years, we will still likely only have a little above 600m shares, while PNR, GMD, and AMI currently have somewhere between 1billion and 6billion shares each.

While Boda Kaiser have progressed greatly in the past five years, they remain a high capital expenditure with a large quite low grade resource. Not particularly sexy when we read of exploration sugar hits in other places of 39g/tonne etc. Should some higher grade deposits be found in the near vicinity to Boda, obviously the economics will change. I am fairly confident that this will happen, and that a development partner will be found in due course.

The Comsec Financials tab for Alkane says that their Net Tangible Asset per share is $0.51, so it is fair to say that the market is undervaluing it IMO.

My intention in posting, is to attempt some form of rational analysis for the current share price.
Looking for more (constructive) input - and am hopeful that I may get a little.