Ann: Quarterly Activities Report, page-29

Anyone thinking that Alkane is considering a share buy back or dividend payment should undertake a little (possibly a lot) more due diligence on the business. The chances of any capital management initiative at this time are essentially NIL.

The business has a profitable gold mining operation, but the best is probably behind it with open mine being superseded by underground mining. That is the cash cow that funds some more aggressive gold investment opportunities and exploration and development.

Of more significant interest to both the Board and shareholders is the progression of the DZP project. The resource is proved, feasibility, flow sheet and off take agreements are in place, but as many have suggested, requires a very significant capital investment. Depending on the funding arrangements available the project can be undertaken in stages, but require circa $600m- $800m for stage 1 (or $1.2b+ to fully complete).

That sort of money is not presently available without a significant other partner or key funder. The $80m cash and bullion at 30th June, would hardly cover the deposit on getting DZP off the ground, but would be vital in securing good terms.

Dividends soon? I would suggest those thinking this way should move their money into a business more structured in that fashion. ALK is likely disappoint yield seeking investors for a long, long time.