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The business has a profitable gold mining operation, but the best is probably behind it with open mine being superseded by underground mining.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.
- Forums
- ASX - By Stock
- ALK
- Ann: Quarterly Activities Report
Ann: Quarterly Activities Report, page-29
-
- There are more pages in this discussion • 35 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add ALK (ASX) to my watchlist
|
|||||
Last
52.5¢ |
Change
-0.025(4.55%) |
Mkt cap ! $316.8M |
Open | High | Low | Value | Volume |
53.0¢ | 53.5¢ | 52.5¢ | $388.9K | 735.5K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
13 | 144343 | 52.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
53.5¢ | 94773 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
11 | 124653 | 0.525 |
10 | 63912 | 0.520 |
2 | 13182 | 0.515 |
3 | 13433 | 0.510 |
5 | 44000 | 0.505 |
Price($) | Vol. | No. |
---|---|---|
0.535 | 94773 | 3 |
0.540 | 31813 | 4 |
0.550 | 21963 | 2 |
0.560 | 4458 | 1 |
0.565 | 125539 | 4 |
Last trade - 16.10pm 19/07/2024 (20 minute delay) ? |
Featured News
ALK (ASX) Chart |