# Alkane Resources (ALK.AU)

Canonical: https://gigainvestors.com/s/ALK.AU

Analysis as of: 2026-10-16T07:41:57.696Z. Financial observations: FY1997–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 1.71 per share; close as of 2026-10-15.

Estimated value: low AUD 1.48 per share, central AUD 1.98 per share, high AUD 2.27 per share. Buy at or below the central value AUD 1.98 per share. Valuation as of 2026-10-16T07:41:57.696Z; scenarios are not confidence intervals.

Expected annual return: 11.3% at the stated quote. About 11.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.38×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.08×

- FY2018: 0.23×

- FY2019: 0.24×

- FY2020: 0.28×

- FY2021: 0.40×

- FY2022: 0.32×

- FY2023: 0.31×

- FY2024: 0.14×

- FY2025: 0.16×

- FY2026: 0.34×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 14.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 16.0%

- ROIC, second-lowest year: 6.0%

- Typical minus recent gross margin: 14.8 pp

- Typical gross margin (annual median): 34.4%

- Recent gross margin (lower of latest and 3-year median): 19.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 42.6%

- ROIC including acquisitions, ten-year median: 6.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 6.0%

- FY2018: 20.1%

- FY2019: 14.2%

- FY2020: 6.1%

- FY2021: 19.7%

- FY2022: 17.8%

- FY2023: 17.7%

- FY2024: 5.5%

- FY2025: 8.2%

- FY2026: 32.7%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.68×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 266M

- Net income, five-year total: AUD 392M

- Return on incremental invested capital: 59.4%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 3.6 pp

- Working capital / revenue, final three-year average: 9.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.84×

- FY2023: 0.25×

- FY2024: -4.59×

- FY2025: 1.00×

- FY2026: 1.07×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 14.2% vs 8.2%

- Per-share earnings: 0.01 to 0.03 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 10.6%

- Ordinary dilution, 5-year annual growth: 17.9%

- Market cap gain: AUD 1.8B

- Cumulative retained earnings: AUD 419M

- Diluted shares, 10-year annual growth: 10.6%

- Diluted shares, 5-year annual growth: 17.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 15.1%

- Per-share value change: AUD 0.02

- Per-share value, starting three-year median: AUD 0.01

- Per-share value, ending three-year median: AUD 0.03

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 0.1%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 599K

- Cumulative net income, 10 years: AUD 479M

- ROIC, first three-year median: 14.2%

- ROIC, last three-year median: 8.2%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD -0.06

- FY2018: AUD 0.05

- FY2019: AUD 0.04

- FY2020: AUD 0.02

- FY2021: AUD 0.09

- FY2022: AUD 0.12

- FY2023: AUD 0.07

- FY2024: AUD 0.03

- FY2025: AUD 0.03

- FY2026: AUD 0.17

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -14.9%

- Receivables to sales index (DSRI): 5.52×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.01×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -41.3%

- FY2018: -13.0%

- FY2019: -5.2%

- FY2020: -4.8%

- FY2021: -6.5%

- FY2022: -4.4%

- FY2023: -12.5%

- FY2024: -7.6%

- FY2025: -7.2%

- FY2026: -14.9%

## Holders

## Price story

Price needs cash profits to grow 4.3% a year for ten years · sales +256.7%

Story as of 2026-10-16T10:00:12.160Z; price observation 2026-10-15.

Price needs cash profits to grow 4.3% a year for ten years

- 2026-04-23: Alkane Resources posts record production as cash builds to $374M on strong gold prices ([finance.yahoo.com](https://finance.yahoo.com/markets/commodities/articles/alkane-resources-posts-record-production-005000104.html))

### Sales · FY2025–2026

sales +256.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 118M 

- FY2018: AUD 130M 

- FY2019: AUD 93M 

- FY2020: AUD 73M 

- FY2021: AUD 128M 

- FY2022: AUD 165M 

- FY2023: AUD 191M 

- FY2024: AUD 173M 

- FY2025: AUD 262M 

- FY2026: AUD 936M 

### Gross margin · FY2026

gross margin 35.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 14.2% 

- FY2018: 29.7% 

- FY2019: 34.2% 

- FY2020: 54.7% 

- FY2021: 44.9% 

- FY2022: 34.7% 

- FY2023: 37.4% 

- FY2024: 17.3% 

- FY2025: 19.7% 

- FY2026: 35.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in gold; annual sales are AUD 935.8 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:57.696Z); FY2026: revenue 935822000; grossProfit 333739000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 17.3% to 35.7% during 2024–26; it earns 16% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:57.696Z); FY2024: grossProfit / revenue = 17.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:57.696Z); FY2025: grossProfit / revenue = 19.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:57.696Z); FY2026: grossProfit / revenue = 35.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:57.696Z); 10-year return on capital observations [[2017,0.060484555701947],[2018,0.2006933495351165],[2019,0.14225830301611064],[2020,0.060582154922936234],[2021,0.19671621229437017],[2022,0.17779733211047735],[2023,0.17682244674236364],[2024,0.05465203250052402],[2025,0.08160086005697845],[2026,0.3272126346693409]]; median 0.15954037487923714. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 6 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:57.696Z); FY2018: growth capex 0; upkeep 20396000; owner earnings 42818000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:57.696Z); FY2021: growth capex 61113545.392477706; upkeep 25005454.607522294; owner earnings 52008545.392477706. Growth capex / owner earnings = 1.1750673842402235.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:57.696Z); FY2022: growth capex 36863117.1706654; upkeep 46652882.8293346; owner earnings 58821117.1706654. Growth capex / owner earnings = 0.6266986916231057.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:57.696Z); FY2023: growth capex 23196620.1515335; upkeep 68603379.8484665; owner earnings 10401620.1515335. Growth capex / owner earnings = 2.230096832377949.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:57.696Z); FY2025: growth capex 5729000; upkeep 52323000; owner earnings 33043000. Growth capex / owner earnings = 0.173380141028357.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:57.696Z); FY2026: growth capex 0; upkeep 142676000; owner earnings 245257000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:57.696Z); Dividend observations: [[2017,5127000],[2018,987000],[2019,0],[2020,44840000],[2021,2305000],[2022,5820000],[2023,1543000],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 14.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ALK.AU SharesStats.PercentInsiders = 14.280000000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4.3% yearly over ten years; actual growth was 34.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:57.696Z); Ten-year compound average after fade. Initial solved rate 0.04853818650955313. Price 1.71; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.0093767899782786 → FY2026 0.1782457960084692. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 0.46 per share

- 2016-11: AUD 0.27 per share

- 2016-12: AUD 0.28 per share

- 2017-01: AUD 0.28 per share

- 2017-02: AUD 0.27 per share

- 2017-03: AUD 0.23 per share

- 2017-04: AUD 0.21 per share

- 2017-05: AUD 0.20 per share

- 2017-06: AUD 0.20 per share

- 2017-07: AUD 0.28 per share

- 2017-08: AUD 0.33 per share

- 2017-09: AUD 0.27 per share

- 2017-10: AUD 0.25 per share

- 2017-11: AUD 0.28 per share

- 2017-12: AUD 0.27 per share

- 2018-01: AUD 0.25 per share

- 2018-02: AUD 0.24 per share

- 2018-03: AUD 0.25 per share

- 2018-04: AUD 0.23 per share

- 2018-05: AUD 0.23 per share

- 2018-06: AUD 0.19 per share

- 2018-07: AUD 0.18 per share

- 2018-08: AUD 0.17 per share

- 2018-09: AUD 0.20 per share

- 2018-10: AUD 0.19 per share

- 2018-11: AUD 0.17 per share

- 2018-12: AUD 0.16 per share

- 2019-01: AUD 0.16 per share

- 2019-02: AUD 0.17 per share

- 2019-03: AUD 0.23 per share

- 2019-04: AUD 0.20 per share

- 2019-05: AUD 0.29 per share

- 2019-06: AUD 0.38 per share

- 2019-07: AUD 0.32 per share

- 2019-08: AUD 0.39 per share

- 2019-09: AUD 0.70 per share

- 2019-10: AUD 0.69 per share

- 2019-11: AUD 0.53 per share

- 2019-12: AUD 0.56 per share

- 2020-01: AUD 0.76 per share

- 2020-02: AUD 0.75 per share

- 2020-03: AUD 0.59 per share

- 2020-04: AUD 0.72 per share

- 2020-05: AUD 0.88 per share

- 2020-06: AUD 1.16 per share

- 2020-07: AUD 1.21 per share

- 2020-08: AUD 1.13 per share

- 2020-09: AUD 1.41 per share

- 2020-10: AUD 1.23 per share

- 2020-11: AUD 1.01 per share

- 2020-12: AUD 0.96 per share

- 2021-01: AUD 0.80 per share

- 2021-02: AUD 0.71 per share

- 2021-03: AUD 0.69 per share

- 2021-04: AUD 0.74 per share

- 2021-05: AUD 0.93 per share

- 2021-06: AUD 1.15 per share

- 2021-07: AUD 1.16 per share

- 2021-08: AUD 0.98 per share

- 2021-09: AUD 0.85 per share

- 2021-10: AUD 0.90 per share

- 2021-11: AUD 0.81 per share

- 2021-12: AUD 0.92 per share

- 2022-01: AUD 0.82 per share

- 2022-02: AUD 1.04 per share

- 2022-03: AUD 1.15 per share

- 2022-04: AUD 1.02 per share

- 2022-05: AUD 1.11 per share

- 2022-06: AUD 0.62 per share

- 2022-07: AUD 0.79 per share

- 2022-08: AUD 0.74 per share

- 2022-09: AUD 0.69 per share

- 2022-10: AUD 0.69 per share

- 2022-11: AUD 0.61 per share

- 2022-12: AUD 0.54 per share

- 2023-01: AUD 0.67 per share

- 2023-02: AUD 0.68 per share

- 2023-03: AUD 0.80 per share

- 2023-04: AUD 0.88 per share

- 2023-05: AUD 0.74 per share

- 2023-06: AUD 0.71 per share

- 2023-07: AUD 0.71 per share

- 2023-08: AUD 0.67 per share

- 2023-09: AUD 0.61 per share

- 2023-10: AUD 0.60 per share

- 2023-11: AUD 0.67 per share

- 2023-12: AUD 0.66 per share

- 2024-01: AUD 0.57 per share

- 2024-02: AUD 0.48 per share

- 2024-03: AUD 0.63 per share

- 2024-04: AUD 0.63 per share

- 2024-05: AUD 0.56 per share

- 2024-06: AUD 0.50 per share

- 2024-07: AUD 0.44 per share

- 2024-08: AUD 0.43 per share

- 2024-09: AUD 0.45 per share

- 2024-10: AUD 0.57 per share

- 2024-11: AUD 0.50 per share

- 2024-12: AUD 0.51 per share

- 2025-01: AUD 0.59 per share

- 2025-02: AUD 0.62 per share

- 2025-03: AUD 0.70 per share

- 2025-04: AUD 0.81 per share

- 2025-05: AUD 0.77 per share

- 2025-06: AUD 0.72 per share

- 2025-07: AUD 0.72 per share

- 2025-08: AUD 1.05 per share

- 2025-09: AUD 1.15 per share

- 2025-10: AUD 1.01 per share

- 2025-11: AUD 1.02 per share

- 2025-12: AUD 1.35 per share

- 2026-01: AUD 1.64 per share

- 2026-02: AUD 1.75 per share

- 2026-03: AUD 1.42 per share

- 2026-04: AUD 1.50 per share

- 2026-05: AUD 1.48 per share

- 2026-06: AUD 1.37 per share

- 2026-07: AUD 1.33 per share

- 2026-08: AUD 1.90 per share

- 2026-09: AUD 1.87 per share

- 2026-10: AUD 1.77 per share

## Annual estimated value (AUD per share)

- FY2022: low AUD 1.11 per share, central AUD 1.24 per share, high AUD 1.42 per share

- FY2023: low AUD 0.31 per share, central AUD 0.34 per share, high AUD 0.37 per share

- FY2024: low AUD 0.28 per share, central AUD 0.37 per share, high AUD 0.42 per share

- FY2025: low AUD 0.33 per share, central AUD 0.37 per share, high AUD 0.42 per share

- FY2026: low AUD 1.46 per share, central AUD 1.96 per share, high AUD 2.25 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:47:33.177Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.