Alkane Resources (ASX:ALK) share price rises 5% on key update

Gold producer Alkane share price moved higher by 2% following AGM it which it announced significant updates on its projects
The post Alkane Resources (ASX:ALK) share price rises 5% on key update appeared first on Motley Fool Australia. –

asx share price higher represented by stacks of gold coins growing higher

Gold producer Alkane Resources Limited (ASX: ALK) provided key updates on its drilling project at Roswell at today’s annual general meeting (AGM). At the time of writing, the Alkane share price is trading 4.84% higher at $1.30. 

What’s moving the Alkane share price?

The Alkane share price is on the move today after the company provided some key updates on its ongoing drilling project at Roswell.

Over the past two years, Alkane Resources has undertaken extensive exploration at the Roswell and San Antonio deposits with the aim of identifying an inferred mineral resource.

The Roswell deposit is part of the 440sq km Tomingley Gold Project in New South Wales.

At today’s AGM, the company said that after an additional 29,000 metres of drilling, the Roswell deposit now stands at 10.1 million tonnes grading 2.04g/t of gold, or around 660,000 oz. This is an increase of 50% from the previous update in January, which is significant.

It also mentioned that the drilling is continuing to the south of Roswell, and an update on the San Antonio deposit is anticipated in December. 

Other key takeaways from the AGM

  • The company holds liquid assets of $92 million in cash, bullion and listed investments as at 30 September 2020.
  • Significant shareholder value was created through the demerger of Australian Strategic Materials Ltd (ASX: ASM) in July.
  • There are strong indications of large deposits at Boda, where a further 30,000-metre drilling operation is still in progress. 
  • Investments with strategic alliances are intact. These include 19.9% of Genesis Minerals Ltd (ASX: GMD) and 12.17% of Calidus Resources Ltd (ASX: CAI).

How has Alkane Resources performed?

Alkane Resources has produced return on equity of 13.77%, 11.52%, and 5.3% for the last three years respectively.

The company has also been reporting solid liquidity on its balance sheet, with the current ratio sitting comfortably at 4.87, supported by today’s announcement that it holds $92 million in liquid assets. 

The Alkane share price has performed impressively this year, up by more than 120%, which includes today’s gain of nearly 5%. At its current price, Alkane has a market capitalisation of around $740 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Alkane Resources (ASX:ALK) share price rises 5% on key update appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!