Source: Streetwise Reports
November 1, 2017 (Investorideas.com Newswire) As China's central government clamps down on archaic polluting mines, Australia looks to meet surging global demand.
Snap quiz: the transition metal Zirconium (Zr) can be found in a. nuclear reactors, b. prosthetic hips, c. jet engines or d. all-of-the-above. You guessed it—it's "d."
Zirconium is an obscure do-it-all metal critical in auto exhaust catalysts, electronics, engineering, ceramics, optical glass and industrial alloys. It is typically traded as:
According to a recent "Quarterly Activities Report" published by Alkane Resources Ltd. (ALK:ASX; ANLKY:OTCQX), "China's continuing 'war on pollution' via strict environmental inspections is having far reaching effects on supply of all types of chemicals, including zirconium and rare earths. Reported shortages in availability of zirconium oxychloride (ZOC) have increased delivery times, and raised concerns about ongoing supply."
ZOC prices increased 40% in the first half of 2017. Prices are now over 60% higher compared to the end of last year and are currently $6,700 USD per tonne on a 100% zirconia basis.
For the last 25 years, Alkane has operated exclusively in the central-west of New South Wales, Australia.
The Dubbo Project (DP) is a construction-ready mineral deposit containing zirconium, hafnium, niobium, yttrium and rare earth elements. Alkane owns the surrounding land. State and federal approvals are secured. The Dubbo Project is now in the financing phase.
The focus now is on:
The Dubbo Project is designed to create a long-term supply chain of 15 critical metals and oxides. The diversity of products will require specialized processing. The broad base of industrial end-users provides a stability of revenue streams.
Alkane's marketing team has been meeting with zirconium, hafnium and rare earths buyers in Europe, U.S. and Japan.
"Most customers are acutely aware that China supplies over 90% of zirconium chemicals and over 80% of rare earths supply," stated the quarterly report, "Customers have experienced a steady increase in prices this year from China, as well as periods of interrupted supply, which have highlighted supply chain risks and the importance of the DP. An additional LOI was signed during the quarter for zirconium products, with further LOIs under discussion."
Alkane is also currently generating cash flow from the Tomingley Gold Operations (TGO) 50 kilometers southwest of Dubbo in central-west New South Wales, Australia.
Tomingley reported gold production last quarter of 24,122 ounces at an all-in-sustaining-cost (AISC) of $982/ounce. Site operating cash flow after development costs for the quarter was A$14 million. Gold sales totaled 21,610 ounces for revenue of A$36.4 million at an average price of A$1,685/ounce.
Full year guidance for 2018 is 65,000–70,000 ounces of gold. The company has A$46.3 million in cash and bullion on hand.
"The Dubbo Project nears finalization of critical path items, including the completion and pricing of a modularized development approach by industry heavyweights, Outotec," wrote Analyst Tom Hayes of Edison Investment Research on October 26, 2017, "This study is due for completion in Q218. All required Dubbo development permits have been sourced and the project is effectively 'shovel ready.'"
Hayes also noted that a "number of the Dubbo Project's end product prices have seen a rebound over the past six months, and provide a clear reason to focus on Alkane's long-held flagship asset."
Read what other experts are saying about:
1) Lukas Kane compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Alkane Resources Ltd. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp
Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.