ASX:AFR

Stock Analysis Report

African Energy Resources

Executive Summary

African Energy Resources Limited develops various integrated power projects in Botswana.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

How has African Energy Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AFR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.8%

AFR

-5.5%

AU Oil and Gas

-3.6%

AU Market


1 Year Return

150.0%

AFR

-14.1%

AU Oil and Gas

10.9%

AU Market

Return vs Industry: AFR exceeded the Australian Oil and Gas industry which returned -14.1% over the past year.

Return vs Market: AFR exceeded the Australian Market which returned 10.9% over the past year.


Shareholder returns

AFRIndustryMarket
7 Day-11.8%-5.5%-3.6%
30 Day-23.1%-13.5%-3.7%
90 Day130.8%-12.2%-0.2%
1 Year150.0%150.0%-10.8%-14.1%15.6%10.9%
3 Year-21.1%-21.1%9.0%-2.8%34.1%16.0%
5 Year-58.9%-58.9%-0.8%-17.5%44.9%12.6%

Price Volatility Vs. Market

How volatile is African Energy Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is African Energy Resources undervalued compared to its fair value and its price relative to the market?

1.03x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AFR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AFR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AFR is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: AFR is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AFR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AFR is good value based on its PB Ratio (1x) compared to the AU Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is African Energy Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.8%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as African Energy Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has African Energy Resources performed over the past 5 years?

22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFR is currently unprofitable.

Growing Profit Margin: AFR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AFR is unprofitable, but has reduced losses over the past 5 years at a rate of 22.5% per year.

Accelerating Growth: Unable to compare AFR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AFR is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-0.7%).


Return on Equity

High ROE: AFR has a negative Return on Equity (-7.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is African Energy Resources's financial position?


Financial Position Analysis

Short Term Liabilities: AFR's short term assets ($2.7M) exceed its short term liabilities ($100.5K).

Long Term Liabilities: AFR has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: AFR is debt free.

Reducing Debt: AFR has no debt compared to 5 years ago when its debt to equity ratio was 24%.


Balance Sheet

Inventory Level: AFR has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AFR's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AFR has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if AFR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is African Energy Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AFR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AFR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AFR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AFR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AFR's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.8yrs

Average management tenure


CEO

Frazer Metallica 0

12.3yrs

Tenure

US$77,625

Compensation

Dr. Charles Tabeart Terra Metallica, also known as Frazer, Ph.D., BSc (Hons) ARSM, MAIG has been the Chief Executive officer and Managing Director at African Energy Resources Limited (also known as African ...


CEO Compensation Analysis

Compensation vs Market: Frazer's total compensation ($USD77.63K) is below average for companies of similar size in the Australian market ($USD250.90K).

Compensation vs Earnings: Frazer's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Alasdair Cooke
Executive Chairman13.4yrsUS$77.37k5.39% $1.0m
Charles Tabeart Metallica
CEO, MD & Executive Director12.3yrsUS$77.63k0.45% $84.5k
Gregory Fry
Non-Executive Director13.5yrsUS$16.63k0.94% $176.1k
Daniel Davis
Company Secretary10.8yrsUS$89.59kno data

10.8yrs

Average Tenure

Experienced Management: AFR's management team is seasoned and experienced (10.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alasdair Cooke
Executive Chairman13.4yrsUS$77.37k5.39% $1.0m
Charles Tabeart Metallica
CEO, MD & Executive Director12.3yrsUS$77.63k0.45% $84.5k
Gregory Fry
Non-Executive Director13.5yrsUS$16.63k0.94% $176.1k
Valentine Chitalu
Independent Non-Executive Director13.4yrsUS$9.78k0.36% $67.5k
Vincent Masterton-Hume
Non-Executive Director6.4yrsUS$21.23k0.67% $124.7k
John Dean
Non-Executive Director5.2yrsUS$23.26kno data

12.8yrs

Average Tenure

54yo

Average Age

Experienced Board: AFR's board of directors are seasoned and experienced ( 12.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

African Energy Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: African Energy Resources Limited
  • Ticker: AFR
  • Exchange: ASX
  • Founded: 2006
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$18.689m
  • Shares outstanding: 622.96m
  • Website: https://www.africanenergyresources.com

Location

  • African Energy Resources Limited
  • Granite House
  • La Grande Rue
  • St Martin
  • GY1 3RS
  • Guernsey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFRASX (Australian Securities Exchange)YesCDI NPVAUAUDJun 2008
BP6DB (Deutsche Boerse AG)YesCDI NPVDEEURJun 2008
AFRCHIA (Chi-X Australia)YesCDI NPVAUAUDJun 2008

Biography

African Energy Resources Limited develops various integrated power projects in Botswana. The company operates through Coal-fired Power Projects and Power Investments segments. It holds interests in Mmamantswe power project and Mmamabula West coal project. African Energy Resources Limited was incorporated in 2006 and is based in St Martin, Guernsey.  


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 10:36
End of Day Share Price2020/02/26 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.