ASX:A1G

Stock Analysis Report

Executive Summary

African Gold Limited acquires, explores for, evaluates, and exploits mineral resource projects in Africa.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: A1G's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

A1G

-6.0%

AU Metals and Mining

-6.2%

AU Market


1 Year Return

-47.9%

A1G

-0.4%

AU Metals and Mining

7.9%

AU Market

Return vs Industry: A1G underperformed the Australian Metals and Mining industry which returned 1.9% over the past year.

Return vs Market: A1G underperformed the Australian Market which returned 10.9% over the past year.


Shareholder returns

A1GIndustryMarket
7 Day0%-6.0%-6.2%
30 Day-16.7%-10.0%-5.9%
90 Day-30.6%-3.5%-2.7%
1 Year-47.9%-47.9%4.6%-0.4%12.6%7.9%
3 Yearn/a51.4%32.7%31.3%13.8%
5 Yearn/a75.8%34.4%42.6%10.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.29x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate A1G's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate A1G's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: A1G is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: A1G 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 A1G's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: A1G is good value based on its PB Ratio (1.3x) compared to the AU Metals and Mining industry average (1.3x).


Next Steps

Future Growth

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

-1.2%

Forecasted Materials 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 Gold 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 Gold performed over the past 5 years?

37.2%

Historical Materials annual earnings growth


Earnings and Revenue History

Quality Earnings: A1G is currently unprofitable.

Growing Profit Margin: A1G is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if A1G's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare A1G's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: A1G is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (24.1%).


Return on Equity

High ROE: A1G has a negative Return on Equity (-17.53%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is African Gold's financial position?


Financial Position Analysis

Short Term Liabilities: A1G's short term assets (A$3.5M) exceed its short term liabilities (A$283.8K).

Long Term Liabilities: A1G has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: A1G is debt free.

Reducing Debt: A1G has not had any debt for past 5 years.


Balance Sheet

Inventory Level: A1G has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if A1G'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: A1G has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: A1G has sufficient cash runway for 2.6 years if free cash flow continues to reduce at historical rates of -218.3% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.7%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate A1G's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate A1G'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 A1G's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if A1G'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 A1G'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?

2.0yrs

Average management tenure


CEO

Glen Edwards 0

1.3yrs

Tenure

0

Mr. Glen Warren Edwards serves as Exploration Manager at African Gold Limited and serves as its Chief Executive Officer since November 1, 2018. Mr. Glen Warren Edwards, AIG, SEG served as Exploration Manag ...


Leadership Team

NamePositionTenureCompensationOwnership
Glen Edwards
CEO & Exploration Manager1.3yrsno datano data
Michael Naylor
Company Secretary & CFO2yrsno data0.45% A$32.8k
Stephen Parsons
Executive Director2yrsno data9.9% A$718.8k

2.0yrs

Average Tenure

Experienced Management: A1G's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Parsons
Executive Director2yrsno data9.9% A$718.8k
Evan George Cranston
Non Executive Chairman1.9yrsno data9.47% A$687.7k
Tolga Kumova
Non Executive Director2yrsno data9.81% A$712.5k

2.0yrs

Average Tenure

41yo

Average Age

Experienced Board: A1G's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: A1G insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: African Gold Limited
  • Ticker: A1G
  • Exchange: ASX
  • Founded: 2018
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$7.263m
  • Shares outstanding: 58.10m
  • Website: https://www.african-gold.com

Location

  • African Gold Limited
  • 24 Outram Street
  • Level 3
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A1GASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2019
A1GCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2019

Biography

African Gold Limited acquires, explores for, evaluates, and exploits mineral resource projects in Africa. The company explores for gold deposits. It holds a 100% interest in the Agboville Gold Project comprising 1400 square kilometers of area located in Cote d’Ivoire, Abidjan. The company was incorporated in 2018 and is based in West Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 10:51
End of Day Share Price2020/02/24 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.