ASX:AAJ

Stock Analysis Report

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Executive Summary

Aruma Resources Limited operates as a gold exploration company in Australia.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

33.3%

AAJ

1.1%

AU Metals and Mining

4.6%

AU Market


1 Year Return

14.3%

AAJ

1.3%

AU Metals and Mining

-10.5%

AU Market

Return vs Industry: AAJ underperformed the Australian Metals and Mining industry which returned 1.3% over the past year.

Return vs Market: AAJ exceeded the Australian Market which returned -10.5% over the past year.


Shareholder returns

AAJIndustryMarket
7 Day33.3%1.1%4.6%
30 Day33.3%15.9%9.0%
90 Day100.0%9.3%-9.4%
1 Year14.3%14.3%6.7%1.3%-6.8%-10.5%
3 Year-55.6%-55.6%63.1%40.6%11.7%-3.1%
5 Year-41.4%-50.0%93.3%54.3%29.3%1.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.71x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AAJ is overvalued based on its PB Ratio (3.4x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

3.3%

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 Aruma 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 Aruma Resources performed over the past 5 years?

-2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAJ is currently unprofitable.

Growing Profit Margin: AAJ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AAJ is unprofitable, and losses have increased over the past 5 years at a rate of -2.9% per year.

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

Earnings vs Industry: AAJ is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-7.9%).


Return on Equity

High ROE: AAJ has a negative Return on Equity (-88.76%), as it is currently unprofitable.


Next Steps

Financial Health

How is Aruma Resources's financial position?


Financial Position Analysis

Short Term Liabilities: AAJ's short term assets (A$978.8K) exceed its short term liabilities (A$116.9K).

Long Term Liabilities: AAJ's short term assets (A$978.8K) exceed its long term liabilities (A$260.7K).


Debt to Equity History and Analysis

Debt Level: AAJ is debt free.

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


Balance Sheet


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: AAJ has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: AAJ has sufficient cash runway for 1.2 years if free cash flow continues to grow at historical rates of 5.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

10.3yrs

Average board tenure


CEO

Peter Schwann (69yo)

10.33yrs

Tenure

AU$219,000

Compensation

Mr. Peter Bernard Schwann, Assoc. in Applied Geology, FAIMM (CP), FAusIMM, FAIG, MSEG has been Managing Director of Aruma Resources Limited from February 11, 2010. Mr. Schwann has been an Executive Directo ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD145.40K) is below average for companies of similar size in the Australian market ($USD252.98K).

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


Board Members

NamePositionTenureCompensationOwnership
Peter Schwann
MD & Director10.33yrsAU$219.00k3.93% A$139.4k
Paul Boyatzis
Independent Non-Executive Chairman10.42yrsAU$54.00k0.31% A$11.1k
Stanley Elliott
Independent Non-Executive Director2.92yrsAU$30.00k0.23% A$8.3k

10.3yrs

Average Tenure

67yo

Average Age

Experienced Board: AAJ's board of directors are seasoned and experienced ( 10.2 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 been diluted in the past year, with total shares outstanding growing by 14.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Aruma Resources Limited
  • Ticker: AAJ
  • Exchange: ASX
  • Founded: 2010
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$3.547m
  • Shares outstanding: 709.41m
  • Website: https://www.arumaresources.com

Location

  • Aruma Resources Limited
  • 6 Thelma Street
  • Level 1
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AAJASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2010
AAJCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2010

Biography

Aruma Resources Limited operates as a gold exploration company in Australia. Its flagship property is the Slate Dam project covering approximately 83 square kilometers located in Kalgoorlie, Western Australia. The company also holds interest in the Beowulf gold project that covers an area of approximately 490 square kilometers located on the Eastern goldfields region, Western Australia. Aruma Resources Limited was incorporated in 2010 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 Analysis2020/06/01 10:37
End of Day Share Price2020/06/01 00:00
Earnings2019/12/31
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.