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ADD

Adavale ResourcesASX:ADD Stock Report

Market Cap

AU$18.6m

7D

3.5%

1Y

84.4%

Updated

22 Oct, 2021

Data

Company Financials
ADD fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

ADD Overview

Adavale Resources Limited engages in the mining, exploration, and development activities in Australia and Africa.

Price History & Performance

Summary of all time highs, changes and price drops for Adavale Resources
Historical stock prices
Current Share PriceAU$0.059
52 Week HighAU$0.03
52 Week LowAU$0.10
Beta3.15
1 Month Change-10.61%
3 Month Change-23.38%
1 Year Change84.38%
3 Year Change490.00%
5 Year Change436.41%
Change since IPO-99.99%

Recent News & Updates

May 22
We're Hopeful That Adavale Resources (ASX:ADD) Will Use Its Cash Wisely

We're Hopeful That Adavale Resources (ASX:ADD) Will Use Its Cash Wisely

Just because a business does not make any money, does not mean that the stock will go down. For example, Adavale...

Shareholder Returns

ADDAU Metals and MiningAU Market
7D3.5%-0.3%0.7%
1Y84.4%12.5%21.4%

Return vs Industry: ADD exceeded the Australian Metals and Mining industry which returned 12.5% over the past year.

Return vs Market: ADD exceeded the Australian Market which returned 21.4% over the past year.

Price Volatility

Is ADD's price volatile compared to industry and market?
ADD volatility
ADD Beta3.15
Industry Beta0.97
Market Beta1

Stable Share Price: ADD is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: ADD's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
1969n/aAllan Ritchiehttps://www.adavaleresources.com

Adavale Resources Limited engages in the mining, exploration, and development activities in Australia and Africa. The company holds a 100% interest in the Kabanga Jirani Nickel project consisting of 7 granted licenses and one application covering an area of 1,145 square kilometers located in Kagera, Tanzania; and Lake Surprise uranium project comprising three exploration tenements covering approximately 400 square kilometers situated in the northern part of the Lake Frome Embayment, South Australia. The company as incorporated in 1969 and is based in Sydney, Australia.

Adavale Resources Fundamentals Summary

How do Adavale Resources's earnings and revenue compare to its market cap?
ADD fundamental statistics
Market CapAU$18.58m
Earnings (TTM)-AU$2.05m
Revenue (TTM)AU$11.60k

2.0kx

P/S Ratio

-9.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADD income statement (TTM)
RevenueAU$11.60k
Cost of RevenueAU$0
Gross ProfitAU$11.60k
ExpensesAU$2.06m
Earnings-AU$2.05m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0063
Gross Margin100.00%
Net Profit Margin-17,633.52%
Debt/Equity Ratio0.0%

How did ADD perform over the long term?

See historical performance and comparison

Valuation

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

19.28x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ADD is overvalued based on its PB Ratio (19.3x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

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

-0.07%

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 Adavale 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.


Past Performance

How has Adavale Resources performed over the past 5 years?

-32.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADD is currently unprofitable.

Growing Profit Margin: ADD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ADD is unprofitable, and losses have increased over the past 5 years at a rate of 32% per year.

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

Earnings vs Industry: ADD is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).


Return on Equity

High ROE: ADD has a negative Return on Equity (-204.99%), as it is currently unprofitable.


Financial Health

How is Adavale Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ADD's short term assets (A$1.4M) exceed its short term liabilities (A$474.8K).

Long Term Liabilities: ADD has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: ADD is debt free.

Reducing Debt: ADD currently has no debt however we can't compare to 5 years ago as we have no data for that period.


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

Forecast Cash Runway: ADD is forecast to have sufficient cash runway for 8 months based on free cash flow estimates, but has since raised additional capital.


Dividend

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


Dividend Yield vs Market

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

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

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

0.7yrs

Average board tenure


CEO

Allan Ritchie (55 yo)

1.08yrs

Tenure

AU$36,990

Compensation

Mr. Allan Ritchie serves as Chief Executive Officer at Adavale Resources Limited since September 8, 2020. He was a Non-Executive Director at Adavale Resources Limited since April 28, 2017 until December 11...


CEO Compensation Analysis

Compensation vs Market: Allan's total compensation ($USD27.70K) is below average for companies of similar size in the Australian market ($USD303.33K).

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


Board Members

Experienced Board: ADD's board of directors are not considered experienced ( 0.7 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: ADD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 90.4%.


Top Shareholders

Company Information

Adavale Resources Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Adavale Resources Limited
  • Ticker: ADD
  • Exchange: ASX
  • Founded: 1969
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$18.580m
  • Shares outstanding: 325.96m
  • Website: https://www.adavaleresources.com

Location

  • Adavale Resources Limited
  • 6 Underwood Street
  • Level 7
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 07:01
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.