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Alara Resources

ASX:AUQ
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AUQ
ASX
A$18M
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

Alara Resources Limited develops and produces mineral deposits in the Middle East region. The last earnings update was 38 days ago. More info.


Add to Portfolio Compare Print
  • Alara Resources has significant price volatility in the past 3 months.
AUQ Share Price and Events
7 Day Returns
-3.4%
ASX:AUQ
-3.2%
AU Metals and Mining
-0%
AU Market
1 Year Returns
16.7%
ASX:AUQ
10.6%
AU Metals and Mining
4.9%
AU Market
AUQ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Alara Resources (AUQ) -3.4% -3.4% 40% 16.7% 86.7% -72%
AU Metals and Mining -3.2% 1.4% 12.4% 10.6% 72.3% 7.8%
AU Market -0% 1.5% 6.5% 4.9% 18.2% 4.8%
1 Year Return vs Industry and Market
  • AUQ outperformed the Metals and Mining industry which returned 10.6% over the past year.
  • AUQ outperformed the Market in Australia which returned 4.9% over the past year.
Price Volatility
AUQ
Industry
5yr Volatility vs Market

Value

 Is Alara Resources undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Alara Resources to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Alara Resources.

ASX:AUQ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.9%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:AUQ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.133 (1 + (1- 30%) (3.57%))
1.108
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.108 * 5.96%)
8.91%

Discounted Cash Flow Calculation for ASX:AUQ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Alara Resources is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:AUQ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.91%)
2019 0.92 Est @ 79.33% 0.84
2020 1.44 Est @ 56.23% 1.21
2021 2.01 Est @ 40.05% 1.56
2022 2.59 Est @ 28.73% 1.84
2023 3.13 Est @ 20.81% 2.04
2024 3.61 Est @ 15.26% 2.16
2025 4.02 Est @ 11.37% 2.21
2026 4.37 Est @ 8.66% 2.21
2027 4.66 Est @ 6.75% 2.16
2028 4.92 Est @ 5.42% 2.09
Present value of next 10 years cash flows A$18.33
ASX:AUQ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$4.92 × (1 + 2.31%) ÷ (8.91% – 2.31%)
A$76.17
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$76.17 ÷ (1 + 8.91%)10
A$32.43
ASX:AUQ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$18.33 + A$32.43
A$50.76
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$50.76 / 629.02
A$0.08
ASX:AUQ Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$0.08
Current discount Discount to share price of A$0.03
= -1 x (A$0.03 - A$0.08) / A$0.08
65.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Alara Resources is available for.
Intrinsic value
>50%
Share price is A$0.028 vs Future cash flow value of A$0.0807
Current Discount Checks
For Alara Resources to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Alara Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Alara Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Alara Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Alara Resources's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:AUQ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.00
ASX:AUQ Share Price ** ASX (2019-04-18) in AUD A$0.03
Australia Metals and Mining Industry PE Ratio Median Figure of 78 Publicly-Listed Metals and Mining Companies 12.55x
Australia Market PE Ratio Median Figure of 545 Publicly-Listed Companies 16.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Alara Resources.

ASX:AUQ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:AUQ Share Price ÷ EPS (both in AUD)

= 0.03 ÷ 0.00

-19.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alara Resources is loss making, we can't compare its value to the AU Metals and Mining industry average.
  • Alara Resources is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Alara Resources's expected growth come at a high price?
Raw Data
ASX:AUQ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -19.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Australia Metals and Mining Industry PEG Ratio Median Figure of 38 Publicly-Listed Metals and Mining Companies 0.65x
Australia Market PEG Ratio Median Figure of 360 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Alara Resources, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Alara Resources's assets?
Raw Data
ASX:AUQ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.03
ASX:AUQ Share Price * ASX (2019-04-18) in AUD A$0.03
Australia Metals and Mining Industry PB Ratio Median Figure of 584 Publicly-Listed Metals and Mining Companies 1.52x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.67x
ASX:AUQ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:AUQ Share Price ÷ Book Value per Share (both in AUD)

= 0.03 ÷ 0.03

0.81x

* Primary Listing of Alara Resources.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alara Resources is good value based on assets compared to the AU Metals and Mining industry average.
X
Value checks
We assess Alara Resources's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Alara Resources has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

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 Alara 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.2%
Expected Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Alara Resources expected to grow at an attractive rate?
  • Unable to compare Alara Resources's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Alara Resources's earnings growth to the Australia market average as no estimate data is available.
  • Unable to compare Alara Resources's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:AUQ Future Growth Rates Data Sources
Data Point Source Value (per year)
Australia Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 1.2%
Australia Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 0.5%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.5%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:AUQ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:AUQ Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 0 1 -1
2018-09-30 0 1 -1
2018-06-30 0 1 -1
2018-03-31 0 0 0
2017-12-31 0 -1 0
2017-09-30 0 -1 0
2017-06-30 0 -1 0
2017-03-31 0 0 1
2016-12-31 0 0 2
2016-09-30 0 0 -14
2016-06-30 0 0 -31
2016-03-31 0 -1 -32

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Alara Resources is high growth as no earnings estimate data is available.
  • Unable to determine if Alara Resources is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:AUQ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Alara Resources Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:AUQ Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.00
2018-09-30 0.00
2018-06-30 0.00
2018-03-31 0.00
2017-12-31 0.00
2017-09-30 0.00
2017-06-30 0.00
2017-03-31 0.00
2016-12-31 0.00
2016-09-30 -0.03
2016-06-30 -0.07
2016-03-31 -0.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Alara Resources will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Alara Resources is trading at Alara Resources'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Alara Resources's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Materials companies here
  3. Alara Resources's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Alara Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Alara Resources has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Alara Resources performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Alara Resources's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Alara Resources does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Alara Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Alara Resources's 1-year growth to the AU Metals and Mining industry average as it is not currently profitable.
Earnings and Revenue History
Alara Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Alara Resources Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:AUQ Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 0.03 -0.89 0.89
2018-09-30 0.03 -0.79 0.82
2018-06-30 0.03 -0.69 0.74
2018-03-31 0.03 -0.45 0.77
2017-12-31 0.03 -0.21 0.79
2017-09-30 0.04 -0.23 0.76
2017-06-30 0.04 -0.26 0.73
2017-03-31 0.10 0.81 0.93
2016-12-31 0.16 1.88 1.13
2016-09-30 0.18 -14.36 0.77
2016-06-30 0.20 -30.60 0.42
2016-03-31 0.11 -31.94 0.57
2015-12-31 0.03 -33.28 0.73
2015-09-30 0.04 -17.47 1.45
2015-06-30 0.06 -1.66 2.18
2015-03-31 -1.46 -1.37 2.19
2014-12-31 -2.98 -1.08 2.20
2014-09-30 -1.43 -0.17 3.00
2014-06-30 0.12 0.73 3.80
2014-03-31 1.71 -0.50 4.20
2013-12-31 3.30 -1.73 4.60
2013-09-30 1.79 -4.15 4.23
2013-06-30 0.28 -6.58 3.87
2013-03-31 0.70 -6.25 4.08
2012-12-31 1.11 -5.92 4.30
2012-09-30 1.42 -4.54 4.15
2012-06-30 1.73 -3.15 4.01

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Alara Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Alara Resources has efficiently used its assets last year compared to the AU Metals and Mining industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Alara Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Alara Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Alara Resources has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Alara Resources's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Alara Resources's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Alara Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Alara Resources's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Alara Resources's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 21.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Alara Resources Company Filings, last reported 3 months ago.

ASX:AUQ Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 21.64 0.63 13.23
2018-09-30 21.64 0.63 13.23
2018-06-30 10.50 0.58 3.35
2018-03-31 10.50 0.58 3.35
2017-12-31 10.28 0.50 2.33
2017-09-30 10.28 0.50 2.33
2017-06-30 9.59 0.22 1.89
2017-03-31 9.59 0.22 1.89
2016-12-31 10.05 0.00 2.25
2016-09-30 10.05 0.00 2.25
2016-06-30 8.47 0.00 1.37
2016-03-31 8.47 0.00 1.37
2015-12-31 7.88 0.00 2.38
2015-09-30 7.88 0.00 2.38
2015-06-30 37.75 1.51 0.94
2015-03-31 37.75 1.51 0.94
2014-12-31 38.24 1.51 2.09
2014-09-30 38.24 1.51 2.09
2014-06-30 38.92 1.51 3.15
2014-03-31 38.92 1.51 3.15
2013-12-31 38.42 1.81 4.48
2013-09-30 38.42 1.81 4.48
2013-06-30 37.45 1.81 4.46
2013-03-31 37.45 1.81 4.46
2012-12-31 40.39 0.00 8.54
2012-09-30 40.39 0.00 8.54
2012-06-30 37.52 1.51 10.95
  • Alara Resources's level of debt (2.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (4.7% vs 2.9% today).
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.

  • Alara Resources has sufficient cash runway for more than 3 years based on current free cash flow.
  • Alara Resources has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -65.4% each year.
X
Financial health checks
We assess Alara Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Alara Resources has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Alara Resources dividends.
If you bought A$2,000 of Alara Resources shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Alara Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Alara Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:AUQ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Australia Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 3.7%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Alara Resources has not reported any payouts.
  • Unable to verify if Alara Resources's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Alara Resources's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Alara Resources has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Alara Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Alara Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Alara Resources has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Alara Resources's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Justin Richard
COMPENSATION A$537,701
TENURE AS CEO 3.8 years
CEO Bio

Mr. Justin Richard, LLB, GradDipACG, MBA, FGIA, FCIS has been the Chief Executive Officer and Managing Director of Alara Resources Limited since June 16, 2015. Mr. Richard served as General Counsel and Country Manager of Saudi Arabia & Oman at Alara Resources Limited since 2011 and 2013 respectively. He is an accomplished corporate lawyer and business manager who has played a key role in helping build and maintain Alara’s international joint venture relationships. He has been the Company’s General Counsel since 2011 and in 2013 took up residence in Riyadh as Alara’s Country Manager for Saudi Arabia. Prior to joining Alara, Mr. Richard worked as Senior Commercial Officer & Contracts Specialist with Bateman Engineering (Australia), Corporate Counsel and head of legal for UGL Limited’s resources division and as a lawyer in Minter Ellison’s Construction, Engineering and Infrastructure group. Before entering the legal profession, Mr. Richard served as Managing Director of Irrigate Australia. He has been a Director at Alara Resources Limited since June 16, 2015. Mr. Richard holds LLB (UWA), Grad Dip Corporate Governance FGIA, FCIS and MAICD.

CEO Compensation
  • Justin's compensation has been consistent with company performance over the past year.
  • Justin's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Alara Resources management team in years:

2.8
Average Tenure
  • The tenure for the Alara Resources management team is about average.
Management Team

Justin Richard

TITLE
MD, CEO & Director
COMPENSATION
A$538K
TENURE
3.8 yrs

Stephen Gethin

TITLE
Company Secretary & Non-Executive Director
COMPENSATION
A$43K
TENURE
0.9 yrs

Atmavireshwar Sthapak

TITLE
Technical Director & Executive Director
COMPENSATION
A$189K

Dinesh Aggarwal

TITLE
Chief Financial Officer
TENURE
0.9 yrs

Rexin Kamilas

TITLE
Finance & Administrative Manager
TENURE
2.8 yrs

Hem Madan

TITLE
Technical Consultant
COMPENSATION
A$77K
TENURE
3.1 yrs
Board of Directors Tenure

Average tenure of the Alara Resources board of directors in years:

3.3
Average Tenure
  • The tenure for the Alara Resources board of directors is about average.
Board of Directors

James Phipps

TITLE
Non-Executive Chairman
COMPENSATION
A$75K
TENURE
3.8 yrs

Justin Richard

TITLE
MD, CEO & Director
COMPENSATION
A$538K
TENURE
3.8 yrs

Stephen Gethin

TITLE
Company Secretary & Non-Executive Director
COMPENSATION
A$43K
TENURE
0.3 yrs

Atmavireshwar Sthapak

TITLE
Technical Director & Executive Director
COMPENSATION
A$189K
TENURE
3.6 yrs

Vikas Jain

TITLE
Non-Executive Director
COMPENSATION
A$50K
AGE
43
TENURE
3 yrs

Avi Sthapak

TITLE
Non-Executive Directors
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Alara Resources insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
29. Mar 19 Buy Vikas Jain Individual 22. Mar 19 28. Mar 19 3,460,700 A$0.03 A$99,153
02. Dec 18 Buy Atmavireshwar Sthapak Individual 23. Nov 18 27. Nov 18 593,387 A$0.02 A$14,252
X
Management checks
We assess Alara Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Alara Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Much Are Alara Resources Limited (ASX:AUQ) Insiders Spending On Buying Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Alara Resources Limited (ASX:AUQ). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … In the last twelve months Alara Resources insiders were buying shares, but not selling

Simply Wall St -

Does Alara Resources Limited's (ASX:AUQ) CEO Pay Matter?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Justin Richard's Compensation Compare With Similar Sized Companies. … According to our data, Alara Resources Limited has a market capitalization of AU$18m, and pays its CEO total annual compensation worth AU$538k.

Simply Wall St -

Do Directors Own Alara Resources Limited (ASX:AUQ) Shares?

Alara Resources is a smaller company with a market capitalization of AU$14m, so it may still be flying under the radar of many institutional investors. … Our analysis of the ownership of the company, below, shows that. … View our latest analysis for Alara Resources

Simply Wall St -

Does Alara Resources Limited's (ASX:AUQ) CEO Pay Matter?

In 2015 Justin Richard was appointed CEO of Alara Resources Limited (ASX:AUQ). … Our data indicates that Alara Resources Limited is worth AU$15m, and total annual CEO compensation is AU$595k. … It would therefore appear that Alara Resources Limited pays Justin Richard more than the median CEO remuneration at companies of a similar size, in the same market

Simply Wall St -

Who Are The Largest Shareholders In Alara Resources Limited (ASX:AUQ)?

In this analysis, my focus will be on developing a perspective on Alara Resources Limited’s (ASX:AUQ) latest ownership structure, a less discussed, but important factor. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … See our latest analysis for Alara Resources

Simply Wall St -

Does Alara Resources Limited's (ASX:AUQ) Earnings Growth Make It An Outperformer?

When Alara Resources Limited (ASX:AUQ) announced its most recent earnings (30 June 2017), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … Check out our latest analysis for Alara Resources Commentary On AUQ's Past Performance To account for any quarterly or half-yearly updates, I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … ASX:AUQ Income Statement Feb 15th 18 We can further assess Alara Resources's loss by looking at what the industry has been experiencing over the past few years.

Simply Wall St -

Why Alara Resources Limited's (ASX:AUQ) Ownership Structure Is Important

ASX:AUQ Insider Trading Oct 31st 17 General Public Ownership The general public holds a substantial 43.53% stake in AUQ, making it a highly popular stock among retail investors. … This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. … Such level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions.

Simply Wall St -

Company Info

Description

Alara Resources Limited develops and produces mineral deposits in the Middle East region. Its flagship property is the Khnaiguiyah Zinc-Copper project in Saudi Arabia. The company also has an advanced study for its Daris/Washihi Copper-Gold project in Oman. Alara Resources Limited was founded in 2006 and is based in Balcatta, Australia.

Details
Name: Alara Resources Limited
AUQ
Exchange: ASX
Founded: 2006
A$17,612,492
629,017,589
Website: http://www.alararesources.com.au
Address: Alara Resources Limited
110 Erindale Road,
Suite 1.02,
Balcatta,
Western Australia, 6021,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX AUQ Ordinary Shares Australian Securities Exchange AU AUD 24. May 2007
DB AU5 Ordinary Shares Deutsche Boerse AG DE EUR 24. May 2007
CHIA AUQ Ordinary Shares Chi-X Australia AU AUD 24. May 2007
Number of employees
Current staff
Staff numbers
0
Alara Resources employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/20 10:33
End of day share price update: 2019/04/18 00:00
Last earnings filing: 2019/03/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.