ASX:AUQ

Stock Analysis Report

Executive Summary

Alara Resources Limited explores, evaluates, and develops mineral properties in Australia, Saudi Arabia, and Oman.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AUQ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

AUQ

0.8%

AU Metals and Mining

0.7%

AU Market


1 Year Return

-27.3%

AUQ

6.2%

AU Metals and Mining

15.5%

AU Market

Return vs Industry: AUQ underperformed the Australian Metals and Mining industry which returned 6.2% over the past year.

Return vs Market: AUQ underperformed the Australian Market which returned 15.5% over the past year.


Shareholder returns

AUQIndustryMarket
7 Day0%0.8%0.7%
30 Day-5.9%-5.1%0.8%
90 Day-11.1%5.9%6.1%
1 Year-27.3%-27.3%11.7%6.2%20.6%15.5%
3 Year-15.8%-15.8%55.5%36.4%38.1%19.7%
5 Year47.9%45.5%85.7%41.9%51.8%17.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.47x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AUQ is good value based on its PB Ratio (0.5x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

-1.7%

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 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 SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Alara Resources performed over the past 5 years?

29.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AUQ is currently unprofitable.

Growing Profit Margin: AUQ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AUQ is unprofitable, but has reduced losses over the past 5 years at a rate of 29.9% per year.

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

Earnings vs Industry: AUQ is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (16.7%).


Return on Equity

High ROE: AUQ has a negative Return on Equity (-1.46%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alara Resources's financial position?


Financial Position Analysis

Short Term Liabilities: AUQ's short term assets (A$12.5M) exceed its short term liabilities (A$2.3M).

Long Term Liabilities: AUQ's short term assets (A$12.5M) exceed its long term liabilities (A$680.5K).


Debt to Equity History and Analysis

Debt Level: AUQ's debt to equity ratio (3%) is considered satisfactory.

Reducing Debt: AUQ's debt to equity ratio has reduced from 3.9% to 3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: AUQ's debt is covered by short term assets (assets are 19.4x debt).


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: AUQ has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: AUQ has sufficient cash runway for 2 years if free cash flow continues to grow at historical rates of 41.5% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

3.6yrs

Average management tenure


CEO

Justin Richard 0

4.7yrs

Tenure

AU$570,334

Compensation

Mr. Justin J. Richard, LLB, GradDipACG, MBA, FGIA, FCIS, FAusIMM has been the Chief Executive Officer and Managing Director of Alara Resources Limited since June 16, 2015. Mr. Richard served as General Cou ...


CEO Compensation Analysis

Compensation vs Market: Justin's total compensation ($USD377.13K) is above average for companies of similar size in the Australian market ($USD253.04K).

Compensation vs Earnings: Justin's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Justin Richard
MD, CEO & Director4.7yrsAU$570.33k5.42% A$545.9k
Atmavireshwar Sthapak
Technical Director & Executive Director4.4yrsAU$289.53k0.40% A$40.7k
Stephen Gethin
Company Secretary1.8yrsAU$39.11kno data
Dinesh Aggarwal
Chief Financial Officer1.8yrsno datano data
Rexin Kamilas
Finance & Administrative Manager3.6yrsno datano data
Hem Madan
Technical Consultant3.9yrsAU$77.22kno data

3.6yrs

Average Tenure

Experienced Management: AUQ's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Justin Richard
MD, CEO & Director4.7yrsAU$570.33k5.42% A$545.9k
Atmavireshwar Sthapak
Technical Director & Executive Director4.4yrsAU$289.53k0.40% A$40.7k
Stephen Gethin
Company Secretary1.8yrsAU$39.11kno data
James Phipps
Non-Executive Chairman4.6yrsAU$75.00kno data
Vikas Jain
Non-Executive Director3.8yrsAU$50.00k6% A$603.9k
Avi Sthapak
Independent Non-Executive Director1.1yrsno datano data

4.1yrs

Average Tenure

Experienced Board: AUQ's board of directors are considered experienced (4.1 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

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


Key Information


Location

  • Alara Resources Limited
  • 110 Erindale Road
  • Suite 1.02
  • Balcatta
  • Western Australia
  • 6021
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AUQASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2007
AU5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2007
AUQCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2007

Biography

Alara Resources Limited explores, evaluates, and develops mineral properties in Australia, Saudi Arabia, and Oman. 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 and is based in Balcatta, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 10:37
End of Day Share Price2020/02/21 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.