ASX:DCN

Stock Analysis Report

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Market Cap

AU$241.9m

Last Updated

2021/08/01 08:02 UTC

Data Sources

Company Financials +

Executive Summary

Dacian Gold Limited engages in the exploration, mining, and processing of gold properties in Australia. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: DCN is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: DCN's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-5.7%

DCN

2.4%

AU Metals and Mining

-0.1%

AU Market


1 Year Return

-23.1%

DCN

36.0%

AU Metals and Mining

27.3%

AU Market

Return vs Industry: DCN underperformed the Australian Metals and Mining industry which returned 36% over the past year.

Return vs Market: DCN underperformed the Australian Market which returned 27.3% over the past year.


Shareholder returns

DCNIndustryMarket
7 Day-5.7%2.4%-0.1%
30 Day-10.7%7.2%0.9%
90 Day-26.5%10.2%4.5%
1 Year-23.1%-23.1%43.1%36.0%31.9%27.3%
3 Year-88.1%-91.1%89.3%63.9%32.7%16.8%
5 Year-91.3%-93.6%155.7%112.2%62.5%31.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DCN (A$0.25) is trading below our estimate of fair value (A$10.78)

Significantly Below Fair Value: DCN is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: DCN is good value based on its PB Ratio (0.8x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is Dacian Gold forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

88.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DCN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: DCN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DCN's is expected to become profitable in the next 3 years.

Revenue vs Market: DCN's revenue (9.3% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: DCN's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DCN's Return on Equity is forecast to be low in 3 years time (12.5%).


Past Performance

How has Dacian Gold performed over the past 5 years?

-35.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DCN is currently unprofitable.

Growing Profit Margin: DCN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DCN is unprofitable, and losses have increased over the past 5 years at a rate of 35.2% per year.

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

Earnings vs Industry: DCN is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (20.2%).


Return on Equity

High ROE: DCN has a negative Return on Equity (-13.78%), as it is currently unprofitable.


Financial Health

How is Dacian Gold's financial position?


Financial Position Analysis

Short Term Liabilities: DCN's short term assets (A$58.7M) exceed its short term liabilities (A$48.1M).

Long Term Liabilities: DCN's short term assets (A$58.7M) exceed its long term liabilities (A$31.6M).


Debt to Equity History and Analysis

Debt Level: DCN's debt to equity ratio (13.9%) is considered satisfactory.

Reducing Debt: DCN had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


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

Forecast Cash Runway: Insufficient data to determine if DCN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Dacian Gold current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

1.5yrs

Average management tenure


CEO

Leigh Junk (46 yo)

1.5yrs

Tenure

AU$1,693,549

Compensation

Mr. Leigh Stanley Junk, Dip Surv, GDip Min Eng, MSc Min Econ, is a Managing Director, Chief Executive Officer and Director at Dacian Gold Limited since January 6 , 2020. Mr. Junk served as Managing Directo...


CEO Compensation Analysis

Compensation vs Market: Leigh's total compensation ($USD1.24M) is above average for companies of similar size in the Australian market ($USD457.27K).

Compensation vs Earnings: Insufficient data to compare Leigh's compensation with company performance.


Leadership Team

Experienced Management: DCN's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: DCN's board of directors are not considered experienced ( 0.3 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: 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 substantially diluted in the past year, with total shares outstanding growing by 73.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Dacian Gold Limited
  • Ticker: DCN
  • Exchange: ASX
  • Founded: 2011
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$241.858m
  • Shares outstanding: 967.43m
  • Website: https://www.daciangold.com.au

Location

  • Dacian Gold Limited
  • 1 Preston Street
  • Level 2
  • Como
  • Western Australia
  • 6152
  • Australia

Listings


Biography

Dacian Gold Limited engages in the exploration, mining, and processing of gold properties in Australia. It primarily focuses on its 100% owned Mount Morgans Gold project located near Laverton, Western Aust...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 08:02
End of Day Share Price2021/07/30 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.