ASX:DHR

Stock Analysis Report

Dark Horse Resources

Executive Summary

Dark Horse Resources Limited, a diversified resource and energy company, explores for and evaluates mineral properties in Australia and the Americas.

Rewards

Earnings have grown 6.7% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Makes less than USD$1m in revenue (A$46K)

Does not have a meaningful market cap (A$7M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 2 more risks


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-14.3%

DHR

4.4%

AU Metals and Mining

2.6%

AU Market


1 Year Return

-25.0%

DHR

25.3%

AU Metals and Mining

19.8%

AU Market

Return vs Industry: DHR underperformed the Australian Metals and Mining industry which returned 22% over the past year.

Return vs Market: DHR underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

DHRIndustryMarket
7 Day-14.3%4.4%2.6%
30 Day0%5.7%4.0%
90 Day-14.3%14.5%5.7%
1 Year-25.0%-25.0%31.6%25.3%25.2%19.8%
3 Year-66.7%-66.7%65.8%45.7%40.7%21.9%
5 Year0%0%113.0%64.0%62.0%25.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.57x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: DHR is good value based on its PB Ratio (0.6x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

1.8%

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 Dark Horse 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 Dark Horse Resources performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DHR is currently unprofitable.

Growing Profit Margin: DHR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DHR is unprofitable, but has reduced losses over the past 5 years at a rate of 6.7% per year.

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

Earnings vs Industry: DHR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (7.8%).


Return on Equity

High ROE: DHR has a negative Return on Equity (-33.13%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dark Horse Resources's financial position?


Financial Position Analysis

Short Term Liabilities: DHR's short term assets (A$730.1K) do not cover its short term liabilities (A$1.5M).

Long Term Liabilities: DHR's short term assets (A$730.1K) exceed its long term liabilities (A$1.9K).


Debt to Equity History and Analysis

Debt Level: DHR's debt to equity ratio (5.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DHR's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: DHR's debt is covered by short term assets (assets are 1.3x 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: DHR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: DHR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -45.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if DHR'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 DHR's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

5.1yrs

Average board tenure


CEO

David Mason (60yo)

3.8yrs

Tenure

AU$300,000

Compensation

Mr. David Joseph Mason, MBA BSc (Hons) has been the Chief Executive Officer at Dark Horse Resources Limited since March 2016 and has been its Executive Director since March 01, 2016. Mr. Mason has been Man ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD207.04K) is about average for companies of similar size in the Australian market ($USD262.68K).

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


Board Age and Tenure

5.1yrs

Average Tenure

60.5yo

Average Age

Experienced Board: DHR's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$22,49317 Sep 19
Neil Stuart
EntityIndividual
Shares5,625,000
Max PriceAU$0.004
BuyAU$24,08917 Sep 19
Neil Stuart
EntityIndividual
Shares6,000,000
Max PriceAU$0.0041

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 30.6%.


Management Team

  • Karl Schlobohm (51yo)

    Company Secretary

    • Compensation: AU$50.06k
  • Boyd White

    Chief Development Officer

    • Tenure: 1.8yrs
    • Compensation: AU$300.00k
  • Priy Jayasuriya (44yo)

    Chief Financial Officer

    • David Mason (60yo)

      CEO, MD & Executive Director

      • Tenure: 3.8yrs
      • Compensation: AU$300.00k
    • Jason Babcock (47yo)

      Consulting Exploration Manager (USA)

      • Enrique Rodriguez

        PR Executive Consultant


        Board Members

        • Nick Mather (62yo)

          Non-Executive Chairman

          • Compensation: AU$50.00k
        • Brian Moller (61yo)

          Non-Executive Director

          • Tenure: 17yrs
          • Compensation: AU$50.00k
        • Jason Beckton (48yo)

          Non-Executive Director

          • Tenure: 1.8yrs
          • Compensation: AU$86.07k
        • David Mason (60yo)

          CEO, MD & Executive Director

          • Tenure: 3.8yrs
          • Compensation: AU$300.00k

        Company Information

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


        Key Information

        • Name: Dark Horse Resources Limited
        • Ticker: DHR
        • Exchange: ASX
        • Founded: 1995
        • Industry: Gold
        • Sector: Materials
        • Market Cap: AU$8.288m
        • Shares outstanding: 2.37b
        • Website: https://www.darkhorseresources.com.au

        Location

        • Dark Horse Resources Limited
        • 111 Eagle Street
        • Level 27
        • Brisbane
        • Queensland
        • 4000
        • Australia

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        DHRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2011
        DHRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2011
        5DHBST (Boerse-Stuttgart)YesOrdinary SharesDEEURApr 2011

        Biography

        Dark Horse Resources Limited, a diversified resource and energy company, explores for and evaluates mineral properties in Australia and the Americas. Its project portfolio includes the Las Opeñas Gold project located in the north-western region of San Juan province, Argentina; and Cachi Gold project covering an area of 46, 892 hectares lease package located in the central-western region of Santa Cruz province, Argentina. The company also holds interests in the Central Argentina Lithium Spodumene project covering an area of 34,000 hectares of lithium spodumene exploration licenses located in San Luis and Cordoba provinces; and San Jorge Lithium Brine project covering an area of 36,600 hectares of lithium brine exploration licenses over the prospective San Francisco salar in Catamarca province. It also operates pumped hydro storage, gas fired generation, and concentrated solar thermal projects. The company was formerly known as Navaho Gold Limited and changed its name to Dark Horse Resources Limited in December 2015. Dark Horse Resources Limited was incorporated in 1995 and is based in Brisbane, Australia. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/20 10:37
        End of Day Share Price2020/01/20 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.