ASX:EGA

Stock Analysis Report

Egan Street Resources

Executive Summary

Egan Street Resources Limited engages in the exploration, evaluation, and development of gold properties in Australia.


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

EGA

3.8%

AU Metals and Mining

0.3%

AU Market


1 Year Return

166.7%

EGA

-21.2%

AU Metals and Mining

-22.9%

AU Market

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

Return vs Market: EGA exceeded the Australian Market which returned 19.4% over the past year.


Shareholder returns

EGAIndustryMarket
7 Day0%3.8%0.3%
30 Day13.0%-14.9%-25.3%
90 Day79.3%-24.8%-29.9%
1 Year166.7%166.7%-16.8%-21.2%-19.4%-22.9%
3 Year108.0%108.0%24.4%8.6%-8.3%-20.8%
5 Yearn/a56.1%19.0%2.9%-20.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.54x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: EGA is overvalued based on its PB Ratio (9.5x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

-0.3%

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 Egan Street 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 Egan Street Resources performed over the past 5 years?

-38.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGA is currently unprofitable.

Growing Profit Margin: EGA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EGA is unprofitable, and losses have increased over the past 5 years at a rate of -38.6% per year.

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

Earnings vs Industry: EGA 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: EGA has a negative Return on Equity (-78.94%), as it is currently unprofitable.


Next Steps

Financial Health

How is Egan Street Resources's financial position?


Financial Position Analysis

Short Term Liabilities: EGA's short term assets (A$3.2M) exceed its short term liabilities (A$701.8K).

Long Term Liabilities: EGA has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: EGA is debt free.

Reducing Debt: EGA has no debt compared to 5 years ago when its debt to equity ratio was 4.7%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if EGA's debt is covered by short term assets.


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: EGA has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: EGA has less than a year of cash runway if free cash flow continues to reduce at historical rates of -61.1% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if EGA'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 EGA'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

Marc Ducler

3.25s

Tenure

AU$388,683

Compensation

Mr. Marc Ducler, Metallurgist, BSc Metallurgy (WASM) has been Managing Director at Egan Street Resources Limited since September 13, 2016. Mr. Ducler has experience in the mining industry. For the 13 years ...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD266.20K) is about average for companies of similar size in the Australian market ($USD262.68K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Marc Ducler
Managing Director3.25yrsAU$388.68k0.36% A$260.0k
Brendon Morton
Chief Financial Officer0.83yrAU$253.66kno data
Jed Whitford
General Manager of Rothsay1.5yrsAU$416.73kno data
Julie Reid
Geology Manager3.92yrsno datano data
David Berg
Company Secretary0.083yrno datano data

1.5yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
David Quinlivan
Director0.083yrno datano data
Kelvin Flynn
Director0.083yrno datano data
Luke Tonkin
Director0.083yrno datano data

0.08yrs

Average Tenure

55yo

Average Age

Experienced Board: EGA's board of directors are not considered experienced ( 0.1 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 diluted in the past year, with total shares outstanding growing by 42.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Egan Street Resources Limited
  • Ticker: EGA
  • Exchange: ASX
  • Founded: 2010
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$72.610m
  • Shares outstanding: 139.63m
  • Website: https://www.eganstreetresources.com.au

Location

  • Egan Street Resources Limited
  • 6 Lyall Street
  • Suite 2
  • South Perth
  • Western Australia
  • 6151
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 2016
EGACHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 2016

Biography

Egan Street Resources Limited engages in the exploration, evaluation, and development of gold properties in Australia. Its flagship property is the 100% owned Rothsay Gold Project that covers an area of approximately 56.4 square kilometers located in the Southern Murchison region of Western Australia. The company was formerly known as Auricup Resources Limited and changed its name to Egan Street Resources Limited in June 2016. Egan Street Resources Limited was incorporated in 2010 and is based in South Perth, Australia. As of December 13, 2019, Egan Street Resources Limited operates as a subsidiary of Silver Lake Resources Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/18 12:51
End of Day Share Price2019/12/04 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.