ASX:ENR

Stock Analysis Report

Encounter Resources

Executive Summary

Encounter Resources Limited engages in the exploration and development of mineral deposits in Western Australia.

Snowflake

Fundamentals

Excellent balance sheet with weak fundamentals.

Risks

  • Encounter Resources has significant price volatility in the past 3 months.
  • Encounter Resources's last earnings update was 190 days ago.
  • Encounter Resources is not covered by any analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

ENR

0.9%

AU Metals and Mining

1.0%

AU Market


1 Year Return

164.7%

ENR

16.0%

AU Metals and Mining

7.2%

AU Market

ENR outperformed the Metals and Mining industry which returned 17.9% over the past year.

ENR outperformed the Market in Australia which returned 6.2% over the past year.


Share holder returns

ENRIndustryMarket
7 Day0%0.9%1.0%
30 Day12.5%3.3%3.2%
90 Day101.5%-4.0%1.4%
1 Year164.7%164.7%24.1%16.0%13.4%7.2%
3 Year22.7%22.7%76.9%54.0%40.7%21.8%
5 Year-46.0%-46.0%59.9%23.4%50.8%17.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.16x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Encounter Resources to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Encounter Resources to establish if it is available at substantial discount.


Price Based on Earnings

Encounter Resources is loss making, we can't compare its value to the AU Metals and Mining industry average.

Encounter Resources is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Encounter Resources, we can't assess if its growth is good value.


Price Based on Value of Assets

Encounter Resources is overvalued based on assets compared to the AU Metals and Mining industry average.


Next Steps

Future Growth

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

3.4%

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 Encounter 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 Encounter Resources performed over the past 5 years?

-53.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Encounter Resources does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Encounter Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Encounter Resources's 1-year growth to the AU Metals and Mining industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Encounter Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Encounter 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.


Return on Capital Employed

It is difficult to establish if Encounter Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Encounter Resources's financial position?


Financial Position Analysis

Encounter Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Encounter Resources has no long term commitments.


Debt to Equity History and Analysis

Encounter Resources has no debt.

Encounter Resources has not taken on any debt in the past 5 years.


Balance Sheet

High level of physical assets or inventory.

Encounter Resources has no debt, it does not need to be 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.

Encounter Resources has sufficient cash runway for 1.4 years based on current free cash flow.

Encounter Resources has less than a year of cash runway if free cash flow continues to grow at historical rates of 2.8% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Encounter Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Encounter Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Encounter Resources has not reported any payouts.

Unable to verify if Encounter Resources's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Encounter 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.


Next Steps

Management

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

13.9yrs

Average management tenure


CEO

Will Robinson (47yo)

15.3yrs

Tenure

AU$323,136

Compensation

Mr. William Michael Robinson, also known as Will, B.Comm, MAusIMM has been Managing Director and Executive Director of Encounter Resources Ltd., since June 30, 2004. Mr. Robinson founded Encounter Resource ...


CEO Compensation Analysis

Will's remuneration is about average for companies of similar size in Australia.

Will's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

13.9yrs

Average Tenure

50yo

Average Age

The average tenure for the Encounter Resources management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

13.9yrs

Average Tenure

50yo

Average Age

The average tenure for the Encounter Resources board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Encounter Resources individual insiders in the past 3 months.


Recent Insider Transactions

BuyAU$30,00028 Aug 19
William Robinson
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares400,000
Max PriceAU$0.075
BuyAU$60,00028 Aug 19
Paul Chapman
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares800,000
Max PriceAU$0.075
BuyAU$30,00028 Aug 19
Peter Bewick
EntityIndividual
Role
Member of the Board of Directors
Exploration Director & Executive Director
Shares400,000
Max PriceAU$0.075
BuyAU$502,49610 Jul 19
Silver Lake Resources Limited
EntityCompany
Shares6,700,000
Max PriceAU$0.075
SellAU$19,23531 Jan 19
Eye Management Pty Ltd
EntityCompany
Shares350,000
Max PriceAU$0.055
BuyAU$49,95823 Jan 19
DELPHI Unternehmensberatung Aktiengesellschaft
EntityCompany
Shares904,954
Max PriceAU$0.055

Ownership Breakdown


Management Team

  • Kevin Hart (57yo)

    Company Secretary

    • Tenure: 13.8yrs
  • Will Robinson (47yo)

    MD & Director

    • Tenure: 15.3yrs
    • Compensation: AU$323.14k
  • Peter Bewick (50yo)

    Exploration Director & Executive Director

    • Tenure: 13.9yrs
    • Compensation: AU$313.28k
  • Dan Travers

    Joint Company Secretary

    • Tenure: 10.8yrs

Board Members

  • Paul Chapman (60yo)

    Non-Executive Chairman

    • Tenure: 13.9yrs
    • Compensation: AU$43.80k
  • Will Robinson (47yo)

    MD & Director

    • Tenure: 15.3yrs
    • Compensation: AU$323.14k
  • Peter Bewick (50yo)

    Exploration Director & Executive Director

    • Tenure: 13.9yrs
    • Compensation: AU$313.28k
  • Jon Hronsky

    Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: AU$54.75k

Company Information

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


Key Information

  • Name: Encounter Resources Limited
  • Ticker: ENR
  • Exchange: ASX
  • Founded: 2004
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$37.911m
  • Shares outstanding: 280.82m
  • Website: https://www.encounterresources.com.au

Location

  • Encounter Resources Limited
  • 600 Murray Street
  • Level 7
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2006
ENRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2006

Biography

Encounter Resources Limited engages in the exploration and development of mineral deposits in Western Australia. The company explores for zinc, copper, gold, lead, and cobalt deposits. It principally focus ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 10:33
End of Day Share Price2019/09/19 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.