Executive Summary
Encounter Resources Limited engages in the exploration and development of mineral deposits in Western Australia.
Risk Analysis
Earnings have declined by -25.94% per year over past 5 years
Currently unprofitable and not forecast to become profitable over the next 3 years
+ 3 more risks
Snowflake Analysis
Excellent balance sheet with weak fundamentals.
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
Stable Share Price: ENR's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
13.8%
ENR
4.4%
AU Metals and Mining
5.0%
AU Market
1 Year Return
11.0%
ENR
-19.1%
AU Metals and Mining
-19.2%
AU Market
Return vs Industry: ENR exceeded the Australian Metals and Mining industry which returned -22% over the past year.
Return vs Market: ENR exceeded the Australian Market which returned -19.4% over the past year.
Shareholder returns
| ENR | Industry | Market | |
|---|---|---|---|
| 7 Day | 13.8% | 4.4% | 5.0% |
| 30 Day | 0% | -11.2% | -20.3% |
| 90 Day | -24.2% | -21.3% | -25.8% |
| 1 Year | 11.0%11.0% | -14.5%-19.1% | -15.6%-19.2% |
| 3 Year | -20.9%-20.9% | 28.2%10.4% | -3.6%-16.8% |
| 5 Year | -2.2%-2.2% | 62.2%23.4% | 6.6%-17.5% |
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
2 weeks ago | Simply Wall St
What Did Encounter Resources Limited's (ASX:ENR) CEO Take Home Last Year?1 month ago | Simply Wall St
Can You Imagine How Encounter Resources's (ASX:ENR) Shareholders Feel About The 69% Share Price Increase?2 months ago | Simply Wall St
Have Insiders Been Buying Encounter Resources Limited (ASX:ENR) Shares?Valuation
Is Encounter Resources undervalued compared to its fair value and its price relative to the market?
1.54x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate ENR's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate ENR's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: ENR is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.
PE vs Market: ENR 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 ENR's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ENR is overvalued based on its PB Ratio (1.4x) compared to the AU Metals and Mining industry average (1x).
Next Steps
Future Growth
How is Encounter Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
0.9%
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
- Examine Encounter Resources's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Encounter Resources competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Materials industry.
Past Performance
How has Encounter Resources performed over the past 5 years?
-25.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ENR is currently unprofitable.
Growing Profit Margin: ENR is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ENR is unprofitable, and losses have increased over the past 5 years at a rate of -25.9% per year.
Accelerating Growth: Unable to compare ENR's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ENR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-7%).
Return on Equity
High ROE: ENR has a negative Return on Equity (-9.01%), as it is currently unprofitable.
Next Steps
Financial Health
How is Encounter Resources's financial position?
Financial Position Analysis
Short Term Liabilities: ENR's short term assets (A$2.7M) exceed its short term liabilities (A$407.6K).
Long Term Liabilities: ENR has no long term liabilities.
Debt to Equity History and Analysis
Debt Level: ENR is debt free.
Reducing Debt: ENR has not had any debt for past 5 years.
Balance Sheet
Inventory Level: ENR has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if ENR'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: ENR has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: ENR has sufficient cash runway for 2 years if free cash flow continues to grow at historical rates of 10% each year.
Next Steps
Dividend
What is Encounter Resources's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ENR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ENR'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 ENR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ENR'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 ENR'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?
14.5yrs
Average management tenure
CEO
Will Robinson (47yo)
15.83s
Tenure
AU$292,515
Compensation
Mr. William Michael Robinson, also known as Will, B.Comm, MAusIMM has been Managing Director and Executive Director of Encounter Resources Ltd., since June 30, 2004. Mr. Robinson founded Encounter Resource ...
CEO Compensation Analysis
Compensation vs Market: Will's total compensation ($USD179.45K) is about average for companies of similar size in the Australian market ($USD246.06K).
Compensation vs Earnings: Will's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 15.83yrs | AU$292.52k | 8.96% A$2.3m | |
| Exploration Director & Executive Director | 14.5yrs | AU$321.09k | 2.56% A$655.2k | |
| Company Secretary | 14.42yrs | no data | no data | |
| Joint Company Secretary | 11.42yrs | no data | no data |
14.5yrs
Average Tenure
50yo
Average Age
Experienced Management: ENR's management team is seasoned and experienced (14.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 15.83yrs | AU$292.52k | 8.96% A$2.3m | |
| Exploration Director & Executive Director | 14.5yrs | AU$321.09k | 2.56% A$655.2k | |
| Non-Executive Chairman | 14.5yrs | AU$65.70k | 3.36% A$857.4k | |
| Non-Executive Director | 12.92yrs | AU$72.33k | 0.071% A$18.2k | |
| Independent Non-Executive Director | 0.50yr | no data | 0.90% A$228.8k |
14.5yrs
Average Tenure
50yo
Average Age
Experienced Board: ENR's board of directors are seasoned and experienced ( 14.5 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 29.2%.
Top Shareholders
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$25.555m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ENR | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Mar 2006 |
| ENR | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Mar 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. The company holds exploration tenure covering approximately 2,000 square kilometers of the Paterson Province; and exploration tenure of covering approximately 4,200 square kilometers in the Tanami region in Western Australia. Encounter Resources Limited was founded in 2004 and is based in West Perth, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 12:57 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.