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
| ENR | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | 0.9% | 1.0% |
| 30 Day | 12.5% | 3.3% | 3.2% |
| 90 Day | 101.5% | -4.0% | 1.4% |
| 1 Year | 164.7%164.7% | 24.1%16.0% | 13.4%7.2% |
| 3 Year | 22.7%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
3 months ago | Simply Wall St
What Type Of Shareholder Owns Encounter Resources Limited's (ASX:ENR)?3 months ago | Simply Wall St
Encounter Resources Limited (ASX:ENR) Insiders Increased Their Holdings4 months ago | Simply Wall St
Does Encounter Resources Limited's (ASX:ENR) CEO Pay Matter?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
- 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?
-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
| Entity | Individual |
| Role | Chief Executive Officer MD & Director |
| Shares | 400,000 |
| Max Price | AU$0.075 |
| Entity | Individual |
| Role | Chairman of the Board Non-Executive Chairman |
| Shares | 800,000 |
| Max Price | AU$0.075 |
| Entity | Individual |
| Role | Member of the Board of Directors Exploration Director & Executive Director |
| Shares | 400,000 |
| Max Price | AU$0.075 |
| Entity | Company |
| Shares | 6,700,000 |
| Max Price | AU$0.075 |
| Entity | Company |
| Shares | 350,000 |
| Max Price | AU$0.055 |
| Entity | Company |
| Shares | 904,954 |
| Max Price | AU$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
| 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. It principally focus ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/09/19 10:33 |
| End of Day Share Price | 2019/09/19 00:00 |
| Earnings | 2018/12/31 |
| Annual Earnings | 2018/06/30 |
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.