ASX:EQX

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Equatorial Resources

Executive Summary

Equatorial Resources Limited explores for and develops iron ore properties in the Republic of Congo.

Risk Analysis

Does not have a meaningful market cap (A$32M)



Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EQX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.6%

EQX

1.2%

AU Metals and Mining

4.8%

AU Market


1 Year Return

-8.9%

EQX

3.8%

AU Metals and Mining

-10.6%

AU Market

Return vs Industry: EQX underperformed the Australian Metals and Mining industry which returned 3.4% over the past year.

Return vs Market: EQX exceeded the Australian Market which returned -10.3% over the past year.


Shareholder returns

EQXIndustryMarket
7 Day-5.6%1.2%4.8%
30 Day6.3%10.3%5.5%
90 Day4.1%10.4%-10.1%
1 Year-8.9%-8.9%9.1%3.8%-7.0%-10.6%
3 Year-36.3%-36.3%60.7%39.9%10.3%-4.3%
5 Year8.5%8.5%101.7%63.4%28.3%0.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

225.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: EQX is poor value based on its PE Ratio (225.9x) compared to the Metals and Mining industry average (10.3x).

PE vs Market: EQX is poor value based on its PE Ratio (225.9x) compared to the Australian market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EQX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EQX is good value based on its PB Ratio (0.7x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

4.5%

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 Equatorial 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 Equatorial Resources performed over the past 5 years?

75.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQX has high quality earnings.

Growing Profit Margin: Insufficient data to determine if EQX's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: EQX has become profitable over the past 5 years, growing earnings by 75.3% per year.

Accelerating Growth: EQX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EQX had negative earnings growth (-42.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (-7.9%).


Return on Equity

High ROE: EQX's Return on Equity (0.3%) is considered low.


Next Steps

Financial Health

How is Equatorial Resources's financial position?


Financial Position Analysis

Short Term Liabilities: EQX's short term assets (A$40.5M) exceed its short term liabilities (A$120.2K).

Long Term Liabilities: EQX has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: EQX is debt free.

Reducing Debt: EQX has not had any debt for past 5 years.

Debt Coverage: EQX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: EQX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate EQX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EQX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EQX'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 EQX'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?

7.2yrs

Average management tenure


CEO

John Welborn

1.33yrs

Tenure

AU$21,900

Compensation

Mr. John Paul Welborn, B.Com, FCA, FAIM, SAFin, MAICD, MAusIMM, JP, has been the Chief Executive Officer and Managing Director of Resolute Mining Limited since July 1, 2015. Mr. Welborn has commercial expe ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD14.54K) is below average for companies of similar size in the Australian market ($USD253.20K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Welborn
MD, CEO & Director1.33yrsAU$21.90k4.82% A$1.5m
Gregory Swan
Company Secretary10yrsno data0.48% A$153.0k
Bradley Farrington
Chief Financial Officer7.17yrsAU$54.37kno data

7.2yrs

Average Tenure

Experienced Management: EQX's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Welborn
MD, CEO & Director1.33yrsAU$21.90k4.82% A$1.5m
Ian Middlemas
Independent Non-Executive Chairman10.5yrsAU$54.75k6.03% A$1.9m
Mark Pearce
Independent Non Executive Director10.5yrsAU$21.90k0.84% A$267.7k
Robert Behets
Non-Executive Director4.17yrsAU$32.85k0.18% A$58.7k

10.1yrs

Average Tenure

53yo

Average Age

Experienced Board: EQX's board of directors are seasoned and experienced ( 10.1 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Equatorial Resources Limited
  • Ticker: EQX
  • Exchange: ASX
  • Founded: 1986
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$31.734m
  • Shares outstanding: 124.45m
  • Website: https://www.equatorialresources.com.au

Location

  • Equatorial Resources Limited
  • BGC Centre
  • Level 9
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EQXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
EQXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
PBUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Equatorial Resources Limited explores for and develops iron ore properties in the Republic of Congo. It owns a 100% interest in the Badondo iron project located in the northwest region of the Republic of Congo. The company has a strategic alliance agreement with Rock Mining SARL for the development of the Badondo iron project. Equatorial Resources Limited was incorporated in 1986 and is headquartered in Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 10:37
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
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.