ASX:GBZ

Stock Analysis Report

Executive Summary

GBM Resources Limited engages in the exploration and development of mineral properties in Australia.

Risk Analysis

Earnings have declined by -4.47% per year over past 5 years

Has less than 1 year of cash runway

Makes less than USD$1m in revenue (A$49K)

Does not have a meaningful market cap (A$12M)

+ 3 more risks


Snowflake Analysis

Overvalued with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.6%

GBZ

0.3%

AU Metals and Mining

1.5%

AU Market


1 Year Return

55.0%

GBZ

6.2%

AU Metals and Mining

15.6%

AU Market

Return vs Industry: GBZ exceeded the Australian Metals and Mining industry which returned 7.9% over the past year.

Return vs Market: GBZ exceeded the Australian Market which returned 16.1% over the past year.


Shareholder returns

GBZIndustryMarket
7 Day-4.6%0.3%1.5%
30 Day5.1%-4.7%0.4%
90 Dayn/a3.8%4.1%
1 Year55.0%55.0%11.6%6.2%20.6%15.6%
3 Year-63.5%-63.5%50.2%31.6%37.1%18.7%
5 Year-69.9%-71.8%88.6%44.4%50.9%17.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.75x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: GBZ 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 GBM Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.0%

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 GBM 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 GBM Resources performed over the past 5 years?

-4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GBZ is currently unprofitable.

Growing Profit Margin: GBZ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GBZ is unprofitable, and losses have increased over the past 5 years at a rate of -4.5% per year.

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

Earnings vs Industry: GBZ is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (19.1%).


Return on Equity

High ROE: GBZ has a negative Return on Equity (-46.88%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GBM Resources's financial position?


Financial Position Analysis

Short Term Liabilities: GBZ's short term assets (A$339.8K) do not cover its short term liabilities (A$1.1M).

Long Term Liabilities: GBZ's short term assets (A$339.8K) do not cover its long term liabilities (A$754.3K).


Debt to Equity History and Analysis

Debt Level: GBZ's debt to equity ratio (3.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if GBZ's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: GBZ's debt is not covered by short term assets (assets are 1x debt).


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

Forecast Cash Runway: GBZ has less than a year of cash runway if free cash flow continues to grow at historical rates of 6.8% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

10.0yrs

Average management tenure


CEO

Peter Rohner 0

0.3yrs

Tenure

0

Mr. Peter Rohner has been the Managing Director Chief Executive Officer and Executive Director of GBM Resources Limited since November 25, 2019. Mr. serves as Chief Executive Officer of the Core Group of c ...


Leadership Team

NamePositionTenureCompensationOwnership
Peter Thompson
Executive Director0yrsAU$245.28k4% A$478.1k
Neil Norris
Exploration Director & Executive Director10.8yrsAU$241.72k3.56% A$425.4k
Peter Mullens
Executive Chairman0.3yrsno data3.93% A$469.7k
Peter Rohner
MD, CEO & Executive Director0.3yrsno data3.42% A$408.8k
Kevin Hart
Company Secretary & CFO10yrsno datano data

10.0yrs

Average Tenure

58yo

Average Age

Experienced Management: GBZ's management team is seasoned and experienced (10 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Thompson
Executive Director0yrsAU$245.28k4% A$478.1k
Neil Norris
Exploration Director & Executive Director10.8yrsAU$241.72k3.56% A$425.4k
Peter Mullens
Executive Chairman0.3yrsno data3.93% A$469.7k
Peter Rohner
MD, CEO & Executive Director0.3yrsno data3.42% A$408.8k
Guan Loh
Deputy Chairman1.2yrsAU$28.00k3.15% A$377.0k

0.7yrs

Average Tenure

Experienced Board: GBZ's board of directors are not considered experienced ( 0.7 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: GBZ 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 22.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: GBM Resources Limited
  • Ticker: GBZ
  • Exchange: ASX
  • Founded: 2007
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$11.959m
  • Shares outstanding: 192.89m
  • Website: https://www.gbmr.com.au

Number of Employees


Location

  • GBM Resources Limited
  • 7 The Esplanade
  • Suite 8
  • Mt Pleasant
  • Western Australia
  • 6153
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GBZASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2007

Biography

GBM Resources Limited engages in the exploration and development of mineral properties in Australia. It explores for gold, silver, copper, iron oxide, tungsten, and molybdenum. The company’s flagship project is the Mount Coolon gold project located in the Drummond basin in Queensland. Its tenements cover an area of approximately 3,200 square kilometers in seven project areas in Queensland and Victoria. The company was incorporated in 2007 and is based in Mt Pleasant, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 10:35
End of Day Share Price2020/02/17 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.