ASX:GOR

Stock Analysis Report

Gold Road Resources

Executive Summary

Gold Road Resources Limited, together with its subsidiaries, engages in the exploration and development of mineral properties in Australia.

Snowflake

Fundamentals

High growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-11.2%

GOR

-3.4%

AU Metals and Mining

0.4%

AU Market


1 Year Return

47.1%

GOR

8.1%

AU Metals and Mining

9.8%

AU Market

Return vs Industry: GOR exceeded the Australian Metals and Mining industry which returned 8.1% over the past year.

Return vs Market: GOR exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

GORIndustryMarket
7 Day-11.2%-3.4%0.4%
30 Day-21.1%-6.8%-1.1%
90 Day-28.0%-12.0%-0.6%
1 Year47.1%47.1%15.6%8.1%16.1%9.8%
3 Year73.1%73.1%55.8%37.1%36.1%17.9%
5 Year259.1%255.2%53.9%19.0%49.4%15.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

26.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GOR (A$1.03) is trading below our estimate of fair value (A$1.41)

Significantly Below Fair Value: GOR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: GOR is overvalued based on its PB Ratio (2.8x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Gold Road Resources forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

62.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GOR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: GOR is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: GOR's loss is forecast to worsen by 0% next year.

Revenue vs Market: GOR's revenue (52.1% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: GOR's revenue (52.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GOR's Return on Equity is forecast to be low in 3 years time (19%).


Next Steps

Past Performance

How has Gold Road Resources performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GOR is unprofitable, but has reduced losses over the past 5 years at a rate of 8.2% per year.

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

Earnings vs Industry: GOR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (1.3%).


Return on Equity

High ROE: GOR has a negative Return on Equity (-10.24%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: GOR is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: GOR is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Gold Road Resources's financial position?


Financial Position Analysis

Short Term Liabilities: GOR's short term assets (A$78.0M) exceeds its short term liabilities (A$40.8M)

Long Term Liabilities: GOR's short term assets (78.0M) do not cover its long term liabilities (207.9M)


Debt to Equity History and Analysis

Debt Level: GOR's debt to equity ratio (19.6%) is considered satisfactory

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

Debt Coverage: GOR's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if GOR's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: GOR's debt is covered by short term assets (assets are 1.236320x debt).


Next Steps

Dividend

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

0.65%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage4.9%forecastin3Years0.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if GOR'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 GOR's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Duncan Gibbs 0

1.1yrs

Tenure

AU$491,953

Compensation

Mr. Duncan Gibbs has been Managing Director & CEO at Gold Road Resources Ltd. since September 17, 2018 and has been its Director since September 2018. Mr. Gibbs has been Sunrise Dam General Manager of Angl ...


CEO Compensation Analysis

Compensation vs. Market: Duncan has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

Compensation vs Earnings: Insufficient data to compare Duncan's compensation with company performance.


Management Age and Tenure

1.7yrs

Average Tenure

Experienced Management: GOR's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

59yo

Average Age

Experienced Board: GOR's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: GOR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Duncan Hughes

    Manager of Business Development & Investor Relations

    • Tenure: 1.3yrs
  • Carol Marinkovich

    Joint Company Secretary

    • Tenure: 2.4yrs
  • Tony Muir

    General Manager of Finance

    • Tenure: 1.8yrs
  • Stuart Jenner

    General Manager of Capability & Culture

    • Tenure: 1.6yrs
  • Hayden Bartrop

    Joint Company Secretary

    • Tenure: 2.7yrs
  • Duncan Gibbs

    MD, CEO & Director

    • Tenure: 1.1yrs
    • Compensation: AU$491.95k

Board Members

  • Tim Netscher (69yo)

    Non-Executive Chairman

    • Tenure: 3.3yrs
    • Compensation: AU$158.00k
  • Sharon Warburton (49yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: AU$100.00k
  • Brian Levet (66yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$100.00k
  • Justin Osborne (52yo)

    Executive Director of Exploration & Growth and Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$775.52k
  • Duncan Gibbs

    MD, CEO & Director

    • Tenure: 1.1yrs
    • Compensation: AU$491.95k

Company Information

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


Key Information

  • Name: Gold Road Resources Limited
  • Ticker: GOR
  • Exchange: ASX
  • Founded: 2004
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$905.251m
  • Shares outstanding: 878.88m
  • Website: https://www.goldroad.com.au

Location

  • Gold Road Resources Limited
  • 26 Colin Street
  • Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GORASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2006
E6QDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2006
ELKM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2006
GORCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2006

Biography

Gold Road Resources Limited, together with its subsidiaries, engages in the exploration and development of mineral properties in Australia. The company primarily explores for gold deposits. It focuses on d ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 10:34
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.