ASX:NES

Stock Analysis Report

Executive Summary

Nelson Resources Limited engages in the exploration and development of natural resources in Australia.

Risk Analysis

Earnings have declined by -23.84% per year over past 5 years

Has less than 1 year of cash runway

Makes less than USD$1m in revenue (A$40K)

Does not have a meaningful market cap (A$3M)

+ 3 more risks


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.2%

NES

1.4%

AU Metals and Mining

-0.07%

AU Market


1 Year Return

-56.7%

NES

22.0%

AU Metals and Mining

19.1%

AU Market

Return vs Industry: NES underperformed the Australian Metals and Mining industry which returned 22% over the past year.

Return vs Market: NES underperformed the Australian Market which returned 19.1% over the past year.


Shareholder returns

NESIndustryMarket
7 Day3.2%1.4%-0.07%
30 Day-23.5%1.5%-0.6%
90 Day32.7%0.7%0.4%
1 Year-56.7%-56.7%30.9%22.0%25.0%19.1%
3 Yearn/a59.5%37.6%36.0%17.4%
5 Yearn/a117.5%66.1%63.2%26.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.7x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

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

1.5%

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 Nelson 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 Nelson Resources performed over the past 5 years?

-23.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NES is currently unprofitable.

Growing Profit Margin: NES is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NES is unprofitable, and losses have increased over the past 5 years at a rate of -23.8% per year.

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

Earnings vs Industry: NES is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (7.8%).


Return on Equity

High ROE: NES has a negative Return on Equity (-25.35%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nelson Resources's financial position?


Financial Position Analysis

Short Term Liabilities: NES's short term assets (A$805.1K) exceed its short term liabilities (A$138.9K).

Long Term Liabilities: NES has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: NES is debt free.

Reducing Debt: NES currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if NES'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: NES has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NES has less than a year of cash runway if free cash flow continues to reduce at historical rates of -64% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.5%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if NES'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 NES'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 Nelson Resources's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Adam Schofield (45yo)

0yrs

Tenure

AU$367,300

Compensation

Mr. Adam Schofield, Dip (MechEng) is the Chief Executive Officer of Nelson Resources Limited and has been its Executive Director since July 7, 2016. Mr. Schofield has 20 years experience in the resources s ...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD250.31K) is about average for companies of similar size in the Australian market ($USD259.85K).

Compensation vs Earnings: Adam's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.5yrs

Average Tenure

45yo

Average Age

Experienced Management: NES's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

0.8yrs

Average Tenure

45yo

Average Age

Experienced Board: NES's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$107,64329 Jul 19
Metals X Limited
EntityCompany
Shares2,150,000
Max PriceAU$0.05
SellAU$54,10826 Jul 19
Metals X Limited
EntityCompany
Shares1,181,683
Max PriceAU$0.046
BuyAU$6,96924 Jul 19
Mark Steinepreis
EntityIndividual
Shares167,371
Max PriceAU$0.042
SellAU$76,43810 Jun 19
Metals X Limited
EntityCompany
Shares600,958
Max PriceAU$0.13

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 40.9%.


Management Team

  • Simon Coxhell (55yo)

    Exploration Manager

    • Tenure: 0.7yrs
  • Steve Brockhurst (40yo)

    Company Secretary & Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$21.90k
  • Tony Worth (48yo)

    Technical Consultant

    • Tenure: 9.6yrs
    • Compensation: AU$147.60k
  • Tanan Jargalsaikhan (41yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: AU$127.93k
  • Adam Schofield (45yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$367.30k

Board Members

  • Warren Hallam (55yo)

    Non-Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: AU$32.85k
  • Steve Brockhurst (40yo)

    Company Secretary & Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$21.90k
  • Adam Schofield (45yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$367.30k

Company Information

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


Key Information

  • Name: Nelson Resources Limited
  • Ticker: NES
  • Exchange: ASX
  • Founded: 2007
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$2.736m
  • Shares outstanding: 45.59m
  • Website: https://nelsonresources.com.au

Location

  • Nelson Resources Limited
  • London House
  • Level 11
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NESASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2017
NESCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2017

Biography

Nelson Resources Limited engages in the exploration and development of natural resources in Australia. The company holds a portfolio of gold tenements covering an area of 657 kilometers located in the East ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 10:43
End of Day Share Price2019/12/10 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.