ASX:NES

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet and overvalued.

Risks

  • Nelson Resources has significant price volatility in the past 3 months.
  • Nelson Resources is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

7.5%

ASX:NES

0.8%

AU Metals and Mining

-0.1%

AU Market


1 Year Return

-79.5%

ASX:NES

16.2%

AU Metals and Mining

4.9%

AU Market

NES underperformed the Metals and Mining industry which returned 16.2% over the past year.

NES underperformed the Market in Australia which returned 4.9% over the past year.


Share holder returns

NESIndustryMarket
7 Day7.5%0.8%-0.1%
30 Day-15.7%2.2%1.7%
90 Day-46.3%5.3%5.8%
1 Year-79.5%-79.5%24.3%16.2%11.0%4.9%
3 Yearn/a86.6%66.7%37.6%19.7%
5 Yearn/a47.9%15.7%43.5%12.1%

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 based on future cash flows and its price relative to the stock market?

0.42x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Nelson Resources to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Nelson Resources to establish if it is available at substantial discount.


Price Based on Earnings

Nelson Resources is loss making, we can't compare its value to the AU Metals and Mining industry average.

Nelson 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 Nelson Resources, we can't assess if its growth is good value.


Price Based on Value of Assets

Nelson Resources is good value based on assets compared to the AU Metals and Mining industry average.


Next Steps

Future Growth

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

2.5%

Forecasted Metals and Mining 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?

-27.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Nelson Resources does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Nelson Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Nelson 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 Nelson 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 Nelson 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 Nelson 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 Nelson Resources's financial position?


Financial Position Analysis

Nelson Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Nelson Resources has no long term commitments.


Debt to Equity History and Analysis

Nelson Resources has no debt.

Nelson Resources currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

High level of physical assets or inventory.

Nelson 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.

Nelson Resources has less than a year of cash runway based on current free cash flow.

Nelson Resources has less than a year of cash runway if free cash flow continues to grow at historical rates of 67.3% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Nelson Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Nelson 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 Nelson Resources has not reported any payouts.

Unable to verify if Nelson 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 Nelson 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 Nelson Resources's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Adam Schofield (45yo)

AU$136,375

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 ...


Management Age and Tenure

2.1yrs

Average Tenure

43yo

Average Age

The tenure for the Nelson Resources management team is about average.


Board Age and Tenure

0.4yrs

Average Tenure

45yo

Average Age

The average tenure for the Nelson Resources board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

SellAU$76,43810 Jun 19
Metals X Limited
EntityCompany
Shares600,958
Max PriceAU$0.13
SellAU$4,67110 Jan 19
N. & J. Mitchell Holdings Pty Ltd, Asset Management Arm
EntityCompany
Shares25,365
Max PriceAU$0.19
SellAU$37,04410 Jan 19
Linda Steinepreis
EntityIndividual
Shares225,329
Max PriceAU$0.19

Ownership Breakdown


Management Team

  • Steve Brockhurst (39yo)

    Company Secretary & Non-Executive Director

    • Tenure: 2.1yrs
  • Tony Worth (48yo)

    Technical Consultant

    • Tenure: 9.2yrs
    • Compensation: A$147.60k
  • Tanan Jargalsaikhan (41yo)

    Chief Financial Officer

    • Compensation: A$127.93k
  • Adam Schofield (45yo)

    CEO & Executive Director

    • Compensation: A$136.38k
  • Donald Thompson

    Exploration Manager

    • Tenure: 1.1yrs

Board Members

  • Warren Hallam (55yo)

    Non-Executive Chairman

    • Tenure: 0.4yrs
  • Steve Brockhurst (39yo)

    Company Secretary & Non-Executive Director

    • Tenure: 0.4yrs
  • Adam Schofield (45yo)

    CEO & Executive Director

    • Tenure: 3.5yrs
    • Compensation: A$136.38k

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$1.960m
  • Shares outstanding: 45.59m
  • Website: Click here

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

Biography

Nelson Resources Limited engages in the exploration and development of natural resources in Australia. The company holds a portfolio of 5 gold tenements covering an area of 20km2 located in the Eastern Gol ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/16 11:57
End of Day Share Price2019/07/12 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.