ASX:PSC

Stock Analysis Report

Prospect Resources

Executive Summary

Prospect Resources Limited engages in exploration, evaluation, and development of mineral properties in Zimbabwe.

Rewards

Earnings are forecast to grow 113.23% per year

Risk Analysis

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have meaningful revenue (A$3M)

+ 1 more risk


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.7%

PSC

-0.6%

AU Metals and Mining

-1.8%

AU Market


1 Year Return

-52.0%

PSC

21.9%

AU Metals and Mining

20.0%

AU Market

Return vs Industry: PSC underperformed the Australian Metals and Mining industry which returned 21.9% over the past year.

Return vs Market: PSC underperformed the Australian Market which returned 20% over the past year.


Shareholder returns

PSCIndustryMarket
7 Day-7.7%-0.6%-1.8%
30 Day0%0.6%-0.3%
90 Day0%1.2%1.1%
1 Year-52.0%-52.0%30.7%21.9%25.9%20.0%
3 Year-57.1%-57.1%55.0%33.7%36.0%17.4%
5 Year147.1%140.0%108.7%59.7%62.5%25.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.97x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PSC is good value based on its PB Ratio (1x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Prospect Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

113.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

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

High Growth Earnings: PSC's is expected to become profitable in the next 3 years.

Revenue vs Market: PSC's revenue (52.2% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: PSC's revenue (52.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PSC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Prospect Resources performed over the past 5 years?

-29.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSC is currently unprofitable.

Growing Profit Margin: PSC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PSC is unprofitable, and losses have increased over the past 5 years at a rate of -29.6% per year.

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

Earnings vs Industry: PSC 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: PSC has a negative Return on Equity (-20.34%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Prospect Resources's financial position?


Financial Position Analysis

Short Term Liabilities: PSC's short term assets (A$6.4M) exceed its short term liabilities (A$1.1M).

Long Term Liabilities: PSC's short term assets (A$6.4M) exceed its long term liabilities (A$43.0K).


Debt to Equity History and Analysis

Debt Level: PSC is debt free.

Reducing Debt: PSC has no debt compared to 5 years ago when its debt to equity ratio was 1.5%.


Balance Sheet

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

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

Forecast Cash Runway: PSC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -44.7% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

6.3yrs

Average board tenure


CEO

Sam Hosack 0

1.4yrs

Tenure

AU$990,222

Compensation

Mr. Sam Hosack has been Managing Director of Prospect Resources Ltd. since May 14, 2018. Mr. Hosack has been Director at Prospect Resources Ltd. since 2018. Mr. Hosack serves as an Executive at Prospect Re ...


CEO Compensation Analysis

Compensation vs Market: Sam's total compensation ($USD676.57K) is above average for companies of similar size in the Australian market ($USD256.24K).

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


Board Age and Tenure

6.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: PSC's board of directors are considered experienced (6.3 years average tenure).


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

BuyAU$359,99919 Jun 19
Lord Of Seven Hills Holdings Fze
EntityCompany
Shares2,400,000
Max PriceAU$0.15

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.8%.


Management Team

  • Hugh Warner (50yo)

    Executive Chairman

    • Tenure: 7.9yrs
    • Compensation: AU$257.32k
  • Mike Kitney (68yo)

    Consultant of Metallurgy

    • Tenure: 0yrs
  • Trevor Barnard (53yo)

    General Manager

    • Tenure: 0yrs
    • Compensation: AU$266.73k
  • Chris Hilbrands (41yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: AU$202.34k
  • Andrew Whitten (42yo)

    Company Secretary

    • Tenure: 7.7yrs
  • Harry Greaves (54yo)

    Executive Director

    • Tenure: 6.4yrs
    • Compensation: AU$250.00k
  • Roger Tyler (53yo)

    Chief Geologist

    • Tenure: 0yrs
    • Compensation: AU$227.93k
  • David Miller

    Marketing Consultant

    • Tenure: 0yrs
  • Sam Hosack

    MD & Director

    • Tenure: 1.4yrs
    • Compensation: AU$990.22k

Board Members

  • Hugh Warner (50yo)

    Executive Chairman

    • Tenure: 7.9yrs
    • Compensation: AU$257.32k
  • Gerry Fahey (67yo)

    Non-Executive Director

    • Tenure: 6.4yrs
    • Compensation: AU$24.00k
  • Meng Sun

    Alternate Director

    • Tenure: 2yrs
  • Harry Greaves (54yo)

    Executive Director

    • Tenure: 6.4yrs
    • Compensation: AU$250.00k
  • Zed Rusike (63yo)

    Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: AU$24.00k
  • HeNian Chen

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$24.00k
  • Sam Hosack

    MD & Director

    • Tenure: 1.4yrs
    • Compensation: AU$990.22k

Company Information

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


Key Information

  • Name: Prospect Resources Limited
  • Ticker: PSC
  • Exchange: ASX
  • Founded: 2007
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$28.314m
  • Shares outstanding: 235.95m
  • Website: https://www.prospectresources.com.au

Location

  • Prospect Resources Limited
  • 245 Churchill Avenue
  • Suite 6
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2009
500000000BST (Boerse-Stuttgart)YesOrdinary SharesDEEURDec 2009
500000000DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2009

Biography

Prospect Resources Limited engages in exploration, evaluation, and development of mineral properties in Zimbabwe. The company primarily explores for lithium and gold deposits. Its flagship project is the A ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 10:34
End of Day Share Price2019/12/09 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.