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PSC

Prospect ResourcesASX:PSC Stock Report

Market Cap

AU$174.5m

7D

-10.2%

1Y

266.7%

Updated

26 Oct, 2021

Data

Company Financials
PSC fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

PSC Overview

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

Prospect Resources Competitors

IGO

ASX:IGO

AU$7.4b

Pilbara Minerals

ASX:PLS

AU$6.2b

Orocobre

ASX:ORE

AU$5.9b

Liontown Resources

ASX:LTR

AU$3.3b

Price History & Performance

Summary of all time highs, changes and price drops for Prospect Resources
Historical stock prices
Current Share PriceAU$0.44
52 Week HighAU$0.099
52 Week LowAU$0.49
Beta2.28
1 Month Change-5.38%
3 Month Change57.14%
1 Year Change266.67%
3 Year Change62.96%
5 Year Change41.94%
Change since IPO-77.44%

Recent News & Updates

Shareholder Returns

PSCAU Metals and MiningAU Market
7D-10.2%-0.4%0.8%
1Y266.7%15.6%24.4%

Return vs Industry: PSC exceeded the Australian Metals and Mining industry which returned 15.6% over the past year.

Return vs Market: PSC exceeded the Australian Market which returned 24.4% over the past year.

Price Volatility

Is PSC's price volatile compared to industry and market?
PSC volatility
PSC Beta2.28
Industry Beta0.97
Market Beta1

Stable Share Price: PSC is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: PSC's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
2007n/aSam Hosackhttps://www.prospectresources.com.au

Prospect Resources Limited engages in the exploration, evaluation, and development of mineral resources in Zimbabwe. The company primarily explores for lithium deposits. Its flagship project is the Arcadia lithium project that covers an area of approximately 10 square kilometers of granted mining lease located to the east of Harare, Zimbabwe.

Prospect Resources Fundamentals Summary

How do Prospect Resources's earnings and revenue compare to its market cap?
PSC fundamental statistics
Market CapAU$174.50m
Earnings (TTM)-AU$3.46m
Revenue (TTM)AU$442.00k

382.6x

P/S Ratio

-48.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PSC income statement (TTM)
RevenueAU$442.00k
Cost of RevenueAU$177.00k
Gross ProfitAU$265.00k
ExpensesAU$3.72m
Earnings-AU$3.46m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.009
Gross Margin59.95%
Net Profit Margin-782.35%
Debt/Equity Ratio0%

How did PSC perform over the long term?

See historical performance and comparison

Valuation

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

4.78x

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 Australian 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 overvalued based on its PB Ratio (4.8x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

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

-0.5%

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 Prospect 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.


Past Performance

How has Prospect Resources performed over the past 5 years?

16.0%

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, but has reduced losses over the past 5 years at a rate of 16% 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 (35.3%).


Return on Equity

High ROE: PSC has a negative Return on Equity (-11.03%), as it is currently unprofitable.


Financial Health

How is Prospect Resources's financial position?


Financial Position Analysis

Short Term Liabilities: PSC's short term assets (A$8.7M) exceed its short term liabilities (A$1.1M).

Long Term Liabilities: PSC's short term assets (A$8.7M) exceed its long term liabilities (A$237.0K).


Debt to Equity History and Analysis

Debt Level: PSC is debt free.

Reducing Debt: PSC has not had any debt for past 5 years.


Balance Sheet


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 sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: PSC has sufficient cash runway for 1.5 years if free cash flow continues to reduce at historical rates of 14.7% each year.


Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Sam Hosack

3.25yrs

Tenure

AU$192,082

Compensation

Mr. Sam Hosack has been Managing Director of Prospect Resources Ltd. since May 14, 2018 and serves as its Chief Executive Officer. Mr. Hosack has been Director at Prospect Resources Ltd.since May 14, 2018...


CEO Compensation Analysis

Compensation vs Market: Sam's total compensation ($USD143.99K) is below average for companies of similar size in the Australian market ($USD301.38K).

Compensation vs Earnings: Sam's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PSC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: PSC's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 15.5%.


Top Shareholders

Company Information

Prospect Resources Limited's 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$174.503m
  • Shares outstanding: 383.52m
  • Website: https://www.prospectresources.com.au

Location

  • Prospect Resources Limited
  • 33 Richardson Street
  • Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 07:02
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.