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RSG

Resolute MiningASX:RSG Stock Report

Market Cap

AU$491.2m

7D

0%

1Y

-52.9%

Updated

20 Oct, 2021

Data

Company Financials +
RSG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health4/6
Dividends0/6

RSG Overview

Resolute Mining Limited engages in mining, exploration, development, and production of gold properties in Africa and Australia.

Rewards

Trading at 93.9% below our estimate of its fair value

Earnings are forecast to grow 90.51% per year

Risk Analysis

No risks detected for RSG from our risk checks.

Resolute Mining Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Resolute Mining
Historical stock prices
Current Share PriceAU$0.44
52 Week HighAU$0.39
52 Week LowAU$0.94
Beta0.61
1 Month Change4.76%
3 Month Change-27.27%
1 Year Change-52.94%
3 Year Change-57.07%
5 Year Change-75.28%
Change since IPO-91.20%

Recent News & Updates

Shareholder Returns

RSGAU Metals and MiningAU Market
7D0%3.6%1.7%
1Y-52.9%11.3%20.2%

Return vs Industry: RSG underperformed the Australian Metals and Mining industry which returned 11.3% over the past year.

Return vs Market: RSG underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is RSG's price volatile compared to industry and market?
RSG volatility
RSG Beta0.61
Industry Beta0.97
Market Beta1

Stable Share Price: RSG is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RSG's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20011,256Stuart Galehttps://www.rml.com.au

Resolute Mining Limited engages in mining, exploration, development, and production of gold properties in Africa and Australia. The company’s flagship project is the Syama Gold Mine located in Mali, West Africa. It also owns Mako Gold Mine in Senegal, West Africa.

Resolute Mining Fundamentals Summary

How do Resolute Mining's earnings and revenue compare to its market cap?
RSG fundamental statistics
Market CapUS$367.28m
Earnings (TTM)-US$202.15m
Revenue (TTM)US$574.27m

0.6x

P/S Ratio

-1.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RSG income statement (TTM)
RevenueUS$574.27m
Cost of RevenueUS$390.91m
Gross ProfitUS$183.36m
ExpensesUS$385.51m
Earnings-US$202.15m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.18
Gross Margin31.93%
Net Profit Margin-35.20%
Debt/Equity Ratio53.7%

How did RSG perform over the long term?

See historical performance and comparison

Valuation

Is Resolute Mining undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RSG (A$0.44) is trading below our estimate of fair value (A$7.2)

Significantly Below Fair Value: RSG is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RSG is good value based on its PB Ratio (0.6x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is Resolute Mining forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

90.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RSG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

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

Revenue vs Market: RSG's revenue (4.2% per year) is forecast to grow slower than the Australian market (5.4% per year).

High Growth Revenue: RSG's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RSG's Return on Equity is forecast to be low in 3 years time (4.7%).


Past Performance

How has Resolute Mining performed over the past 5 years?

-66.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RSG is currently unprofitable.

Growing Profit Margin: RSG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RSG is unprofitable, and losses have increased over the past 5 years at a rate of 66% per year.

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

Earnings vs Industry: RSG 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: RSG has a negative Return on Equity (-43.47%), as it is currently unprofitable.


Financial Health

How is Resolute Mining's financial position?


Financial Position Analysis

Short Term Liabilities: RSG's short term assets ($450.6M) exceed its short term liabilities ($282.2M).

Long Term Liabilities: RSG's short term assets ($450.6M) exceed its long term liabilities ($317.8M).


Debt to Equity History and Analysis

Debt Level: RSG's debt to equity ratio (53.7%) is considered high.

Reducing Debt: RSG's debt to equity ratio has increased from 7.4% to 53.7% over the 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: Whilst unprofitable RSG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RSG is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 27% per year.


Dividend

What is Resolute Mining current dividend yield, its reliability and sustainability?

2.71%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if RSG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RSG is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RSG'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?

0.4yrs

Average management tenure


CEO

Stuart Gale

1

Tenure

US$690,626

Compensation

Mr. Stuart Gale, BEcon, FCA, has been Chief Executive Officer at Resolute Mining Limited since May 14, 2021 and was Managing Director until 2021. He had been Interim Chief Executive Officer of Resolute Min...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD690.63K) is about average for companies of similar size in the Australian market ($USD735.69K).

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


Leadership Team

Experienced Management: RSG's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: RSG's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RSG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Resolute Mining Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Resolute Mining Limited
  • Ticker: RSG
  • Exchange: ASX
  • Founded: 2001
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$491.232m
  • Shares outstanding: 1.10b
  • Website: https://www.rml.com.au

Number of Employees


Location

  • Resolute Mining Limited
  • Australia Place
  • Level 2
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 07:05
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.