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Red River Resources

ASX:RVR
Snowflake Description

Exceptional growth potential with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RVR
ASX
A$91M
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

Red River Resources Limited engages in the exploration and evaluation of mineral projects in Australia. The last earnings update was 138 days ago. More info.


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RVR Share Price and Events
7 Day Returns
-11.9%
ASX:RVR
-0.6%
AU Metals and Mining
-0.6%
AU Market
1 Year Returns
-21.3%
ASX:RVR
15%
AU Metals and Mining
5.1%
AU Market
RVR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Red River Resources (RVR) -11.9% 8.8% -7.5% -21.3% 48% 15.6%
AU Metals and Mining -0.6% 2% 4.9% 15% 65.3% 15.3%
AU Market -0.6% 2.3% 6.8% 5.1% 21.2% 13.1%
1 Year Return vs Industry and Market
  • RVR underperformed the Metals and Mining industry which returned 15% over the past year.
  • RVR underperformed the Market in Australia which returned 5.1% over the past year.
Price Volatility
RVR
Industry
5yr Volatility vs Market

RVR Value

 Is Red River Resources undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Red River Resources to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Red River Resources.

ASX:RVR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:RVR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.049 (1 + (1- 30%) (0.52%))
1.035
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.035 * 5.96%)
8.48%

Discounted Cash Flow Calculation for ASX:RVR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Red River Resources is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:RVR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.48%)
2020 10.65 Analyst x2 9.82
2021 32.05 Analyst x2 27.23
2022 54.77 Est @ 70.9% 42.90
2023 82.34 Est @ 50.33% 59.45
2024 111.92 Est @ 35.92% 74.49
2025 140.84 Est @ 25.84% 86.41
2026 167.29 Est @ 18.78% 94.61
2027 190.44 Est @ 13.84% 99.29
2028 210.21 Est @ 10.38% 101.03
2029 226.95 Est @ 7.96% 100.54
Present value of next 10 years cash flows A$695.78
ASX:RVR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$226.95 × (1 + 2.31%) ÷ (8.48% – 2.31%)
A$3,763.09
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$3,763.09 ÷ (1 + 8.48%)10
A$1,667.07
ASX:RVR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$695.78 + A$1,667.07
A$2,362.85
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$2,362.85 / 490.68
A$4.82
ASX:RVR Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$4.82
Current discount Discount to share price of A$0.19
= -1 x (A$0.19 - A$4.82) / A$4.82
96.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Red River Resources is available for.
Intrinsic value
>50%
Share price is A$0.19 vs Future cash flow value of A$4.82
Current Discount Checks
For Red River Resources to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Red River Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Red River Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Red River Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Red River Resources's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:RVR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$-0.02
ASX:RVR Share Price ** ASX (2019-07-15) in AUD A$0.19
Australia Metals and Mining Industry PE Ratio Median Figure of 78 Publicly-Listed Metals and Mining Companies 11.89x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Red River Resources.

ASX:RVR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:RVR Share Price ÷ EPS (both in AUD)

= 0.19 ÷ -0.02

-10.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Red River Resources is loss making, we can't compare its value to the AU Metals and Mining industry average.
  • Red River Resources is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Red River Resources's expected growth come at a high price?
Raw Data
ASX:RVR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -10.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
68.5%per year
Australia Metals and Mining Industry PEG Ratio Median Figure of 39 Publicly-Listed Metals and Mining Companies 0.68x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Red River Resources, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Red River Resources's assets?
Raw Data
ASX:RVR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.10
ASX:RVR Share Price * ASX (2019-07-15) in AUD A$0.19
Australia Metals and Mining Industry PB Ratio Median Figure of 590 Publicly-Listed Metals and Mining Companies 1.5x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.68x
ASX:RVR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:RVR Share Price ÷ Book Value per Share (both in AUD)

= 0.19 ÷ 0.10

1.82x

* Primary Listing of Red River Resources.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Red River Resources is overvalued based on assets compared to the AU Metals and Mining industry average.
X
Value checks
We assess Red River Resources's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Red River Resources has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RVR Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
68.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Red River Resources expected to grow at an attractive rate?
  • Red River Resources's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Red River Resources's earnings growth is expected to exceed the Australia market average.
  • Red River Resources's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:RVR Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:RVR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 68.5%
ASX:RVR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 23.4%
Australia Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 2.5%
Australia Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 1.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.3%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:RVR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:RVR Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 139 43 32 3
2020-06-30 121 39 28 3
2019-06-30 95 24 10 3
ASX:RVR Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 68 4 -8
2018-09-30 60 10 -4
2018-06-30 51 15 0
2018-03-31 34 12 2
2017-12-31 17 9 5
2017-09-30 9 4 1
2017-06-30 -2 -3
2017-03-31 0 -2 -2
2016-12-31 0 -1 -2
2016-09-30 0 -1 -2
2016-06-30 0 -1 -2
2016-03-31 0 -1 -2

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Red River Resources's earnings are expected to grow significantly at over 20% yearly.
  • Red River Resources's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:RVR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Red River Resources Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RVR Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.06 0.07 0.06 3.00
2020-06-30 0.06 0.09 0.04 3.00
2019-06-30 0.02 0.02 0.02 3.00
ASX:RVR Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 -0.02
2018-09-30 -0.01
2018-06-30 0.00
2018-03-31 0.01
2017-12-31 0.01
2017-09-30 0.00
2017-06-30 -0.01
2017-03-31 -0.01
2016-12-31 -0.01
2016-09-30 -0.01
2016-06-30 -0.01
2016-03-31 -0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Red River Resources is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Red River Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Red River Resources has a total score of 6/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RVR Past Performance

  How has Red River Resources performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Red River Resources's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Red River Resources does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Red River Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Red River Resources's 1-year growth to the AU Metals and Mining industry average as it is not currently profitable.
Earnings and Revenue History
Red River Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Red River Resources Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RVR Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 68.16 -8.32 12.14
2018-09-30 59.65 -4.03 11.33
2018-06-30 51.14 0.27 10.53
2018-03-31 34.25 2.40 8.42
2017-12-31 17.38 4.53 6.31
2017-09-30 8.69 0.96 4.70
2017-06-30 -2.61 3.09
2017-03-31 0.15 -2.18 2.56
2016-12-31 0.31 -1.74 2.04
2016-09-30 0.25 -1.63 1.97
2016-06-30 0.20 -1.53 1.91
2016-03-31 0.13 -1.67 2.03
2015-12-31 0.07 -1.81 2.16
2015-09-30 0.07 -3.18 2.92
2015-06-30 0.07 -4.55 3.68
2015-03-31 0.05 -4.17 3.28
2014-12-31 0.04 -3.79 2.89
2014-09-30 0.02 -2.12 1.67
2014-06-30 0.01 -0.44 0.45
2014-03-31 0.01 -0.49 0.50
2013-12-31 0.01 -0.54 0.54
2013-09-30 0.02 -0.58 0.59
2013-06-30 0.04 -0.61 0.64
2013-03-31 0.05 -0.29 0.65
2012-12-31 0.05 0.03 0.66
2012-09-30 0.08 0.06 0.66

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Red River Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Red River 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.
  • It is difficult to establish if Red River Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Red River Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Red River Resources has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RVR Health

 How is Red River Resources's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Red River Resources's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Red River Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Red River Resources's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Red River Resources's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 42.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Red River Resources Company Filings, last reported 6 months ago.

ASX:RVR Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 49.90 0.47 12.68
2018-09-30 49.90 0.47 12.68
2018-06-30 52.23 0.12 20.18
2018-03-31 52.23 0.12 20.18
2017-12-31 56.47 0.49 23.16
2017-09-30 56.47 0.49 23.16
2017-06-30 47.71 0.00 27.44
2017-03-31 47.71 0.00 27.44
2016-12-31 33.78 0.00 20.89
2016-09-30 33.78 0.00 20.89
2016-06-30 11.67 0.00 2.49
2016-03-31 11.67 0.00 2.49
2015-12-31 11.95 0.00 3.37
2015-09-30 11.95 0.00 3.37
2015-06-30 8.92 0.00 1.68
2015-03-31 8.92 0.00 1.68
2014-12-31 9.66 0.00 3.70
2014-09-30 9.66 0.00 3.70
2014-06-30 0.43 0.00 0.43
2014-03-31 0.43 0.00 0.43
2013-12-31 0.19 0.00 0.21
2013-09-30 0.19 0.00 0.21
2013-06-30 0.45 0.00 0.49
2013-03-31 0.45 0.00 0.49
2012-12-31 0.73 0.00 0.78
2012-09-30 0.73 0.00 0.78
  • Red River Resources's level of debt (0.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 0.9% today).
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.

  • Red River Resources has sufficient cash runway for 1.2 years based on current free cash flow.
  • Red River Resources has sufficient cash runway for 1.1 years if free cash flow continues to grow at historical rates of 39.7% each year.
X
Financial health checks
We assess Red River Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Red River Resources has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RVR Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Red River Resources dividends.
If you bought A$2,000 of Red River Resources shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Red River Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Red River Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:RVR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Australia Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 3.5%
Australia Market Average Dividend Yield Market Cap Weighted Average of 416 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:RVR Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30
2020-06-30
2019-06-30

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Red River Resources has not reported any payouts.
  • Unable to verify if Red River Resources's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Red River Resources's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Red River 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.
X
Income/ dividend checks
We assess Red River Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Red River Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Red River Resources has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RVR Management

 What is the CEO of Red River Resources's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mel Palancian
COMPENSATION A$653,843
TENURE AS CEO 4 years
CEO Bio

Mr. Melkon Palancian, also known as Mel, BEng MEng MAusIMM MIEAust, has been the Managing Director of Red River Resources Ltd. since July 13, 2015 and as served as its Chief Operating Officer from September 2014 to July 13, 2015. Mr. Palancian has over 20 years experience in the mining industry and his most recent role was Deputy Operations Director at Newcrest's Gosowong operation in Indonesia. Prior to this, he held a range of senior positions including General Manager Technical Services for MMG, Manager Dugald River Development for OZ Minerals and Principal Adviser Mining for Zinifex. Mr. Palancian has been an Executive Director of Red River Resources Ltd. since October 17, 2014. He holds a Bachelor of Engineering (Civil & Computing) from Monash and a Masters in Engineering from RMIT.

CEO Compensation
  • Mel's compensation has increased whilst company is loss making.
  • Mel's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Red River Resources management team in years:

4.4
Average Tenure
  • The tenure for the Red River Resources management team is about average.
Management Team

Mel Palancian

TITLE
MD & Executive Director
COMPENSATION
A$654K
TENURE
4 yrs

Rod Lovelady

TITLE
Chief Financial Officer
COMPENSATION
A$262K
TENURE
1.5 yrs

Karl Spaleck

TITLE
General Manager Operations
COMPENSATION
A$670K
TENURE
4.8 yrs

Donald Garner

TITLE
Executive Director
COMPENSATION
A$296K

Cameron Bodley

TITLE
Company Secretary
COMPENSATION
A$311K
TENURE
5.3 yrs

Tav Bates

TITLE
Exploration Manager
Board of Directors Tenure

Average tenure of the Red River Resources board of directors in years:

4.5
Average Tenure
  • The tenure for the Red River Resources board of directors is about average.
Board of Directors

Brett Fletcher

TITLE
Non-Executive Chairman
COMPENSATION
A$282K
AGE
55
TENURE
4.2 yrs

Mel Palancian

TITLE
MD & Executive Director
COMPENSATION
A$654K
TENURE
4.8 yrs

Donald Garner

TITLE
Executive Director
COMPENSATION
A$296K
TENURE
5.3 yrs

Mark Stephen Hanlon

TITLE
Non-Executive Director
COMPENSATION
A$40K
AGE
59
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
15. Mar 19 Buy Donald Garner Individual 15. Mar 19 15. Mar 19 22,500 A$0.16 A$3,507
20. Dec 18 Buy Donald Garner Individual 19. Dec 18 19. Dec 18 14,171 A$0.18 A$2,480
07. Sep 18 Sell UBS Asset Management Company 29. Aug 18 05. Sep 18 -741,687 A$0.20 A$-144,130
07. Sep 18 Buy UBS Asset Management Company 29. Aug 18 05. Sep 18 2,678,605 A$0.20 A$529,347
30. Aug 18 Sell UBS Asset Management Company 02. May 18 28. Aug 18 -7,816,269 A$0.29 A$-2,046,181
30. Aug 18 Buy UBS Asset Management Company 02. May 18 28. Aug 18 15,329,254 A$0.25 A$3,819,907
X
Management checks
We assess Red River Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Red River Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RVR News

Simply Wall St News

Did You Miss Red River Resources's (ASX:RVR) 38% Share Price Gain?

For example, long term Red River Resources Limited (ASX:RVR) shareholders have enjoyed a 38% share price rise over the last half decade, well in excess of the market return of around 13% (not including dividends). … See our latest analysis for Red River Resources Red River Resources isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … For the last half decade, Red River Resources can boast revenue growth at a rate of 91% per year.

Simply Wall St -

Brief Commentary On Red River Resources Limited's (ASX:RVR) Fundamentals

Exceptional growth potential with excellent balance sheet RVR is an attractive stock for growth-seeking investors, with an expected earnings growth of 68% in the upcoming year. … The optimistic bottom-line growth is supported by an outstanding revenue growth of 86% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. … ASX:RVR Past and Future Earnings, June 19th 2019 Next Steps: For Red River Resources, there are three essential aspects you should further examine: Historical Performance: What has RVR's returns been like over the past?

Simply Wall St -

How Much Of Red River Resources Limited (ASX:RVR) Do Insiders Own?

If you want to know who really controls Red River Resources Limited (ASX:RVR), then you'll have to look at the makeup of its share registry. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Red River Resources is a smaller company with a market capitalization of AU$110m, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

The Red River Resources (ASX:RVR) Share Price Has Soared 929%, Delighting Many Shareholders

Then look at the Red River Resources Limited (ASX:RVR) share price. … Red River Resources isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … Shareholders of unprofitable companies usually expect strong revenue growth.

Simply Wall St -

Does Red River Resources Limited's (ASX:RVR) CEO Salary Reflect Performance?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Mel Palancian's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Red River Resources Limited has a market cap of AU$81m, and is paying total annual CEO compensation of AU$654k.

Simply Wall St -

What Kind Of Share Price Volatility Should You Expect For Red River Resources Limited (ASX:RVR)?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility).

Simply Wall St -

Do Directors Own Red River Resources Limited (ASX:RVR) Shares?

If you want to know who really controls Red River Resources Limited (ASX:RVR), then you'll have to look at the makeup of its share registry. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Red River Resources is not a large company by global standards.

Simply Wall St -

A Look At Red River Resources Limited's (ASX:RVR) Exceptional Fundamentals

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Red River Resources Limited (ASX:RVR) due to its excellent fundamentals in more than one area. … a excellent

Simply Wall St -

Should Red River Resources Limited (ASX:RVR) Focus On Improving This Fundamental Metric?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every A$1 worth of shareholders' equity, it generated A$0.0051 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does The Red River Resources Limited (ASX:RVR) Share Price Tend To Follow The Market?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility).

Simply Wall St -

RVR Company Info

Description

Red River Resources Limited engages in the exploration and evaluation of mineral projects in Australia. It explores for zinc, copper, lead, gold, silver, and base metal deposits. The company focuses on the development of the Thalanga zinc project, which is located in the southwest of Charters Towers in Northern Queensland. Red River Resources Limited was incorporated in 2002 and is based in Melbourne, Australia.

Details
Name: Red River Resources Limited
RVR
Exchange: ASX
Founded: 2002
A$90,776,170
490,682,000
Website: http://www.redriverresources.com.au
Address: Red River Resources Limited
Level 6,
350 Collins Street,
Melbourne,
Victoria, 3000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX RVR Ordinary Shares Australian Securities Exchange AU AUD 15. Jul 2005
DB R1R Ordinary Shares Deutsche Boerse AG DE EUR 15. Jul 2005
CHIA RVR Ordinary Shares Chi-X Australia AU AUD 15. Jul 2005
Number of employees
Current staff
Staff numbers
0
Red River Resources employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 10:33
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/04
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.