ASX:RVR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Red River Resources

Executive Summary

Red River Resources Limited explores for and develops mineral projects in Australia.


Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

RVR

3.6%

AU Metals and Mining

3.6%

AU Market


1 Year Return

-62.8%

RVR

-3.2%

AU Metals and Mining

-10.7%

AU Market

Return vs Industry: RVR underperformed the Australian Metals and Mining industry which returned -3.2% over the past year.

Return vs Market: RVR underperformed the Australian Market which returned -10.7% over the past year.


Shareholder returns

RVRIndustryMarket
7 Day0%3.6%3.6%
30 Day27.0%1.5%3.1%
90 Day42.9%27.3%21.3%
1 Year-62.8%-62.8%1.9%-3.2%-7.1%-10.7%
3 Year-64.4%-64.4%67.4%44.1%17.6%2.0%
5 Year-48.4%-48.4%118.6%74.7%36.1%6.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Red River Resources 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: RVR (A$0.08) is trading below our estimate of fair value (A$3.04)

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


Price To Earnings Ratio

PE vs Industry: RVR is poor value based on its PE Ratio (38.3x) compared to the Metals and Mining industry average (10.4x).

PE vs Market: RVR is poor value based on its PE Ratio (38.3x) compared to the Australian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: RVR is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: RVR is good value based on its PB Ratio (0.7x) compared to the AU Metals and Mining industry average (1.7x).


Next Steps

Future Growth

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

107.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RVR's forecast earnings growth (107.4% per year) is above the savings rate (2.3%).

Earnings vs Market: RVR's earnings (107.4% per year) are forecast to grow faster than the Australian market (15.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RVR's revenue (16.1% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: RVR's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RVR's Return on Equity is forecast to be high in 3 years time (26.8%)


Next Steps

Past Performance

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

30.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RVR has high quality earnings.

Growing Profit Margin: RVR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RVR has become profitable over the past 5 years, growing earnings by 30.5% per year.

Accelerating Growth: RVR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RVR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-8.4%).


Return on Equity

High ROE: RVR's Return on Equity (1.9%) is considered low.


Next Steps

Financial Health

How is Red River Resources's financial position?


Financial Position Analysis

Short Term Liabilities: RVR's short term assets (A$19.3M) exceed its short term liabilities (A$16.3M).

Long Term Liabilities: RVR's short term assets (A$19.3M) exceed its long term liabilities (A$12.7M).


Debt to Equity History and Analysis

Debt Level: RVR's debt to equity ratio (1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if RVR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RVR's debt is well covered by operating cash flow (3154.6%).

Interest Coverage: RVR's interest payments on its debt are well covered by EBIT (14.2x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if RVR'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 RVR'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?

5.0yrs

Average management tenure


CEO

Mel Palancian

5yrs

Tenure

AU$411,420

Compensation

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 Septembe ...


CEO Compensation Analysis

Compensation vs Market: Mel's total compensation ($USD284.40K) is about average for companies of similar size in the Australian market ($USD260.96K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Melkon Palancian
MD & Executive Director5yrsAU$411.42k0.33% A$136.2k
Rod Lovelady
Chief Financial Officer2.5yrsAU$294.25k0.0097% A$4.0k
Donald Garner
Executive Director6.33yrsAU$264.04k1.48% A$610.5k
Cameron Bodley
Company Secretary6.33yrsAU$310.92kno data
Tav Bates
Exploration Managerno datano datano data

5.0yrs

Average Tenure

Experienced Management: RVR's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Melkon Palancian
MD & Executive Director5yrsAU$411.42k0.33% A$136.2k
Donald Garner
Executive Director6.33yrsAU$264.04k1.48% A$610.5k
Timothy Stephen Hanlon
Independent Non-Executive Director4.75yrsAU$40.00k0.94% A$388.0k
Brett Fletcher
Independent Non-Executive Chairman5.17yrsAU$100.07k0.10% A$42.3k

5.5yrs

Average Tenure

Experienced Board: RVR's board of directors are considered experienced (5.5 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 5.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: Red River Resources Limited
  • Ticker: RVR
  • Exchange: ASX
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$41.299m
  • Shares outstanding: 516.24m
  • Website: https://www.redriverresources.com.au

Location

  • Red River Resources Limited
  • Thalanga Mine
  • 18144 Flinders Highway
  • Charters Towers
  • Queensland
  • 4820
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RVRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2005
R1RDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2005
RVRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2005

Biography

Red River Resources Limited explores for and develops mineral projects in Australia. It explores for zinc, copper, lead, gold, silver, and base metal deposits. The company owns an interest in the Thalanga project located in Queensland; and the Hillgrove project situated in Armidale, New South Wales. Red River Resources Limited is based in Charters Towers, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 10:37
End of Day Share Price2020/07/03 00:00
Earnings2019/12/31
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.