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SLR

Silver Lake Resources ASX:SLR Stock Report

Last Price

AU$1.55

Market Cap

AU$1.4b

7D

5.8%

1Y

14.9%

Updated

09 Aug, 2022

Data

Company Financials +
SLR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends0/6

SLR Stock Overview

Silver Lake Resources Limited, together with its subsidiaries, engages in the exploration, mine development, mine operation, and sale of gold and copper concentrates in Eastern Goldfields and Midwest regions of Western Australia.

Silver Lake Resources Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Silver Lake Resources
Historical stock prices
Current Share PriceAU$1.55
52 Week HighAU$2.25
52 Week LowAU$1.21
Beta1.07
1 Month Change21.18%
3 Month Change5.46%
1 Year Change14.87%
3 Year Change32.05%
5 Year Change251.14%
Change since IPO312.00%

Recent News & Updates

Shareholder Returns

SLRAU Metals and MiningAU Market
7D5.8%4.1%1.1%
1Y14.9%-14.3%-8.1%

Return vs Industry: SLR exceeded the Australian Metals and Mining industry which returned -13.6% over the past year.

Return vs Market: SLR exceeded the Australian Market which returned -8% over the past year.

Price Volatility

Is SLR's price volatile compared to industry and market?
SLR volatility
SLR Average Weekly Movement6.7%
Metals and Mining Industry Average Movement12.2%
Market Average Movement10.5%
10% most volatile stocks in AU Market17.8%
10% least volatile stocks in AU Market4.7%

Stable Share Price: SLR is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SLR's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2004n/aLuke Tonkinhttps://www.silverlakeresources.com.au

Silver Lake Resources Limited, together with its subsidiaries, engages in the exploration, mine development, mine operation, and sale of gold and copper concentrates in Eastern Goldfields and Midwest regions of Western Australia. The company holds interests in the Deflector Gold Copper project that produces gold bullion and gold-copper concentrates located in the Southern Murchison region of Western Australia, including development and ramp up of a secondary high grade ore source at Rothsay; and Mount Monger operations, which produce gold bullion located within the Kalgoorlie terrane subdivision of the Eastern Goldfields Province. Silver Lake Resources Limited was incorporated in 2004 and is headquartered in South Perth, Australia.

Silver Lake Resources Fundamentals Summary

How do Silver Lake Resources's earnings and revenue compare to its market cap?
SLR fundamental statistics
Market CapAU$1.44b
Earnings (TTM)AU$76.89m
Revenue (TTM)AU$589.57m

18.7x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SLR income statement (TTM)
RevenueAU$589.57m
Cost of RevenueAU$451.69m
Gross ProfitAU$137.87m
Other ExpensesAU$60.99m
EarningsAU$76.89m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.082
Gross Margin23.39%
Net Profit Margin13.04%
Debt/Equity Ratio0%

How did SLR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SLR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SLR?

Other financial metrics that can be useful for relative valuation.

SLR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.1x
Enterprise Value/EBITDA4.8x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does SLR's PE Ratio compare to its peers?

SLR PE Ratio vs Peers
The above table shows the PE ratio for SLR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.4x
RRL Regis Resources
16.2x12.8%AU$1.4b
RMS Ramelius Resources
7.9x10.6%AU$941.1m
PRU Perseus Mining
12.4x16.0%AU$2.4b
WGX Westgold Resources
12.9x49.7%AU$632.3m
SLR Silver Lake Resources
18.7x24.0%AU$1.4b

Price-To-Earnings vs Peers: SLR is expensive based on its Price-To-Earnings Ratio (18.7x) compared to the peer average (12.4x).


Price to Earnings Ratio vs Industry

How does SLR's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

Price-To-Earnings vs Industry: SLR is expensive based on its Price-To-Earnings Ratio (18.7x) compared to the Australian Metals and Mining industry average (9.8x)


Price to Earnings Ratio vs Fair Ratio

What is SLR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SLR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.7x
Fair PE Ratio23.4x

Price-To-Earnings vs Fair Ratio: SLR is good value based on its Price-To-Earnings Ratio (18.7x) compared to the estimated Fair Price-To-Earnings Ratio (23.4x).


Share Price vs Fair Value

What is the Fair Price of SLR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SLR (A$1.55) is trading below our estimate of fair value (A$8.94)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


24.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLR's forecast earnings growth (24% per year) is above the savings rate (1.8%).

Earnings vs Market: SLR's earnings (24% per year) are forecast to grow faster than the Australian market (6.1% per year).

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

Revenue vs Market: SLR's revenue (9.7% per year) is forecast to grow faster than the Australian market (5.6% per year).

High Growth Revenue: SLR's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SLR's Return on Equity is forecast to be low in 3 years time (8.9%).


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Past Performance

How has Silver Lake Resources performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


54.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SLR has high quality earnings.

Growing Profit Margin: SLR's current net profit margins (13%) are lower than last year (44.8%).


Past Earnings Growth Analysis

Earnings Trend: SLR's earnings have grown significantly by 54.5% per year over the past 5 years.

Accelerating Growth: SLR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SLR had negative earnings growth (-72.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (57.3%).


Return on Equity

High ROE: SLR's Return on Equity (8.2%) is considered low.


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Financial Health

How is Silver Lake Resources's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SLR's short term assets (A$349.5M) exceed its short term liabilities (A$98.7M).

Long Term Liabilities: SLR's short term assets (A$349.5M) exceed its long term liabilities (A$68.3M).


Debt to Equity History and Analysis

Debt Level: SLR is debt free.

Reducing Debt: SLR has no debt compared to 5 years ago when its debt to equity ratio was 2.1%.

Debt Coverage: SLR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SLR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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

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


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SLR has not reported any payouts.


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Management

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

7.8yrs

Average management tenure


CEO

Luke Tonkin (58 yo)

7.75yrs

Tenure

AU$1,933,334

Compensation

Mr. Luke Tonkin, BEng, MAusIMM, AICD, Min Eng, has been Director of Egan Street Resources Pty Ltd (formerly known as Egan Street Resources Limited) since November 22, 2019. Mr. Tonkin has been the Managing...


CEO Compensation Analysis

Compensation vs Market: Luke's total compensation ($USD1.35M) is above average for companies of similar size in the Australian market ($USD1.04M).

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


Leadership Team

Experienced Management: SLR's management team is seasoned and experienced (7.8 years average tenure).


Board Members

Experienced Board: SLR's board of directors are considered experienced (6.8 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 5.7%.


Top Shareholders

Company Information

Silver Lake Resources Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Silver Lake Resources Limited
  • Ticker: SLR
  • Exchange: ASX
  • Founded: 2004
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: AU$1.441b
  • Shares outstanding: 932.45m
  • Website: https://www.silverlakeresources.com.au

Number of Employees


Location

  • Silver Lake Resources Limited
  • South Shore Centre
  • Suite 4
  • South Perth
  • Western Australia
  • 6151
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 00:00
Earnings2021/12/31
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.