ASX:SLR

Stock Analysis Report

Silver Lake Resources

Executive Summary

Silver Lake Resources Limited, together with its subsidiaries, engages in the exploration and production of gold and copper in Australia.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.4%

SLR

5.2%

AU Metals and Mining

2.8%

AU Market


1 Year Return

81.1%

SLR

-16.4%

AU Metals and Mining

-16.2%

AU Market

Return vs Industry: SLR exceeded the Australian Metals and Mining industry which returned -18.8% over the past year.

Return vs Market: SLR exceeded the Australian Market which returned -19.1% over the past year.


Shareholder returns

SLRIndustryMarket
7 Day-1.4%5.2%2.8%
30 Day-8.6%-4.9%-15.2%
90 Day7.1%-18.3%-23.4%
1 Year81.1%81.1%-11.6%-16.4%-12.4%-16.2%
3 Year140.0%140.0%31.3%13.0%-0.2%-13.9%
5 Year700.0%700.0%72.0%31.2%11.5%-13.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Silver Lake 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: SLR (A$1.44) is trading below our estimate of fair value (A$6.46)

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


Price To Earnings Ratio

PE vs Industry: SLR is poor value based on its PE Ratio (22.6x) compared to the Metals and Mining industry average (8x).

PE vs Market: SLR is poor value based on its PE Ratio (22.6x) compared to the Australian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SLR is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: SLR is overvalued based on its PB Ratio (2x) compared to the AU Metals and Mining industry average (1x).


Next Steps

Future Growth

How is Silver Lake Resources forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLR's forecast earnings growth (21.2% per year) is above the savings rate (1.1%).

Earnings vs Market: SLR's earnings (21.2% per year) are forecast to grow faster than the Australian market (10.7% per year).

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

Revenue vs Market: SLR's revenue (5.4% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: SLR's revenue (5.4% 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 (16.1%).


Next Steps

Past Performance

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

80.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLR has a large one-off loss of A$15.5M impacting its December 31 2019 financial results.

Growing Profit Margin: SLR's current net profit margins (10.7%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: SLR has become profitable over the past 5 years, growing earnings by 80.8% per year.

Accelerating Growth: SLR's earnings growth over the past year (160.8%) exceeds its 5-year average (80.8% per year).

Earnings vs Industry: SLR earnings growth over the past year (160.8%) exceeded the Metals and Mining industry -7%.


Return on Equity

High ROE: SLR's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is Silver Lake Resources's financial position?


Financial Position Analysis

Short Term Liabilities: SLR's short term assets (A$257.4M) exceed its short term liabilities (A$80.4M).

Long Term Liabilities: SLR's short term assets (A$257.4M) exceed its long term liabilities (A$54.2M).


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 5.6%.

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


Next Steps

Dividend

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


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 payouts.

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


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 SLR'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?

4.7yrs

Average management tenure


CEO

Luke Tonkin (55yo)

5.42s

Tenure

AU$1,411,495

Compensation

Mr. Luke Tonkin, BEng, MAusIMM, AICD, Min Eng, has been Director of Egan Street Resources Limited since November 22, 2019. Mr. Tonkin has been the Managing Director of Silver Lake Resources Limited since N ...


CEO Compensation Analysis

Compensation vs Market: Luke's total compensation ($USD848.20K) is about average for companies of similar size in the Australian market ($USD1.06M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Luke Tonkin
MD & Director5.42yrsAU$1.41m0.060% A$747.1k
Diniz Cardoso
Chief Financial Officer4yrsAU$608.29k0.092% A$1.1m
David Berg
General Counsel & Company Secretary5.58yrsAU$575.37k0.044% A$543.9k
Antony Shepherd
Exploration & Geology Manager5.58yrsAU$500.44k0.022% A$270.3k
Len Eldridge
Corporate Development Officer2.25yrsno datano data
Liz Hough
Additional Company Secretary0.33yrno datano data

4.7yrs

Average Tenure

Experienced Management: SLR's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Luke Tonkin
MD & Director5.42yrsAU$1.41m0.060% A$747.1k
Peter Alexander
Independent Non-Executive Director1yrAU$29.06k0.0021% A$25.6k
David Quinlivan
Non-Executive Chairman4.58yrsAU$190.26kno data
Kelvin Flynn
Independent Non-Executive Director4.17yrsAU$125.93kno data

4.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: SLR's board of directors are considered experienced (4.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SLR insiders have only sold shares 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 47.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Silver Lake Resources Limited
  • Ticker: SLR
  • Exchange: ASX
  • Founded:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$1.245b
  • Shares outstanding: 879.84m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SLRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2007
4SLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2007
SVLK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2007
SLRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2007

Biography

Silver Lake Resources Limited, together with its subsidiaries, engages in the exploration and production of gold and copper in Australia. It also explores for silver deposits. The company holds interests in five mines and two processing facilities across its Deflector operations located in the Southern Murchison region of Western Australia; and Mount Monger operations situated within the Kalgoorlie terrane subdivision of the Eastern Goldfields province. Silver Lake Resources Limited is headquartered in South Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 10:36
End of Day Share Price2020/04/06 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.