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

Fundamentals

Flawless balance sheet with reasonable growth potential.


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


Market Performance


7 Day Return

0%

SLR

1.1%

AU Metals and Mining

1.3%

AU Market


1 Year Return

59.3%

SLR

10.7%

AU Metals and Mining

9.9%

AU Market

Return vs Industry: SLR exceeded the Australian Metals and Mining industry which returned 10.7% over the past year.

Return vs Market: SLR exceeded the Australian Market which returned 9.9% over the past year.


Share holder returns

SLRIndustryMarket
7 Day0%1.1%1.3%
30 Day-2.1%-2.7%-0.7%
90 Day-22.3%-7.7%-0.4%
1 Year59.3%59.3%18.4%10.7%16.3%9.9%
3 Year82.5%82.5%66.1%46.1%35.8%17.6%
5 Year180.6%180.6%60.6%24.2%51.9%17.8%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: SLR (A$0.94) is trading below our estimate of fair value (A$2.18)

Significantly Undervalued: SLR is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: SLR is poor value based on its PE Ratio (84x) compared to the Metals and Mining industry average (12.7x).

PE vs Market: SLR is poor value based on its PE Ratio (84x) compared to the Australian market (17.9x).


Price Based on Expected Growth

Low PEG Ratio: SLR is poor value based on its PEG Ratio (3.1x)


Price Based on Value of Assets

PB vs Industry: SLR is good value based on its PB Ratio (1.6x) compared to the AU Metals and Mining industry average (1.6x).


Next Steps

Future Growth

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

27.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: SLR's forecast earnings growth (27% per year) is above the savings rate (2.3%).

Earnings vs Market: SLR's earnings (27% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: SLR's revenue (5.8% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: SLR's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: SLR's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

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

76.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SLR has become profitable over the past 5 years, growing earnings by 76.8% per year.

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 (-59.8%) over the past year, making it difficult to compare to the Metals and Mining industry average (1.3%).


Return on Equity

High ROE: SLR's Return on Equity (1.4%) is considered low.


Return on Assets

ROA vs Industry: SLR's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: SLR has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Silver Lake Resources's financial position?


Financial Position Analysis

Short Term Liabilities: SLR's short term assets (A$179.9M) exceeds its short term liabilities (A$57.7M)

Long Term Liabilities: SLR's short term assets (179.9M) exceeds its long term liabilities (40.7M)


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 1.6%.

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

Inventory Level: SLR has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SLR's debt is covered by short term assets.


Next Steps

  • Explore more healthy companies in the Materials industry.

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.6%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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

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

4.9yrs

Average management tenure


CEO

Luke Tonkin (55yo)

4.9yrs

Tenure

AU$1,411,495

Compensation

Mr. Luke Tonkin, BEng, MAusIMM, AICD, Min Eng, has been the Managing Director of Silver Lake Resources Limited since November 20, 2014. Mr. Tonkin served as Director of Operations at Silver Lake Resources  ...


CEO Compensation Analysis

Compensation vs. Market: Luke's total compensation ($USD961.05K) is about average for companies of similar size in the Australian market ($USD737.74K).

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


Management Age and Tenure

4.9yrs

Average Tenure

Experienced Management: SLR's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: SLR's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: SLR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellAU$12,566,28130 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares12,391,032
Max PriceAU$1.01
BuyAU$2,491,59830 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares2,459,964
Max PriceAU$1.01
BuyAU$14,88227 Sep 19
Van Eck Associates Corporation
EntityCompany
Shares14,872
Max PriceAU$1.00
SellAU$5,814,94824 Sep 19
Van Eck Associates Corporation
EntityCompany
Shares5,705,882
Max PriceAU$1.02
BuyAU$666,06424 Sep 19
Van Eck Associates Corporation
EntityCompany
Shares580,861
Max PriceAU$1.20
SellAU$10,889,31224 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares12,397,837
Max PriceAU$0.88
BuyAU$5,890,02924 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares6,749,702
Max PriceAU$0.87
BuyAU$609,74313 Sep 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares535,675
Max PriceAU$1.14
SellAU$26,736,10213 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares23,071,266
Max PriceAU$1.16
BuyAU$16,470,75713 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares14,457,037
Max PriceAU$1.14
SellAU$594,71813 Sep 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares540,049
Max PriceAU$1.10
SellAU$550,97406 Sep 19
Leslie Davis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares514,706
Max PriceAU$1.07
SellAU$2,183,61926 Jun 19
Van Eck Associates Corporation
EntityCompany
Shares2,732,699
Max PriceAU$0.80
BuyAU$653,52226 Jun 19
Van Eck Associates Corporation
EntityCompany
Shares562,758
Max PriceAU$1.16
BuyAU$1,070,26910 Apr 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares1,887,160
Max PriceAU$0.60
BuyAU$2,175,51409 Apr 19
Van Eck Associates Corporation
EntityCompany
Shares2,997,290
Max PriceAU$0.73
SellAU$10,90609 Apr 19
Van Eck Associates Corporation
EntityCompany
Shares17,989
Max PriceAU$0.61
BuyAU$1,966,68107 Apr 19
Ruffer LLP
EntityCompany
Shares2,755,872
Max PriceAU$0.71
SellAU$449,09807 Apr 19
Ruffer LLP
EntityCompany
Shares614,361
Max PriceAU$0.73
BuyAU$19,511,59301 Apr 19
Paradice Investment Management Pty Ltd.
EntityCompany
Shares26,644,824
Max PriceAU$0.83
SellAU$4,326,99026 Dec 18
Van Eck Associates Corporation
EntityCompany
Shares7,993,340
Max PriceAU$0.54
BuyAU$76,11626 Dec 18
Van Eck Associates Corporation
EntityCompany
Shares184,384
Max PriceAU$0.59

Ownership Breakdown


Management Team

  • Antony Shepherd

    Exploration & Geology Manager

    • Tenure: 5.1yrs
    • Compensation: AU$500.44k
  • Luke Tonkin (55yo)

    MD & Director

    • Tenure: 4.9yrs
    • Compensation: AU$1.41m
  • Diniz Cardoso

    Chief Financial Officer

    • Tenure: 3.5yrs
    • Compensation: AU$608.29k
  • David Berg

    General Counsel & Company Secretary

    • Tenure: 5.1yrs
    • Compensation: AU$575.37k
  • Len Eldridge

    Corporate Development Officer

    • Tenure: 1.8yrs

Board Members

  • Peter Alexander (67yo)

    Director

    • Tenure: 0.5yrs
    • Compensation: AU$29.06k
  • Les Davis

    Non-Executive Director

    • Tenure: 12.4yrs
    • Compensation: AU$125.93k
  • David Quinlivan (64yo)

    Non-Executive Chairman

    • Tenure: 4.1yrs
    • Compensation: AU$190.26k
  • Kelvin Flynn (48yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: AU$125.93k
  • Luke Tonkin (55yo)

    MD & Director

    • Tenure: 4.9yrs
    • Compensation: AU$1.41m

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$847.603m
  • Shares outstanding: 818.94m
  • 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 i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 10:33
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.

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