ASX:SVL

Stock Analysis Report

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Executive Summary

Silver Mines Limited primarily engages in the exploration of silver deposits in Australia.


Snowflake Analysis

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

9.1%

SVL

1.6%

AU Metals and Mining

-0.1%

AU Market


1 Year Return

135.3%

SVL

-0.5%

AU Metals and Mining

-12.0%

AU Market

Return vs Industry: SVL exceeded the Australian Metals and Mining industry which returned -0.5% over the past year.

Return vs Market: SVL exceeded the Australian Market which returned -12% over the past year.


Shareholder returns

SVLIndustryMarket
7 Day9.1%1.6%-0.1%
30 Day22.4%2.2%-1.3%
90 Day39.5%21.3%11.8%
1 Year135.3%135.3%4.8%-0.5%-8.4%-12.0%
3 Year6.9%4.3%67.6%44.0%17.0%1.5%
5 Year-75.9%-80.0%111.9%69.5%29.6%1.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Silver Mines undervalued compared to its fair value and its price relative to the market?

1.42x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SVL's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SVL's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SVL is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: SVL is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SVL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SVL is good value based on its PB Ratio (1.4x) compared to the AU Metals and Mining industry average (1.7x).


Next Steps

Future Growth

How is Silver Mines forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.2%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Silver Mines has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Silver Mines performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVL is currently unprofitable.

Growing Profit Margin: SVL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SVL is unprofitable, but has reduced losses over the past 5 years at a rate of 7.9% per year.

Accelerating Growth: Unable to compare SVL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SVL is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-8.4%).


Return on Equity

High ROE: SVL has a negative Return on Equity (-2.39%), as it is currently unprofitable.


Next Steps

Financial Health

How is Silver Mines's financial position?


Financial Position Analysis

Short Term Liabilities: SVL's short term assets (A$7.7M) exceed its short term liabilities (A$2.0M).

Long Term Liabilities: SVL has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: SVL's debt to equity ratio (1.4%) is considered satisfactory.

Reducing Debt: SVL's debt to equity ratio has increased from 0.06% to 1.4% over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: SVL has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SVL has sufficient cash runway for 2.3 years if free cash flow continues to reduce at historical rates of 9.8% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

4.0yrs

Average board tenure


CEO

Anthony McClure

4.08yrs

Tenure

AU$346,875

Compensation

Mr. Anthony John McClure, B.Sc. serves as Non Executive Director at Santana Minerals Limited since November 15, 2019. He has been Managing Director of Silver Mines Limited since June 20, 2016. Mr. McClure  ...


CEO Compensation Analysis

Compensation vs Market: Anthony's total compensation ($USD241.37K) is about average for companies of similar size in the Australian market ($USD263.42K).

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


Board Members

NamePositionTenureCompensationOwnership
Anthony McClure
MD, Director & Member of Advisory Board4.08yrsAU$346.88k3.09% A$3.4m
Jonathan Battershill
Independent Non-Executive Director3.08yrsAU$60.00k0.062% A$68.7k
Peter Langworthy
Independent Non-Executive Director4.08yrsAU$60.00k0.087% A$96.2k
Keith Perrett
Independent Non-Executive Chairman3.92yrsAU$80.00k0.22% A$247.5k

4.0yrs

Average Tenure

Experienced Board: SVL's board of directors are considered experienced (4 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 44.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Silver Mines Limited
  • Ticker: SVL
  • Exchange: ASX
  • Founded: 2004
  • Industry: Silver
  • Sector: Materials
  • Market Cap: AU$111.027m
  • Shares outstanding: 1.01b
  • Website: https://www.silvermines.com.au

Number of Employees


Location

  • Silver Mines Limited
  • 52 Phillip Street
  • Level 11
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SVLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2007
SWQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2007
SVLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 2007

Biography

Silver Mines Limited primarily engages in the exploration of silver deposits in Australia. It operates through two segments, Mining and Exploration Operations, and Agricultural Operations. The company also explores for polymetallic, copper, gold, lead, zinc, and tin deposits. Its principal property is the Bowdens silver project covering an area of 1,654 square kilometers located in the Central Tablelands Region, New South Wales. The company is also involved in agricultural activities. Silver Mines Limited was incorporated in 2004 and is based in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 10:35
End of Day Share Price2020/07/09 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.