ASX:WWI

Stock Analysis Report

Executive Summary

West Wits Mining Limited explores for and develops gold mining tenements in Western Australia and South Africa.

Risk Analysis

Earnings have declined by -41.18% per year over past 5 years

Has less than 1 year of cash runway

Does not have a meaningful market cap (A$10M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 3 more risks


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has West Wits Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-15.4%

WWI

0.6%

AU Metals and Mining

2.4%

AU Market


1 Year Return

10.0%

WWI

22.9%

AU Metals and Mining

20.1%

AU Market

Return vs Industry: WWI underperformed the Australian Metals and Mining industry which returned 22% over the past year.

Return vs Market: WWI underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

WWIIndustryMarket
7 Day-15.4%0.6%2.4%
30 Day37.5%2.5%3.1%
90 Day120.0%13.0%5.4%
1 Year10.0%10.0%29.0%22.9%25.5%20.1%
3 Year-59.3%-59.3%60.4%40.6%38.4%19.8%
5 Year88.0%83.3%111.1%62.4%63.6%26.7%

Price Volatility Vs. Market

How volatile is West Wits Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is West Wits Mining undervalued compared to its fair value and its price relative to the market?

0.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: WWI 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 WWI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WWI is good value based on its PB Ratio (0.6x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is West Wits Mining forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.7%

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 West Wits Mining 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 West Wits Mining performed over the past 5 years?

-41.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WWI is currently unprofitable.

Growing Profit Margin: WWI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WWI is unprofitable, and losses have increased over the past 5 years at a rate of -41.2% per year.

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

Earnings vs Industry: WWI is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (7.8%).


Return on Equity

High ROE: WWI has a negative Return on Equity (-135.39%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is West Wits Mining's financial position?


Financial Position Analysis

Short Term Liabilities: WWI's short term assets (A$1.9M) do not cover its short term liabilities (A$5.1M).

Long Term Liabilities: WWI's short term assets (A$1.9M) exceed its long term liabilities (A$65.0K).


Debt to Equity History and Analysis

Debt Level: WWI's debt to equity ratio (1.2%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: WWI's debt is covered by short term assets (assets are 19x debt).


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: WWI has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: WWI has less than a year of cash runway if free cash flow continues to reduce at historical rates of -24.9% each year


Next Steps

Dividend

What is West Wits Mining's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if WWI'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 WWI'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 West Wits Mining's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

West Wits Mining has no CEO, or we have no data on them.


Management Age and Tenure

1.5yrs

Average Tenure

57yo

Average Age

Experienced Management: WWI's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

10.6yrs

Average Tenure

54yo

Average Age

Experienced Board: WWI's board of directors are seasoned and experienced ( 10.6 years average tenure).


Insider Trading

Insider Buying: WWI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$14,54403 Nov 19
Michael Quinert
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares2,909,541
Max PriceAU$0.005
BuyAU$54027 Mar 19
Michael Quinert
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares60,000
Max PriceAU$0.009
BuyAU$3,18925 Mar 19
Michael Quinert
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares367,401
Max PriceAU$0.0087

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.8%.


Management Team

  • Phillip Hains (60yo)

    Joint Company Secretary

    • Tenure: 12.5yrs
    • Compensation: AU$300.00k
  • Michael Quinert (57yo)

    Executive Chairman of the Board

    • Tenure: 12.8yrs
    • Compensation: AU$181.38k
  • Andrew Tunks (55yo)

    Exploration Director & Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$159.56k
  • Tim Chapman

    General Manager

    • Compensation: AU$37.00k
  • Trevor Neale

    Chief Geologist of Indonesian Mining Operation

    • Compensation: AU$6.00k
  • Jac van Heerden

    CEO of West Wits MLI & West Wits SA (Pty) Ltd

    • Tenure: 1yrs
    • Compensation: AU$225.00k
  • Simon Whyte

    CFO & Joint Company Secretary

    • Tenure: 0.8yrs
    • Compensation: AU$171.79k

Board Members

  • Niel Pretorius (52yo)

    Independent Non-Executive Director

    • Tenure: 12.4yrs
  • Michael Quinert (57yo)

    Executive Chairman of the Board

    • Tenure: 12.8yrs
    • Compensation: AU$181.38k
  • Andrew Tunks (55yo)

    Exploration Director & Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$159.56k
  • John Scholes (53yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: AU$25.00k

Company Information

West Wits Mining Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: West Wits Mining Limited
  • Ticker: WWI
  • Exchange: ASX
  • Founded: 2007
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$10.313m
  • Shares outstanding: 937.53m
  • Website: https://www.westwitsmining.com

Location

  • West Wits Mining Limited
  • 62 Lygon Street
  • Level 3
  • Carlton
  • Victoria
  • 3053
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WWIASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2007
WWICHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2007
WMWW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2007

Biography

West Wits Mining Limited explores for and develops gold mining tenements in Western Australia and South Africa. The company’s flagship project is the Witwatersrand Basin project located in Johannesburg, South Africa. It also holds interest in the Cecelia and Tambina gold projects in Pilbara, Australia. West Wits Mining Limited was incorporated in 2007 and is based in Carlton, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 10:33
End of Day Share Price2020/01/17 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.