CNSX:AJN

Stock Analysis Report

Executive Summary

AJN Resources Inc., an exploration and development company, acquires, explores for, and develops mineral properties.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-28.2%

AJN

-6.0%

CA Metals and Mining

-6.2%

CA Market


1 Year Return

833.3%

AJN

2.2%

CA Metals and Mining

-2.0%

CA Market

Return vs Industry: AJN exceeded the Canadian Metals and Mining industry which returned 6.3% over the past year.

Return vs Market: AJN exceeded the Canadian Market which returned 0.1% over the past year.


Shareholder returns

AJNIndustryMarket
7 Day-28.2%-6.0%-6.2%
30 Day60.0%-1.0%-5.0%
90 Day194.7%4.9%-2.8%
1 Year833.3%833.3%2.9%2.2%1.1%-2.0%
3 Yearn/a-2.8%-4.5%10.7%0.6%
5 Yearn/a25.0%21.4%27.6%8.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is AJN Resources undervalued compared to its fair value and its price relative to the market?

7.48x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AJN is overvalued based on its PB Ratio (8.7x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

15.0%

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 AJN Resources 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 AJN Resources performed over the past 5 years?

18.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: AJN is currently unprofitable.

Growing Profit Margin: AJN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if AJN's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: AJN is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.8%).


Return on Equity

High ROE: AJN has a negative Return on Equity (-13.03%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AJN Resources's financial position?


Financial Position Analysis

Short Term Liabilities: AJN's short term assets (CA$1.2M) exceed its short term liabilities (CA$9.2K).

Long Term Liabilities: AJN has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: AJN is debt free.

Reducing Debt: AJN has not had any debt for past 5 years.


Balance Sheet

Inventory Level: AJN has a low level of unsold assets or inventory.

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


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: AJN has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: AJN has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -12.8% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.1%markettop25%5.9%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if AJN'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 AJN's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

3.3yrs

Average board tenure


CEO

Klaus Eckhof (60yo)

0.7yrs

Tenure

CA$555,000

Compensation

Mr. Klaus Peter Eckhof, Dip. Geol. TU, AusIMM, has been President and Chief Executive Officer of AJN Resources Inc. from June 21, 2019. Mr. Eckhof has been Chairman of Amani Gold Limited since April 09, 20 ...


CEO Compensation Analysis

Compensation vs Market: Klaus's total compensation ($USD417.22K) is above average for companies of similar size in the Canadian market ($USD156.06K).

Compensation vs Earnings: Klaus's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Klaus Eckhof
President0.7yrsCA$555.00k3.78% CA$525.8k
Mark Gasson
CFO & Director3.3yrsno data15.11% CA$2.1m
Nigel Ferguson
Director3.3yrsno data13.85% CA$1.9m
Sheena Eckhof
Independent Director0.7yrsno datano data

3.3yrs

Average Tenure

Experienced Board: AJN's board of directors are considered experienced (3.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AJN Resources Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AJN Resources Inc.
  • Ticker: AJN
  • Exchange: CNSX
  • Founded: 2016
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$13.920m
  • Shares outstanding: 24.86m
  • Website: https://www.ajnresources.com

Location

  • AJN Resources Inc.
  • 17618-58th Avenue
  • Suite 200
  • Surrey
  • British Columbia
  • V3S 1L3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AJNCNSX (Canadian National Stock Exchange)YesCommon SharesCACADJun 2018
5ATDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2018

Biography

AJN Resources Inc., an exploration and development company, acquires, explores for, and develops mineral properties. It holds an option to acquire a 100% interest in the Salt Wells Lithium Project located in Nevada, the United States. The company was founded in 2016 and is headquartered in Surrey, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 02:41
End of Day Share Price2020/02/27 00:00
Earnings2019/10/31
Annual Earnings2019/07/31


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.