Element79 Gold Valuation

Q: What is the Fair Price of ELEM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ELEM (CA$0.08) is trading below our estimate of [[fair value]] (CA$3.1)

Is ELEM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ELEM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ELEM (CA$0.08) is trading below our estimate of fair value (CA$3.1)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ELEM?

Key metric: As ELEM is unprofitable and pre-revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for ELEM. This is calculated by dividing ELEM's market cap by their current book value.
What is ELEM's PB Ratio?
PB Ratio	0.5x
Book	CA$14.74m
Market Cap	CA$7.72m

ELEM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	-2.3x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does ELEM's PB Ratio compare to its peers?

The above table shows the PB ratio for ELEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PB	Estimated Growth	Market Cap
Peer Average	2.1x
OPW Opawica Explorations	2x	n/a	CA$7.7m
DYG Dynasty Gold	1.4x	n/a	CA$7.6m
GSTM Goldstorm Metals	0.5x	n/a	CA$8.0m
SWA Sarama Resources	4.5x	n/a	CA$7.7m
ELEM Element79 Gold	0.5x	n/a	CA$7.7m

Price-To-Book vs Peers: ELEM is good value based on its Price-To-Book Ratio (0.5x) compared to the peer average (2.1x).

Price to Book Ratio vs Industry

How does ELEM's PB Ratio compare vs other companies in the CA Metals and Mining Industry?

89 Companies	Price / Book	Estimated Growth	Market Cap
S Sherritt International	0.1x	n/a	US$48.32m
WM Wallbridge Mining	0.2x	n/a	US$46.71m
NCU Nevada Copper	0.1x	n/a	US$31.56m
ELR Eastern Platinum	0.3x	n/a	US$25.33m

89 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Book vs Industry: ELEM is good value based on its Price-To-Book Ratio (0.5x) compared to the Canadian Metals and Mining industry average (1.4x).

Price to Book Ratio vs Fair Ratio

What is ELEM's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ELEM PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	0.5x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate ELEM's Price-To-Book Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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