CNSX:FNAU

Stock Analysis Report

Executive Summary

Four Nines Gold Inc., a junior resource company, engages in the acquisition, exploration, and development of gold properties in Canada.

Risk Analysis

Earnings have declined by -80.22% per year over past 5 years

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (CA$1M)

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



Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Four Nines Gold's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FNAU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-16.7%

FNAU

0.8%

CA Metals and Mining

0.8%

CA Market


1 Year Return

n/a

FNAU

28.8%

CA Metals and Mining

10.6%

CA Market

Return vs Industry: Insufficient data to determine how FNAU performed against the Canadian Metals and Mining industry.

Return vs Market: Insufficient data to determine how FNAU performed against the Canadian Market.


Shareholder returns

FNAUIndustryMarket
7 Day-16.7%0.8%0.8%
30 Day-31.0%1.0%2.1%
90 Dayn/a8.5%6.6%
1 Yearn/a29.8%28.8%14.1%10.6%
3 Yearn/a-0.5%-2.3%17.0%6.4%
5 Yearn/a30.0%25.8%38.5%18.2%

Price Volatility Vs. Market

How volatile is Four Nines Gold's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Four Nines Gold undervalued compared to its fair value and its price relative to the market?

2.64x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: FNAU is overvalued based on its PB Ratio (4.1x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Four Nines Gold forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.0%

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 Four Nines Gold 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 Four Nines Gold performed over the past 5 years?

-80.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FNAU is currently unprofitable.

Growing Profit Margin: FNAU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FNAU is unprofitable, and losses have increased over the past 5 years at a rate of -80.2% per year.

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

Earnings vs Industry: FNAU is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-1.4%).


Return on Equity

High ROE: FNAU has a negative Return on Equity (-209.18%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Four Nines Gold's financial position?


Financial Position Analysis

Short Term Liabilities: FNAU's short term assets (CA$749.0K) exceed its short term liabilities (CA$461.9K).

Long Term Liabilities: FNAU has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: FNAU's debt to equity ratio (130.3%) is considered high.

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


Balance Sheet

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

Debt Coverage by Assets: FNAU's debt is covered by short term assets (assets are 2x 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: FNAU has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: FNAU has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -32.1% each year


Next Steps

Dividend

What is Four Nines Gold's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

What is the CEO of Four Nines Gold's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average board tenure


CEO

Charles Ross 0

0.7yrs

Tenure

0

Mr. Charles Ross serves as Director, President and Chief Executive Officer of Four Nines Gold Incorporated since May 29, 2019. Mr. Ross has more than 25 years experience in the international resource secto ...


Board Age and Tenure

1.1yrs

Average Tenure

Experienced Board: FNAU's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

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 been substantially diluted in the past year, with total shares outstanding growing by 344.4%.


Management Team

  • Geoff Balderson (41yo)

    CFO & Director

    • Tenure: 1.1yrs
  • Charles Ross

    President

    • Tenure: 0.7yrs

Board Members

  • Jim Mustard (66yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: CA$61.00k
  • Geoff Balderson (41yo)

    CFO & Director

    • Tenure: 1.1yrs
  • Charles Ross

    President

    • Tenure: 0.7yrs

Company Information

Four Nines Gold Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Four Nines Gold Inc.
  • Ticker: FNAU
  • Exchange: CNSX
  • Founded: 2015
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$758.090k
  • Shares outstanding: 7.58m
  • Website: https://www.fourninesgold.ca

Location

  • Four Nines Gold Inc.
  • 409 Granville Street
  • Suite 1000
  • Vancouver
  • British Columbia
  • V6C 1T2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FNAUCNSX (Canadian National Stock Exchange)YesClass A Common SharesCACADAug 2017

Biography

Four Nines Gold Inc., a junior resource company, engages in the acquisition, exploration, and development of gold properties in Canada. It has an option to acquire a 70% interest in the Mariposa property, including comprising an aggregate 27,000 hectares located in the White Gold district, Yukon Territory. The company was formerly known as Eureka Dome Gold Inc. and changed its name to Four Nines Gold Inc. in November 2016. Four Nines Gold Inc. was incorporated in 2015 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/24 00:40
End of Day Share Price2020/01/21 00:00
Earnings2019/10/31
Annual Earnings2019/01/31


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.