CNSX:RLG

Stock Analysis Report

West Red Lake Gold Mines

Executive Summary

West Red Lake Gold Mines Inc., an exploration stage company, focuses on the exploration and development of gold deposits in the Red Lake Gold District of Northwestern Ontario, Canada.

Snowflake

Fundamentals

Mediocre balance sheet and overvalued.

Share Price & News

How has West Red Lake Gold Mines's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

RLG

1.3%

CA Metals and Mining

0.6%

CA Market


1 Year Return

0%

RLG

22.0%

CA Metals and Mining

7.1%

CA Market

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

Return vs Market: RLG underperformed the Canadian Market which returned 7.1% over the past year.


Shareholder returns

RLGIndustryMarket
7 Day0%1.3%0.6%
30 Day0%1.0%3.2%
90 Day-28.6%-2.9%4.3%
1 Year0%0%23.1%22.0%10.7%7.1%
3 Year-78.3%-78.3%-1.6%-3.4%18.4%7.8%
5 Yearn/a19.4%15.4%26.8%8.2%

Price Volatility Vs. Market

How volatile is West Red Lake Gold Mines's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is West Red Lake Gold Mines undervalued compared to its fair value and its price relative to the market?

0.54x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RLG is good value based on its PB Ratio (0.5x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is West Red Lake Gold Mines forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.3%

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 Red Lake Gold 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 West Red Lake Gold Mines performed over the past 5 years?

-13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RLG has high quality earnings.

Growing Profit Margin: Insufficient data to determine if RLG's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: RLG is unprofitable, and losses have increased over the past 5 years at a rate of -13.7% per year.

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

Earnings vs Industry: RLG is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-15.5%).


Return on Equity

High ROE: RLG has a negative Return on Equity (-3.35%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is West Red Lake Gold Mines's financial position?


Financial Position Analysis

Short Term Liabilities: RLG's short term assets (CA$295.8K) exceeds its short term liabilities (CA$284.2K)

Long Term Liabilities: RLG's short term assets (295.8K) do not cover its long term liabilities (459.1K)


Debt to Equity History and Analysis

Debt Level: RLG is debt free.

Reducing Debt: RLG has no debt compared to 5 years ago when its debt to equity ratio was 1.7%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if RLG'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: RLG has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: RLG has less than a year of cash runway if free cash flow continues to grow at historical rates of 18.7% each year.


Next Steps

Dividend

What is West Red Lake Gold Mines's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if RLG'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 RLG'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 West Red Lake Gold Mines's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average board tenure


CEO

Tom Meredith 0

0yrs

Tenure

CA$60,000

Compensation

Mr. Thomas Wright Meredith, also known as Tom, has been Executive Chairman of West Red Lake Gold Mines Inc. since August 31, 2013 and as its Executive Director since October 2012. Mr. Meredith serves as St ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD136.08K).

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


Board Age and Tenure

4.4yrs

Average Tenure

Experienced Board: RLG's board of directors are considered experienced (4.4 years average tenure).


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 diluted in the past year, with total shares outstanding growing by 7.4%.


Management Team

  • Tom Meredith

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: CA$60.00k
  • Alex Falconer (60yo)

    Consultant

    • Tenure: 0yrs
    • Compensation: CA$5.50k
  • Nadim Wakeam (66yo)

    Corporate Counsel

    • Tenure: 8.7yrs
  • John Kontak

    President & Director

    • Tenure: 4.1yrs
    • Compensation: CA$60.00k
  • Ken Guy

    Exploration Manager

    • Tenure: 0yrs

Board Members

  • Tom Meredith

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: CA$60.00k
  • John Heslop

    Vice Chairman

    • Tenure: 3.4yrs
    • Compensation: CA$76.12k
  • Mike Dehn (50yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: CA$27.04k
  • John Kontak

    President & Director

    • Tenure: 4.1yrs
    • Compensation: CA$60.00k
  • Dan Crandall (36yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: CA$21.95k

Company Information

West Red Lake Gold Mines Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: West Red Lake Gold Mines Inc.
  • Ticker: RLG
  • Exchange: CNSX
  • Founded: 1991
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$6.991m
  • Shares outstanding: 139.81m
  • Website: https://www.westredlakegold.com

Location

  • West Red Lake Gold Mines Inc.
  • 82 Richmond Street East
  • Suite 200
  • Toronto
  • Ontario
  • M5C 1P1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RLGM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 2001
HYKDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2001
RLGCNSX (Canadian National Stock Exchange)YesCommon SharesCACADJan 2001

Biography

West Red Lake Gold Mines Inc., an exploration stage company, focuses on the exploration and development of gold deposits in the Red Lake Gold District of Northwestern Ontario, Canada. It holds interests in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 00:38
End of Day Share Price2019/11/15 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.