TSX:AKG

Stock Analysis Report

Executive Summary

Asanko Gold Inc. engages in the exploration, development, and production of gold properties.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

10.7%

AKG

3.5%

CA Metals and Mining

-1.5%

CA Market


1 Year Return

39.6%

AKG

6.8%

CA Metals and Mining

2.5%

CA Market

Return vs Industry: AKG exceeded the Canadian Metals and Mining industry which returned 5.4% over the past year.

Return vs Market: AKG exceeded the Canadian Market which returned 4.5% over the past year.


Shareholder returns

AKGIndustryMarket
7 Day10.7%3.5%-1.5%
30 Day13.6%5.0%-0.7%
90 Day17.5%14.3%1.8%
1 Year39.6%39.6%7.5%6.8%5.7%2.5%
3 Year-62.3%-62.3%2.8%1.0%16.8%6.2%
5 Year-28.3%-28.3%29.1%25.4%32.0%12.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AKG (CA$1.32) is trading below our estimate of fair value (CA$3.56)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AKG is overvalued based on its PB Ratio (1.6x) compared to the CA Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Asanko Gold forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

112.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: AKG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AKG's is expected to become profitable in the next 3 years.

Revenue vs Market: AKG's revenue (12.5% per year) is forecast to grow faster than the Canadian market (4.7% per year).

High Growth Revenue: AKG's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AKG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Asanko Gold performed over the past 5 years?

-56.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKG is currently unprofitable.

Growing Profit Margin: AKG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AKG is unprofitable, and losses have increased over the past 5 years at a rate of -56.6% per year.

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

Earnings vs Industry: AKG is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: AKG has a negative Return on Equity (-118.88%), as it is currently unprofitable.


Next Steps

Financial Health

How is Asanko Gold's financial position?


Financial Position Analysis

Short Term Liabilities: AKG's short term assets ($35.8M) exceed its short term liabilities ($2.3M).

Long Term Liabilities: AKG's short term assets ($35.8M) exceed its long term liabilities ($930.0K).


Debt to Equity History and Analysis

Debt Level: AKG is debt free.

Reducing Debt: AKG has no debt compared to 5 years ago when its debt to equity ratio was 15%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if AKG'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: AKG has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if AKG has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if AKG'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 AKG'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?

0.5yrs

Average management tenure


CEO

Greg McCunn (49yo)

0.8yrs

Tenure

US$927,090

Compensation

Mr. Gregory John McCunn, also known as Greg, BASc, MBA, P.Eng, has been Chief Executive Officer and Director of Asanko Gold Inc. since April 01, 2019. Mr. McCunn served the Chief Executive Officer of Alio  ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD663.47K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Fausto Di Trapani
Executive VP3.1yrsUS$891.16k0.058% $171.4k
Josephat Zvaipa
Executive VP & COO0.5yrsUS$997.99kno data
Gregory McCunn
Director & CEO0.8yrsUS$927.09k0.045% $132.0k
Lynette Gould
Senior Vice President of Investor Relations0.5yrsno datano data
Markus Felderer
Senior Vice President of Corporate Development0.3yrsno datano data
Benjamin Adoo
Executive Chairman of Ghana0yrsno datano data
Frederick Attakumah
Executive VP & MD of AGGL0.5yrsno datano data
Mike Begg
Senior Vice President of Technical Services1.4yrsno datano data
Eunice Nyadu
Executive0yrsno datano data

0.5yrs

Average Tenure

Experienced Management: AKG's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gregory McCunn
Director & CEO0.8yrsUS$927.09k0.045% $132.0k
Gordon Fretwell
Independent Director16yrsUS$80.65k0.11% $321.0k
Colin Steyn
Independent Chairman of the Board6yrsUS$142.68k1.2% $3.6m
Marcel de Groot
Independent Director10.6yrsUS$85.39k0.018% $52.8k
Michael Price
Independent Director6yrsUS$80.65kno data
Shawn Wallace
Independent Director10yrsUS$72.89k0.0077% $22.7k
Judith Mosely
Director0.08yrsno datano data

6.0yrs

Average Tenure

49yo

Average Age

Experienced Board: AKG's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AKG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Asanko Gold Inc.
  • Ticker: AKG
  • Exchange: TSX
  • Founded: 1999
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$296.201m
  • Shares outstanding: 224.39m
  • Website: https://www.asanko.com

Number of Employees


Location

  • Asanko Gold Inc.
  • 1066 West Hastings Street
  • Suite 1640
  • Vancouver
  • British Columbia
  • V6E 3X1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AKGTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2001
B7UDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2001
AKGAMEX (NYSE MKT LLC)YesCommon SharesUSUSDJun 2001
0UITLSE (London Stock Exchange)YesCommon SharesGBCADJun 2001

Biography

Asanko Gold Inc. engages in the exploration, development, and production of gold properties. Its principal project is the Asanko Gold Mine, which consists of two gold projects, such as the Obotan Project and the Esaase Project located in the Amansie West District of the Republic of Ghana, West Africa. The company was formerly known as Keegan Resources Inc. and changed its name to Asanko Gold Inc. in February 2013. Asanko Gold Inc. was incorporated in 1999 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 Analysis2020/02/25 00:34
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.