TSX:ASO

Stock Analysis Report

Avesoro Resources

Executive Summary

Avesoro Resources Inc. explores for, develops, and operates gold assets in West Africa.


Snowflake Analysis

High growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.2%

ASO

0.4%

CA Metals and Mining

1.6%

CA Market


1 Year Return

-34.6%

ASO

28.4%

CA Metals and Mining

10.0%

CA Market

Return vs Industry: ASO underperformed the Canadian Metals and Mining industry which returned 26.9% over the past year.

Return vs Market: ASO underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

ASOIndustryMarket
7 Day1.2%0.4%1.6%
30 Day2.4%3.5%2.7%
90 Day11.1%8.8%6.4%
1 Year-34.6%-34.6%29.3%28.4%13.5%10.0%
3 Year-43.3%-43.3%-0.3%-2.1%17.5%6.8%
5 Year-94.5%-94.5%28.5%24.4%36.6%16.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Avesoro Resources 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: ASO (CA$1.7) is trading below our estimate of fair value (CA$22.58)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ASO is overvalued based on its PB Ratio (2.1x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Avesoro Resources forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

87.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: ASO's revenue (14.4% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: ASO's revenue (14.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASO's Return on Equity is forecast to be high in 3 years time (25%)


Next Steps

Past Performance

How has Avesoro Resources performed over the past 5 years?

-15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASO is currently unprofitable.

Growing Profit Margin: ASO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ASO is unprofitable, and losses have increased over the past 5 years at a rate of -15.3% per year.

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

Earnings vs Industry: ASO 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: ASO has a negative Return on Equity (-122.06%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Avesoro Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ASO's short term assets ($62.5M) do not cover its short term liabilities ($81.9M).

Long Term Liabilities: ASO's short term assets ($62.5M) do not cover its long term liabilities ($140.2M).


Debt to Equity History and Analysis

Debt Level: ASO's debt to equity ratio (269%) is considered high.

Reducing Debt: ASO's debt to equity ratio has increased from 35.7% to 269% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ASO's debt is not covered by short term assets (assets are 0.4x 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: ASO has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if ASO'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 ASO'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 Avesoro Resources's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Serhan Umurhan (46yo)

3.4yrs

Tenure

US$714,511

Compensation

Mr. Serhan Umurhan has been Chief Executive Officer of Avesoro Resources Inc. (also known as Aureus Mining Inc) since July 15, 2016 and serves as its Director. Mr. Umurhan is a Co-Owner of Avesoro Jersey L ...


CEO Compensation Analysis

Compensation vs Market: Serhan's total compensation ($USD714.51K) is above average for companies of similar size in the Canadian market ($USD165.67K).

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


Management Age and Tenure

3.4yrs

Average Tenure

Experienced Management: ASO's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

63yo

Average Age

Experienced Board: ASO's board of directors are considered experienced (3.4 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 8.1%.


Management Team

  • Geoff Eyre (45yo)

    CFO & Director

    • Tenure: 3.4yrs
    • Compensation: US$509.69k
  • Serhan Umurhan (46yo)

    CEO & Director

    • Tenure: 3.4yrs
    • Compensation: US$714.51k
  • Gokhan Kellecioglu

    VP of Exploration

    • Tenure: 2.9yrs

Board Members

  • Loudon Frank Owen (62yo)

    Non-Executive Lead Director

    • Compensation: US$83.92k
  • David Netherway (66yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: US$83.92k
  • Mehmet Gunal (71yo)

    Non-Executive Chairman

    • Tenure: 3.4yrs
  • Jean-Guy Martin (64yo)

    Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: US$83.92k
  • Geoff Eyre (45yo)

    CFO & Director

    • Tenure: 3.4yrs
    • Compensation: US$509.69k
  • Serhan Umurhan (46yo)

    CEO & Director

    • Tenure: 3.4yrs
    • Compensation: US$714.51k

Company Information

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


Key Information

  • Name: Avesoro Resources Inc.
  • Ticker: ASO
  • Exchange: TSX
  • Founded: 2011
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$137.046m
  • Shares outstanding: 81.58m
  • Website: https://www.avesoro.com

Number of Employees


Location

  • Avesoro Resources Inc.
  • 199 Bay Street
  • Suite 5300
  • Toronto
  • Ontario
  • M5L 1B9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASOAIM (London Stock Exchange AIM Market)YesNew Common StockGBGBPApr 2011
AR31DB (Deutsche Boerse AG)YesNew Common StockDEEURApr 2011
ASOTSX (The Toronto Stock Exchange)YesNew Common StockCACADApr 2011
ARSM.FOTCPK (Pink Sheets LLC)YesNew Common StockUSUSDApr 2011

Biography

Avesoro Resources Inc. explores for, develops, and operates gold assets in West Africa. The company primarily owns interests in the New Liberty gold mine located in Liberia; and Youga gold mine and Balogo satellite deposit in Burkina Faso. It also has an exploration stage gold project in Cameroon. The company was incorporated in 2011 and is based in Toronto, Canada. Avesoro Resources Inc. is a subsidiary of Avesoro Jersey Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 00:22
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.