TSX:CNL

Stock Analysis Report

Continental Gold

Executive Summary

Continental Gold Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of gold resource properties in Colombia.

Snowflake

Fundamentals

Slightly overvalued with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

CNL

-1.9%

CA Metals and Mining

0.1%

CA Market


1 Year Return

56.2%

CNL

11.8%

CA Metals and Mining

1.6%

CA Market

Return vs Industry: CNL exceeded the Canadian Metals and Mining industry which returned 11.8% over the past year.

Return vs Market: CNL exceeded the Canadian Market which returned 1.6% over the past year.


Shareholder returns

CNLIndustryMarket
7 Day1.8%-1.9%0.1%
30 Day3.8%-4.7%-2.9%
90 Day-5.4%-5.0%-1.4%
1 Year56.2%56.2%12.7%11.8%5.2%1.6%
3 Year4.6%4.6%-11.3%-13.0%13.8%3.7%
5 Year54.4%54.4%6.9%2.8%25.3%7.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Continental 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

Undervalued: CNL (CA$4.06) is trading below our estimate of fair value (CA$22.92)

Significantly Undervalued: CNL is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: CNL is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate CNL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CNL is overvalued based on its PB Ratio (4.4x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

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

43.4%

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 Continental 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 Continental Gold performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CNL is unprofitable, but has reduced losses over the past 5 years at a rate of 8% per year.

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

Earnings vs Industry: CNL is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-13.7%).


Return on Equity

High ROE: CNL has a negative Return on Equity (-34.41%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CNL is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CNL is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Continental Gold's financial position?


Financial Position Analysis

Short Term Liabilities: CNL's short term assets ($141.2M) exceeds its short term liabilities ($37.7M)

Long Term Liabilities: CNL's short term assets (141.2M) do not cover its long term liabilities (520.2M)


Debt to Equity History and Analysis

Debt Level: CNL's debt to equity ratio (285.6%) is considered high

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


Balance Sheet

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

Debt Coverage by Assets: CNL'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: CNL has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if CNL's dividends per share have been stable in the past.

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

4.7yrs

Average management tenure


CEO

Ari Sussman (46yo)

9.6yrs

Tenure

US$1,713,977

Compensation

Ari B. Sussman has over 20 years of experience in both the natural resources and investment markets sectors. Having dedicated the majority of his career to the natural resources industry, Mr. Sussman has b ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Ari's total compensation is reasonable compared to companies of similar size in the Canadian market.

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


Management Age and Tenure

4.7yrs

Average Tenure

53yo

Average Age

Experienced Management: CNL's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

51yo

Average Age

Experienced Board: CNL's board of directors are considered experienced (4.8 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.


Recent Insider Transactions

BuyUS$25,48018 Jan 19
Leon Teicher
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares13,000
Max PriceUS$1.96
BuyUS$40,98625 Dec 18
Ari Sussman
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares20,000
Max PriceUS$2.05
BuyUS$63,76021 Dec 18
Ari Sussman
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares30,000
Max PriceUS$2.13
BuyUS$4,26020 Dec 18
Ari Sussman
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares2,000
Max PriceUS$2.13
BuyUS$53,00020 Dec 18
Leon Teicher
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares25,000
Max PriceUS$2.12
BuyUS$21,20026 Oct 18
Ari Sussman
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares9,000
Max PriceUS$2.36

Ownership Breakdown


Management Team

  • Ari Sussman (46yo)

    CEO & Director

    • Tenure: 9.6yrs
    • Compensation: US$1.71m
  • Glynnis Frelih

    Senior VP of Finance & Controller

    • Tenure: 0yrs
  • Don Gray (60yo)

    Chief Operating Officer

    • Tenure: 4.7yrs
    • Compensation: US$866.43k
  • Paul Begin

    Chief Financial Officer

    • Tenure: 8.4yrs
    • Compensation: US$862.81k
  • Leon Teicher (65yo)

    Executive Chairman of the Board

    • Tenure: 5.5yrs
    • Compensation: US$320.41k
  • Ana Vásquez (42yo)

    Senior Vice-President of External Affairs & Sustainability

    • Tenure: 0.5yrs
  • Cheree Scott

    Corporate Secretary & Manager of Human Resources

    • Tenure: 0yrs
  • Omar Ossma

    Vice-President of Legal

    • Tenure: 3.6yrs
  • Jairo Ariza

    Vice-President of Protection

    • Tenure: 0yrs

Board Members

  • Ari Sussman (46yo)

    CEO & Director

    • Tenure: 9.6yrs
    • Compensation: US$1.71m
  • Chris Sattler (44yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$167.83k
  • Ken Thomas

    Lead Director

    • Tenure: 4.3yrs
    • Compensation: US$210.41k
  • Steve Gottesfeld (51yo)

    Director

    • Tenure: 2.3yrs
  • Leon Teicher (65yo)

    Executive Chairman of the Board

    • Tenure: 5.5yrs
    • Compensation: US$320.41k
  • Paul Murphy (68yo)

    Director

    • Tenure: 9.4yrs
    • Compensation: US$170.31k
  • Claudia Jiménez Jaramillo (51yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$155.31k
  • Martín Jose Carrizosa Calle

    Director

    • Tenure: 3.5yrs
    • Compensation: US$155.31k

Company Information

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


Key Information

  • Name: Continental Gold Inc.
  • Ticker: CNL
  • Exchange: TSX
  • Founded: 2007
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$824.702m
  • Shares outstanding: 203.13m
  • Website: https://www.continentalgold.com

Number of Employees


Location

  • Continental Gold Inc.
  • 155 Wellington Street West
  • Suite 2920
  • Toronto
  • Ontario
  • M5V 3H1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNLTSX (The Toronto Stock Exchange)YesNew Common SharesCACADApr 2010
7C0DB (Deutsche Boerse AG)YesNew Common SharesDEEURApr 2010
CGOO.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDApr 2010

Biography

Continental Gold Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of gold resource properties in Colombia. The company holds the rights to develop  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:14
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.