TSX:GCM

Stock Analysis Report

Gran Colombia Gold

Executive Summary

Gran Colombia Gold Corp., together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold and silver properties primarily in Colombia.

Rewards

Trading at 75.6% below its fair value

Earnings are forecast to grow 59.97% per year

Became profitable this year

Risk Analysis

Shareholders have been substantially diluted in the past year



Snowflake Analysis

Very undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.8%

GCM

1.9%

CA Metals and Mining

1.4%

CA Market


1 Year Return

63.9%

GCM

28.1%

CA Metals and Mining

10.1%

CA Market

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

Return vs Market: GCM exceeded the Canadian Market which returned 10.4% over the past year.


Shareholder returns

GCMIndustryMarket
7 Day-1.8%1.9%1.4%
30 Day6.3%5.1%2.6%
90 Day13.6%10.8%6.5%
1 Year63.9%63.9%29.0%28.1%13.7%10.1%
3 Year240.3%240.3%-1.6%-3.4%17.8%7.1%
5 Year-25.6%-25.6%26.4%22.2%36.3%16.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gran Colombia 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: GCM (CA$5.46) is trading below our estimate of fair value (CA$22.41)

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


Price To Earnings Ratio

PE vs Industry: GCM is good value based on its PE Ratio (7.9x) compared to the Metals and Mining industry average (17.3x).

PE vs Market: GCM is good value based on its PE Ratio (7.9x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: GCM is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: GCM is good value based on its PB Ratio (0.9x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Gran Colombia Gold forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

60.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GCM's forecast earnings growth (60% per year) is above the savings rate (1.4%).

Earnings vs Market: GCM's earnings (60% per year) are forecast to grow faster than the Canadian market (10.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GCM's revenue (9.2% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: GCM's revenue (9.2% 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 GCM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gran Colombia Gold performed over the past 5 years?

38.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GCM has high quality earnings.

Growing Profit Margin: GCM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GCM has become profitable over the past 5 years, growing earnings by 38.2% per year.

Accelerating Growth: GCM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GCM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-1.4%).


Return on Equity

High ROE: GCM's Return on Equity (10.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gran Colombia Gold's financial position?


Financial Position Analysis

Short Term Liabilities: GCM's short term assets ($104.2M) exceed its short term liabilities ($65.5M).

Long Term Liabilities: GCM's short term assets ($104.2M) do not cover its long term liabilities ($165.1M).


Debt to Equity History and Analysis

Debt Level: GCM's debt to equity ratio (37.1%) is considered satisfactory.

Reducing Debt: GCM's debt to equity ratio has reduced from 69% to 37.1% over the past 5 years.

Debt Coverage: GCM's debt is well covered by operating cash flow (101.7%).

Interest Coverage: GCM's interest payments on its debt are well covered by EBIT (101.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: GCM's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

7.6yrs

Average management tenure


CEO

Lombardo Arenas 0

5.9yrs

Tenure

US$593,500

Compensation

Mr. Lombardo Parades Arenas serves as an Independent Director of Western Atlas Resources Inc. since January 10, 2020. He has been Independent Director of Gold X Mining Corp. (formerly Sandspring Resources  ...


CEO Compensation Analysis

Compensation vs Market: Lombardo's total compensation ($USD593.50K) is about average for companies of similar size in the Canadian market ($USD672.22K).

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


Management Age and Tenure

7.6yrs

Average Tenure

Experienced Management: GCM's management team is seasoned and experienced (7.6 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

62yo

Average Age

Experienced Board: GCM's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: GCM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$15,000,00208 Nov 19
Eric Sprott
EntityIndividual
Shares3,260,870
Max PriceCA$4.60
SellCA$171,57106 Sep 19
Hernan Juan Jose Martinez Torres
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,600
Max PriceCA$5.61
SellCA$142,73003 Sep 19
Hernan Juan Jose Martinez Torres
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,400
Max PriceCA$5.62
SellCA$112,23928 Jun 19
Hernan Juan Jose Martinez Torres
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares27,100
Max PriceCA$4.16

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 74.5%.


Management Team

  • Serafino Iacono (58yo)

    Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: US$475.38k
  • Mike Davies (58yo)

    Chief Financial Officer

    • Tenure: 9.4yrs
    • Compensation: US$446.63k
  • Jose Noguera Gomez

    Vice President of Corporate Affairs & Sustainability

    • Tenure: 7.6yrs
    • Compensation: US$314.99k
  • Lombardo Arenas

    Chief Executive Officer

    • Tenure: 5.9yrs
    • Compensation: US$593.50k

Board Members

  • De Lyle Bloomquist (60yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$92.63k
  • Bob Metcalfe (79yo)

    Lead Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$112.63k
  • Serafino Iacono (58yo)

    Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: US$475.38k
  • Miguel Angel de la Campa (74yo)

    Vice Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$268.99k
  • Hernan Juan Jose Martinez Torres (78yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$97.63k
  • Jaime Perez Branger (60yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$102.63k
  • Mónica De Greiff (62yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$71.18k

Company Information

Gran Colombia Gold Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gran Colombia Gold Corp.
  • Ticker: GCM
  • Exchange: TSX
  • Founded:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$285.284m
  • Shares outstanding: 53.22m
  • Website: https://www.grancolombiagold.com

Number of Employees


Location

  • Gran Colombia Gold Corp.
  • 401 Bay Street
  • Suite 2400
  • Toronto
  • Ontario
  • M5H 2Y4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GCMTSX (The Toronto Stock Exchange)YesCommon Voting SharesCACADAug 2010
6KLDDB (Deutsche Boerse AG)YesCommon Voting SharesDEEURAug 2010
TPRF.FOTCPK (Pink Sheets LLC)YesCommon Voting SharesUSUSDAug 2010

Biography

Gran Colombia Gold Corp., together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold and silver properties primarily in Colombia. It holds interests in the Segovia operations comprising the El Silencio, Providencia, Sandra K, and the Carla underground mines located in Colombia; and the Marmato gold project situated in Colombia. The company also owns interest in the Zancudo project located in the Titiribí mining district of Antioquia. Gran Colombia Gold Corp. is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/21 00:28
End of Day Share Price2020/01/20 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.