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.

Snowflake

Fundamentals

Very undervalued with excellent balance sheet.

Risks

  • Gran Colombia Gold has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-3.4%

TSX:GCM

-0.4%

CA Metals and Mining

1.2%

CA Market


1 Year Return

109.1%

TSX:GCM

18.6%

CA Metals and Mining

-0.4%

CA Market

GCM outperformed the Metals and Mining industry which returned 21.6% over the past year.

GCM outperformed the Market in Canada which returned -0.3% over the past year.


Share holder returns

GCMIndustryMarket
7 Day-3.4%-0.4%1.2%
30 Day-18.3%-0.5%3.3%
90 Day1.3%6.3%0.8%
1 Year109.1%109.1%19.5%18.6%3.1%-0.4%
3 Year166.7%166.7%-14.4%-15.9%18.0%7.4%
5 Year-68.4%-68.4%0.6%-3.2%22.0%4.5%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Gran Colombia Gold's share price is below the future cash flow value, and at a moderate discount (> 20%).

Gran Colombia Gold's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Gran Colombia Gold is good value based on earnings compared to the CA Metals and Mining industry average.

Gran Colombia Gold is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Gran Colombia Gold is good value based on expected growth next year.


Price Based on Value of Assets

Gran Colombia Gold is good value based on assets compared to the CA Metals and Mining industry average.


Next Steps

Future Growth

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

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Gran Colombia Gold's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Gran Colombia Gold's earnings are expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).

Gran Colombia Gold's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.

Gran Colombia Gold's earnings growth is positive but not above the Canada market average.

Gran Colombia Gold's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Gran Colombia Gold will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

56.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Gran Colombia Gold has delivered over 20% year on year earnings growth in the past 5 years.

Gran Colombia Gold has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Gran Colombia Gold has become profitable in the last year making it difficult to compare the CA Metals and Mining industry average.


Return on Equity

Gran Colombia Gold has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Gran Colombia Gold used its assets more efficiently than the CA Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Gran Colombia Gold has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Gran Colombia Gold's financial position?


Financial Position Analysis

Gran Colombia Gold is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Gran Colombia Gold's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Gran Colombia Gold's level of debt (35.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (77.3% vs 35.8% today).

Debt is well covered by operating cash flow (89.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 35.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Gran Colombia Gold's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Gran Colombia Gold's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Gran Colombia Gold has not reported any payouts.

Unable to verify if Gran Colombia Gold's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Gran Colombia Gold has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

7.3yrs

Average management tenure


CEO

Lombardo Paredes Arenas 0

5.6yrs

Tenure

US$593,500

Compensation

Mr. Lombardo Paredes Arenas has been the Chief Executive Officer at Gran Colombia Gold Corp. since February 01, 2014. Mr. Arenas has over 20 years of corporate leadership and operations management experien ...


CEO Compensation Analysis

Lombardo's remuneration is about average for companies of similar size in Canada.

Lombardo's compensation has increased in line with Gran Colombia Gold recently becoming profitable.


Management Age and Tenure

7.3yrs

Average Tenure

The average tenure for the Gran Colombia Gold management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

2.1yrs

Average Tenure

62yo

Average Age

The average tenure for the Gran Colombia Gold board of directors is less than 3 years, this suggests a new board.


Insider Trading

Gran Colombia Gold individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$171,57106 Sep 19
Hernan Juan Jose Martinez Torres
EntityIndividual
Role
Member of the Board of Directors
Director
Shares30,600
Max PriceUS$5.61
SellUS$142,73003 Sep 19
Hernan Juan Jose Martinez Torres
EntityIndividual
Role
Member of the Board of Directors
Director
Shares25,400
Max PriceUS$5.62
SellUS$112,23928 Jun 19
Hernan Juan Jose Martinez Torres
EntityIndividual
Role
Member of the Board of Directors
Director
Shares27,100
Max PriceUS$4.16

Ownership Breakdown


Management Team

  • Serafino Iacono (58yo)

    Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: US$475.38k
  • Mike Davies (58yo)

    Chief Financial Officer

    • Tenure: 9.1yrs
    • Compensation: US$446.63k
  • Lombardo Paredes Arenas

    Chief Executive Officer

    • Tenure: 5.6yrs
    • Compensation: US$593.50k
  • Jose Noguera Gomez

    Vice President of Corporate Affairs & Sustainability

    • Tenure: 7.3yrs
    • Compensation: US$314.99k

Board Members

  • De Lyle Bloomquist (60yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$92.63k
  • Bob Metcalfe (79yo)

    Lead Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$112.63k
  • Serafino Iacono (58yo)

    Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: US$475.38k
  • Miguel Angel de la Campa (74yo)

    Vice Chairman of the Board

    • Tenure: 0.5yrs
    • Compensation: US$268.99k
  • Hernan Juan Jose Martinez Torres (78yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$97.63k
  • Jaime Perez Branger (60yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$102.63k
  • Mónica De Greiff (62yo)

    Director

    • Tenure: 1.3yrs
    • 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$225.424m
  • Shares outstanding: 49.01m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 00:03
End of Day Share Price2019/09/18 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.