TSX:GGA

Stock Analysis Report

Goldgroup Mining

Executive Summary

Goldgroup Mining Inc., together with its subsidiaries, focuses on the acquisition, exploration, and development of gold-bearing mineral properties in the Americas.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Goldgroup Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GGA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

GGA

-1.5%

CA Metals and Mining

-3.8%

CA Market


1 Year Return

-54.5%

GGA

4.9%

CA Metals and Mining

0.5%

CA Market

Return vs Industry: GGA underperformed the Canadian Metals and Mining industry which returned 4.9% over the past year.

Return vs Market: GGA underperformed the Canadian Market which returned 0.5% over the past year.


Shareholder returns

GGAIndustryMarket
7 Day0%-1.5%-3.8%
30 Day0%3.2%-2.0%
90 Day-28.6%10.2%-0.3%
1 Year-54.5%-54.5%5.6%4.9%3.7%0.5%
3 Year-78.3%-78.3%-1.9%-3.6%13.6%3.4%
5 Year-80.8%-80.8%28.2%24.6%30.2%11.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Goldgroup Mining undervalued compared to its fair value and its price relative to the market?

1.29x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GGA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GGA's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: GGA is good value based on its PB Ratio (1.3x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Goldgroup Mining forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.7%

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 Goldgroup Mining 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 Goldgroup Mining performed over the past 5 years?

67.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GGA is currently unprofitable.

Growing Profit Margin: GGA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GGA is unprofitable, but has reduced losses over the past 5 years at a rate of 67.5% per year.

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

Earnings vs Industry: GGA is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.8%).


Return on Equity

High ROE: GGA has a negative Return on Equity (-152.34%), as it is currently unprofitable.


Next Steps

Financial Health

How is Goldgroup Mining's financial position?


Financial Position Analysis

Short Term Liabilities: GGA's short term assets ($4.4M) do not cover its short term liabilities ($7.6M).

Long Term Liabilities: GGA's short term assets ($4.4M) exceed its long term liabilities ($1.5M).


Debt to Equity History and Analysis

Debt Level: GGA's debt to equity ratio (35.6%) is considered satisfactory.

Reducing Debt: GGA's debt to equity ratio has increased from 9.7% to 35.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: GGA's debt is covered by short term assets (assets are 4.6x 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: Whilst unprofitable GGA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GGA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 34.5% per year.


Next Steps

Dividend

What is Goldgroup Mining's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

7.2yrs

Average board tenure


CEO

Anthony Balic (37yo)

0.7yrs

Tenure

US$137,000

Compensation

Mr. Anthony Bob Balic is the Interim Chief Executive Officer of Goldgroup Mining Inc. since June 26, 2019. He serves as Director and Chief Financial Officer at Lions Bay Capital Inc. since October 31, 2019 ...


CEO Compensation Analysis

Compensation vs Market: Anthony's total compensation ($USD137.00K) is about average for companies of similar size in the Canadian market ($USD155.12K).

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


Board Members

NamePositionTenureCompensationOwnership
Paul Zweng
Member of Advisory Board7.8yrsUS$7.50kno data
Corry Silbernagel
Independent Director9.8yrsUS$49.38k0.27% $12.5k
Javier Reyes
Director6.7yrsUS$116.50k0.068% $3.1k
Javier Montaño
Independent Director4.7yrsUS$23.60k1.53% $70.6k

7.2yrs

Average Tenure

Experienced Board: GGA's board of directors are considered experienced (7.2 years average tenure).


Ownership

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


Insider Trading Volume

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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Goldgroup Mining Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Goldgroup Mining Inc.
  • Ticker: GGA
  • Exchange: TSX
  • Founded:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$4.628m
  • Shares outstanding: 185.14m
  • Website: https://www.goldgroupmining.com

Number of Employees


Location

  • Goldgroup Mining Inc.
  • 1166 Alberni Street
  • Suite 1201
  • Vancouver
  • British Columbia
  • V6E 3Z3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GGATSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 2010
55GDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2010
GGAZ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2010
GGA NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNMay 2010

Biography

Goldgroup Mining Inc., together with its subsidiaries, focuses on the acquisition, exploration, and development of gold-bearing mineral properties in the Americas. It holds a 100% interests in the Cerro Prieto Mine in the state of Sonora; and the San José de Gracia project located in Sinaloa State, Mexico, as well as a 35% interest with an option to acquire 80% interests in the El Mozo Project in southern Ecuador. The company 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 Analysis2020/02/26 01:30
End of Day Share Price2020/02/25 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.