TSX:HRT

Stock Analysis Report

Executive Summary

Harte Gold Corp. engages in the acquisition and exploration of mineral resource properties in Canada.

Rewards

Trading at 89.8% below its fair value

Revenue is forecast to grow 46.82% per year

Risk Analysis

Earnings have declined by -68.76% per year over past 5 years

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Slightly overvalued with limited growth.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.8%

HRT

1.8%

CA Metals and Mining

-0.2%

CA Market


1 Year Return

-59.7%

HRT

26.3%

CA Metals and Mining

9.4%

CA Market

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

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


Shareholder returns

HRTIndustryMarket
7 Day-8.8%1.8%-0.2%
30 Day-3.1%0.9%1.8%
90 Day-34.0%10.1%6.3%
1 Year-59.7%-59.7%27.2%26.3%12.9%9.4%
3 Year-52.3%-52.3%0.7%-1.2%17.1%6.5%
5 Year210.0%210.0%28.1%23.9%37.3%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Harte 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: HRT (CA$0.18) is trading below our estimate of fair value (CA$1.72)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: HRT has negative assets, so we can't compare its PB Ratio to the CA Metals and Mining industry average.


Next Steps

Future Growth

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

48.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if HRT's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if HRT's earnings are forecast to grow faster than the Canadian market

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

Revenue vs Market: HRT's revenue (46.8% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: HRT's revenue (46.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HRT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Harte Gold performed over the past 5 years?

-68.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRT is currently unprofitable.

Growing Profit Margin: HRT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HRT is unprofitable, and losses have increased over the past 5 years at a rate of -68.8% per year.

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

Earnings vs Industry: HRT 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: HRT's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Harte Gold's financial position?


Financial Position Analysis

Short Term Liabilities: HRT has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: HRT has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: HRT has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: HRT's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: HRT has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: HRT has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: HRT has less than a year of cash runway if free cash flow continues to reduce at historical rates of -34.8% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.3yrs

Average management tenure


CEO

Sam Coetzer (58yo)

0.2yrs

Tenure

0

Mr. Samuel T. Coetzer, also known as Sam, has been the President, Chief Executive Officer and Director of Harte Gold Corporation since November 2019. Mr. Coetzer served as President and Chief Executive Off ...


Management Age and Tenure

2.3yrs

Average Tenure

58yo

Average Age

Experienced Management: HRT's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

0.8yrs

Average Tenure

61yo

Average Age

Experienced Board: HRT's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyCA$100,76908 Nov 19
Samuel Coetzer
EntityIndividual
Role
Chief Executive Officer
President
Shares769,230
Max PriceCA$0.13
BuyCA$13,277,98025 Jul 19
Appian Capital Advisory LLP
EntityCompany
Shares49,177,777
Max PriceCA$0.27
BuyCA$120,00009 May 19
Michael Cowie
EntityIndividual
Shares400,000
Max PriceCA$0.30

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.7%.


Management Team

  • George Flach (58yo)

    Independent Consultant

    • Tenure: 11yrs
    • Compensation: CA$235.00k
  • Tim Campbell (67yo)

    Executive VP & Corporate Secretary

    • Tenure: 1yrs
    • Compensation: CA$741.00k
  • John Kita

    Chief Mine Geologist

    • Tenure: 2.9yrs
  • Sam Coetzer (58yo)

    President

    • Tenure: 0.2yrs
  • Rein Lehari

    Chief Financial Officer

    • Tenure: 11yrs
    • Compensation: CA$630.00k
  • Shawn Howarth

    Vice President of Corporate Development

    • Tenure: 2.6yrs
    • Compensation: CA$225.00k
  • David Stevenson

    Chief Exploration Geologist

    • Tenure: 2yrs
  • David Ellis

    Investor Relations Consultant

    • Martin Raffield (50yo)

      Executive VP & COO

      • Tenure: 0.2yrs

    Board Members

    • Richard Sutcliffe

      Independent Director

      • Tenure: 4.5yrs
    • Joe Conway (61yo)

      Independent Director

      • Tenure: 0.3yrs
    • Stephen Roman (66yo)

      Non-Executive Chairman

      • Tenure: 11yrs
      • Compensation: CA$1.78m
    • Sam Coetzer (58yo)

      President

      • Tenure: 0.2yrs
    • Michael Scherb

      Director

      • Tenure: 1.8yrs
    • Jim Gallagher

      Independent Director

      • Tenure: 0.3yrs
    • Geoff Cohen

      Director

      • Tenure: 0.8yrs

    Company Information

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


    Key Information

    • Name: Harte Gold Corp.
    • Ticker: HRT
    • Exchange: TSX
    • Founded: 1982
    • Industry: Gold
    • Sector: Materials
    • Market Cap: CA$104.928m
    • Shares outstanding: 676.96m
    • Website: https://www.hartegold.com

    Location

    • Harte Gold Corp.
    • 8 King Street East
    • Suite 1700
    • Toronto
    • Ontario
    • M5C 1B5
    • Canada

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    HRTTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2000
    H4ODB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2000
    HRTF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2000

    Biography

    Harte Gold Corp. engages in the acquisition and exploration of mineral resource properties in Canada. The company primarily explores for gold deposits. It owns 100% interests in the Sugar Zone property, which consists of 549 contiguous mining claims and 4 mining leases covering an area of approximately 79,355 hectares located in the Sault Ste. Marie Mining Division in Ontario. The company also holds interests in the Stoughton-Abitibi property situated to the north-east of Kirkland Lake, Ontario. The company was formerly known as Harte Resources Company and changed its name to Harte Gold Corp. in December 2003. Harte Gold Corp. was incorporated in 1982 and 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 Analysis2020/01/25 23:52
    End of Day Share Price2020/01/24 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.