Executive Summary
Karora Resources Inc. engages in the exploration and production of gold resources in Australia. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet and slightly overvalued.
Share Price & News
How has Karora Resources's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: KRR's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
6.2%
KRR
1.4%
CA Metals and Mining
1.1%
CA Market
1 Year Return
150.8%
KRR
52.4%
CA Metals and Mining
-5.6%
CA Market
Return vs Industry: KRR exceeded the Canadian Metals and Mining industry which returned 51.1% over the past year.
Return vs Market: KRR exceeded the Canadian Market which returned -5.7% over the past year.
Shareholder returns
| KRR | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.2% | 1.4% | 1.1% |
| 30 Day | 11.3% | -3.1% | -2.4% |
| 90 Day | 70.4% | 9.4% | 4.5% |
| 1 Year | 150.8%150.8% | 53.5%52.4% | -2.2%-5.6% |
| 3 Year | 374.5%374.5% | 52.0%48.9% | 6.3%-4.0% |
| 5 Year | 265.7%265.7% | 149.0%141.4% | 34.4%13.7% |
Price Volatility Vs. Market
How volatile is Karora Resources's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Did The Underlying Business Drive Karora Resources' (TSE:KRR) Lovely 387% Share Price Gain?1 month ago | Simply Wall St
Are Karora Resources's (TSE:KRR) Statutory Earnings A Good Guide To Its Underlying Profitability?3 months ago | Simply Wall St
Before You Buy Royal Nickel Corporation (TSE:RNX), Consider Its VolatilityValuation
Is Karora Resources 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: KRR (CA$3.95) is trading below our estimate of fair value (CA$8.63)
Significantly Below Fair Value: KRR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: KRR is poor value based on its PE Ratio (27x) compared to the CA Metals and Mining industry average (23.7x).
PE vs Market: KRR is poor value based on its PE Ratio (27x) compared to the Canadian market (16.3x).
Price to Earnings Growth Ratio
PEG Ratio: KRR is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: KRR is overvalued based on its PB Ratio (5.2x) compared to the CA Metals and Mining industry average (2.7x).
Next Steps
Future Growth
How is Karora Resources forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
16.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KRR's forecast earnings growth (16.7% per year) is above the savings rate (1.7%).
Earnings vs Market: KRR's earnings (16.7% per year) are forecast to grow slower than the Canadian market (22.6% per year).
High Growth Earnings: KRR's earnings are forecast to grow, but not significantly.
Revenue vs Market: KRR's revenue (2.4% per year) is forecast to grow slower than the Canadian market (5.2% per year).
High Growth Revenue: KRR's revenue (2.4% 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 KRR's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Karora Resources performed over the past 5 years?
0.04%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KRR has a large one-off loss of CA$10.5M impacting its June 30 2020 financial results.
Growing Profit Margin: KRR became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: KRR has become profitable over the past 5 years, growing earnings by 0.04% per year.
Accelerating Growth: KRR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: KRR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (78.5%).
Return on Equity
High ROE: KRR's Return on Equity (18.8%) is considered low.
Next Steps
Financial Health
How is Karora Resources's financial position?
Financial Position Analysis
Short Term Liabilities: KRR's short term assets (CA$81.3M) exceed its short term liabilities (CA$37.5M).
Long Term Liabilities: KRR's short term assets (CA$81.3M) do not cover its long term liabilities (CA$90.6M).
Debt to Equity History and Analysis
Debt Level: KRR's debt to equity ratio (37.5%) is considered satisfactory.
Reducing Debt: KRR's debt to equity ratio has increased from 0% to 37.5% over the past 5 years.
Debt Coverage: KRR's debt is well covered by operating cash flow (145.5%).
Interest Coverage: KRR's interest payments on its debt are well covered by EBIT (12.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Karora Resources's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate KRR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate KRR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if KRR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if KRR'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 KRR'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?
1.2yrs
Average management tenure
CEO
Paul Huet (51 yo)
1.17yrs
Tenure
CA$1,509,983
Compensation
Mr. Paul Andre Huet, Acc.Dir., serves as Chief Executive Officer at Karora Resources Inc. (formerly known as Royal Nickel Corporation) since August 2019. He served as Interim Chief Executive Officer of Kar ...
CEO Compensation Analysis
Compensation vs Market: Paul's total compensation ($USD1.96M) is above average for companies of similar size in the Canadian market ($USD887.92K).
Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | 1.17yrs | CA$1.51m | 0.025% CA$ 138.6k | |
| Managing Director of Australian Operations | 0.92yr | CA$902.73k | no data | |
| VP of Finance & Corporate Secretary | no data | CA$637.65k | 0.093% CA$ 516.7k | |
| Chief Financial Officer | 0.50yr | no data | 0.00070% CA$ 3.9k | |
| Senior Vice President of Corporate Development & Investor Relations | no data | no data | 0.0085% CA$ 47.2k | |
| Senior Advisor - Legal & Strategic Matters | 3.5yrs | CA$533.77k | 0.088% CA$ 486.5k | |
| Director of Investor Relations | 9.33yrs | no data | no data | |
| Consulting Geologist | no data | no data | no data | |
| Consulting Metallurgist | no data | no data | no data |
1.2yrs
Average Tenure
56yo
Average Age
Experienced Management: KRR's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | 1.17yrs | CA$1.51m | 0.025% CA$ 138.6k | |
| Lead Independent Director | 1.5yrs | CA$482.54k | 0.62% CA$ 3.4m | |
| Independent Director | 12.17yrs | CA$295.58k | 0.22% CA$ 1.2m | |
| Independent Director | 0.67yr | no data | 0.018% CA$ 98.4k | |
| Independent Director | 2.25yrs | CA$268.08k | no data | |
| Independent Director | 1.5yrs | CA$300.49k | 0.0031% CA$ 17.1k |
1.5yrs
Average Tenure
61yo
Average Age
Experienced Board: KRR's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.
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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16%.
Top Shareholders
Company Information
Karora Resources Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Karora Resources Inc.
- Ticker: KRR
- Exchange: TSX
- Founded: 2006
- Industry: Diversified Metals and Mining
- Sector: Materials
- Market Cap: CA$555.700m
- Shares outstanding: 144.34m
- Website: https://www.karoraresources.com
Number of Employees
Location
- Karora Resources Inc.
- 141 Adelaide Street West
- Suite 1608
- Toronto
- Ontario
- M5H 3L5
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KRR | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 2010 |
| 5RN1 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 2010 |
| KRRG.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Dec 2010 |
Biography
Karora Resources Inc. engages in the exploration and production of gold resources in Australia. The company holds interests in the Beta Hunt Gold Mine and the Higginsville Gold Operations located in Wester ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/30 00:16 |
| End of Day Share Price | 2020/09/29 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.