TSX:KRR

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Karora Resources

Executive Summary

Karora Resources Inc. engages in the exploration and production of gold resources in Australia. More Details


Snowflake Analysis

Adequate balance sheet and fair value.

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

-8.3%

KRR

-4.4%

CA Metals and Mining

-8.1%

CA Market


1 Year Return

82.3%

KRR

41.3%

CA Metals and Mining

-60.7%

CA Market

Return vs Industry: KRR exceeded the Canadian Metals and Mining industry which returned 41.3% over the past year.

Return vs Market: KRR exceeded the Canadian Market which returned -60.7% over the past year.


Shareholder returns

KRRIndustryMarket
7 Day-8.3%-4.4%-8.1%
30 Day-16.0%-5.0%-6.7%
90 Day-11.1%-10.0%-26.5%
1 Year82.3%82.3%42.4%41.3%-59.0%-60.7%
3 Year255.6%255.6%47.0%43.9%-60.3%-64.4%
5 Year230.7%230.7%145.6%138.2%-51.7%-59.4%

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

Valuation

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$3.2) is trading below our estimate of fair value (CA$8.02)

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


Price To Earnings Ratio

PE vs Industry: KRR's PE Ratio (21.9x) is in line with the CA Metals and Mining industry average.

PE vs Market: KRR is poor value based on its PE Ratio (21.9x) compared to the Canadian market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: KRR is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: KRR is overvalued based on its PB Ratio (4.2x) 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 3 analysts?

31.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRR's forecast earnings growth (31% per year) is above the savings rate (1.7%).

Earnings vs Market: KRR's earnings (31% per year) are forecast to grow slower than the Canadian market (60.1% per year).

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

Revenue vs Market: KRR's revenue (1.6% per year) is forecast to grow slower than the Canadian market (7.3% per year).

High Growth Revenue: KRR's revenue (1.6% 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 (70.5%).


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?

1.3yrs

Average management tenure


CEO

Paul Huet (51 yo)

1.25yrs

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 ($USD1.96M) is above average for companies of similar size in the Canadian market ($USD909.75K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Huet
Executive Chairman & CEO1.25yrsCA$1.51m0.025%
CA$ 117.5k
Graeme Sloan
Managing Director of Australian Operations1yrCA$902.73kno data
Timothy Hollaar
VP of Finance & Corporate Secretaryno dataCA$637.65k0.093%
CA$ 429.4k
Barry Dahl
Chief Financial Officer0.58yrno data0.00069%
CA$ 3.2k
Oliver Turner
Senior Vice President of Corporate Development & Investor Relationsno datano data0.0085%
CA$ 39.2k
John Leddy
Senior Advisor - Legal & Strategic Matters3.58yrsCA$533.77k0.087%
CA$ 404.4k
Rob Buchanan
Director of Investor Relations9.42yrsno datano data
Paul Mattinen
Consulting Geologistno datano datano data
Robert Salter
Consulting Metallurgistno datano datano data

1.3yrs

Average Tenure

56yo

Average Age

Experienced Management: KRR's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paul Huet
Executive Chairman & CEO1.25yrsCA$1.51m0.025%
CA$ 117.5k
Scott Hand
Lead Independent Director1.58yrsCA$482.54k0.63%
CA$ 2.9m
Peter Goudie
Independent Director12.25yrsCA$295.58k0.22%
CA$ 1.0m
Chad Williams
Independent Director0.75yrno data0.018%
CA$ 81.8k
Wendy Kei
Independent Director2.33yrsCA$268.08kno data
Warwick Morley-Jepson
Independent Director1.58yrsCA$300.49k0.0031%
CA$ 14.2k

1.6yrs

Average Tenure

61yo

Average Age

Experienced Board: KRR's board of directors are not considered experienced ( 1.6 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: KRR 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 16.2%.


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: Gold
  • Sector: Materials
  • Market Cap: CA$462.544m
  • Shares outstanding: 144.55m
  • Website: https://www.karoraresources.com

Number of Employees


Location

  • Karora Resources Inc.
  • 141 Adelaide Street West
  • Suite 1608
  • Toronto
  • Ontario
  • M5H 3L5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KRRTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2010
5RN1DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2010
KRRG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 03:35
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.