TSX:SOLG

Stock Analysis Report

Executive Summary

SolGold plc, together with its subsidiaries, engages in the exploration of mineral properties in Ecuador, Australia, and Solomon Islands.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SOLG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-12.7%

SOLG

-6.0%

CA Metals and Mining

-6.2%

CA Market


1 Year Return

-46.1%

SOLG

2.2%

CA Metals and Mining

-2.0%

CA Market

Return vs Industry: SOLG underperformed the Canadian Metals and Mining industry which returned 2.2% over the past year.

Return vs Market: SOLG underperformed the Canadian Market which returned -2% over the past year.


Shareholder returns

SOLGIndustryMarket
7 Day-12.7%-6.0%-6.2%
30 Day-6.8%-1.0%-5.0%
90 Day-13.8%4.9%-2.8%
1 Year-46.1%-46.1%2.9%2.2%1.1%-2.0%
3 Yearn/a-2.8%-4.5%10.7%0.6%
5 Yearn/a25.0%21.4%27.6%8.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SOLG is overvalued based on its PB Ratio (1.9x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

-15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOLG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SOLG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SOLG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if SOLG's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if SOLG's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOLG is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has SolGold performed over the past 5 years?

-48.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOLG is currently unprofitable.

Growing Profit Margin: SOLG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SOLG is unprofitable, and losses have increased over the past 5 years at a rate of -48.4% per year.

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

Earnings vs Industry: SOLG 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: SOLG has a negative Return on Equity (-3.81%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SolGold's financial position?


Financial Position Analysis

Short Term Liabilities: SOLG's short term assets ($33.8M) exceed its short term liabilities ($6.5M).

Long Term Liabilities: SOLG's short term assets ($33.8M) exceed its long term liabilities ($3.5M).


Debt to Equity History and Analysis

Debt Level: SOLG is debt free.

Reducing Debt: SOLG had no debt 5 years ago.


Balance Sheet

Inventory Level: SOLG has a low level of unsold assets or inventory.

Debt Coverage by Assets: SOLG's debt is not covered by short term assets (assets are -1.5237144812153E+17x 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: SOLG has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SOLG has sufficient cash runway for 2 years if free cash flow continues to reduce at historical rates of -23.6% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.1%markettop25%5.9%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

3.2yrs

Average management tenure


CEO

Nick Mather (62yo)

4.8yrs

Tenure

US$3,415,201

Compensation

Mr. Nicholas Mather, also known as Nick, B.Sc. (Hons, Geology) (Univ. QLD), MAusIMM, has been the Chief Executive Officer of SolGold plc since May 17, 2015 and serves as its Managing Director. Mr. Mather s ...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD3.42M) is above average for companies of similar size in the Canadian market ($USD1.05M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Mather
CEO, MD & Executive Director4.8yrsUS$3.42m2.22% $14.0m
Priyanka Jayasuriya
Chief Financial Officer9.3yrsUS$672.31k0.072% $449.9k
Jason Ward
Executive Director of Project Management & Executive Director0.7yrsUS$1.89m0.52% $3.3m
Eduardo Valenzuela
Study Manager1.7yrsUS$1.37mno data
Ingo Hofmaier
Executive General Manager of Project & Corporate Finance0.4yrsno datano data
Steven Garwin
Chief Technical Advisor0yrsno datano data
Karl Schlobohm
Company Secretary10.8yrsno data0.20% $1.3m

3.2yrs

Average Tenure

53.5yo

Average Age

Experienced Management: SOLG's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicholas Mather
CEO, MD & Executive Director4.8yrsUS$3.42m2.22% $14.0m
Jason Ward
Executive Director of Project Management & Executive Director0.7yrsUS$1.89m0.52% $3.3m
Brian Moller
Non-Executive Chairman7yrsUS$618.20k0.27% $1.7m
Robert Weinberg
Senior Independent Director0yrsUS$381.97k0.22% $1.4m
Liam Twigger
Non-Executive Director0.7yrsUS$1.91kno data
Craig Jones
Non-Executive Director2.9yrsUS$381.98kno data
James Clare
Non-Executive Director1.8yrsUS$623.01kno data

2.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: SOLG's board of directors are not considered experienced ( 2.3 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 7.4%.


Top Shareholders

Company Information

SolGold plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SolGold plc
  • Ticker: SOLG
  • Exchange: TSX
  • Founded: 2005
  • Industry: Gold
  • Sector: Materials
  • Market Cap: UK£365.431m
  • Listing Market Cap: UK£628.647m
  • Shares outstanding: 1.92b
  • Website: https://www.solgold.com.au

Number of Employees


Location

  • SolGold plc
  • 111 Eagle Street
  • Level 27
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOLGLSE (London Stock Exchange)YesOrdinary SharesGBGBPFeb 2006
SOLGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPFeb 2006
SLGG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2006
SOLGTSX (The Toronto Stock Exchange)YesOrdinary SharesCACADFeb 2006

Biography

SolGold plc, together with its subsidiaries, engages in the exploration of mineral properties in Ecuador, Australia, and Solomon Islands. The company primarily explores for gold, copper, and silver deposits. Its flagship project is the Cascabel project that covers an area of approximately 50 square kilometers located in Quito, Ecuador. The company was formerly known as Solomon Gold plc and changed its name to SolGold plc in May 2012. SolGold plc was incorporated in 2005 and is headquartered in Brisbane, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 02:15
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.