TSX:TGZ

Stock Analysis Report

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Executive Summary

Teranga Gold Corporation engages in the exploration, development, production, and sale of gold in West Africa. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TGZ is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: TGZ's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-7.6%

TGZ

-7.0%

CA Metals and Mining

1.7%

CA Market


1 Year Return

146.1%

TGZ

35.2%

CA Metals and Mining

0.2%

CA Market

Return vs Industry: TGZ exceeded the Canadian Metals and Mining industry which returned 35.2% over the past year.

Return vs Market: TGZ exceeded the Canadian Market which returned 0.2% over the past year.


Shareholder returns

TGZIndustryMarket
7 Day-7.6%-7.0%1.7%
30 Day-11.8%-10.0%7.0%
90 Day-12.1%-13.5%5.1%
1 Year146.1%146.1%36.3%35.2%3.9%0.2%
3 Year437.9%437.9%36.7%33.8%13.1%2.1%
5 Year439.0%439.0%133.6%126.6%46.5%24.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Teranga 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: TGZ (CA$13.34) is trading below our estimate of fair value (CA$31.88)

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


Price To Earnings Ratio

PE vs Industry: TGZ is poor value based on its PE Ratio (101.2x) compared to the CA Metals and Mining industry average (19.9x).

PE vs Market: TGZ is poor value based on its PE Ratio (101.2x) compared to the Canadian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: TGZ is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: TGZ is good value based on its PB Ratio (2.1x) compared to the CA Metals and Mining industry average (2.6x).


Next Steps

Future Growth

How is Teranga Gold forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

48.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TGZ's forecast earnings growth (48.1% per year) is above the savings rate (1.7%).

Earnings vs Market: TGZ's earnings (48.1% per year) are forecast to grow faster than the Canadian market (26.8% per year).

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

Revenue vs Market: TGZ's revenue (11.6% per year) is forecast to grow faster than the Canadian market (6% per year).

High Growth Revenue: TGZ's revenue (11.6% 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 TGZ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Teranga Gold performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TGZ has high quality earnings.

Growing Profit Margin: TGZ became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TGZ's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: TGZ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TGZ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (93.2%).


Return on Equity

High ROE: TGZ's Return on Equity (2.9%) is considered low.


Next Steps

Financial Health

How is Teranga Gold's financial position?


Financial Position Analysis

Short Term Liabilities: TGZ's short term assets ($205.7M) do not cover its short term liabilities ($227.3M).

Long Term Liabilities: TGZ's short term assets ($205.7M) do not cover its long term liabilities ($558.9M).


Debt to Equity History and Analysis

Debt Level: TGZ's debt to equity ratio (36.9%) is considered satisfactory.

Reducing Debt: TGZ's debt to equity ratio has increased from 1.5% to 36.9% over the past 5 years.

Debt Coverage: TGZ's debt is well covered by operating cash flow (41.3%).

Interest Coverage: TGZ's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Teranga Gold current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

8.1yrs

Average management tenure


CEO

Richard Young (56 yo)

8.17yrs

Tenure

US$1,737,255

Compensation

Mr. Richard S. Young is the Chief Executive Officer of Teranga Gold Corporation (“Teranga”) since September 6, 2012 and its President since October, 2010. In this role, Mr. Young culminates 25-years of ext...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD1.74M) is about average for companies of similar size in the Canadian market ($USD2.07M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Young
President8.17yrsUS$1.74m0.10%
$ 2.4m
Navindra Dyal
Senior VP & CFO8.17yrsUS$907.89k0.027%
$ 598.9k
William Chawrun
Chief Operating Officer8.08yrsUS$1.13m0.0029%
$ 64.5k
David Savarie
Senior VP of Corporate Affairs & People and General Counsel8.67yrsUS$894.25k0.011%
$ 237.8k
David Mallo
Vice President of Exploration4.58yrsUS$804.38kno data
Patricia Moran
Vice President of Investor Relations & Corporate Communicationsno datano datano data
Chantal Da Silva
Vice President of Legal Affairsno datano datano data
Leily Omoumi
Vice President of Corporate Development1.5yrsno datano data
Andrew Zdunich
Chief Security Officer0.67yrno datano data
Cindy Waterman
Corporate Secretary1.5yrsno datano data
Mark English
Executive Director of Special Projects8.17yrsUS$422.14kno data
Gwennael Rene Guillen
Vice Presidentno datano data0.0060%
$ 134.7k

8.1yrs

Average Tenure

Experienced Management: TGZ's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Young
President8.17yrsUS$1.74m0.10%
$ 2.4m
David Mimran
Independent Director5.08yrsUS$138.19k0.00060%
$ 13.5k
William Biggar
Lead Independent Director3.5yrsUS$181.28k0.012%
$ 269.1k
Alan Hill
Non Executive Chairman9.92yrsUS$310.01k0.26%
$ 5.8m
Frank Wheatley
Independent Non-Executive Director10.08yrsUS$151.38kno data
Alan Thomas
Independent Non-Executive Director10.08yrsUS$153.27k0.0012%
$ 26.8k
Jendayi Frazer
Independent Non-Executive Director6.67yrsUS$143.84kno data
Simon Bottoms
Independent Director0.58yrno datano data
Paula St-Onge
Independent Director0.42yrno datano data

6.7yrs

Average Tenure

58yo

Average Age

Experienced Board: TGZ's board of directors are considered experienced (6.7 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 55.8%.


Top Shareholders

Company Information

Teranga Gold Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Teranga Gold Corporation
  • Ticker: TGZ
  • Exchange: TSX
  • Founded: 2010
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$2.256b
  • Shares outstanding: 167.59m
  • Website: https://www.terangagold.com

Number of Employees


Location

  • Teranga Gold Corporation
  • TD North Tower
  • Suite 2110
  • Toronto
  • Ontario
  • M5K 2A1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGZTSX (The Toronto Stock Exchange)YesNew Common SharesCACADNov 2010
0TGADB (Deutsche Boerse AG)YesNew Common SharesDEEURNov 2010
TGCD.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDNov 2010
0VKBLSE (London Stock Exchange)YesNew Common SharesGBCADNov 2010

Biography

Teranga Gold Corporation engages in the exploration, development, production, and sale of gold in West Africa. The company’s flagship project is the Sabodala gold mine covering an area of 291 square kilome...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 23:58
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
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.