TSXV:AEX

Stock Analysis Report

Executive Summary

AEX Gold Inc. engages in the identification, acquisition, exploration, and development of gold properties in Greenland.

Risk Analysis

Earnings have declined by -34.39% 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

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

AEX

0.4%

CA Metals and Mining

1.6%

CA Market


1 Year Return

19.0%

AEX

28.4%

CA Metals and Mining

10.0%

CA Market

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

Return vs Market: AEX exceeded the Canadian Market which returned 10.4% over the past year.


Shareholder returns

AEXIndustryMarket
7 Day0%0.4%1.6%
30 Day8.7%3.5%2.7%
90 Dayn/a8.8%6.4%
1 Year19.0%19.0%29.3%28.4%13.5%10.0%
3 Yearn/a-0.3%-2.1%17.5%6.8%
5 Yearn/a28.5%24.4%36.6%16.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.52x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AEX is overvalued based on its PB Ratio (7.5x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is AEX Gold forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.7%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AEX Gold has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has AEX Gold performed over the past 5 years?

-34.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEX is currently unprofitable.

Growing Profit Margin: AEX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AEX is unprofitable, and losses have increased over the past 5 years at a rate of -34.4% per year.

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

Earnings vs Industry: AEX 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: AEX has a negative Return on Equity (-112.18%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AEX Gold's financial position?


Financial Position Analysis

Short Term Liabilities: AEX's short term assets (CA$3.5M) exceed its short term liabilities (CA$659.1K).

Long Term Liabilities: AEX has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: AEX is debt free.

Reducing Debt: AEX had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if AEX's debt is 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: AEX has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: AEX has less than a year of cash runway if free cash flow continues to reduce at historical rates of -25.8% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

1.6yrs

Average management tenure


CEO

Eldur Ólafsson (33yo)

2.8yrs

Tenure

CA$202,421

Compensation

Mr. Eldur Ólafsson serves as Founder at AEX Gold Inc. since April 2017. He is a co-owner at Vatnar S.À R.L. Mr. Ólafsson serves as Chief Executive Officer and President of AEX Gold Inc. (formerly, Alopex  ...


CEO Compensation Analysis

Compensation vs Market: Eldur's total compensation ($USD154.93K) is about average for companies of similar size in the Canadian market ($USD165.67K).

Compensation vs Earnings: Eldur's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.6yrs

Average Tenure

54.5yo

Average Age

Experienced Management: AEX's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

58yo

Average Age

Experienced Board: AEX's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$1,62504 Oct 19
GRF Capital Advisors Inc., Asset Management Arm
EntityCompany
Shares5,000
Max PriceCA$0.33
BuyCA$10,19527 Aug 19
Martin Ménard
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares30,000
Max PriceCA$0.35
BuyCA$31,71026 Jul 19
Eldur Ólafsson
EntityIndividual
Role
Chief Executive Officer
Founder
Shares100,000
Max PriceCA$0.33
BuyCA$1,65017 Jul 19
GRF Capital Advisors Inc., Asset Management Arm
EntityCompany
Shares5,000
Max PriceCA$0.33
BuyCA$25,00003 Jul 19
Robert Ménard
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares65,789
Max PriceCA$0.38
BuyCA$433,12502 Jul 19
Eldur Ólafsson
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,139,805
Max PriceCA$0.38
BuyCA$50,00002 Jul 19
Graham Stewart
EntityIndividual
Role
Chairman of the Board
Chairman
Shares131,579
Max PriceCA$0.38

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.4%.


Management Team

  • George Fowlie (74yo)

    CFO & Director

    • Tenure: 2.9yrs
    • Compensation: CA$31.25k
  • Eldur Ólafsson (33yo)

    Founder

    • Tenure: 2.8yrs
    • Compensation: CA$202.42k
  • Bill Kellaway (58yo)

    Vice-President of Exploration

    • Joan Plant (51yo)

      Corporate Secretary

      • Tenure: 2.9yrs
    • Martin Ménard

      Chief Operating Officer

      • Tenure: 0.5yrs

    Board Members

    • Robert Ménard (70yo)

      Independent Director

      • Tenure: 2.8yrs
      • Compensation: CA$6.25k
    • George Fowlie (74yo)

      CFO & Director

      • Tenure: 2.9yrs
      • Compensation: CA$31.25k
    • Graham Stewart (58yo)

      Chairman

      • Tenure: 0.2yrs
      • Compensation: CA$6.25k
    • Georgia Quenby (48yo)

      Director

      • Tenure: 2.8yrs
      • Compensation: CA$6.25k
    • Eldur Ólafsson (33yo)

      Founder

      • Tenure: 2.8yrs
      • Compensation: CA$202.42k

    Company Information

    AEX Gold Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: AEX Gold Inc.
    • Ticker: AEX
    • Exchange: TSXV
    • Founded: 2017
    • Industry: Gold
    • Sector: Materials
    • Market Cap: CA$26.605m
    • Shares outstanding: 70.95m
    • Website: https://www.aexgold.com

    Location

    • AEX Gold Inc.
    • 123 Front Street West
    • Suite 905
    • Toronto
    • Ontario
    • M5J 2M2
    • Canada

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    AEXTSXV (TSX Venture Exchange)YesNew Common SharesCACADJul 2017

    Biography

    AEX Gold Inc. engages in the identification, acquisition, exploration, and development of gold properties in Greenland. Its principal property is the Nalunaq gold project located in the Municipality of Kujalleq, Southern Greenland. The company was formerly known as Alopex Gold Inc. and changed its name to AEX Gold Inc. in June 2018. AEX Gold Inc. was incorporated in 2017 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 Analysis2020/01/19 00:44
    End of Day Share Price2020/01/08 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.