TSXV:AGG

Stock Analysis Report

African Gold Group

Executive Summary

African Gold Group, Inc., an exploration and development company, engages in the acquisition, exploration, and development of gold properties in West Africa.

Risk Analysis

Earnings have declined by -23.96% 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

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AGG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

AGG

0.8%

CA Metals and Mining

0.4%

CA Market


1 Year Return

-15.6%

AGG

26.9%

CA Metals and Mining

10.1%

CA Market

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

Return vs Market: AGG underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

AGGIndustryMarket
7 Day0%0.8%0.4%
30 Day-35.6%-0.2%2.1%
90 Day-44.1%7.6%6.4%
1 Year-15.6%-15.6%27.8%26.9%13.6%10.1%
3 Year-63.8%-63.8%-0.3%-2.1%17.2%6.6%
5 Year-53.9%-53.9%28.8%24.6%37.5%17.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.45x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AGG is good value based on its PB Ratio (0.4x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

18.8%

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 African Gold Group 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 African Gold Group performed over the past 5 years?

-24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGG is currently unprofitable.

Growing Profit Margin: AGG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AGG is unprofitable, and losses have increased over the past 5 years at a rate of -24% per year.

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

Earnings vs Industry: AGG 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: AGG has a negative Return on Equity (-15.97%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is African Gold Group's financial position?


Financial Position Analysis

Short Term Liabilities: AGG's short term assets ($2.2M) exceed its short term liabilities ($2.1M).

Long Term Liabilities: AGG has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: AGG is debt free.

Reducing Debt: AGG has not had any debt for past 5 years.


Balance Sheet

Inventory Level: AGG has a high level of physical assets or inventory.

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

Forecast Cash Runway: AGG has less than a year of cash runway if free cash flow continues to reduce at historical rates of -6.2% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

0.5yrs

Average management tenure


CEO

Stan Bharti (67yo)

0.4yrs

Tenure

US$300,000

Compensation

Mr. Stalin Bharti, also known as Stan, P.Eng, M.Sc., DIC, C.Eng, M. Eng. serves as Director at Fura Gems Inc. since August 2, 2019. He serves as strategic Consultant of Desert Lion Energy Inc. since Januar ...


CEO Compensation Analysis

Compensation vs Market: Stan's total compensation ($USD229.62K) is above average for companies of similar size in the Canadian market ($USD165.67K).

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


Management Age and Tenure

0.5yrs

Average Tenure

51yo

Average Age

Experienced Management: AGG's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Age and Tenure

2.5yrs

Average Tenure

66yo

Average Age

Experienced Board: AGG's board of directors are not considered experienced ( 2.5 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$42,00027 Aug 19
Marco Durante
EntityIndividual
Shares200,000
Max PriceCA$0.21
BuyCA$10,74519 Aug 19
Stan Bharti
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board
Shares45,000
Max PriceCA$0.25

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.6%.


Management Team

  • Stan Bharti (67yo)

    Chairman of the Board

    • Tenure: 0.4yrs
    • Compensation: US$300.00k
  • Declan Franzmann (51yo)

    Executive Director

    • Compensation: US$1.26m
  • Ryan Ptolemy (43yo)

    CFO & Director

    • Compensation: US$60.00k
  • Danny Callow

    Chief Operating Officer

    • Tenure: 0.4yrs
  • Andy Rompel

    Vice President of Exploration

    • Tenure: 0.6yrs
  • Kenny Choi

    Corporate Secretary

    • Tenure: 0.6yrs
  • Daniyal Baizak

    Vice President of Corporate Development

    • Tenure: 0.4yrs

Board Members

  • John Begeman (65yo)

    Independent Director

    • Tenure: 2.8yrs
  • Stan Bharti (67yo)

    Chairman of the Board

    • Tenure: 0.4yrs
    • Compensation: US$300.00k
  • Pierre Pettigrew (69yo)

    Independent Director

    • Tenure: 2.5yrs
  • Ryan Ptolemy (43yo)

    CFO & Director

    • Compensation: US$60.00k

Company Information

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


Key Information

  • Name: African Gold Group, Inc.
  • Ticker: AGG
  • Exchange: TSXV
  • Founded: 2002
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$14.526m
  • Shares outstanding: 76.45m
  • Website: https://www.africangoldgroup.com

Location

  • African Gold Group, Inc.
  • 65 Queen Street West
  • Suite 805
  • Toronto
  • Ontario
  • M5H 2M5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGGTSXV (TSX Venture Exchange)YesCommon SharesCACADJul 1990
3A61DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1990
AGGF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 1990

Biography

African Gold Group, Inc., an exploration and development company, engages in the acquisition, exploration, and development of gold properties in West Africa. It focuses on the development of the Kobada gold project in Mali; and the Madougou gold project in Burkina Faso. The company was incorporated in 2002 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 Analysis2020/01/24 00:10
End of Day Share Price2020/01/23 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.