TSXV:AGZ

Stock Analysis Report

Executive Summary

Ashanti Gold Corp. engages in the exploration and development of gold and other mineral properties in Western Africa.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

AGZ

3.1%

CA Metals and Mining

0.6%

CA Market


1 Year Return

-37.5%

AGZ

4.7%

CA Metals and Mining

5.3%

CA Market

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

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


Shareholder returns

AGZIndustryMarket
7 Day0%3.1%0.6%
30 Day0%3.5%1.0%
90 Day42.9%11.9%4.5%
1 Year-37.5%-37.5%5.4%4.7%8.6%5.3%
3 Year-88.0%-88.0%-4.3%-5.9%18.0%7.4%
5 Year-66.7%-66.7%24.6%21.0%34.4%14.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.52x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AGZ is overvalued based on its PB Ratio (5.5x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

15.9%

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 Ashanti 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 Ashanti Gold performed over the past 5 years?

-48.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGZ is currently unprofitable.

Growing Profit Margin: AGZ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AGZ is unprofitable, and losses have increased over the past 5 years at a rate of -48.6% per year.

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

Earnings vs Industry: AGZ 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: AGZ has a negative Return on Equity (-442.13%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ashanti Gold's financial position?


Financial Position Analysis

Short Term Liabilities: AGZ's short term assets (CA$21.6K) do not cover its short term liabilities (CA$352.5K).

Long Term Liabilities: AGZ has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: AGZ is debt free.

Reducing Debt: AGZ has no debt compared to 5 years ago when its debt to equity ratio was 90.4%.


Balance Sheet

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

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

Forecast Cash Runway: Insufficient data to determine if AGZ has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if AGZ'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 AGZ'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

Tim McCutcheon (46yo)

3.2yrs

Tenure

CA$141,000

Compensation

Mr. Timothy Rand McCutcheon, also known as Tim, has been Chief Executive Officer and Director of Ashanti Gold Corp. since August 01, 2016. Mr. McCutcheon has been President of Wealth Minerals Ltd. since Ju ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD165.67K).

Compensation vs Earnings: Insufficient data to compare Tim's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Timothy McCutcheon
CEO & Director3.2yrsCA$141.00k2.67% CA$98.5k
Ann Fehr
Chief Financial Officer3.2yrsCA$27.00k0.27% CA$10.0k
Paul Klipfel
COO & Chief Geologist3.2yrsCA$149.00k0.81% CA$30.0k
Jacqueline Collins
Corporate Secretary3.2yrsno datano data
John Robins
Strategic Consultant & Member of Advisory Board1.5yrsno datano data

3.2yrs

Average Tenure

51yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Timothy McCutcheon
CEO & Director3.2yrsCA$141.00k2.67% CA$98.5k
John Robins
Strategic Consultant & Member of Advisory Board1.5yrsno datano data
William Pincus
Member of Advisory Board0yrsno datano data
Hendrik Van Alphen
Member of Advisory Board0yrsno datano data
Jonathan Henry
Director2.8yrsno datano data
Grant Sinitsin
Director3.3yrsno datano data

3.0yrs

Average Tenure

59yo

Average Age

Experienced Board: AGZ's board of directors are considered experienced (3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 68.4%.


Top Shareholders

Company Information

Ashanti Gold Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ashanti Gold Corp.
  • Ticker: AGZ
  • Exchange: TSXV
  • Founded: 1993
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$3.692m
  • Shares outstanding: 73.85m
  • Website: https://www.ashantigoldcorp.com

Location

  • Ashanti Gold Corp.
  • 1177 West Hastings Street
  • Suite 2300
  • Vancouver
  • British Columbia
  • V6E 2K3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGZTSXV (TSX Venture Exchange)YesCommon SharesCACADMar 1997
A2AMVSDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 1997

Biography

Ashanti Gold Corp. engages in the exploration and development of gold and other mineral properties in Western Africa. Its flagship project is the Kossanto East project covering an area of 66.41 km2 in western Mali. The company was formerly known as Gulf Shores Resources Ltd. and changed its name to Ashanti Gold Corp. in August 2016. Ashanti Gold Corp. was founded in 1993 and is headquartered in Vancouver, Canada. As of August 22, 2019, Ashanti Gold Corp. operates as a subsidiary of Desert Gold Ventures Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/07 01:19
End of Day Share Price2019/08/22 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


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.