TSXV:ALG

Stock Analysis Report

Executive Summary

Algold Resources Ltd., a junior mineral exploration company, acquires, explores, and develops gold mining properties in Mauritania, West Africa.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-25.0%

ALG

-6.0%

CA Metals and Mining

-6.2%

CA Market


1 Year Return

-72.1%

ALG

2.2%

CA Metals and Mining

-2.0%

CA Market

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

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


Shareholder returns

ALGIndustryMarket
7 Day-25.0%-6.0%-6.2%
30 Day-14.3%-1.0%-5.0%
90 Day-45.5%4.9%-2.8%
1 Year-72.1%-72.1%2.9%2.2%1.1%-2.0%
3 Year-97.6%-97.6%-2.8%-4.5%10.7%0.6%
5 Year-96.0%-96.0%25.0%21.4%27.6%8.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Algold Resources is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Algold Resources has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of ALG’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Algold Resources regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

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

15.0%

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 Algold Resources 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 Algold Resources performed over the past 5 years?

-49.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALG is currently unprofitable.

Growing Profit Margin: ALG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ALG is unprofitable, and losses have increased over the past 5 years at a rate of -49.8% per year.

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

Earnings vs Industry: ALG 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: ALG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Algold Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ALG has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: ALG has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: ALG has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: ALG's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: ALG has negative shareholder equity (liabilities exceed assets) therefore debt is not 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: ALG has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ALG has less than a year of cash runway if free cash flow continues to reduce at historical rates of -28.8% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.1%markettop25%5.9%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

1.1yrs

Average management tenure


CEO

Benoit La Salle (64yo)

1.9yrs

Tenure

0

Mr. Benoit La Salle, FCPA, CPA, FCA, MBA, serves as President and Chief Executive Officer of Windiga Energy Inc. since 2013 and serves as its Director. He serves as Executive Chairman at SRG Graphite Inc., ...


Leadership Team

NamePositionTenureCompensationOwnership
François Auclair
Consultant0.3yrsCA$332.96kno data
Dejan Ristic
Consultant0.3yrsCA$243.70kno data
Thierry Vergnol
President of ALG Mauritania SARL and VP of Government3.2yrsCA$296.04k1.49% CA$33.2k
Benoit La Salle
President1.9yrsno data0.072% CA$1.6k
Yves Grou
Executive Vice Chairman & Interim CFO0yrsno data0.15% CA$3.4k
Alex Ball
Executive VP of Finance & Corporate Development3.2yrsno data0.15% CA$3.4k

1.1yrs

Average Tenure

Experienced Management: ALG's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Benoit La Salle
President1.9yrsno data0.072% CA$1.6k
Yves Grou
Executive Vice Chairman & Interim CFO0yrsno data0.15% CA$3.4k
John Sabine
Member of Advisory Board4.3yrsCA$19.92kno data
Ousmane Kane
Director1.3yrsno datano data
Salma Seetaroo
Independent Director7.1yrsno datano data
Darin Milmeister
Independent Director4.3yrsno data0.072% CA$1.6k
Brahim Ahmed Ghadda
Director2yrsno datano data
Lucas Werner
Director2yrsno datano data

4.3yrs

Average Tenure

64yo

Average Age

Experienced Board: ALG's board of directors are considered experienced (4.3 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 diluted in the past year, with total shares outstanding growing by 25.7%.


Top Shareholders

Company Information

Algold Resources Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Algold Resources Ltd.
  • Ticker: ALG
  • Exchange: TSXV
  • Founded: 2005
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$2.226m
  • Shares outstanding: 27.83m
  • Website: https://www.algold.com

Location

  • Algold Resources Ltd.
  • 1320 Graham Boulevard
  • Suite 132
  • Mount Royal
  • Quebec
  • H3P 3C8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALGTSXV (TSX Venture Exchange)YesCommon StockCACADDec 2013
ALGD.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2013
3N51DB (Deutsche Boerse AG)YesCommon StockDEEURDec 2013

Biography

Algold Resources Ltd., a junior mineral exploration company, acquires, explores, and develops gold mining properties in Mauritania, West Africa. It holds interests in the Tijirit property covering an area of approximately 2,200 square kilometers located in Mauritania; Kneivissat property totaling an area of 830 square kilometers; and Legouessi exploration license located to the north of Nouakchott. The company was formerly known as First Uranium Corporation and changed its name to Algold Resources Ltd. in December 2013. The company was incorporated in 2005 and is headquartered in Mount Royal, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 01:37
End of Day Share Price2020/02/24 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.