TSXV:AU

Stock Analysis Report

Aurion Resources

Executive Summary

Aurion Resources Ltd., an exploration company, acquires and explores mineral properties.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-9.2%

AU

-6.0%

CA Metals and Mining

-6.2%

CA Market


1 Year Return

-16.3%

AU

2.2%

CA Metals and Mining

-2.0%

CA Market

Return vs Industry: AU underperformed the Canadian Metals and Mining industry which returned 6.3% over the past year.

Return vs Market: AU matched the Canadian Market which returned 0.1% over the past year.


Shareholder returns

AUIndustryMarket
7 Day-9.2%-6.0%-6.2%
30 Day-45.7%-1.0%-5.0%
90 Day-32.3%4.9%-2.8%
1 Year-16.3%-16.3%2.9%2.2%1.1%-2.0%
3 Year-37.2%-37.2%-2.8%-4.5%10.7%0.6%
5 Year2300.0%2300.0%25.0%21.4%27.6%8.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Aurion Resources 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: AU (CA$1.19) is trading below our estimate of fair value (CA$5.24)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AU is overvalued based on its PB Ratio (2.4x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Aurion Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-63.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AU is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AU is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AU is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AU is forecast to have no revenue next year.

High Growth Revenue: AU is forecast to have no revenue next year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AU's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Aurion Resources performed over the past 5 years?

-19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AU is currently unprofitable.

Growing Profit Margin: AU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AU is unprofitable, and losses have increased over the past 5 years at a rate of -19.7% per year.

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

Earnings vs Industry: AU 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: AU has a negative Return on Equity (-3.37%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aurion Resources's financial position?


Financial Position Analysis

Short Term Liabilities: AU's short term assets (CA$21.8M) exceed its short term liabilities (CA$1.4M).

Long Term Liabilities: AU's short term assets (CA$21.8M) exceed its long term liabilities (CA$394.4K).


Debt to Equity History and Analysis

Debt Level: AU is debt free.

Reducing Debt: AU had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if AU'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: AU has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: AU has sufficient cash runway for 2.3 years if free cash flow continues to reduce at historical rates of -48.4% each year.


Next Steps

Dividend

What is Aurion 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 AU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

1.6yrs

Average management tenure


CEO

Mike Basha 0

11.3yrs

Tenure

CA$200,000

Compensation

Mr. Michael Basha, also known as Mike, P.Geo, P.Eng., has been Chief Executive Officer and President of Aurion Resources Ltd. since October 15, 2008. Mr. Basha was a Consultant to Cornerstone Capital Resou ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD150.35K) is about average for companies of similar size in the Canadian market ($USD156.06K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Basha
President11.3yrsCA$200.00k3.04% CA$2.7m
Dennis Clarke
General Corporate Counsel & Director7.3yrsCA$20.00k0.12% CA$108.0k
Mark Serdan
Chief Financial Officer2.1yrsno data0.33% CA$293.2k
Mark Santarossa
Vice President of Corporate Development0.5yrsno data0.42% CA$378.0k
Gary Wong
Exploration Manager1.1yrsno datano data
Brian Bayley
Chief Executive Officer of Arapaho Capital Corp0yrsno datano data
Lisa Hodge
Controller0yrsno datano data
Diana Marks
Corporate Secretary1.1yrsno datano data

1.6yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Michael Basha
President11.3yrsCA$200.00k3.04% CA$2.7m
Dennis Clarke
General Corporate Counsel & Director7.3yrsCA$20.00k0.12% CA$108.0k
David Loveys
Director9.7yrsCA$20.00k0.14% CA$128.4k
Kerry Sparkes
Director0.2yrsno datano data
Matti Talikka
Independent Director5.1yrsCA$20.00k0.014% CA$13.0k
David Lotan
Non-Executive Chairman2.8yrsno datano data

6.2yrs

Average Tenure

Experienced Board: AU's board of directors are considered experienced (6.2 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 diluted in the past year, with total shares outstanding growing by 6.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Aurion Resources Ltd.
  • Ticker: AU
  • Exchange: TSXV
  • Founded: 2006
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: CA$90.152m
  • Shares outstanding: 83.47m
  • Website: https://www.aurionresources.com

Location

  • Aurion Resources Ltd.
  • 120 Torbay Road
  • Suite W240
  • St. John’s
  • Newfoundland and Labrador
  • A1A 2G8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AUTSXV (TSX Venture Exchange)YesCommon SharesCACADOct 2008
8RADB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2008
AIRR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2008

Biography

Aurion Resources Ltd., an exploration company, acquires and explores mineral properties. It explores precious metals, gold and vanadium deposits, and base metals. The company holds tenements covering approximately 110,000 hectares in the Central Lapland Greenstone Belt of Northern Finland. Its principal projects include the Kutuvuoma, Silasselka, and Ahvenjarvi projects. Aurion Resources Ltd. was incorporated in 2006 and is based in St. John’s, 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 01:56
End of Day Share Price2020/02/27 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.