TSXV:FG

Stock Analysis Report

Executive Summary

Falcon Gold Corp., an exploration stage company, engages in the acquisition and exploration of mineral properties in the Americas.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

11.1%

FG

4.7%

CA Metals and Mining

0.1%

CA Market


1 Year Return

42.9%

FG

5.4%

CA Metals and Mining

4.5%

CA Market

Return vs Industry: FG exceeded the Canadian Metals and Mining industry which returned 5.4% over the past year.

Return vs Market: FG exceeded the Canadian Market which returned 4.5% over the past year.


Shareholder returns

FGIndustryMarket
7 Day11.1%4.7%0.1%
30 Day42.9%4.2%0.9%
90 Day42.9%14.1%3.7%
1 Year42.9%42.9%6.0%5.4%7.8%4.5%
3 Year-9.1%-9.1%0.2%-1.5%18.2%7.5%
5 Year-85.7%-85.7%26.6%22.9%33.7%14.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Falcon Gold is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Falcon Gold 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 FG’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 Falcon Gold regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

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

13.5%

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 Falcon 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 Falcon Gold performed over the past 5 years?

5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FG is currently unprofitable.

Growing Profit Margin: FG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FG is unprofitable, but has reduced losses over the past 5 years at a rate of 5.8% per year.

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

Earnings vs Industry: FG is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: FG'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 Falcon Gold's financial position?


Financial Position Analysis

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

Long Term Liabilities: FG 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: FG is debt free.

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


Balance Sheet

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

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

Forecast Cash Runway: FG has less than a year of cash runway if free cash flow continues to reduce at historical rates of -5.5% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

0.7yrs

Average management tenure


CEO

Karim Rayani 0

0.7yrs

Tenure

0

Mr. Karim Rayani serves as Chief Executive Officer and Director of Falcon Gold Corp. since June 30, 2018. Mr. Rayani served as Strategic Advisor at Falcon Gold Corp until June 30, 2019. He has been a Direc ...


Leadership Team

NamePositionTenureCompensationOwnership
James Farley
Interim CFO & Director7.7yrsCA$10.78k4.45% CA$133.5k
Stephenson Wilkinson
Geological Advisor0.7yrsCA$57.95k2.98% CA$89.5k
Karim Rayani
CEO & Director0.7yrsno data4.74% CA$142.4k
Kenneth Cawkell
Secretary5.3yrsno datano data

0.7yrs

Average Tenure

Experienced Management: FG's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Farley
Interim CFO & Director7.7yrsCA$10.78k4.45% CA$133.5k
Karim Rayani
CEO & Director0.7yrsno data4.74% CA$142.4k
R. Angus
Member of Advisory Board0.3yrsno datano data
David Tafel
Chairman of the Board5.3yrsCA$50.00k3.31% CA$99.4k
John Bossio
Director0.08yrsno data0.40% CA$12.1k
Ian Graham
Geological Advisor0.08yrsno datano data

0.5yrs

Average Tenure

Experienced Board: FG's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FG 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 substantially diluted in the past year, with total shares outstanding growing by 51.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Falcon Gold Corp.
  • Ticker: FG
  • Exchange: TSXV
  • Founded: 2006
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$3.002m
  • Shares outstanding: 60.04m
  • Website: https://www.falcongold.ca

Location

  • Falcon Gold Corp.
  • 470 Granville Street
  • Suite 520
  • Vancouver
  • British Columbia
  • V6C 1V5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FGTSXV (TSX Venture Exchange)YesCommon SharesCACADDec 2007
3FADB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2007

Biography

Falcon Gold Corp., an exploration stage company, engages in the acquisition and exploration of mineral properties in the Americas. Its projects include Central Canada Gold & Polymetalic Project that comprises two claim blocks; Wabunk Bay Copper, Gold & Nickel Property; Bruce & Camping LK Properties; Burton Property; And Esperanza Gold & Copper Project located in Northern Ontario, Canada. The company was formerly known as Chesstown Capital Inc. and changed its name to Falcon Gold Corp. in July 2011. Falcon Gold Corp. was incorporated in 2006 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 02:43
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.