TSXV:FGC

Stock Analysis Report

Executive Summary

Frontline Gold Corporation, a junior mineral exploration company, acquires, explores for, and evaluates natural resource properties.

Rewards

PE ratio (4.8x) is below the Canadian market (16x)

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Does not have a meaningful market cap (CA$702K)

Large one-off items impacting financial results



Snowflake Analysis

Slightly overvalued with questionable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

FGC

4.6%

CA Metals and Mining

0.2%

CA Market


1 Year Return

-50.0%

FGC

4.5%

CA Metals and Mining

4.9%

CA Market

Return vs Industry: FGC underperformed the Canadian Metals and Mining industry which returned 4.5% over the past year.

Return vs Market: FGC underperformed the Canadian Market which returned 4.9% over the past year.


Shareholder returns

FGCIndustryMarket
7 Day0%4.6%0.2%
30 Day0%3.7%0.4%
90 Day0%10.7%3.7%
1 Year-50.0%-50.0%5.1%4.5%8.2%4.9%
3 Year-80.0%-80.0%-5.4%-7.0%15.9%5.5%
5 Year0%0%26.4%22.6%33.8%14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

4.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: FGC is good value based on its PE Ratio (4.8x) compared to the Metals and Mining industry average (15.8x).

PE vs Market: FGC is good value based on its PE Ratio (4.8x) compared to the Canadian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FGC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FGC has negative assets, so we can't compare its PB Ratio to the CA Metals and Mining industry average.


Next Steps

Future Growth

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

15.8%

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 Frontline 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 Frontline Gold performed over the past 5 years?

62.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FGC has a large one-off gain of CA$243.8K impacting its September 30 2019 financial results.

Growing Profit Margin: FGC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FGC has become profitable over the past 5 years, growing earnings by 62.8% per year.

Accelerating Growth: FGC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FGC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (10.1%).


Return on Equity

High ROE: FGC'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 Frontline Gold's financial position?


Financial Position Analysis

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

Long Term Liabilities: FGC 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: FGC has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet

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

Debt Coverage by Assets: FGC 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: FGC is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: FGC is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

9.5yrs

Average board tenure


CEO

Walter Henry (52yo)

9.7yrs

Tenure

0

Mr. Walter C. Henry, CFA, ICD.D had been Acting President and Chief Executive Officer of Alexandria Minerals Corporation since July 30, 2018 until August 2019. Mr. Henry served as the Chief Executive Offic ...


Board Members

NamePositionTenureCompensationOwnership
Walter Henry
President9.7yrsno data16.83% CA$118.2k
Thomas Hussey
CFO & Director8.5yrsno datano data
Darryl Sittler
Independent Director8.8yrsno datano data
James Patterson
Director10.2yrsno datano data

9.5yrs

Average Tenure

70.5yo

Average Age

Experienced Board: FGC's board of directors are considered experienced (9.5 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Frontline Gold Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Frontline Gold Corporation
  • Ticker: FGC
  • Exchange: TSXV
  • Founded: 2008
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$702.316k
  • Shares outstanding: 140.46m
  • Website: https://www.frontlinegold.com

Location

  • Frontline Gold Corporation
  • 1 Toronto Street
  • Suite 201
  • Toronto
  • Ontario
  • M5C 2V6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FGCTSXV (TSX Venture Exchange)YesCommon SharesCACADJan 2010
FLDP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 2010
66FDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2010

Biography

Frontline Gold Corporation, a junior mineral exploration company, acquires, explores for, and evaluates natural resource properties. Its primary assets include gold and base metal properties in Ontario, Canada; the Menderes gold project located in Turkey; and the Niaouleni gold project located in South Mali, Africa. The company was formerly known as Chrysos Capital Corporation and changed its name to Frontline Gold Corporation in March 2010. Frontline Gold Corporation was incorporated in 2008 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 Analysis2020/02/19 01:39
End of Day Share Price2020/02/13 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.