TSXV:GBU

Stock Analysis Report

Gabriel Resources

Executive Summary

Gabriel Resources Ltd. engages in the exploration, evaluation, and development of precious metal mining properties in Romania.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

13.2%

GBU

-6.0%

CA Metals and Mining

-6.2%

CA Market


1 Year Return

53.8%

GBU

2.2%

CA Metals and Mining

-2.0%

CA Market

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

Return vs Market: GBU exceeded the Canadian Market which returned -2% over the past year.


Shareholder returns

GBUIndustryMarket
7 Day13.2%-6.0%-6.2%
30 Day33.3%-1.0%-5.0%
90 Day-10.4%4.9%-2.8%
1 Year53.8%53.8%2.9%2.2%1.1%-2.0%
3 Year53.8%53.8%-2.8%-4.5%10.7%0.6%
5 Year-20.0%-20.0%25.0%21.4%27.6%8.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gabriel 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 Gabriel Resources is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Gabriel 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 GBU’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 Gabriel Resources regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

How is Gabriel 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 Gabriel 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 Gabriel Resources performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GBU is currently unprofitable.

Growing Profit Margin: GBU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GBU is unprofitable, but has reduced losses over the past 5 years at a rate of 23.3% per year.

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

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


Next Steps

Financial Health

How is Gabriel Resources's financial position?


Financial Position Analysis

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

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

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


Balance Sheet

Inventory Level: GBU has a low level of unsold assets or inventory.

Debt Coverage by Assets: GBU 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: GBU has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: GBU has sufficient cash runway for 1.1 years if free cash flow continues to grow at historical rates of 1.2% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

1.5yrs

Average management tenure


CEO

Dragos Tanase (45yo)

1.5yrs

Tenure

CA$1,174,597

Compensation

Mr. Dragos Tanase has been the President, Chief Executive Officer & Director at Gabriel Resources, Ltd., since August 8, 2018 and has been its Managing Director of RMGC since October 2008. Prior to RMGC, M ...


CEO Compensation Analysis

Compensation vs Market: Dragos's total compensation ($USD879.06K) is about average for companies of similar size in the Canadian market ($USD687.59K).

Compensation vs Earnings: Dragos's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Dragos Tanase
President1.5yrsCA$1.17mno data
Richard Brown
Chief Financial Officer0.7yrsCA$1.03mno data
Max Vaughan
Consultant0.7yrsCA$196.86kno data
Jonathan Henry
Consultant1.6yrsCA$3.89mno data
Simon Lusty
Group General Counsel & Corporate Secretary0yrsno datano data
Pierre Tercier
President of the Tribunal1.8yrsno datano data
Nicolae Suciu
Deputy Managing Director of RMGC10.7yrsCA$290.60kno data

1.5yrs

Average Tenure

49yo

Average Age

Experienced Management: GBU's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Dragos Tanase
President1.5yrsCA$1.17mno data
Walter Segsworth
Independent Director9.7yrsCA$74.51k0.00087% CA$3.0k
David Peat
Independent Director9.7yrsCA$87.07kno data
Keith Hulley
Independent Chairman of the Board9.7yrsCA$103.44kno data
Janice Stairs
Independent Director2.7yrsCA$81.32kno data
Harry Kirk
Independent Director11.7yrsCA$82.07k0.0079% CA$27.4k
Ali Erfan
Non-Independent Director0.7yrsno datano data
Daniel Kochav
Director0.7yrsno datano data
Dag Cramer
Non-Independent Director7.7yrsCA$72.32kno data
Alfred Gusenbauer
Independent Director9.7yrsCA$72.32kno data

8.7yrs

Average Tenure

60yo

Average Age

Experienced Board: GBU's board of directors are considered experienced (8.7 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 23.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Gabriel Resources Ltd.
  • Ticker: GBU
  • Exchange: TSXV
  • Founded: 1986
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$344.548m
  • Shares outstanding: 574.25m
  • Website: https://www.gabrielresources.com

Number of Employees


Location

  • Gabriel Resources Ltd.
  • 204 Lambert Street
  • Suite 200
  • Whitehorse
  • Yukon Territory
  • Y1A 1Z4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GBUTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1988
GRZDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
GBRR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988

Biography

Gabriel Resources Ltd. engages in the exploration, evaluation, and development of precious metal mining properties in Romania. The company primarily explores for gold, silver, and copper deposits. It primarily holds interest in the Bucium exploration concession covering an area of 2,325 hectares located in Western Transylvania. The company was formerly known as Starx Resource Corp. and changed its name to Gabriel Resources Ltd. in April 1997. Gabriel Resources Ltd. was founded in 1986 and is based in Whitehorse, 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 00:12
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.