TSXV:GG

Stock Analysis Report

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Executive Summary

Galane Gold Ltd., through its subsidiary, Galane Gold Mines Ltd., engages in the exploration for, development, and operation of gold mining properties.


Snowflake Analysis

High growth potential with acceptable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.5%

GG

-0.9%

CA Metals and Mining

0.005%

CA Market


1 Year Return

518.2%

GG

51.2%

CA Metals and Mining

-5.8%

CA Market

Return vs Industry: GG exceeded the Canadian Metals and Mining industry which returned 54.5% over the past year.

Return vs Market: GG exceeded the Canadian Market which returned -6.3% over the past year.


Shareholder returns

GGIndustryMarket
7 Day1.5%-0.9%0.005%
30 Day134.5%15.6%4.5%
90 Day277.8%24.3%9.7%
1 Year518.2%518.2%52.3%51.2%-2.5%-5.8%
3 Year353.3%353.3%64.1%60.8%8.5%-2.0%
5 Year240.0%240.0%152.9%145.5%29.1%9.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

625.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: GG is poor value based on its PE Ratio (625.3x) compared to the CA Metals and Mining industry average (26.1x).

PE vs Market: GG is poor value based on its PE Ratio (625.3x) compared to the Canadian market (14.8x).


Price to Earnings Growth Ratio

PEG Ratio: GG is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: GG is overvalued based on its PB Ratio (3.9x) compared to the CA Metals and Mining industry average (2.8x).


Next Steps

Future Growth

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

117.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GG's forecast earnings growth (117.6% per year) is above the savings rate (1.7%).

Earnings vs Market: GG's earnings (117.6% per year) are forecast to grow faster than the Canadian market (24.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GG's revenue (45.7% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: GG's revenue (45.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Galane Gold performed over the past 5 years?

31.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GG has high quality earnings.

Growing Profit Margin: GG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GG has become profitable over the past 5 years, growing earnings by 31.5% per year.

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

Earnings vs Industry: GG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (18.3%).


Return on Equity

High ROE: GG's Return on Equity (0.6%) is considered low.


Next Steps

Financial Health

How is Galane Gold's financial position?


Financial Position Analysis

Short Term Liabilities: GG's short term assets ($7.8M) do not cover its short term liabilities ($21.1M).

Long Term Liabilities: GG's short term assets ($7.8M) do not cover its long term liabilities ($10.9M).


Debt to Equity History and Analysis

Debt Level: GG's debt to equity ratio (115%) is considered high.

Reducing Debt: GG's debt to equity ratio has increased from 31.4% to 115% over the past 5 years.

Debt Coverage: GG's debt is well covered by operating cash flow (27.5%).

Interest Coverage: GG's interest payments on its debt are not well covered by EBIT (0.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Galane Gold current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GG's dividends per share have been stable in the past.

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

5.8yrs

Average management tenure


CEO

Nick Brodie

5.75yrs

Tenure

US$585,815

Compensation

Mr. Nicholas Brodie, also known as Nick, has been the Chief Executive Officer of Galane Gold Ltd. since November 10, 2014. Mr. Brodie served as Chief Financial Officer of Galane Gold Ltd. from October 4, ...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD437.40K) is above average for companies of similar size in the Canadian market ($USD178.97K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Brodie
CEO & Director5.75yrsUS$585.82k1.22%
$ 923.1k
Gavin Vandervegt
Chief Financial Officer3.83yrsUS$440.08k0.44%
$ 331.5k
Wayne Hatton-Jones
COO & GM5.75yrsUS$597.73k1.63%
$ 1.2m
Richard Kimel
Corporate Secretaryno datano datano data

5.8yrs

Average Tenure

Experienced Management: GG's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicholas Brodie
CEO & Director5.75yrsUS$585.82k1.22%
$ 923.1k
Dino Titaro
Independent Director1.17yrsUS$55.69k0.045%
$ 34.0k
Kenneth Crema
Independent Director0.75yrUS$38.00kno data
Ravi Sood
Chairman of the Board10.58yrsUS$271.31k3.2%
$ 2.4m
Amar Bhalla
Independent Director12.83yrsUS$90.52k6.92%
$ 5.3m

5.8yrs

Average Tenure

43yo

Average Age

Experienced Board: GG's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GG 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 11.3%.


Top Shareholders

Company Information

Galane Gold Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Galane Gold Ltd.
  • Ticker: GG
  • Exchange: TSXV
  • Founded: 2007
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$75.956m
  • Shares outstanding: 223.40m
  • Website: https://www.galanegold.com

Number of Employees


Location

  • Galane Gold Ltd.
  • 181 Bay Street
  • Suite 1800
  • Toronto
  • Ontario
  • M5J 2T9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GGTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 2011
GGGO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2011
25GDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2011

Biography

Galane Gold Ltd., through its subsidiary, Galane Gold Mines Ltd., engages in the exploration for, development, and operation of gold mining properties. It operates two mines, including the Mupane Property, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 00:37
End of Day Share Price2020/07/31 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.