TSXV:GSH

Stock Analysis Report

Golden Share Resources

Executive Summary

Golden Share Resources Corporation, a junior natural resource company, engages in the acquisition and exploration of mineral properties in Canada.

Rewards

PE ratio (2.3x) is below the Canadian market (15.9x)

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Makes less than USD$1m in revenue (CA$10K)

Does not have a meaningful market cap (CA$3M)

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Slightly overvalued with questionable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-17.6%

GSH

2.4%

CA Metals and Mining

0.6%

CA Market


1 Year Return

-30.0%

GSH

4.4%

CA Metals and Mining

5.8%

CA Market

Return vs Industry: GSH underperformed the Canadian Metals and Mining industry which returned 4.3% over the past year.

Return vs Market: GSH underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

GSHIndustryMarket
7 Day-17.6%2.4%0.6%
30 Day-30.0%1.2%0.5%
90 Day-30.0%6.6%3.6%
1 Year-30.0%-30.0%5.0%4.4%9.1%5.8%
3 Year-69.6%-69.6%-10.4%-11.9%15.4%5.0%
5 Year55.6%55.6%22.9%19.2%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Golden Share Resources undervalued compared to its fair value and its price relative to the market?

2.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: GSH is good value based on its PE Ratio (2.3x) compared to the Metals and Mining industry average (15.6x).

PE vs Market: GSH is good value based on its PE Ratio (2.3x) compared to the Canadian market (15.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GSH 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 Golden Share Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.6%

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 Golden Share 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 Golden Share Resources performed over the past 5 years?

45.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GSH has a large one-off gain of CA$1.9M impacting its September 30 2019 financial results.

Growing Profit Margin: GSH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GSH has become profitable over the past 5 years, growing earnings by 45.2% per year.

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

Earnings vs Industry: GSH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: GSH'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 Golden Share Resources's financial position?


Financial Position Analysis

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

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

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


Balance Sheet

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

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

3.6yrs

Average management tenure


CEO

Nick Zeng 0

4.8yrs

Tenure

CA$72,000

Compensation

Mr. Nianqing Zeng, also known as Nick, has been the Chairman, Chief Executive Officer and President of Golden Share Mining Corporation since May 1, 2015. Mr.Zeng serves as the Chief Executive Officer and P ...


Leadership Team

NamePositionTenureCompensationOwnership
Nianqing Zeng
Chairman4.8yrsCA$72.00k7.29% CA$239.4k
Demin Huang
CFO, Financial Controller & Corporate Secretary2.5yrsCA$50.00k0.15% CA$5.1k
Zhenquan Gao
Vice President of Exploration10yrsno datano data
William Vaughan
Principal Advisor2.3yrsno datano data

3.6yrs

Average Tenure

Experienced Management: GSH's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nianqing Zeng
Chairman4.8yrsCA$72.00k7.29% CA$239.4k
William Vaughan
Principal Advisor2.3yrsno datano data
David Graham
Independent Director4.8yrsno datano data
George Wesley Roberts
Independent Director4.8yrsno datano data
Zhen Huang
Independent Director4.8yrsno data1.86% CA$61.2k
Bing Yang
Principal Adviser2yrsno datano data

4.8yrs

Average Tenure

Experienced Board: GSH's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GSH 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 3.2%.


Top Shareholders

Company Information

Golden Share Resources Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Golden Share Resources Corporation
  • Ticker: GSH
  • Exchange: TSXV
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$3.283m
  • Shares outstanding: 38.62m
  • Website: https://www.goldenshare.ca

Location

  • Golden Share Resources Corporation
  • 145 Riviera Drive
  • Unit 7
  • Markham
  • Ontario
  • L3R 5J6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GSHTSXV (TSX Venture Exchange)YesCommon SharesCACADAug 2013

Biography

Golden Share Resources Corporation, a junior natural resource company, engages in the acquisition and exploration of mineral properties in Canada. It primarily explores for gold, silver, zinc, and lead deposits. The company holds a 100% interest in the Berens River project located to the north of Red Lake in northwestern Ontario; and a 100% interest in the Band-Ore project located to the west of the town of Thunder Bay in the province of Ontario. It also holds 100% interests in the Ogoki and Kagiami projects located in the James Bay Lowlands of Ontario; the Sandridge Project located in Thunder Bay, Ontario; and the Basking Project located in northern Ontario. The company was formerly known as Golden Share Mining Corporation and changed its name to Golden Share Resources Corporation in June 2017. Golden Share Resources Corporation has a strategic cooperation agreement with Joysun New Energy Co., Ltd. The company is based in Markham, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:35
End of Day Share Price2020/02/14 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.