TSXV:GWA

Stock Analysis Report

Executive Summary

Gowest Gold Ltd. operates as a gold exploration and development company in Canada.

Risk Analysis

Earnings have declined by -40.92% per year over past 5 years

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Overvalued with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.4%

GWA

0.3%

CA Metals and Mining

1.2%

CA Market


1 Year Return

-50.0%

GWA

28.3%

CA Metals and Mining

9.6%

CA Market

Return vs Industry: GWA underperformed the Canadian Metals and Mining industry which returned 26.9% over the past year.

Return vs Market: GWA underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

GWAIndustryMarket
7 Day-2.4%0.3%1.2%
30 Day0%3.2%2.6%
90 Day-29.8%7.8%6.0%
1 Year-50.0%-50.0%29.2%28.3%13.1%9.6%
3 Year-88.6%-88.6%-0.4%-2.2%17.1%6.4%
5 Year-73.3%-73.3%28.4%24.2%36.1%16.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.35x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: GWA is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: GWA is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GWA is good value based on its PB Ratio (0.3x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Gowest Gold 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 Gowest 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 Gowest Gold performed over the past 5 years?

-40.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GWA is currently unprofitable.

Growing Profit Margin: GWA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GWA is unprofitable, and losses have increased over the past 5 years at a rate of -40.9% per year.

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

Earnings vs Industry: GWA is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-1.4%).


Return on Equity

High ROE: GWA has a negative Return on Equity (-16.26%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gowest Gold's financial position?


Financial Position Analysis

Short Term Liabilities: GWA's short term assets (CA$5.3M) do not cover its short term liabilities (CA$23.1M).

Long Term Liabilities: GWA's short term assets (CA$5.3M) exceed its long term liabilities (CA$3.7M).


Debt to Equity History and Analysis

Debt Level: GWA's debt to equity ratio (41%) is considered high.

Reducing Debt: Insufficient data to determine if GWA's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: GWA's debt is not covered by short term assets (assets are 0.4x debt).


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: GWA has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: GWA has less than a year of cash runway if free cash flow continues to reduce at historical rates of -16.5% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if GWA'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 GWA's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Gowest Gold's salary, the management and board of directors tenure and is there insider trading?

11.5yrs

Average management tenure


CEO

Greg Romain 0

11.7yrs

Tenure

CA$253,795

Compensation

Mr. Gregory J. Romain, also known as Greg, has been the Chief Executive Officer and President of Gowest Gold Ltd since May 1, 2008. Mr. Romain has been the President of Norcast Income Fund since 2001 and h ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD194.25K) is about average for companies of similar size in the Canadian market ($USD165.67K).

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


Management Age and Tenure

11.5yrs

Average Tenure

62yo

Average Age

Experienced Management: GWA's management team is seasoned and experienced (11.5 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

Experienced Board: GWA's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: GWA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$450,00023 Dec 19
C. Elliott
EntityIndividual
Role
Chairman of the Board
Chairman
Shares2,045,455
Max PriceCA$0.22
BuyCA$1,000,00023 Dec 19
Fortune Future Holdings Limited
EntityCompany
Shares5,000,000
Max PriceCA$0.20
BuyCA$40,00023 Dec 19
Peter Quintiliani
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares181,818
Max PriceCA$0.22
BuyCA$8,000,00521 Jun 19
Fortune Future Holdings Limited
EntityCompany
Shares17,777,777
Max PriceCA$0.45

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25.8%.


Management Team

  • Michael Bradshaw

    Treasurer

    • Greg Romain

      President

      • Tenure: 11.7yrs
      • Compensation: CA$253.80k
    • Janet O’Donnell (62yo)

      Secretary & CFO

      • Tenure: 11.5yrs
      • Compensation: CA$147.00k
    • John Frostiak (68yo)

      Technical Advisor

      • Tenure: 0.3yrs
      • Compensation: CA$16.50k
    • Jeremy Niemi (47yo)

      Director of Exploration

      • Compensation: CA$9.20k
    • Greg Taylor

      Investor Relations Officer


      Board Members

      • C. Elliott (62yo)

        Chairman

        • Compensation: CA$16.50k
      • Greg Romain

        President

        • Tenure: 11.7yrs
        • Compensation: CA$253.80k
      • Parviz Farsangi (57yo)

        Director

        • Tenure: 0.3yrs
      • Peter Quintiliani

        Independent Director

        • Tenure: 7.7yrs
        • Compensation: CA$16.50k
      • Meirong Yuanhui

        Director

        • Tenure: 5.2yrs
        • Compensation: CA$40.20k
      • Yungang Wu

        Director

        • Tenure: 5.3yrs
        • Compensation: CA$43.15k
      • Fleming Huang

        Independent Director

        • Tenure: 2.3yrs
        • Compensation: CA$20.00k

      Company Information

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


      Key Information

      • Name: Gowest Gold Ltd.
      • Ticker: GWA
      • Exchange: TSXV
      • Founded: 1982
      • Industry: Gold
      • Sector: Materials
      • Market Cap: CA$14.075m
      • Shares outstanding: 70.38m
      • Website: https://www.gowestgold.com

      Location

      • Gowest Gold Ltd.
      • 80 Richmond Street West
      • Suite 1400
      • Toronto
      • Ontario
      • M5H 2A4
      • Canada

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      GWATSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1988
      1GWADB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
      1GWMUN (Boerse Muenchen)YesCommon SharesDEEURSep 1988
      GWSA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988

      Biography

      Gowest Gold Ltd. operates as a gold exploration and development company in Canada. It focuses on the delineation and development of its 100% owned Bradshaw gold deposit, which is part of the North Timmins gold project located near Timmins, Ontario. The company holds interest in the North Timmins Gold Project that covers 1 patented mining claim, 11 mining leases, and 56 unpatented mining claims covering an area of approximately 10,942 hectares in Evelyn, Gowan, Little, Prosser, Tully, and Wark Townships in the Timmins gold camp. It also holds interest in the Frankfield Property, which comprise 8 mining leases covering an area of 842 hectares; 67.7% interest in the Pipestone Property; and 100% interest in the Tully Property and Whitney Property located in Timmins, Ontario. The company was formerly known as Gowest Amalgamated Resources Ltd. and changed its name to Gowest Gold Ltd. in March 2011. Gowest Gold Ltd. was incorporated in 1982 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 Analysis2020/01/17 01:31
      End of Day Share Price2020/01/16 00:00
      Earnings2019/07/31
      Annual Earnings2018/10/31


      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.