TSXV:IGO

Stock Analysis Report

Independence Gold

Executive Summary

Independence Gold Corp. engages in the acquisition, exploration, and evaluation of precious metal properties in North America.

Risk Analysis

Earnings have declined by -1.14% per year over past 5 years

Has less than 1 year of cash runway

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

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



Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

IGO

-0.9%

CA Metals and Mining

-0.08%

CA Market


1 Year Return

0%

IGO

21.9%

CA Metals and Mining

10.8%

CA Market

Return vs Industry: IGO underperformed the Canadian Metals and Mining industry which returned 21.9% over the past year.

Return vs Market: IGO underperformed the Canadian Market which returned 10.8% over the past year.


Shareholder returns

IGOIndustryMarket
7 Day0%-0.9%-0.08%
30 Day-8.3%2.5%0.01%
90 Day-21.4%-1.2%1.2%
1 Year0%0%22.9%21.9%14.4%10.8%
3 Year-63.3%-63.3%4.6%2.7%15.0%4.6%
5 Year-26.7%-26.7%40.1%35.8%40.1%19.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.26x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: IGO 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 IGO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IGO is good value based on its PB Ratio (0.3x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

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

17.2%

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 Independence 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 Independence Gold performed over the past 5 years?

-1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IGO is currently unprofitable.

Growing Profit Margin: IGO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IGO is unprofitable, and losses have increased over the past 5 years at a rate of -1.1% per year.

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

Earnings vs Industry: IGO is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (4.1%).


Return on Equity

High ROE: IGO has a negative Return on Equity (-14.11%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Independence Gold's financial position?


Financial Position Analysis

Short Term Liabilities: IGO's short term assets (CA$1.2M) exceed its short term liabilities (CA$258.2K).

Long Term Liabilities: IGO's short term assets (CA$1.2M) exceed its long term liabilities (CA$812.9K).


Debt to Equity History and Analysis

Debt Level: IGO is debt free.

Reducing Debt: IGO had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: IGO's debt is covered by short term assets (assets are 1.0804910125197E+16x 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: IGO has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: IGO has less than a year of cash runway if free cash flow continues to grow at historical rates of 32% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.6%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if IGO'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 IGO'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 Independence Gold's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Randy Turner (70yo)

2.4yrs

Tenure

CA$102,000

Compensation

Mr. Randy Christopher Turner is the Chief Executive Officer and President of Independence Gold Corp. since March 7, 2017 and 2019 respectively and its Director since January 11, 2011. He served as the Pres ...


CEO Compensation Analysis

Compensation vs Market: Randy's total compensation ($USD77.11K) is below average for companies of similar size in the Canadian market ($USD136.07K).

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


Management Age and Tenure

2.4yrs

Average Tenure

Experienced Management: IGO's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

65yo

Average Age

Experienced Board: IGO's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

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 not been meaningfully diluted in the past year.


Management Team

  • Randy Turner (70yo)

    President

    • Tenure: 2.4yrs
    • Compensation: CA$102.00k
  • David Pawliuk

    • Tenure: 3.7yrs
  • Harry Chan

    Chief Financial Officer

    • Tenure: 2yrs
    • Compensation: CA$72.00k

Board Members

  • Terry Salman

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: CA$6.00k
  • Randy Turner (70yo)

    President

    • Tenure: 2.4yrs
    • Compensation: CA$102.00k
  • John McDonald

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: CA$9.00k
  • Darcy Marud

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: CA$6.00k
  • Louis Montpellier (65yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: CA$9.00k
  • Mike McPhie (49yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: CA$9.00k
  • Kendra Johnston

    Director

    • Tenure: 2.1yrs
    • Compensation: CA$147.00k

Company Information

Independence Gold Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Independence Gold Corp.
  • Ticker: IGO
  • Exchange: TSXV
  • Founded: 2011
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: CA$3.096m
  • Shares outstanding: 56.29m
  • Website: https://www.ingold.ca

Location

  • Independence Gold Corp.
  • 625 Howe Street
  • Suite 1020
  • Vancouver
  • British Columbia
  • V6C 2T6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IGOTSXV (TSX Venture Exchange)YesCommon SharesCACADDec 2011
IEGC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2011

Biography

Independence Gold Corp. engages in the acquisition, exploration, and evaluation of precious metal properties in North America. It explores for gold and silver deposits. It holds exploration projects in cen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 00:09
End of Day Share Price2019/12/09 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.