TSXV:KGC

Stock Analysis Report

Executive Summary

Kestrel Gold Inc., an exploration stage company, engages in the acquisition, exploration, and evaluation of mineral properties in Canada.

Risk Analysis

Earnings have declined by -0.55% per year over past 5 years

Has less than 1 year of cash runway

Does not have a meaningful market cap (CA$2M)

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

+ 2 more risks


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

20.0%

KGC

2.4%

CA Metals and Mining

0.6%

CA Market


1 Year Return

50.0%

KGC

4.4%

CA Metals and Mining

5.8%

CA Market

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

Return vs Market: KGC exceeded the Canadian Market which returned 5.8% over the past year.


Shareholder returns

KGCIndustryMarket
7 Day20.0%2.4%0.6%
30 Day50.0%1.2%0.5%
90 Day50.0%6.6%3.6%
1 Year50.0%50.0%5.0%4.4%9.1%5.8%
3 Yearn/a-10.4%-11.9%15.4%5.0%
5 Year20.0%20.0%22.9%19.2%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

35.89x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: KGC is overvalued based on its PB Ratio (35.9x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

-0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KGC is currently unprofitable.

Growing Profit Margin: KGC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KGC is unprofitable, and losses have increased over the past 5 years at a rate of -0.6% per year.

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

Earnings vs Industry: KGC is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: KGC has a negative Return on Equity (-1277.56%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kestrel Gold's financial position?


Financial Position Analysis

Short Term Liabilities: KGC's short term assets (CA$96.8K) exceed its short term liabilities (CA$53.9K).

Long Term Liabilities: KGC has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: KGC is debt free.

Reducing Debt: KGC has no debt compared to 5 years ago when its debt to equity ratio was 65.3%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if KGC's debt is 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: KGC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: KGC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -1.6% each year


Next Steps

Dividend

What is Kestrel Gold'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 KGC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

2.9yrs

Average board tenure


CEO

Rob Solinger 0

1.6yrs

Tenure

CA$50,000

Compensation

Mr. Robert H. Solinger, also known as Rob, has been Chief Executive Officer and Chief Financial Officer at Kestrel Gold Inc. since July 11, 2018. He has been Director of Kestrel Gold Inc. since March 15, 2 ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD37.73K) is below average for companies of similar size in the Canadian market ($USD155.16K).

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


Board Members

NamePositionTenureCompensationOwnership
Robert Solinger
CEO, CFO1.6yrsCA$50.00k2.77% CA$56.0k
Scott Kellaway
Independent Director5.9yrsno data1.79% CA$36.1k
Patrick Lynch
Independent Director1.6yrsno datano data

2.9yrs

Average Tenure

Experienced Board: KGC's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.1%.


Top Shareholders

Company Information

Kestrel Gold Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kestrel Gold Inc.
  • Ticker: KGC
  • Exchange: TSXV
  • Founded: 2007
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$2.022m
  • Shares outstanding: 67.40m
  • Website: https://www.kestrelgold.com

Location

  • Kestrel Gold Inc.
  • 110-12th Avenue SW
  • Suite 208
  • Calgary
  • Alberta
  • T2R 0G7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KGCTSXV (TSX Venture Exchange)YesCommon SharesCACADMar 2009
2KG1DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2009

Biography

Kestrel Gold Inc., an exploration stage company, engages in the acquisition, exploration, and evaluation of mineral properties in Canada. It primarily explores for gold deposits. It has an option to acquire 100% interest in the King Solomon Dome project located in Yukon Territory. The company was formerly known as Bling Capital Corp. and changed its name to Kestrel Gold Inc. in June 2010. Kestrel Gold Inc. was incorporated in 2007 and is headquartered in Calgary, 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 00:33
End of Day Share Price2020/02/11 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.