TSXV:ROYL

Stock Analysis Report

Royal Gold Mining

Executive Summary

Royal Gold Mining Inc., an exploration stage company, engages in the exploration of resource properties in Canada.

Risk Analysis

Earnings have declined by -15.14% per year over past 5 years

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

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

+ 1 more risk


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

9.3%

ROYL

-0.9%

CA Metals and Mining

-0.08%

CA Market


1 Year Return

47.5%

ROYL

21.9%

CA Metals and Mining

10.8%

CA Market

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

Return vs Market: ROYL exceeded the Canadian Market which returned 10.8% over the past year.


Shareholder returns

ROYLIndustryMarket
7 Day9.3%-0.9%-0.08%
30 Day73.5%2.5%0.01%
90 Day13.5%-1.2%1.2%
1 Year47.5%47.5%22.9%21.9%14.4%10.8%
3 Year84.4%84.4%4.6%2.7%15.0%4.6%
5 Year-50.8%-50.8%40.1%35.8%40.1%19.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Royal Gold Mining is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Royal Gold Mining has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of ROYL’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Royal Gold Mining regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

How is Royal Gold Mining 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 Royal Gold Mining 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 Royal Gold Mining performed over the past 5 years?

-15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROYL is currently unprofitable.

Growing Profit Margin: ROYL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ROYL is unprofitable, and losses have increased over the past 5 years at a rate of -15.1% per year.

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

Earnings vs Industry: ROYL 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: ROYL'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 Royal Gold Mining's financial position?


Financial Position Analysis

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

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

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


Balance Sheet

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

Debt Coverage by Assets: ROYL 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: ROYL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ROYL has less than a year of cash runway if free cash flow continues to grow at historical rates of 18.3% each year.


Next Steps

Dividend

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

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

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

3.4yrs

Average management tenure


CEO

Glen MacDonald (68yo)

3.4yrs

Tenure

CA$11,500

Compensation

Mr. Glen Colin MacDonald, P.Geo has been Independent Director of Zanzibar Gold Inc. since April 8, 2016. Mr. MacDonald has served as Director at Slave Lake Zinc Corp. since September 14, 2016. He has been  ...


Management Age and Tenure

3.4yrs

Average Tenure

Experienced Management: ROYL's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

Experienced Board: ROYL's board of directors are considered experienced (3.5 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.


Recent Insider Transactions

BuyCA$47,50022 Aug 19
Glen MacDonald
EntityIndividual
Role
Chief Executive Officer
President
Shares500,000
Max PriceCA$0.095
BuyCA$40,50008 Aug 19
Glen MacDonald
EntityIndividual
Role
Chief Executive Officer
President
Shares450,000
Max PriceCA$0.09

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 356.1%.


Management Team

  • Glen MacDonald (68yo)

    President

    • Tenure: 3.4yrs
    • Compensation: CA$11.50k
  • Ralf Hillebrand

    Corporate Secretary

    • Tenure: 3.5yrs
  • George Erskine

    Executive

    • Tenure: 0yrs
  • Chris Cherry (40yo)

    Chief Financial Officer

    • Tenure: 3.4yrs

Board Members

  • Glen MacDonald (68yo)

    President

    • Tenure: 3.4yrs
    • Compensation: CA$11.50k
  • Ken Ralfs (72yo)

    Independent Director

    • Tenure: 3.5yrs
  • Carol MacDonald

    Independent Director

    • Tenure: 3.4yrs

Company Information

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


Key Information

  • Name: Royal Gold Mining Inc.
  • Ticker: ROYL
  • Exchange: TSXV
  • Founded: 1985
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$3.029m
  • Shares outstanding: 10.27m
  • Website: https://null

Location

  • Royal Gold Mining Inc.
  • 595 Howe Street
  • Suite 701
  • Vancouver
  • British Columbia
  • 604-719-8129
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A2AQENDB (Deutsche Boerse AG)COM NPV(POST REV SPLIT)DECADNo data
ROYLTSXV (TSX Venture Exchange)YesCommon SharesCACADOct 1988
NSVL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 1988

Biography

Royal Gold Mining Inc., an exploration stage company, engages in the exploration of resource properties in Canada. It holds 100% interest in the Kirkland Creek gold property comprising 40 contiguous claims ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:42
End of Day Share Price2019/12/09 00:00
Earnings2019/08/31
Annual Earnings2019/02/28


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.