TSXV:SWA

Stock Analysis Report

Executive Summary

Sarama Resources Ltd, an exploration stage company, engages in the sourcing, exploration, and development of mineral properties in West Africa.

Snowflake

Fundamentals

Flawless balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

SWA

0.5%

CA Metals and Mining

0.2%

CA Market


1 Year Return

33.3%

SWA

15.0%

CA Metals and Mining

3.5%

CA Market

Return vs Industry: SWA exceeded the Canadian Metals and Mining industry which returned 15% over the past year.

Return vs Market: SWA exceeded the Canadian Market which returned 3.5% over the past year.


Shareholder returns

SWAIndustryMarket
7 Day0%0.5%0.2%
30 Day-27.3%-8.9%-3.3%
90 Day-5.9%-8.0%-1.9%
1 Year33.3%33.3%15.9%15.0%7.3%3.5%
3 Year-68.0%-68.0%-11.6%-13.2%14.7%4.4%
5 Year60.0%60.0%15.4%11.6%26.2%7.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

4.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SWA is overvalued based on its PB Ratio (4.6x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

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

38.7%

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 Sarama 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 Sarama Resources performed over the past 5 years?

-7.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SWA is unprofitable, and losses have increased over the past 5 years at a rate of -7.1% per year.

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

Earnings vs Industry: SWA 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: SWA has a negative Return on Equity (-156.49%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SWA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SWA is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Sarama Resources's financial position?


Financial Position Analysis

Short Term Liabilities: SWA's short term assets ($3.9M) exceeds its short term liabilities ($1.8M)

Long Term Liabilities: SWA's short term assets (3.9M) exceeds its long term liabilities (671.8K)


Debt to Equity History and Analysis

Debt Level: SWA is debt free.

Reducing Debt: SWA has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if SWA'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: SWA has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SWA has sufficient cash runway for 1.094034 years if free cash flow continues to grow at historical rates of 4.1% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.9%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if SWA's dividends per share have been stable in the past.

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

8.9yrs

Average management tenure


CEO

Andrew Robert Dinning (53yo)

0yrs

Tenure

US$226,151

Compensation

Mr. Andrew Robert Mune Dinning, BEng, MBA has been Chief Operating Officer of Moto Goldmines Limited since October 31, 2005 and has been its President since January 1, 2008. Mr. Dinning serves as Chief Exe ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Andrew Robert's total compensation is reasonable compared to companies of similar size in the Canadian market.

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


Management Age and Tenure

8.9yrs

Average Tenure

Experienced Management: SWA's management team is seasoned and experienced (8.9 years average tenure).


Board Age and Tenure

7.4yrs

Average Tenure

53yo

Average Age

Experienced Board: SWA's board of directors are considered experienced (7.4 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

BuyUS$25,50001 May 19
John Hamilton
EntityIndividual
Role
Top Key Executive
Founder & VP of Exploration
Shares300,000
Max PriceUS$0.085
BuyUS$1,699,99901 May 19
Sun Valley Gold LLC
EntityCompany
Shares20,000,000
Max PriceUS$0.085
BuyUS$10,00001 May 19
Lui Evangelista
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares117,647
Max PriceUS$0.085
BuyUS$29,75001 May 19
Paul Schmiede
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares350,000
Max PriceUS$0.085
BuyUS$199,75101 May 19
Andrew Robert Dinning
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares2,350,000
Max PriceUS$0.085
BuyUS$5,00007 Jan 19
Andrew Robert Dinning
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares100,000
Max PriceUS$0.05

Ownership Breakdown


Management Team

  • Andrew Robert Dinning (53yo)

    Executive Chairman & CEO

    • Tenure: 0yrs
    • Compensation: US$226.15k
  • Paul Schmiede (46yo)

    Vice President of Corporate Development

    • Tenure: 8.9yrs
    • Compensation: US$185.03k
  • Jack Hamilton

    Founder & VP of Exploration

    • Tenure: 9.2yrs
    • Compensation: US$173.65k
  • Lui Evangelista

    Chief Financial Officer

    • Tenure: 2.8yrs
    • Compensation: US$164.47k

Board Members

  • Andrew Robert Dinning (53yo)

    Executive Chairman & CEO

    • Tenure: 0yrs
    • Compensation: US$226.15k
  • Terence Harvey (60yo)

    Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: US$18.52k
  • Lawrence Jackson (52yo)

    Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: US$20.28k
  • Dave Groves

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: US$18.52k

Company Information

Sarama Resources Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sarama Resources Ltd
  • Ticker: SWA
  • Exchange: TSXV
  • Founded: 2010
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$20.053m
  • Shares outstanding: 250.66m
  • Website: https://www.saramaresources.com

Number of Employees


Location

  • Sarama Resources Ltd
  • 245 Churchill Avenue
  • Suite 8
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SWATSXV (TSX Venture Exchange)YesCommon SharesCACADNov 2011
48SDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2011
SRMM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2011

Biography

Sarama Resources Ltd, an exploration stage company, engages in the sourcing, exploration, and development of mineral properties in West Africa. The company explores for gold deposits. Its project portfolio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:25
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.