TSXV:TGI.H

Stock Analysis Report

True Grit Resources

Executive Summary

True Grit Resources Ltd., a mineral exploration company, engages in the acquisition, exploration, and development of mineral properties in North America.

Risk Analysis

Earnings have declined by -2.67% per year over past 5 years

Has less than 1 year of cash runway

Does not have a meaningful market cap (CA$674K)

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

+ 1 more risk


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

TGI.H

0.8%

CA Metals and Mining

0.8%

CA Market


1 Year Return

-33.3%

TGI.H

28.8%

CA Metals and Mining

10.6%

CA Market

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

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


Shareholder returns

TGI.HIndustryMarket
7 Day0%0.8%0.8%
30 Day0%1.0%2.1%
90 Day33.3%8.5%6.6%
1 Year-33.3%-33.3%29.8%28.8%14.1%10.6%
3 Year-55.6%-55.6%-0.5%-2.3%17.0%6.4%
5 Year-20.0%-20.0%30.0%25.8%38.5%18.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether True Grit Resources is trading at an attractive price based on the cash flow it is expected to produce in the future. But as True Grit Resources 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 TGI.H’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 True Grit Resources regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

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

18.0%

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 True Grit 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 True Grit Resources performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TGI.H is currently unprofitable.

Growing Profit Margin: TGI.H is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TGI.H is unprofitable, and losses have increased over the past 5 years at a rate of -2.7% per year.

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

Earnings vs Industry: TGI.H 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: TGI.H'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 True Grit Resources's financial position?


Financial Position Analysis

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

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

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


Balance Sheet

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

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

Forecast Cash Runway: TGI.H has less than a year of cash runway if free cash flow continues to grow at historical rates of 8.1% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if TGI.H'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 TGI.H'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 True Grit Resources's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average board tenure


CEO

Byron Coulthard (55yo)

3.1yrs

Tenure

0

Mr. Byron K. Coulthard has been Chief Executive Officer at Serrano Resources Ltd. since August 2017. Mr. Coulthard has been Chief Executive Officer and President at True Grit Resources Ltd. since December  ...


Board Age and Tenure

2.8yrs

Average Tenure

62yo

Average Age

Experienced Board: TGI.H's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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$75016 Oct 19
Blair Naughty
EntityIndividual
Shares50,000
Max PriceCA$0.015
BuyCA$55,00007 Oct 19
Blair Naughty
EntityIndividual
Shares2,750,000
Max PriceCA$0.02

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25%.


Management Team

  • Al Williams (61yo)

    Consultant

    • Tenure: 1.8yrs
  • Byron Coulthard (55yo)

    President

    • Tenure: 3.1yrs

Board Members

  • Byron Coulthard (55yo)

    President

    • Tenure: 3.1yrs
  • Dave McCue (69yo)

    Independent Director

    • Tenure: 9yrs
  • Nick Barr (62yo)

    Director

    • Tenure: 1.8yrs
  • Cyrus Driver

    Director

    • Tenure: 2.6yrs

Company Information

True Grit Resources Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: True Grit Resources Ltd.
  • Ticker: TGI.H
  • Exchange: TSXV
  • Founded:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$674.209k
  • Shares outstanding: 33.71m
  • Website: https://null

Location

  • True Grit Resources Ltd.
  • 1177 West Hastings Street
  • Suite 1710
  • Vancouver
  • British Columbia
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGI.HTSXV (TSX Venture Exchange)YesCommon SharesCACADOct 1989

Biography

True Grit Resources Ltd., a mineral exploration company, engages in the acquisition, exploration, and development of mineral properties in North America. The company primarily explores for gold and other precious metals. It holds interest in the Arizona Property in Arizona. The company was formerly known as Catalina Metals Corp. and changed its name to True Grit Resources Ltd. in June 2012. True Grit Resources Ltd. is based in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/22 23:34
End of Day Share Price2019/12/17 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.