TSXV:TWR

Stock Analysis Report

Executive Summary

Tower Resources Ltd. engages in the acquisition, evaluation, and exploration of mineral properties in Canada.

Rewards

Earnings have grown 10.1% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Does not have a meaningful market cap (CA$4M)

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

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

TWR

0.8%

CA Metals and Mining

0.8%

CA Market


1 Year Return

40.0%

TWR

28.8%

CA Metals and Mining

10.6%

CA Market

Return vs Industry: TWR exceeded the Canadian Metals and Mining industry which returned 28.1% over the past year.

Return vs Market: TWR exceeded the Canadian Market which returned 10.4% over the past year.


Shareholder returns

TWRIndustryMarket
7 Day0%0.8%0.8%
30 Day133.3%1.0%2.1%
90 Day75.0%8.5%6.6%
1 Year40.0%40.0%29.8%28.8%14.1%10.6%
3 Year-75.0%-75.0%-0.5%-2.3%17.0%6.4%
5 Year16.7%16.7%30.0%25.8%38.5%18.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.72x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TWR is good value based on its PB Ratio (0.7x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Tower 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 Tower 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 Tower Resources performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TWR is currently unprofitable.

Growing Profit Margin: TWR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TWR is unprofitable, but has reduced losses over the past 5 years at a rate of 10.1% per year.

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

Earnings vs Industry: TWR 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: TWR has a negative Return on Equity (-9.04%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tower Resources's financial position?


Financial Position Analysis

Short Term Liabilities: TWR's short term assets (CA$431.0K) exceed its short term liabilities (CA$69.6K).

Long Term Liabilities: TWR has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: TWR is debt free.

Reducing Debt: TWR had no debt 5 years ago.


Balance Sheet

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

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

Forecast Cash Runway: TWR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -25.1% each year


Next Steps

Dividend

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

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

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

1.7yrs

Average management tenure


CEO

R. Dhami 0

0.8yrs

Tenure

0

Mr. R. Joe Dhami serves as the President Chief Executive Officer and Director at Tower Resources Limited since April 4, 2019. Mr. Dhami has over 20 years of experience in the capital markets working with p ...


Management Age and Tenure

1.7yrs

Average Tenure

43yo

Average Age

Experienced Management: TWR's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

Experienced Board: TWR's board of directors are not considered experienced ( 1.8 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$20,00013 May 19
Stuart Averill
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500,000
Max PriceCA$0.04
BuyCA$32,00008 May 19
R. Dhami
EntityIndividual
Role
Chief Executive Officer
President
Shares800,000
Max PriceCA$0.04
BuyCA$6,00008 May 19
Gerald Shields
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares150,000
Max PriceCA$0.04

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%.


Management Team

  • Mark Ashcroft (46yo)

    Technical Advisor

    • Tenure: 1.7yrs
  • Martin Hodges (35yo)

    Corporate Secretary

    • Nazim Sljivji

      Executive Officer

      • Christopher Leslie

        Technical Advisor

        • Lesia Burianyk (43yo)

          Interim Chief Financial Officer

          • Tenure: 1.8yrs
          • Compensation: CA$23.90k
        • Darrell Hyde

          Exploration Manager

          • Tenure: 1.8yrs
        • R. Dhami

          President

          • Tenure: 0.8yrs

        Board Members

        • Gerry Shields (65yo)

          Independent Chairman

          • Tenure: 1.8yrs
        • Stu Averill

          Independent Director

          • Tenure: 3.4yrs
        • James Clark

          Independent Director

          • Tenure: 1.8yrs
        • R. Dhami

          President

          • Tenure: 0.8yrs

        Company Information

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


        Key Information

        • Name: Tower Resources Ltd.
        • Ticker: TWR
        • Exchange: TSXV
        • Founded: 1988
        • Industry: Diversified Metals and Mining
        • Sector: Materials
        • Market Cap: CA$3.677m
        • Shares outstanding: 105.07m
        • Website: https://www.towerresources.ca

        Location

        • Tower Resources Ltd.
        • 1112 West Pender Street
        • Suite 912
        • Vancouver
        • British Columbia
        • V6E 2S1
        • Canada

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        TWRTSXV (TSX Venture Exchange)YesCommon SharesCACADJan 1996
        TWRF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1996
        T7Y1DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1996

        Biography

        Tower Resources Ltd. engages in the acquisition, evaluation, and exploration of mineral properties in Canada. The company primarily explores for gold, silver, and copper deposits. Its principal properties include the Rabbit North copper-gold porphyry project that comprises 34 mineral tenures covering an area of 16,400 hectares located in the Kamloops mining division of British Columbia; the Nechako gold project, which comprises 10 mineral tenures totalling 2,975 hectares in the Nechako Plateau Region of central British Columbia; the Belle copper-gold porphyry project in the Toodoggone district; and the More Creek and Voigtberg gold projects in the Golden Triangle area. The company was formerly known as Tower Energy Ltd. and changed its name to Tower Resources Ltd. in September 2011. Tower Resources Ltd. was incorporated in 1988 and is headquartered in Vancouver, Canada. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/23 00:17
        End of Day Share Price2020/01/22 00:00
        Earnings2019/07/31
        Annual Earnings2018/10/31


        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.