TSXV:WKG

Stock Analysis Report

Executive Summary

WestKam Gold Corp. engages in the acquisition and exploration of exploration and evaluation assets in Canada.

Rewards

Became profitable this year

Risk Analysis

Does not have a meaningful market cap (CA$1M)

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Questionable track record with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2200.0%

WKG

0.2%

CA Metals and Mining

-0.4%

CA Market


1 Year Return

-67.1%

WKG

22.8%

CA Metals and Mining

10.5%

CA Market

Return vs Industry: WKG underperformed the Canadian Metals and Mining industry which returned 22.8% over the past year.

Return vs Market: WKG underperformed the Canadian Market which returned 10.5% over the past year.


Shareholder returns

WKGIndustryMarket
7 Day2200.0%0.2%-0.4%
30 Day-34.3%1.3%0.8%
90 Day-34.3%-3.3%1.7%
1 Year-67.1%-67.1%23.8%22.8%14.1%10.5%
3 Year-89.0%-89.0%6.7%4.7%16.1%5.6%
5 Year-90.6%-90.6%34.6%30.4%41.2%20.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1127.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: WKG is poor value based on its PE Ratio (1127.5x) compared to the Metals and Mining industry average (14x).

PE vs Market: WKG is poor value based on its PE Ratio (1127.5x) compared to the Canadian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WKG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WKG is overvalued based on its PB Ratio (2.2x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

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

19.2%

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 WestKam 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 WestKam Gold performed over the past 5 years?

-3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WKG has a large one-off gain of CA$64.4K impacting its July 31 2019 financial results.

Growing Profit Margin: WKG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WKG has become profitable over the past 5 years, growing earnings by -3.7% per year.

Accelerating Growth: WKG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WKG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (3.9%).


Return on Equity

High ROE: WKG's Return on Equity (0.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is WestKam Gold's financial position?


Financial Position Analysis

Short Term Liabilities: WKG's short term assets (CA$73.0K) do not cover its short term liabilities (CA$1.1M).

Long Term Liabilities: WKG's short term assets (CA$73.0K) exceed its long term liabilities (CA$41.0K).


Debt to Equity History and Analysis

Debt Level: WKG's debt to equity ratio (1.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if WKG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: WKG's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: WKG's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: WKG's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is WestKam Gold's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

7.4yrs

Average management tenure


CEO

Matt Wayrynen (57yo)

1.9yrs

Tenure

CA$120,000

Compensation

Mr. Matthew J. Wayrynen, also known as Matt, serves as the Chairman, Chief Executive Officer and Chief Operating Officer at Solar Flow-Through L.P. He has been Chief Executive Officer, President and Direct ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD90.77K) is below average for companies of similar size in the Canadian market ($USD136.16K).

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


Management Age and Tenure

7.4yrs

Average Tenure

55yo

Average Age

Experienced Management: WKG's management team is seasoned and experienced (7.4 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

57.5yo

Average Age

Experienced Board: WKG's board of directors are considered experienced (4.9 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

SellCA$14,99922 Dec 18
Eagle Vision Mulching Inc.
EntityCompany
Shares3,000,000
Max PriceCA$0.005

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.5%.


Management Team

  • Matt Wayrynen (57yo)

    President

    • Tenure: 1.9yrs
    • Compensation: CA$120.00k
  • Pam Saulnier (47yo)

    CFO & Corporate Secretary

    • Tenure: 7.4yrs
    • Compensation: CA$60.00k
  • Bob Maddigan (55yo)

    Vice President of Exploration

    • Tenure: 14.7yrs

Board Members

  • Peter Jensen (67yo)

    Independent Director

    • Tenure: 0.3yrs
  • Matt Wayrynen (57yo)

    President

    • Tenure: 1.9yrs
    • Compensation: CA$120.00k
  • Lindsay Gorrill (57yo)

    Member of Advisory Board

    • Tenure: 7.9yrs
  • Tyrone Docherty (59yo)

    Member of Advisory Board

    • Tenure: 7.9yrs
  • Tony Fogarassy (58yo)

    Member of the Advisory Board

    • Tenure: 7.8yrs
  • Corey Klassen (48yo)

    Independent Director

    • Tenure: 2.1yrs

Company Information

WestKam Gold Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WestKam Gold Corp.
  • Ticker: WKG
  • Exchange: TSXV
  • Founded: 1982
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$1.295m
  • Shares outstanding: 7.40m
  • Website: https://www.westkamgold.com

Location

  • WestKam Gold Corp.
  • 570 Granville Street
  • Suite 900
  • Vancouver
  • British Columbia
  • V6C 3P1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WKGTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1988
OUH2DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
ERRC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988

Biography

WestKam Gold Corp. engages in the acquisition and exploration of exploration and evaluation assets in Canada. The company primarily explores for gold, copper, and tellurium deposits. Its principal property ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 23:36
End of Day Share Price2019/12/06 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.