DB:33A

Stock Analysis Report

Executive Summary

Acacia Mining plc, together with its subsidiaries, mines, processes, and sells gold in Africa.

Rewards

Trading at 53.6% below its fair value

Earnings are forecast to grow 11.79% per year

Became profitable this year

Risk Analysis

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Polyus

MISX:PLZL

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 33A's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

33A

1.2%

DE Metals and Mining

1.7%

DE Market


1 Year Return

119.5%

33A

-13.5%

DE Metals and Mining

15.0%

DE Market

Return vs Industry: 33A exceeded the German Metals and Mining industry which returned -20% over the past year.

Return vs Market: 33A exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

33AIndustryMarket
7 Day-1.4%1.2%1.7%
30 Day-3.4%-4.9%1.4%
90 Day33.8%-9.5%3.3%
1 Year119.5%119.5%-12.6%-13.5%18.5%15.0%
3 Year-54.6%-55.3%-42.3%-44.0%17.1%6.9%
5 Year0.5%-3.0%-39.2%-42.3%24.3%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 33A (€2.59) is trading below our estimate of fair value (€5.58)

Significantly Below Fair Value: 33A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 33A is poor value based on its PE Ratio (576.7x) compared to the Metals and Mining industry average (10.5x).

PE vs Market: 33A is poor value based on its PE Ratio (576.7x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: 33A is poor value based on its PEG Ratio (48.9x)


Price to Book Ratio

PB vs Industry: 33A is good value based on its PB Ratio (1x) compared to the DE Metals and Mining industry average (4.1x).


Next Steps

Future Growth

How is Acacia Mining forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 33A's forecast earnings growth (11.8% per year) is above the savings rate (0.2%).

Earnings vs Market: 33A's earnings (11.8% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: 33A's earnings are forecast to grow, but not significantly.

Revenue vs Market: 33A's revenue (0.4% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: 33A's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 33A's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Acacia Mining performed over the past 5 years?

-18.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 33A has a large one-off gain of $8.8M impacting its March 31 2019 financial results.

Growing Profit Margin: 33A became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 33A has become profitable over the past 5 years, growing earnings by -18.2% per year.

Accelerating Growth: 33A has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 33A has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-9.2%).


Return on Equity

High ROE: 33A's Return on Equity (0.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Acacia Mining's financial position?


Financial Position Analysis

Short Term Liabilities: 33A's short term assets ($574.6M) exceed its short term liabilities ($402.7M).

Long Term Liabilities: 33A's short term assets ($574.6M) exceed its long term liabilities ($238.4M).


Debt to Equity History and Analysis

Debt Level: 33A's debt to equity ratio (3.6%) is considered satisfactory.

Reducing Debt: 33A's debt to equity ratio has reduced from 7.5% to 3.6% over the past 5 years.


Balance Sheet

Inventory Level: 33A has a high level of physical assets or inventory.

Debt Coverage by Assets: 33A's debt is covered by short term assets (assets are 13.4x debt).


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: 33A is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 33A is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Acacia Mining's current dividend yield, its reliability and sustainability?

0.72%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.3%markettop25%3.6%industryaverage6.5%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 33A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 33A'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 33A's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 33A's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 33A is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 33A's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Peter Geleta (55yo)

1.7yrs

Tenure

US$1,008,830

Compensation

Mr. Peter Geleta has been Interim CEO and Director of Acacia Mining plc since January 1, 2018. Mr. Geleta has 35 years of mining industry experience in both operational and corporate leadership positions,  ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD1.26M) is about average for companies of similar size in the German market ($USD1.28M).

Compensation vs Earnings: Insufficient data to compare Peter's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Geleta
Interim CEO & Executive Director1.7yrsUS$1.01mno data
Jaco Maritz
Chief Financial Officer1.7yrsno datano data
Sally Marshak
Head of Investor Relations & Communications0yrsno datano data
Asa Mwaipopo
Managing Director for the Tanzanian operations1.6yrsno datano data
Charlie Ritchie
Company Secretary0yrsno datano data

1.7yrs

Average Tenure

49yo

Average Age

Experienced Management: 33A's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Peter Geleta
Interim CEO & Executive Director1.7yrsUS$1.01mno data
Adrian Reynolds
Independent Non-Executive Director0.4yrsno datano data
Stephen Lucas
Independent Non-Executive Director5.9yrsUS$123.83kno data
Rachel English
Interim Chair of the Board1yrsUS$194.50k0.0042% $45.9k
Alan Ashworth
Independent Non-Executive Director0.4yrsno datano data
Stephen Galbraith
Non-Executive Director9.5yrsno datano data
Deborah Gudgeon
Independent Non-Executive Director0.4yrsno datano data

1.0yrs

Average Tenure

59yo

Average Age

Experienced Board: 33A's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Acacia Mining plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Acacia Mining plc
  • Ticker: 33A
  • Exchange: DB
  • Founded: 2010
  • Industry: Gold
  • Sector: Materials
  • Market Cap: UK£959.600m
  • Listing Market Cap: UK£1.083b
  • Shares outstanding: 410.09m
  • Website: https://www.acaciamining.com

Number of Employees


Location

  • Acacia Mining plc
  • No. 1 Cavendish Place
  • 5th Floor
  • London
  • Greater London
  • W1G 0QF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACALSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2010
33ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2010
ABGL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2010

Biography

Acacia Mining plc, together with its subsidiaries, mines, processes, and sells gold in Africa. The company has three gold mines in north-west Tanzania, including Bulyanhulu, Buzwagi, and North Mara; and a portfolio of exploration projects at various stages of development in Tanzania, Kenya, Burkina Faso, and Mali. It also produces co-products, such as copper and silver. The company was formerly known as African Barrick Gold plc and changed its name to Acacia Mining plc in November 2014. The company was incorporated in 2010 and is headquartered in London, the United Kingdom. Acacia Mining plc is a subsidiary of Barrick Gold Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 21:14
End of Day Share Price2019/09/16 00:00
Earnings2019/03/31
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.