DB:E6Q

Stock Analysis Report

Gold Road Resources

Executive Summary

Gold Road Resources Limited, together with its subsidiaries, engages in the exploration and development of mineral properties in Australia.


Snowflake Analysis

High growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: E6Q's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.0%

E6Q

-8.6%

DE Metals and Mining

-0.9%

DE Market


1 Year Return

82.9%

E6Q

-22.0%

DE Metals and Mining

12.8%

DE Market

Return vs Industry: E6Q exceeded the German Metals and Mining industry which returned -22% over the past year.

Return vs Market: E6Q exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

E6QIndustryMarket
7 Day2.0%-8.6%-0.9%
30 Day23.4%-8.6%0.6%
90 Day60.9%-11.3%2.9%
1 Year82.9%82.9%-21.2%-22.0%16.3%12.8%
3 Year166.8%166.8%-48.5%-50.0%15.8%5.7%
5 Year333.9%329.2%-45.5%-48.3%19.7%3.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

4.64x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: E6Q (€1.03) is trading above our estimate of fair value (€0.47)

Significantly Below Fair Value: E6Q is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: E6Q is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: E6Q is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate E6Q's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: E6Q is overvalued based on its PB Ratio (4.6x) compared to the DE Metals and Mining industry average (4.2x).


Next Steps

Future Growth

How is Gold Road Resources forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

56.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: E6Q is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: E6Q is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: E6Q's is expected to become profitable in the next 3 years.

Revenue vs Market: E6Q's revenue (43.5% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: E6Q's revenue (43.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: E6Q's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

How has Gold Road Resources performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: E6Q is currently unprofitable.

Growing Profit Margin: E6Q is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: E6Q is unprofitable, but has reduced losses over the past 5 years at a rate of 8.2% per year.

Accelerating Growth: Unable to compare E6Q's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: E6Q is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-8.4%).


Return on Equity

High ROE: E6Q has a negative Return on Equity (-10.24%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gold Road Resources's financial position?


Financial Position Analysis

Short Term Liabilities: E6Q's short term assets (A$78.0M) exceed its short term liabilities (A$40.8M).

Long Term Liabilities: E6Q's short term assets (A$78.0M) do not cover its long term liabilities (A$207.9M).


Debt to Equity History and Analysis

Debt Level: E6Q's debt to equity ratio (19.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if E6Q's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: E6Q has a high level of physical assets or inventory.

Debt Coverage by Assets: E6Q's debt is covered by short term assets (assets are 1.2x 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: E6Q has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: E6Q has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

0.84%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage6.5%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate E6Q's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate E6Q'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 E6Q's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if E6Q'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 E6Q'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?

2.0yrs

Average management tenure


CEO

Duncan Gibbs 0

1.4yrs

Tenure

AU$491,953

Compensation

Mr. Duncan Gibbs has been Managing Director & CEO at Gold Road Resources Ltd. since September 17, 2018 and has been its Director since September 2018. Mr. Gibbs has been Sunrise Dam General Manager of Angl ...


CEO Compensation Analysis

Compensation vs Market: Duncan's total compensation ($USD326.42K) is below average for companies of similar size in the German market ($USD1.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Duncan Gibbs
MD, CEO & Director1.4yrsAU$491.95k0.0046% A$41.6k
Tony Muir
General Manager of Finance2.1yrsno datano data
Duncan Hughes
Manager of Business Development & Investor Relations1.7yrsno datano data
Hayden Bartrop
Joint Company Secretary3yrsno datano data
Carol Marinkovich
Joint Company Secretary2.8yrsno datano data
Stuart Jenner
General Manager of Capability & Culture1.9yrsno datano data

2.0yrs

Average Tenure

Experienced Management: E6Q's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Duncan Gibbs
MD, CEO & Director1.4yrsAU$491.95k0.0046% A$41.6k
Timothy Netscher
Non-Executive Chairman3.6yrsAU$158.00k0.087% A$796.7k
Sharon Warburton
Independent Non-Executive Director3.8yrsAU$100.00k0.0046% A$41.6k
Brian Levet
Independent Non-Executive Director2.5yrsAU$100.00k0.015% A$135.4k
Justin Osborne
Exploration Director – Discovery & Growth and Director5.1yrsAU$775.52k0.34% A$3.1m

3.6yrs

Average Tenure

59yo

Average Age

Experienced Board: E6Q's board of directors are considered experienced (3.6 years average tenure).


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

Gold Road Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gold Road Resources Limited
  • Ticker: E6Q
  • Exchange: DB
  • Founded: 2004
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$1.499b
  • Listing Market Cap: AU$915.364m
  • Shares outstanding: 878.90m
  • Website: https://www.goldroad.com.au

Location

  • Gold Road Resources Limited
  • 26 Colin Street
  • Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GORASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2006
E6QDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2006
ELKM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2006
GORCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2006

Biography

Gold Road Resources Limited, together with its subsidiaries, engages in the exploration and development of mineral properties in Australia. The company primarily explores for gold deposits. It focuses on developing the Yamarna Belt, which covers an area of 6,000 square kilometers located to the east of Laverton in Western Australia. The company was formerly known as Eleckra Mines Limited and changed its name to Gold Road Resources Limited in November 2010. Gold Road Resources Limited was founded in 2004 and is based in West Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 22:11
End of Day Share Price2020/02/21 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.