DB:E8KA

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Erdene Resource Development

Executive Summary

Erdene Resource Development Corporation focuses in the acquisition, exploration, and development of precious and base mineral deposits in Mongolia.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has Erdene Resource Development's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: E8KA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

36.9%

E8KA

0.5%

DE Metals and Mining

-0.6%

DE Market


1 Year Return

178.3%

E8KA

-27.4%

DE Metals and Mining

3.0%

DE Market

Return vs Industry: E8KA exceeded the German Metals and Mining industry which returned -27.4% over the past year.

Return vs Market: E8KA exceeded the German Market which returned 3% over the past year.


Shareholder returns

E8KAIndustryMarket
7 Day36.9%0.5%-0.6%
30 Day68.7%-6.2%-0.1%
90 Day251.6%15.8%16.4%
1 Year178.3%178.3%-26.9%-27.4%5.2%3.0%
3 Year-45.8%-45.8%-64.2%-65.3%1.0%-6.9%
5 Year345.3%345.3%-58.5%-60.6%8.0%-6.4%

Price Volatility Vs. Market

How volatile is Erdene Resource Development's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Erdene Resource Development undervalued compared to its fair value and its price relative to the market?

4.98x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate E8KA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate E8KA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: E8KA is unprofitable, so we can't compare its PE Ratio to the XE Metals and Mining industry average.

PE vs Market: E8KA 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 E8KA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: E8KA is overvalued based on its PB Ratio (5x) compared to the DE Metals and Mining industry average (3.2x).


Next Steps

Future Growth

How is Erdene Resource Development forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.1%

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 Erdene Resource Development 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 Erdene Resource Development performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: E8KA is currently unprofitable.

Growing Profit Margin: E8KA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: E8KA is unprofitable, but has reduced losses over the past 5 years at a rate of 19.6% per year.

Accelerating Growth: Unable to compare E8KA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: E8KA is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (0.5%).


Return on Equity

High ROE: E8KA has a negative Return on Equity (-16.03%), as it is currently unprofitable.


Next Steps

Financial Health

How is Erdene Resource Development's financial position?


Financial Position Analysis

Short Term Liabilities: E8KA's short term assets (CA$3.8M) exceed its short term liabilities (CA$588.0K).

Long Term Liabilities: E8KA's short term assets (CA$3.8M) do not cover its long term liabilities (CA$7.2M).


Debt to Equity History and Analysis

Debt Level: E8KA's debt to equity ratio (35.5%) is considered satisfactory.

Reducing Debt: E8KA's debt to equity ratio has increased from 3.2% to 35.5% over the past 5 years.


Balance Sheet


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: E8KA has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: E8KA has less than a year of cash runway if free cash flow continues to reduce at historical rates of 23.2% each year


Next Steps

Dividend

What is Erdene Resource Development current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate E8KA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate E8KA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if E8KA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if E8KA'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 E8KA'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?

12.8yrs

Average management tenure


CEO

Peter Akerley (57yo)

17.33yrs

Tenure

CA$466,246

Compensation

Mr. Peter C. Akerley, B.Sc., has been the Chief Executive Officer and President of Erdene Resource Development Corporation since March 2003. Mr. Akerley has been the President of BRM Exploration Ltd. since ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD342.91K) is about average for companies of similar size in the German market ($USD468.78K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Akerley
President17.33yrsCA$466.25k1.37% CA$860.0k
Robert Jenkins
VP & CFO1.17yrsCA$215.66k0.23% CA$144.2k
Michael Gillis
Vice President of Exploration & Operations3.5yrsCA$227.04kno data
Bayarmaa Bagabandi
Chief Administrative Officer15.33yrsno datano data
Diane Webber
Director of External Relations & Communicationsno datano datano data
Michael Corey
Chief Geologist of Mongoliano datano datano data
Gendenjamtsyn Bat-Erdene
Senior Geologist10.33yrsno datano data
D. Frazer
Corporate Secretary17.33yrsno datano data

12.8yrs

Average Tenure

Experienced Management: E8KA's management team is seasoned and experienced (12.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Akerley
President17.33yrsCA$466.25k1.37% CA$860.0k
David Mosher
Independent Director4.08yrsCA$41.40k0.29% CA$179.1k
John Byrne
Independent Director15.92yrsCA$46.40k3.33% CA$2.1m
Kenneth MacDonald
Director1.08yrsCA$153.04k0.93% CA$582.4k
Hedley Widdup
Independent & Non-Executive Director0.83yrCA$17.90kno data
Cameron McRae
Independent Non-Executive Director2.33yrsCA$56.01k0.13% CA$81.3k
Thomas Croft
Independent Chairman of the Board1.08yrsCA$111.17k0.60% CA$376.6k
Anna Biolik
Independent Director4.08yrsCA$45.40k0.042% CA$26.6k

3.2yrs

Average Tenure

63yo

Average Age

Experienced Board: E8KA's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: E8KA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.


Top Shareholders

Company Information

Erdene Resource Development Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Erdene Resource Development Corporation
  • Ticker: E8KA
  • Exchange: DB
  • Founded: 2000
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$96.344m
  • Listing Market Cap: CA$62.631m
  • Shares outstanding: 192.69m
  • Website: https://www.erdene.com

Number of Employees


Location

  • Erdene Resource Development Corporation
  • 99 Wyse Road
  • Suite 1480
  • Dartmouth
  • Nova Scotia
  • B3A 4S5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
E8KADB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2004
ERDTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2004
ERDC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2004

Biography

Erdene Resource Development Corporation focuses in the acquisition, exploration, and development of precious and base mineral deposits in Mongolia. It explores for copper, molybdenum, gold, silver, lead, and zinc deposits. The company holds interests in three exploration licenses approximately covering an area of 4,842 hectares and three mining licenses approximately covering an area of 13,019 hectares. Its principal project is the Khundii Gold Project located in the Bayankhongor province in Mongolia. The company was formerly known as Erdene Gold Inc. and changed its name to Erdene Resource Development Corporation in May 2008. Erdene Resource Development Corporation was incorporated in 2000 and is headquartered in Dartmouth, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 21:39
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.