DB:RSM

Stock Analysis Report

Executive Summary

Resolute Mining Limited engages in the mining, exploration, development, and production of gold properties in Africa and Australia.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.6%

RSM

-6.8%

DE Metals and Mining

-6.8%

DE Market


1 Year Return

-4.6%

RSM

-26.5%

DE Metals and Mining

6.5%

DE Market

Return vs Industry: RSM exceeded the German Metals and Mining industry which returned -26.5% over the past year.

Return vs Market: RSM underperformed the German Market which returned 6.5% over the past year.


Shareholder returns

RSMIndustryMarket
7 Day-4.6%-6.8%-6.8%
30 Day-5.5%-12.9%-3.7%
90 Day-6.1%-12.9%-3.6%
1 Year-4.6%-4.6%-25.7%-26.5%9.8%6.5%
3 Year-40.2%-42.2%-51.8%-53.2%6.8%-2.6%
5 Year212.7%199.5%-47.7%-50.4%12.5%-2.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

41.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RSM (€0.67) is trading below our estimate of fair value (€1.14)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RSM is good value based on its PB Ratio (1.2x) compared to the DE Metals and Mining industry average (3.9x).


Next Steps

Future Growth

How is Resolute Mining forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

48.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: RSM's revenue (7.4% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: RSM's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RSM's Return on Equity is forecast to be low in 3 years time (16%).


Next Steps

Past Performance

How has Resolute Mining performed over the past 5 years?

44.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RSM is currently unprofitable.

Growing Profit Margin: RSM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RSM is unprofitable, but has reduced losses over the past 5 years at a rate of 44.2% per year.

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

Earnings vs Industry: RSM 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: RSM has a negative Return on Equity (-1.53%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Resolute Mining's financial position?


Financial Position Analysis

Short Term Liabilities: RSM's short term assets (A$311.9M) exceed its short term liabilities (A$262.7M).

Long Term Liabilities: RSM's short term assets (A$311.9M) exceed its long term liabilities (A$258.1M).


Debt to Equity History and Analysis

Debt Level: RSM's debt to equity ratio (32.7%) is considered satisfactory.

Reducing Debt: RSM's debt to equity ratio has increased from 11.4% to 32.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: RSM's debt is covered by short term assets (assets are 1.3x 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: Insufficient data to determine if RSM has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RSM has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

1.78%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.5%markettop25%3.8%industryaverage6.9%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: RSM's dividend (1.78%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: RSM's dividend (1.78%) is low compared to the top 25% of dividend payers in the German market (3.81%).


Stability and Growth of Payments

Stable Dividend: RSM has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RSM has only been paying a dividend for 7 years, and since then payments have fallen.


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: RSM's dividends in 3 years are forecast to be thoroughly covered by earnings (8.7% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

John Welborn 0

4.6yrs

Tenure

AU$1,381,218

Compensation

Mr. John Paul Welborn, B.Com, FCA, FAIM, SAFin, MAICD, MAusIMM, JP, has been the Chief Executive Officer and Managing Director of Resolute Mining Limited since July 1, 2015. Mr. Welborn has commercial expe ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD906.37K) is about average for companies of similar size in the German market ($USD1.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Welborn
MD, CEO & Director4.6yrsAU$1.38m0.29% A$2.0m
Amber Stanton
General Counsel & Company Secretary2.5yrsAU$380.45kno data
Stuart Gale
Chief Financial Officer0.08yrsno datano data
David Kelly
Chief Operating Officer0yrsAU$495.11k0.0019% A$13.6k
Jeremy Meynert
General Manager of Business Development & Investor Relations0yrsno datano data
Bruce Mowat
General Manager of Exploration3.8yrsAU$465.63kno data

3.2yrs

Average Tenure

Experienced Management: RSM's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Welborn
MD, CEO & Director4.6yrsAU$1.38m0.29% A$2.0m
Peter Sullivan
Non-Executive Director19.1yrsAU$45.00k0.23% A$1.6m
Yasmin Broughton
Non-Executive Director2.7yrsAU$45.00kno data
Marthinus Botha
Non-Executive Chairman2.7yrsAU$175.00kno data
Mark Potts
Non-Executive Director2.7yrsAU$45.00k0.0026% A$18.2k
Sabina Shugg
Non Executive Director1.4yrsAU$25.95kno data

2.7yrs

Average Tenure

Experienced Board: RSM's board of directors are not considered experienced ( 2.7 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 been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

Company Information

Resolute Mining Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Resolute Mining Limited
  • Ticker: RSM
  • Exchange: DB
  • Founded: 2001
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$1.165b
  • Listing Market Cap: AU$703.017m
  • Shares outstanding: 1.04b
  • Website: https://www.rml.com.au

Number of Employees


Location

  • Resolute Mining Limited
  • Australia Place
  • Level 2
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMGG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1994
RSGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 1994
RSMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1994
RSGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 1994
RSGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1994
RMGG.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDAug 2012

Biography

Resolute Mining Limited engages in the mining, exploration, development, and production of gold properties in Africa and Australia. The company’s flagship project is the Syama Gold Mine located in Mali, West Africa. It is also involved in the prospecting and exploration of minerals. The company was incorporated in 2001 and is based in Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 22:11
End of Day Share Price2020/02/26 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.