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Resolute Mining

DB:RSM
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RSM
DB
A$853M
Market Cap
  1. Home
  2. DE
  3. Materials
Company description

Resolute Mining Limited engages in the mining, exploration, development, and production of gold properties in Africa and Australia. The last earnings update was 90 days ago. More info.


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RSM Share Price and Events
7 Day Returns
-4.2%
DB:RSM
0.1%
DE Metals and Mining
-0.6%
DE Market
1 Year Returns
-8.5%
DB:RSM
-44.6%
DE Metals and Mining
-10.8%
DE Market
RSM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Resolute Mining (RSM) -4.2% -5.5% -2.7% -8.5% 23% 81.6%
DE Metals and Mining 0.1% -10.4% -6.7% -44.6% -24.5% -34.9%
DE Market -0.6% -3.3% 2.3% -10.8% 8% 8%
1 Year Return vs Industry and Market
  • RSM outperformed the Metals and Mining industry which returned -44.6% over the past year.
  • RSM outperformed the Market in Germany which returned -10.8% over the past year.
Price Volatility
RSM
Industry
5yr Volatility vs Market

Value

 Is Resolute Mining undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Resolute Mining to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Resolute Mining.

DB:RSM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:RSM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.033 (1 + (1- 30%) (24.3%))
1.14
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.14 * 5.96%)
7.02%

Discounted Cash Flow Calculation for DB:RSM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Resolute Mining is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:RSM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.02%)
2019 -66.00 Analyst x1 -61.67
2020 16.00 Analyst x1 13.97
2021 68.00 Analyst x1 55.47
2022 97.21 Est @ 42.95% 74.09
2023 126.50 Est @ 30.13% 90.09
2024 153.26 Est @ 21.16% 101.99
2025 176.07 Est @ 14.88% 109.48
2026 194.53 Est @ 10.49% 113.02
2027 208.94 Est @ 7.41% 113.43
2028 219.92 Est @ 5.25% 111.55
Present value of next 10 years cash flows A$721.44
DB:RSM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$219.92 × (1 + 0.23%) ÷ (7.02% – 0.23%)
A$3,243.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$3,243.77 ÷ (1 + 7.02%)10
A$1,645.39
DB:RSM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$721.44 + A$1,645.39
A$2,366.83
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$2,366.83 / 758.09
A$3.12
DB:RSM Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:RSM represents 0.61334x of ASX:RSG
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.61334x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (AUD) x Listing Adjustment Factor
= A$ 3.12 x 0.61334
€1.91
Value per share (EUR) From above. €1.91
Current discount Discount to share price of €0.69
= -1 x (€0.69 - €1.91) / €1.91
64%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Resolute Mining is available for.
Intrinsic value
>50%
Share price is €0.69 vs Future cash flow value of €1.91
Current Discount Checks
For Resolute Mining to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Resolute Mining's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Resolute Mining's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Resolute Mining's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Resolute Mining's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:RSM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$-0.01
ASX:RSG Share Price ** ASX (2019-05-23) in AUD A$1.13
Europe Metals and Mining Industry PE Ratio Median Figure of 106 Publicly-Listed Metals and Mining Companies 8.97x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 20.28x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Resolute Mining.

DB:RSM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:RSG Share Price ÷ EPS (both in AUD)

= 1.13 ÷ -0.01

-128.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Resolute Mining is loss making, we can't compare its value to the Europe Metals and Mining industry average.
  • Resolute Mining is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Resolute Mining's expected growth come at a high price?
Raw Data
DB:RSM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -128.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
18.4%per year
Europe Metals and Mining Industry PEG Ratio Median Figure of 64 Publicly-Listed Metals and Mining Companies 0.66x
Germany Market PEG Ratio Median Figure of 271 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Resolute Mining, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Resolute Mining's assets?
Raw Data
DB:RSM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.94
ASX:RSG Share Price * ASX (2019-05-23) in AUD A$1.13
Germany Metals and Mining Industry PB Ratio Median Figure of 7 Publicly-Listed Metals and Mining Companies 2.86x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.78x
DB:RSM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:RSG Share Price ÷ Book Value per Share (both in AUD)

= 1.13 ÷ 0.94

1.2x

* Primary Listing of Resolute Mining.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Resolute Mining is good value based on assets compared to the DE Metals and Mining industry average.
X
Value checks
We assess Resolute Mining's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Resolute Mining has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Resolute Mining expected to grow at an attractive rate?
  • Resolute Mining's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Resolute Mining's earnings growth is expected to exceed the Germany market average.
  • Resolute Mining's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:RSM Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:RSM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 18.4%
DB:RSM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 9.9%
Germany Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 42.1%
Europe Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 1.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.2%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:RSM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:RSM Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 703 246 152 1
2021-12-31 814 237 183 3
2021-06-30 669 174 95 2
2020-12-31 753 270 196 3
2020-06-30 658 188 135 2
2019-12-31 646 208 147 3
2019-06-30 613 173 151 2
DB:RSM Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 446 68 -7
2018-06-30 446 28 66
2018-03-31 511 106 90
2017-12-31 576 183 114
2017-09-30 558 185 125
2017-06-30 541 186 136
2016-12-31 474 101 136
2016-09-30 514 147 132
2016-06-30 555 193 127

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Resolute Mining's earnings are expected to grow by 18.4% yearly, however this is not considered high growth (20% yearly).
  • Resolute Mining's revenue is expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:RSM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Resolute Mining Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:RSM Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.20 0.20 0.20 1.00
2021-12-31 0.24 0.29 0.22 3.00
2021-06-30 0.13 0.13 0.13 1.00
2020-12-31 0.26 0.31 0.18 3.00
2020-06-30 0.18 0.18 0.18 1.00
2019-12-31 0.20 0.27 0.12 3.00
2019-06-30 0.20 0.20 0.20 1.00
DB:RSM Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 -0.01
2018-06-30 0.09
2018-03-31 0.12
2017-12-31 0.15
2017-09-30 0.17
2017-06-30 0.19
2016-12-31 0.20
2016-09-30 0.20
2016-06-30 0.20

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Resolute Mining is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Resolute Mining's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Resolute Mining has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Resolute Mining performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Resolute Mining's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Resolute Mining does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Resolute Mining's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Resolute Mining's 1-year growth to the Europe Metals and Mining industry average as it is not currently profitable.
Earnings and Revenue History
Resolute Mining's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Resolute Mining Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:RSM Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 445.55 -6.60 25.54
2018-06-30 445.56 65.57 31.60
2018-03-31 510.60 89.76 29.19
2017-12-31 575.65 113.96 26.77
2017-09-30 558.41 125.17 23.65
2017-06-30 541.18 136.37 20.53
2016-12-31 474.20 135.82 14.65
2016-09-30 514.41 131.50 14.12
2016-06-30 554.62 127.19 13.60
2015-12-31 499.14 -187.25 24.51
2015-09-30 479.14 -342.31 24.44
2015-06-30 459.15 -497.36 24.38
2015-03-31 450.07 -371.56 20.64
2014-12-31 440.99 -245.75 16.90
2014-09-30 433.87 -107.20 17.81
2014-06-30 426.75 31.35 18.72
2014-03-31 452.82 16.92 23.98
2013-12-31 478.89 2.49 29.24
2013-09-30 548.74 43.69 31.26
2013-06-30 618.60 84.88 33.29
2013-03-31 618.19 117.26 28.99
2012-12-31 617.77 149.65 24.70
2012-09-30 597.24 127.38 25.08
2012-06-30 576.71 105.10 25.45

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Resolute Mining has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Resolute Mining used its assets less efficiently than the Europe Metals and Mining industry average last year based on Return on Assets.
  • It is difficult to establish if Resolute Mining improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Resolute Mining's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Resolute Mining has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Resolute Mining's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Resolute Mining's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Resolute Mining is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Resolute Mining's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Resolute Mining's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Resolute Mining Company Filings, last reported 4 months ago.

DB:RSM Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 700.70 207.22 67.04
2018-06-30 708.64 47.28 65.30
2018-03-31 708.64 47.28 65.30
2017-12-31 672.01 35.14 156.20
2017-09-30 672.01 35.14 156.20
2017-06-30 649.20 34.56 285.66
2016-12-31 549.33 22.70 142.59
2016-09-30 549.33 22.70 142.59
2016-06-30 338.41 26.68 80.30
2015-12-31 228.03 97.19 33.35
2015-09-30 228.03 97.19 33.35
2015-06-30 165.23 113.72 10.00
2015-03-31 165.23 113.72 10.00
2014-12-31 404.51 116.05 13.60
2014-09-30 404.51 116.05 13.60
2014-06-30 699.31 89.05 42.07
2014-03-31 699.31 89.05 42.07
2013-12-31 706.13 94.53 40.55
2013-09-30 706.13 94.53 40.55
2013-06-30 658.60 91.33 31.95
2013-03-31 658.60 91.33 31.95
2012-12-31 604.09 16.49 50.05
2012-09-30 604.09 16.49 50.05
2012-06-30 542.99 11.02 48.78
  • Resolute Mining's level of debt (29.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (13.4% vs 29.6% today).
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.

  • Information is not available.
  • Unable to confirm if Resolute Mining has at least 1 year of cash runway based on growing free cash flows without relevant data.
X
Financial health checks
We assess Resolute Mining's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Resolute Mining has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.78%
Current annual income from Resolute Mining dividends. Estimated to be 2.08% next year.
If you bought €2,000 of Resolute Mining shares you are expected to receive €36 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Resolute Mining's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.42%).
  • Resolute Mining's dividend is below the markets top 25% of dividend payers in Germany (3.88%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:RSM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Germany Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2.2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:RSM Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.02 1.00
2021-12-31 0.02 3.00
2021-06-30 0.03 3.00
2020-12-31 0.02 3.00
2020-06-30 0.03 3.00
2019-12-31 0.02 3.00
2019-06-30 0.02 3.00
DB:RSM Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2018-08-23 0.020 1.806
2017-08-23 0.020 1.717
2016-08-29 0.017 1.271
2014-02-20 0.000 0.000
2013-09-25 0.000 0.000
2013-08-26 0.000 0.000
2012-10-26 0.050 4.790

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Resolute Mining has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Resolute Mining has only been paying a dividend for 7 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Resolute Mining's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (9x coverage).
X
Income/ dividend checks
We assess Resolute Mining's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Resolute Mining afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Resolute Mining has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Resolute Mining's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Welborn
COMPENSATION A$1,381,218
TENURE AS CEO 3.8 years
CEO Bio

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 more than 20 years of commercial experience in Australian national and international leadership roles. Mr. Welborn served as the Chief Executive Officer and Managing Director at Equatorial Resources Limited from July 2010 to June 30, 2015. He served as an Executive Officer at BOQ Specialist (Aust) Limited (alternate name, BOQ Specialist Bank Limited). He served as Managing Director of Prairie Mining Limited (alternative name Prairie Downs Metals Limited) from February 4, 2009 to August 6, 2010. He served as Head of Specialized Lending in Western Australia and Executive Officer of Investec Bank (Australia) Limited. He has been the Chairman of Orbital Corporation Limited since 2014. Mr. Welborn has been a Director of Resolute Mining Limited since February 27, 2015. He was Director of Kilo Goldmines Ltd. since June 11, 2017 until March 11, 2019. He has been an Independent Non-Executive Director of Orbital Corporation Limited since June 17, 2014. He has been a Director of Carpentaria Gold Pty Ltd since July 14, 2015. He serves as a Director of Rugby WA Ltd and a Commissioner of Tourism in Western Australia. He has been Non Executive Director of Equatorial Resources Limited since June 30, 2015 and served as its Executive Director from August 6, 2010 to June 30, 2015. He served as a Non-Executive Director of Prairie Downs Metals Limited from August 6, 2010 to September 2015, where he served as an Executive Director from February 4, 2009 to August 6, 2010. He is a Fellow of the Australian Institute of Management He served as a Non Executive Director of Prairie Mining Limited (alternative name Prairie Downs Metals Limited) from February 4, 2009 to September 21, 2015. He served as a Non-Executive Director of NMG Corporation Limited (alternate name Acrow Formwork and Construction Services Limited and Noble Mineral Resources Ltd.) from March 01, 2013 to October 24, 2014. He serves as a Director of the Rugby Union Players Association, Board Member of the WA Rugby Union and on the Board of Management of the WA Arts, Sports and Recreation Training Council. Mr. Welborn was an International Rugby Union Player. He was named by MiningMx as one of the 100 Most Influential People in Africa’s Mining Industry. He is Fellow/ member of the Institute of Chartered Accountants in Australia, the Australian Institute of Mining and Metallurgy and the Financial Services Institute of Australasia and the Australian Institute of Company Directors. Mr. Welborn has a Bachelor of Commerce degree from the University of Western Australia. He is a Director of the World Gold Council since 2017.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the Resolute Mining management team in years:

3.1
Average Tenure
  • The tenure for the Resolute Mining management team is about average.
Management Team

John Welborn

TITLE
MD, CEO & Director
COMPENSATION
A$1M
TENURE
3.8 yrs

Lee-Anne de Bruin

TITLE
Chief Financial Officer
COMPENSATION
A$549K
AGE
44
TENURE
2.3 yrs

Peter Beilby

TITLE
Chief Operating Officer
COMPENSATION
A$559K
TENURE
8.7 yrs

Amber Stanton

TITLE
General Counsel & Company Secretary
COMPENSATION
A$380K
TENURE
1.8 yrs

Jeremy Meynert

TITLE
General Manager of Business Development & Investor Relations

Bruce Mowat

TITLE
General Manager of Exploration
COMPENSATION
A$466K
TENURE
3.1 yrs

Dave Kelly

TITLE
General Manager of Corporate Strategy
COMPENSATION
A$495K
AGE
52
TENURE
3.1 yrs
Board of Directors Tenure

Average tenure of the Resolute Mining board of directors in years:

1.9
Average Tenure
  • The average tenure for the Resolute Mining board of directors is less than 3 years, this suggests a new board.
Board of Directors

Martin Botha

TITLE
Non-Executive Chairman
COMPENSATION
A$88K
AGE
59
TENURE
1.9 yrs

John Welborn

TITLE
MD, CEO & Director
COMPENSATION
A$1M
TENURE
4.3 yrs

Peter Sullivan

TITLE
Non-Executive Director
COMPENSATION
A$45K
AGE
59
TENURE
18.3 yrs

Yasmin Broughton

TITLE
Non-Executive Director
COMPENSATION
A$45K
TENURE
1.9 yrs

Mark Potts

TITLE
Non-Executive Director
COMPENSATION
A$45K
TENURE
1.9 yrs

Sabina Shugg

TITLE
Non Executive Director
COMPENSATION
A$26K
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
18. Mar 19 Sell Van Eck Associates Corporation Company 16. Aug 18 21. Feb 19 -10,329,837 €0.73 €-7,457,550
18. Mar 19 Buy Van Eck Associates Corporation Company 07. Aug 18 13. Mar 19 9,845,646 €0.74 €7,102,990
08. Feb 19 Sell Zeta Resources Limited Company 29. Aug 18 08. Feb 19 -2,891,000 €0.72 €-2,088,647
08. Feb 19 Sell Alliance Life Common Fund Ltd. Company 29. Aug 18 08. Feb 19 -217,000 €0.74 €-161,657
08. Feb 19 Sell Alliance Life Common Fund Ltd. Company 29. Aug 18 08. Feb 19 -1,510,000 €0.75 €-1,139,268
31. Jan 19 Buy John Welborn Individual 31. Jan 19 31. Jan 19 25,000 €0.73 €18,279
31. Jan 19 Sell Peter Sullivan Individual 30. Jan 19 30. Jan 19 -500,000 €0.72 €-359,468
25. Oct 18 Buy John Welborn Individual 25. Oct 18 25. Oct 18 52,412 €0.65 €34,285
13. Sep 18 Buy John Welborn Individual 13. Sep 18 13. Sep 18 50,000 €0.67 €33,406
28. Aug 18 Sell Azure Limited Company 27. Feb 17 28. Aug 18 -1,000,000 €0.83 €-834,488
28. Aug 18 Buy ICM Investment Management Limited Company 27. Feb 17 28. Aug 18 1,000,000 €0.77 €766,709
28. Aug 18 Sell Zeta Resources Limited Company 27. Feb 17 28. Aug 18 -4,993,000 €0.88 €-4,277,681
28. Aug 18 Sell ICM Limited Company 27. Feb 17 28. Aug 18 -1,100,000 €1.09 €-1,034,308
28. Aug 18 Sell Alliance Life Common Fund Ltd. Company 27. Feb 17 28. Aug 18 -375,000 €0.73 €-275,287
28. Aug 18 Buy Alliance Life Common Fund Ltd. Company 27. Feb 17 28. Aug 18 1,000,000 €0.83 €834,488
28. Aug 18 Sell Alliance Life Common Fund Ltd. Company 27. Feb 17 28. Aug 18 -2,898,000 €1.09 €-2,424,701
08. Aug 18 Sell Van Eck Associates Corporation Company 29. Jun 18 02. Aug 18 -12,662 €0.84 €-10,358
08. Aug 18 Buy Van Eck Associates Corporation Company 03. Jul 18 03. Aug 18 157,604 €0.84 €132,220
16. Jul 18 Buy John Welborn Individual 16. Jul 18 16. Jul 18 100,000 €0.84 €84,498
03. Jul 18 Sell Van Eck Associates Corporation Company 11. Dec 17 26. Jun 18 -11,897,250 €0.84 €-8,663,918
03. Jul 18 Buy Van Eck Associates Corporation Company 07. Nov 17 27. Jun 18 12,826,487 €0.82 €9,899,080
03. Jun 18 Buy Dimensional Fund Advisors L.P. Company 14. Mar 18 31. May 18 7,422,186 €0.89 €5,971,206
X
Management checks
We assess Resolute Mining's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Resolute Mining has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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.

Details
Name: Resolute Mining Limited
RSM
Exchange: DB
Founded: 2001
A$526,712,356
758,094,588
Website: http://www.rml.com.au
Address: Resolute Mining Limited
Australia Place,
Level 2,
Perth,
Western Australia, 6000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX RSG Ordinary Shares Australian Securities Exchange AU AUD 01. Jun 1994
OTCPK RMGG.F Ordinary Shares Pink Sheets LLC US USD 01. Jun 1994
DB RSM Ordinary Shares Deutsche Boerse AG DE EUR 01. Jun 1994
CHIA RSG Ordinary Shares Chi-X Australia AU AUD 01. Jun 1994
OTCPK RMGG.Y UNSPONSORD ADR Pink Sheets LLC US USD 29. Aug 2012
Number of employees
Current staff
Staff numbers
0
Resolute Mining employees.
Industry
Gold
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 21:32
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/15
Last earnings filing: 2019/02/22
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.