DB:TG5

Stock Analysis Report

Frontier Resources

Executive Summary

Frontier Resources Limited engages in the exploration and evaluation of mineral properties.

Risk Analysis

Shareholders have been substantially diluted in the past year

Makes less than USD$1m in revenue (A$23K)

Does not have a meaningful market cap (€5M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 1 more risk


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TG5's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

TG5

1.2%

DE Metals and Mining

1.7%

DE Market


1 Year Return

12.5%

TG5

-13.5%

DE Metals and Mining

15.0%

DE Market

Return vs Industry: TG5 exceeded the German Metals and Mining industry which returned -13.5% over the past year.

Return vs Market: TG5 underperformed the German Market which returned 15% over the past year.


Shareholder returns

TG5IndustryMarket
7 Day0%1.2%1.7%
30 Day12.5%-4.9%1.4%
90 Day0%-9.5%3.3%
1 Year12.5%12.5%-12.6%-13.5%18.5%15.0%
3 Year-83.9%-83.9%-42.3%-44.0%17.1%6.9%
5 Year-73.0%-77.5%-39.2%-42.3%24.3%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.04x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TG5's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TG5's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: TG5 is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: TG5 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 TG5's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TG5 is good value based on its PB Ratio (1x) compared to the DE Metals and Mining industry average (4x).


Next Steps

Future Growth

How is Frontier Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.7%

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 Frontier Resources 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 Frontier Resources performed over the past 5 years?

21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TG5 is currently unprofitable.

Growing Profit Margin: TG5 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TG5 is unprofitable, but has reduced losses over the past 5 years at a rate of 21.1% per year.

Accelerating Growth: Unable to compare TG5's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TG5 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-13%).


Return on Equity

High ROE: TG5 has a negative Return on Equity (-19.06%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Frontier Resources's financial position?


Financial Position Analysis

Short Term Liabilities: TG5's short term assets (A$4.8M) exceed its short term liabilities (A$99.1K).

Long Term Liabilities: TG5 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: TG5 is debt free.

Reducing Debt: TG5 had no debt 5 years ago.


Balance Sheet

Inventory Level: TG5 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if TG5's debt is covered by short term assets.


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: TG5 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: TG5 has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 4.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage6.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TG5's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TG5'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 TG5's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TG5'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 TG5'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?

0.6yrs

Average board tenure


CEO

Fenix Dong 0

1.7yrs

Tenure

AU$32,500

Compensation

Mr. Yun Wei Dong, also known as Fenix, has been Managing Director of Frontier Resources Limited since June 2018 and also served as its Executive Director since June 19, 2018 until July 5, 2019. Mr. Dong is ...


CEO Compensation Analysis

Compensation vs Market: Fenix's total compensation ($USD21.84K) is below average for companies of similar size in the German market ($USD412.37K).

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


Board Members

NamePositionTenureCompensationOwnership
Alec Pismiris
Non-Executive Director0.6yrsno data0.20% A$6.2k
Peter Swiridiuk
Non-Executive Director5.2yrsAU$123.58kno data
Nathan Lude
Non-Executive Chairman0.6yrsno datano data

0.6yrs

Average Tenure

Experienced Board: TG5's board of directors are not considered experienced ( 0.6 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: TG5 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 substantially diluted in the past year, with total shares outstanding growing by 341.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Frontier Resources Limited
  • Ticker: TG5
  • Exchange: DB
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$4.891m
  • Listing Market Cap: AU$3.031m
  • Shares outstanding: 489.10m
  • Website: https://www.frontierresources.com.au

Location

  • Frontier Resources Limited
  • 99 St Georges Terrace
  • Level 8
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TG5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2003
FNTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2003
FNTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2003

Biography

Frontier Resources Limited engages in the exploration and evaluation of mineral properties. The company focuses on copper-gold-molybdenum porphyry, gold/silver epithermal, gold-base metal skarn, and lead–zinc deposits. It holds a 100% interest in the Bulago exploration licence (EL) 1595 and Muller Range EL 2356 located in Papua New Guinea; and EL 2531 the Tolukuma project in Central province 70km north of the Capital Port Moresby. The company was formerly known as TasGold, Ltd and changed its name Frontier Resources Limited in 2006. Frontier Resources Limited 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 Analysis2020/02/15 20:46
End of Day Share Price2020/02/14 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.