AIM:GFM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Griffin Mining Limited, a mining and investment company, engages in the mining, exploration, and development of mineral properties. More Details

Rewards

Trading at 25.5% below our estimate of its fair value

Earnings are forecast to grow 76.99% per year

Risk Analysis

No risks detected for GFM from our risk checks.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GFM is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: GFM's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-2.2%

GFM

1.4%

GB Metals and Mining

-1.5%

GB Market


1 Year Return

12.3%

GFM

12.3%

GB Metals and Mining

-10.7%

GB Market

Return vs Industry: GFM underperformed the UK Metals and Mining industry which returned 14.8% over the past year.

Return vs Market: GFM exceeded the UK Market which returned -10% over the past year.


Shareholder returns

GFMIndustryMarket
7 Day-2.2%1.4%-1.5%
30 Day28.9%13.5%12.4%
90 Day30.8%6.3%6.5%
1 Year12.3%12.3%17.6%12.3%-7.2%-10.7%
3 Year3.0%3.0%38.7%16.5%-0.7%-12.9%
5 Year212.1%212.1%227.2%148.3%25.2%-3.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

25.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GFM (£0.87) is trading below our estimate of fair value (£1.17)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GFM is good value based on its PB Ratio (1x) compared to the GB Metals and Mining industry average (1.8x).


Next Steps

Future Growth

How is Griffin Mining forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

77.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GFM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

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

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

Revenue vs Market: GFM's revenue (18.2% per year) is forecast to grow faster than the UK market (6.8% per year).

High Growth Revenue: GFM's revenue (18.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GFM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Griffin Mining performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GFM is currently unprofitable.

Growing Profit Margin: GFM is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: GFM is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-21.7%).


Return on Equity

High ROE: GFM has a negative Return on Equity (-0.87%), as it is currently unprofitable.


Next Steps

Financial Health

How is Griffin Mining's financial position?


Financial Position Analysis

Short Term Liabilities: GFM's short term assets ($16.5M) do not cover its short term liabilities ($27.0M).

Long Term Liabilities: GFM's short term assets ($16.5M) exceed its long term liabilities ($6.5M).


Debt to Equity History and Analysis

Debt Level: GFM is debt free.

Reducing Debt: GFM has no debt compared to 5 years ago when its debt to equity ratio was 45.7%.

Debt Coverage: GFM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GFM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Griffin Mining current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if GFM'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 GFM's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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


CEO

Griffin Mining has no CEO, or we have no data on them.


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

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


Key Information

  • Name: Griffin Mining Limited
  • Ticker: GFM
  • Exchange: AIM
  • Founded: 1988
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: UK£147.271m
  • Shares outstanding: 172.25m
  • Website: https://www.griffinmining.com

Number of Employees


Location

  • Griffin Mining Limited
  • Royal Trust House
  • 8th Floor
  • London
  • Greater London
  • SW1Y 6LX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GFMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPSep 1993
GG7BST (Boerse-Stuttgart)YesOrdinary SharesDEEURSep 1993

Biography

Griffin Mining Limited, a mining and investment company, engages in the mining, exploration, and development of mineral properties. The company explores for zinc, gold, silver, lead, and base and precious ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 18:39
End of Day Share Price2020/11/30 00:00
Earnings2020/06/30
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.