AIM:HGM

Stock Analysis Report

Executive Summary

Highland Gold Mining Limited engages in the gold mining operations in Russia and Kyrgyzstan.

Snowflake

Fundamentals

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-8.4%

AIM:HGM

-1.9%

GB Metals and Mining

-0.3%

GB Market


1 Year Return

62.3%

AIM:HGM

2.5%

GB Metals and Mining

-5.3%

GB Market

HGM outperformed the Metals and Mining industry which returned 1.9% over the past year.

HGM outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.7% over the past year.


Share holder returns

HGMIndustryMarket
7 Day-8.4%-1.9%-0.3%
30 Day-3.8%-13.9%-3.9%
90 Day28.7%-7.8%-2.2%
1 Year78.2%62.3%11.1%2.5%-0.9%-5.3%
3 Year92.0%52.3%62.1%37.7%18.9%5.1%
5 Year355.0%207.8%27.8%5.2%28.1%1.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Highland Gold Mining's share price is below the future cash flow value, and at a moderate discount (> 20%).

Highland Gold Mining's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Highland Gold Mining is overvalued based on earnings compared to the GB Metals and Mining industry average.

Highland Gold Mining is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Highland Gold Mining is poor value based on expected growth next year.


Price Based on Value of Assets

Highland Gold Mining is overvalued based on assets compared to the GB Metals and Mining industry average.


Next Steps

Future Growth

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

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Highland Gold Mining's revenue is expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).

Highland Gold Mining's earnings are expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).

Highland Gold Mining's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Highland Gold Mining's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Highland Gold Mining's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Highland Gold Mining is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Highland Gold Mining performed over the past 5 years?

26.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Highland Gold Mining has delivered over 20% year on year earnings growth in the past 5 years.

Highland Gold Mining's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Highland Gold Mining's 1-year earnings growth is negative, it can't be compared to the GB Metals and Mining industry average.


Return on Equity

Highland Gold Mining has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Highland Gold Mining used its assets less efficiently than the GB Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Highland Gold Mining has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Highland Gold Mining's financial position?


Financial Position Analysis

Highland Gold Mining is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Highland Gold Mining's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Highland Gold Mining's level of debt (29.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (37.6% vs 29.8% today).

Debt is well covered by operating cash flow (55%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 396.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

4.26%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Highland Gold Mining's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

Highland Gold Mining's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.77%).

Highland Gold Mining has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Highland Gold Mining only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Denis Alexandrov (45yo)

3.6yrs

Tenure

US$108,000

Compensation

Mr. Denis Alexandrov has been the Chief Executive Officer of Highland Gold Mining Ltd. since January 2016. Mr. Alexandrov served as the Chief Executive Officer at Auriant Mining AB from May 2012 to January ...


Management Age and Tenure

3.4yrs

Average Tenure

48yo

Average Age

The tenure for the Highland Gold Mining management team is about average.


Board Age and Tenure

7.2yrs

Average Tenure

55yo

Average Age

The tenure for the Highland Gold Mining board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$3,170,46715 Feb 19
Valery Oyf
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,932,033
Max PriceUS$1.64
BuyUS$6,336,18015 Feb 19
Eugene Shvidler
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares3,861,169
Max PriceUS$1.64

Ownership Breakdown


Management Team

  • Denis Alexandrov (45yo)

    Chief Executive Officer

    • Tenure: 3.6yrs
    • Compensation: US$108.00k
  • Eugene Shvidler (55yo)

    Executive Chairman

    • Tenure: 7.3yrs
  • Alexander Mikhaluk

    Chief Geologist

    • Tenure: 0.0yrs
  • Igor Gaponenko

    Head of International Affairs

    • Tenure: 0.0yrs
  • Grant Sinitsin

    Director of Investor Relations

    • Tenure: 0.0yrs
  • Alla Baranovskaya (49yo)

    Chief Financial Officer

    • Tenure: 8.2yrs
  • John Mann (47yo)

    Head of Communications and Executive Director

    • Tenure: 4.3yrs
  • Elena Babkina

    Director of Human Resources & Administration

    • Tenure: 3.3yrs
  • Aleksey Kharitontsev

    Deputy Chief Executive Officer of Corporate Development

    • Tenure: 3.3yrs
  • Anton Kim

    Chief Operating Officer

    • Tenure: 1.8yrs

Board Members

  • Terry Robinson (75yo)

    Senior Independent Director

    • Tenure: 0.0yrs
  • Duncan Antony Baxter (67yo)

    Independent Non-Executive Director

    • Tenure: 11.1yrs
  • Valery Oyf (55yo)

    Non-Executive Director

    • Tenure: 7.1yrs
  • Eugene Shvidler (55yo)

    Executive Chairman

    • Tenure: 7.3yrs
  • Olga Pokrovskaya (50yo)

    Non-Executive Director

    • Tenure: 11.6yrs
  • Colin J. Belshaw (64yo)

    Independent Non-Executive Director

    • Tenure: 5.9yrs
  • John Mann (47yo)

    Head of Communications and Executive Director

    • Tenure: 4.3yrs

Company Information

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


Key Information

  • Name: Highland Gold Mining Limited
  • Ticker: HGM
  • Exchange: AIM
  • Founded: 2002
  • Industry: Gold
  • Sector: Materials
  • Market Cap: UK£772.917m
  • Shares outstanding: 363.90m
  • Website: https://www.highlandgold.com

Number of Employees


Location

  • Highland Gold Mining Limited
  • 26 New Street
  • Saint Helier
  • Jersey
  • JE2 3RA
  • Channel Islands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HGHG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2002
HGMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2002
HGMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2002

Biography

Highland Gold Mining Limited engages in the gold mining operations in Russia and Kyrgyzstan. The company explores for gold, silver, zinc, and lead. The company’s Gold Production of Khabarovsk Region segmen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 20:34
End of Day Share Price2019/08/19 00:00
Earnings2018/12/31
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.