AIM:HGM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet average 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

-5.1%

HGM

3.5%

GB Metals and Mining

2.0%

GB Market


1 Year Return

39.6%

HGM

4.6%

GB Metals and Mining

3.3%

GB Market

Return vs Industry: HGM exceeded the UK Metals and Mining industry which returned 4.6% over the past year.

Return vs Market: HGM exceeded the UK Market which returned 3.3% over the past year.


Share holder returns

HGMIndustryMarket
7 Day-5.1%3.5%2.0%
30 Day-7.2%-3.4%-0.6%
90 Day-4.7%-8.1%-1.5%
1 Year50.1%39.6%13.4%4.6%8.3%3.3%
3 Year74.4%40.0%61.6%35.6%19.0%4.5%
5 Year632.9%409.7%50.6%23.1%38.4%8.4%

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

Undervalued: HGM (£2.03) is trading below our estimate of fair value (£8.66)

Significantly Undervalued: HGM is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: HGM is poor value based on its PE Ratio (13.5x) compared to the Metals and Mining industry average (8.9x).

PE vs Market: HGM is good value based on its PE Ratio (13.5x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: HGM is poor value based on its PEG Ratio (2x)


Price Based on Value of Assets

PB vs Industry: HGM is overvalued based on its PB Ratio (1.1x) compared to the GB Metals and Mining industry average (1x).


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?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: HGM's forecast earnings growth (6.6% per year) is above the savings rate (1.2%).

Earnings vs Market: HGM's earnings (6.6% per year) are forecast to grow slower than the UK market (12.3% per year).

High Growth Earnings: HGM's earnings are forecast to grow, but not significantly.

Revenue vs Market: HGM's revenue (5.4% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: HGM's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: HGM's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

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

43.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HGM's earnings have grown significantly by 43% per year over the past 5 years.

Accelerating Growth: HGM's earnings growth over the past year (7%) is below its 5-year average (43% per year).

Earnings vs Industry: HGM earnings growth over the past year (7%) exceeded the Metals and Mining industry 3.8%.


Return on Equity

High ROE: HGM's Return on Equity (8.4%) is considered low.


Return on Assets

ROA vs Industry: HGM's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: HGM has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Highland Gold Mining's financial position?


Financial Position Analysis

Short Term Liabilities: HGM's short term assets (£112.7M) do not cover its short term liabilities (£138.6M)

Long Term Liabilities: HGM's short term assets (£112.7M) do not cover its long term liabilities (£276.2M)


Debt to Equity History and Analysis

Debt Level: HGM's debt to equity ratio (25.5%) is considered satisfactory

Reducing Debt: HGM's debt to equity ratio has reduced from 36.7% to 25.5% over the past 5 years.

Debt Coverage: HGM's debt is well covered by operating cash flow (64.7%).

Interest Coverage: HGM's interest payments on its debt are well covered by EBIT (802.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: HGM's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

4.08%

Expected Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%2.0%markettop25%5.4%industryaverage3.9%forecastin3Years4.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: HGM's dividend (6.29%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: HGM's dividend (6.29%) is in the top 25% of dividend payers in the UK market (5.42%)

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

Growing Dividend: HGM's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.6%), HGM's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HGM's dividends in 3 years are forecast to be well covered by earnings (32% payout ratio).


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?

3.6yrs

Average management tenure


CEO

Denis Alexandrov (45yo)

3.8yrs

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

3.6yrs

Average Tenure

48yo

Average Age

Experienced Management: HGM's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

55yo

Average Age

Experienced Board: HGM's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$6,336,18015 Feb 19
Eugene Shvidler
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares3,861,169
Max PriceUS$1.64
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

Ownership Breakdown


Management Team

  • Denis Alexandrov (45yo)

    Chief Executive Officer

    • Tenure: 3.8yrs
    • Compensation: US$108.00k
  • Eugene Shvidler (55yo)

    Executive Chairman

    • Tenure: 7.4yrs
  • Alexander Mikhaluk

    Chief Geologist

    • Tenure: 0yrs
  • Igor Gaponenko

    Head of International Affairs

    • Tenure: 0yrs
  • Grant Sinitsin

    Director of Investor Relations

    • Tenure: 0yrs
  • Alla Baranovskaya (49yo)

    Chief Financial Officer

    • Tenure: 8.3yrs
  • John Mann (47yo)

    Executive Director & Head of Communications

    • Tenure: 4.5yrs
  • Elena Babkina

    Director of Human Resources & Administration

    • Tenure: 3.4yrs
  • Aleksey Kharitontsev

    Deputy Chief Executive Officer of Corporate Development

    • Tenure: 3.4yrs
  • Anton Kim

    Chief Operating Officer

    • Tenure: 1.9yrs

Board Members

  • Duncan Antony Baxter (67yo)

    Senior Independent Director

    • Tenure: 0.8yrs
  • Valery Oyf (55yo)

    Non-Executive Director

    • Tenure: 7.3yrs
  • Eugene Shvidler (55yo)

    Executive Chairman

    • Tenure: 7.4yrs
  • Olga Pokrovskaya (50yo)

    Non-Executive Director

    • Tenure: 11.8yrs
  • Colin J. Belshaw (64yo)

    Independent Non-Executive Director

    • Tenure: 6.1yrs
  • John Mann (47yo)

    Executive Director & Head of Communications

    • Tenure: 4.5yrs

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£737.255m
  • 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 Analysis2019/10/13 20:38
End of Day Share Price2019/10/11 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.

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