AIM:SRB

Stock Analysis Report

Executive Summary

Serabi Gold plc primarily engages in the exploration, mining, and development of gold projects in Brazil and the United Kingdom.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-33.3%

SRB

-4.7%

GB Metals and Mining

-3.3%

GB Market


1 Year Return

21.5%

SRB

-29.9%

GB Metals and Mining

-25.0%

GB Market

Return vs Industry: SRB exceeded the UK Metals and Mining industry which returned -27% over the past year.

Return vs Market: SRB exceeded the UK Market which returned -22.4% over the past year.


Shareholder returns

SRBIndustryMarket
7 Day-33.3%-4.7%-3.3%
30 Day-40.0%-16.7%-19.5%
90 Day-26.2%-27.7%-28.9%
1 Year21.5%21.5%-24.3%-29.9%-21.0%-25.0%
3 Year-49.5%-49.5%3.7%-13.8%-14.7%-25.8%
5 Year-46.7%-46.7%37.5%4.3%-1.5%-24.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Serabi Gold undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRB (£0.48) is trading below our estimate of fair value (£1.49)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SRB is good value based on its PB Ratio (0.5x) compared to the GB Metals and Mining industry average (0.9x).


Next Steps

Future Growth

How is Serabi Gold forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

21.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SRB's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if SRB's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SRB's revenue (21.6% per year) is forecast to grow faster than the UK market (2.4% per year).

High Growth Revenue: SRB's revenue (21.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SRB's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Serabi Gold performed over the past 5 years?

-31.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRB is currently unprofitable.

Growing Profit Margin: SRB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SRB is unprofitable, and losses have increased over the past 5 years at a rate of -31.4% per year.

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

Earnings vs Industry: SRB is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (7.2%).


Return on Equity

High ROE: SRB has a negative Return on Equity (-0.26%), as it is currently unprofitable.


Next Steps

Financial Health

How is Serabi Gold's financial position?


Financial Position Analysis

Short Term Liabilities: SRB's short term assets ($25.3M) do not cover its short term liabilities ($26.3M).

Long Term Liabilities: SRB's short term assets ($25.3M) exceed its long term liabilities ($1.9M).


Debt to Equity History and Analysis

Debt Level: SRB's debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: SRB's debt to equity ratio has reduced from 12.6% to 10.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: SRB's debt is covered by short term assets (assets are 3.7x debt).


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: Whilst unprofitable SRB has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SRB is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 47% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

12.7yrs

Average management tenure


CEO

Mike Hodgson (57yo)

12.67s

Tenure

US$466,814

Compensation

Mr. Michael Jonathan Hodgson, also known as Mike, BSc, MSc, CEng, FIMM has been the Chief Executive Officer of Serabi Gold plc (a/k/a Serabi Mining Plc) since August 29, 2007 and served as its President. M ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD466.81K) is above average for companies of similar size in the UK market ($USD333.37K).

Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Hodgson
CEO & Director12.67yrsUS$466.81k0.037% $10.6k
Clive Line
CFO, Finance Director15.08yrsUS$387.82k0.065% $18.4k
Roney Almeida
Chief Operating Officer1.58yrsno datano data

12.7yrs

Average Tenure

Experienced Management: SRB's management team is seasoned and experienced (12.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Hodgson
CEO & Director12.67yrsUS$466.81k0.037% $10.6k
Clive Line
CFO, Finance Director15.08yrsUS$387.82k0.065% $18.4k
Melvyn Williams
Non-Executive Chairman2.83yrsUS$67.96k0.025% $7.1k
Eduardo Rosselot Risopatron
Non-Executive Director7.5yrsUS$106.85kno data
Terence Harvey
Non-Executive Director9.08yrsUS$60.52k0.10% $28.8k
Mark Sawyer
Non-Executive Director2.08yrsUS$26.05kno data
Felipe Swett Lira
Non-Executive Director5.58yrsUS$51.86kno data
Nicolas Ramon Lyon
Non-Executive Director6.92yrsUS$49.16k1.89% $534.8k
Hector Olate
Non-Executive Independent Director5.75yrsUS$46.08k0.0085% $2.4k

6.9yrs

Average Tenure

58yo

Average Age

Experienced Board: SRB's board of directors are considered experienced (6.9 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29.8%.


Top Shareholders

Company Information

Serabi Gold plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Serabi Gold plc
  • Ticker: SRB
  • Exchange: AIM
  • Founded: 1999
  • Industry: Gold
  • Sector: Materials
  • Market Cap: UK£28.277m
  • Shares outstanding: 58.91m
  • Website: https://www.serabigold.com

Number of Employees


Location

  • Serabi Gold plc
  • 30-32 Ludgate Hill
  • 2nd Floor
  • London
  • Greater London
  • EC4M 7DR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRBAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2005
SRBI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2005
SBITSX (The Toronto Stock Exchange)YesOrdinary SharesCACADMay 2005
B9O2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2005

Biography

Serabi Gold plc primarily engages in the exploration, mining, and development of gold projects in Brazil and the United Kingdom. It also explores for copper deposits. The company’s primary assets include the Palito mining complex covering an area of approximately 48,846 hectares; and the Coringa gold project located in the Tapajos region of northern Brazil. The company was formerly known as Serabi Mining Limited and changed its name to Serabi Gold plc in October 2011. Serabi Gold plc was founded in 1999 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 21:25
End of Day Share Price2020/04/01 00:00
Earnings2019/09/30
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.