SEHK:1712

Stock Analysis Report

Executive Summary

Dragon Mining Limited, together with its subsidiaries, engages in the exploration, evaluation, and development of gold projects in the Nordic region.

Rewards

Earnings are forecast to grow 36.4% per year

Earnings have grown 34.7% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

Does not have a meaningful market cap (HK$140M)



Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1712's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.0%

1712

5.3%

HK Metals and Mining

0.6%

HK Market


1 Year Return

n/a

1712

-7.3%

HK Metals and Mining

-4.5%

HK Market

Return vs Industry: Insufficient data to determine how 1712 performed against the Hong Kong Metals and Mining industry.

Return vs Market: Insufficient data to determine how 1712 performed against the Hong Kong Market.


Shareholder returns

1712IndustryMarket
7 Day-9.0%5.3%0.6%
30 Day-22.9%-4.3%-5.2%
90 Dayn/a15.0%2.3%
1 Yearn/a-4.2%-7.3%-1.0%-4.5%
3 Yearn/a-8.3%-14.2%14.4%2.9%
5 Yearn/a9.8%-1.8%15.5%-3.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1712's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1712's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1712 is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: 1712 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1712's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1712 is good value based on its PB Ratio (0.6x) compared to the HK Metals and Mining industry average (0.8x).


Next Steps

Future Growth

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

36.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1712 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: 1712 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1712's is expected to become profitable in the next 3 years.

Revenue vs Market: Insufficient data to determine if 1712's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1712's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1712's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Dragon Mining performed over the past 5 years?

34.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1712 is currently unprofitable.

Growing Profit Margin: 1712 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1712 is unprofitable, but has reduced losses over the past 5 years at a rate of 34.7% per year.

Accelerating Growth: Unable to compare 1712's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1712 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-22.2%).


Return on Equity

High ROE: 1712 has a negative Return on Equity (-11.64%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dragon Mining's financial position?


Financial Position Analysis

Short Term Liabilities: 1712's short term assets (A$16.1M) exceed its short term liabilities (A$8.0M).

Long Term Liabilities: 1712's short term assets (A$16.1M) do not cover its long term liabilities (A$17.1M).


Debt to Equity History and Analysis

Debt Level: 1712's debt to equity ratio (19.2%) is considered satisfactory.

Reducing Debt: 1712's debt to equity ratio has increased from 5.8% to 19.2% over the past 5 years.


Balance Sheet

Inventory Level: 1712 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1712's debt is covered by short term assets (assets are 3.2x 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: 1712 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 1712 has less than a year of cash runway if free cash flow continues to reduce at historical rates of -37% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.4%industryaverage3.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1712's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1712'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 1712's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1712'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 1712's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Brett Smith (57yo)

5yrs

Tenure

AU$443,765

Compensation

Mr. Brett Robert Smith, MBA, B Eng (Chem), MA, Dip Industrial Marketing, serves as Non-Executive Director and Non-Independent Director at Tanami Gold NL since November 27, 2018. He served as the Chief Oper ...


CEO Compensation Analysis

Compensation vs Market: Brett's total compensation ($USD318.36K) is above average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brett Smith
Executive Director5yrsAU$443.77kno data
Daniel Broughton
Chief Financial Officer4.3yrsAU$243.30kno data
Neale Edwards
Chief Geologist22.4yrsAU$250.18kno data
Päivi Mikkonen
General Manager of Finance & Administration0yrsno datano data
Shannon Coates
Company Secretary5.1yrsno datano data
Josh Stewart
Project Manager of Fäboliden0.8yrsAU$244.10kno data

5.0yrs

Average Tenure

Experienced Management: 1712's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brett Smith
Executive Director5yrsAU$443.77kno data
Arthur Dew
Non-Executive Chairman4.9yrsAU$98.55kno data
Tai Wong
Alternate Director3.7yrsno datano data
Carlisle Procter
Non-Executive Director3.7yrsAU$32.85kno data

4.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: 1712's board of directors are considered experienced (4.3 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: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Dragon Mining Limited
  • Ticker: 1712
  • Exchange: SEHK
  • Founded:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: HK$140.229m
  • Shares outstanding: 138.84m
  • Website: https://www.dragonmining.com

Location

  • Dragon Mining Limited
  • 431 Roberts Road
  • Unit B1
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DGON.FOTCPK (Pink Sheets LLC)Old Ordinary SharesUSUSDJan 1992
DRMDB (Deutsche Boerse AG)Old Ordinary SharesDEEURJan 1992
1712SEHK (The Stock Exchange of Hong Kong Ltd.)Old Ordinary SharesHKHKDJan 1992
1712SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2018

Biography

Dragon Mining Limited, together with its subsidiaries, engages in the exploration, evaluation, and development of gold projects in the Nordic region. It is involved in mining and processing gold ores in Finland and Sweden. The company holds interests in the Jokisivu and Orivesi gold mines located in southern Finland; the Svartliden gold mine located in northern Sweden; the Fäboliden gold project located in northern Sweden; the Kaapelinkulma gold project located in southern Finland; and the Hanhimaa gold project located in Finland. Dragon Mining Limited is based in Subiaco, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/01/21 13:03
End of Day Share Price2019/01/18 00:00
Earnings2018/06/30
Annual Earnings2017/12/31


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.