OTCPK:STQN.F

Stock Analysis Report

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Executive Summary

Strandline Resources Limited, together with its subsidiaries, engages in the exploration and evaluation of mineral properties in Australia and Tanzania.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has Strandline Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

STQN.F

-0.5%

US Metals and Mining

1.3%

US Market


1 Year Return

17.4%

STQN.F

20.9%

US Metals and Mining

14.9%

US Market

Return vs Industry: STQN.F underperformed the US Metals and Mining industry which returned 20.7% over the past year.

Return vs Market: STQN.F exceeded the US Market which returned 12.5% over the past year.


Shareholder returns

STQN.FIndustryMarket
7 Day0%-0.5%1.3%
30 Day-10.0%12.1%4.7%
90 Dayn/a20.9%17.1%
1 Year17.4%17.4%23.8%20.9%17.3%14.9%
3 Yearn/a14.7%7.3%38.9%29.9%
5 Yearn/a81.9%65.7%71.3%52.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Strandline Resources 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: STQN.F ($0.14) is trading below our estimate of fair value ($0.58)

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


Price To Earnings Ratio

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

PE vs Market: STQN.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: STQN.F is overvalued based on its PB Ratio (9.6x) compared to the US Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Strandline Resources forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

73.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STQN.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: STQN.F is forecast to have no revenue next year.

High Growth Revenue: STQN.F is forecast to have no revenue next year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STQN.F's Return on Equity is forecast to be high in 3 years time (22.2%)


Next Steps

Past Performance

How has Strandline Resources performed over the past 5 years?

21.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STQN.F is currently unprofitable.

Growing Profit Margin: STQN.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: STQN.F is unprofitable, but has reduced losses over the past 5 years at a rate of 21% per year.

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

Earnings vs Industry: STQN.F is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-22.6%).


Return on Equity

High ROE: STQN.F has a negative Return on Equity (-75.28%), as it is currently unprofitable.


Next Steps

Financial Health

How is Strandline Resources's financial position?


Financial Position Analysis

Short Term Liabilities: STQN.F's short term assets (A$3.0M) exceed its short term liabilities (A$1.0M).

Long Term Liabilities: STQN.F has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: STQN.F is debt free.

Reducing Debt: STQN.F has not had any debt for past 5 years.


Balance Sheet


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: STQN.F has sufficient cash runway for 5 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: STQN.F is forecast to have sufficient cash runway for 0 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is Strandline Resources's current dividend yield, its reliability and sustainability?

5.00%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Luke Graham (45yo)

3.92yrs

Tenure

AU$882,738

Compensation

Mr. Luke Edward Graham, A.Dip (Hons) (Elec Eng), MAICD, served as a Non-Executive Director of Primero Group Limited until March 25, 2020. He has been the Chief Executive Officer, Managing Director and Dire ...


CEO Compensation Analysis

Compensation vs Market: Luke's total compensation ($USD632.56K) is about average for companies of similar size in the US market ($USD608.75K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Luke Graham
MD, CEO & Director3.92yrsAU$882.74k1.8% A$1.4m
Flavio Garofalo
CFO & Company Secretary2.17yrsAU$385.95kno data
Peter Watson
Executive Director of Strategy & Development and Executive Director1.92yrsAU$272.88k0.26% A$197.6k
David Harley
21.58yrsAU$197.29kno data
Karen Trapnell
Executive Officerno datano datano data
Alan Luscombe
General Manager of Coburn Mineral Sands Projectno dataAU$174.23kno data

3.0yrs

Average Tenure

59yo

Average Age

Experienced Management: STQN.F's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Luke Graham
MD, CEO & Director3.92yrsAU$882.74k1.8% A$1.4m
Peter Watson
Executive Director of Strategy & Development and Executive Director1.92yrsAU$272.88k0.26% A$197.6k
John Hodder
Non-Independent Non-Executive Director4.17yrsAU$49.28kno data
Didier Murcia
Independent Non-Executive Chairman4.42yrsAU$115.53k0.28% A$215.0k
Ernest Eadie
Independent Non-Executive Director4.83yrsAU$49.28k1.41% A$1.1m

4.2yrs

Average Tenure

58yo

Average Age

Experienced Board: STQN.F's board of directors are considered experienced (4.2 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.4%.


Top Shareholders

Company Information

Strandline Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Strandline Resources Limited
  • Ticker: STQN.F
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$106.692m
  • Listing Market Cap: AU$76.455m
  • Shares outstanding: 426.77m
  • Website: https://www.strandline.com.au

Number of Employees


Location

  • Strandline Resources Limited
  • 35 Richardson Street
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2000
STQN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2000
STACHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2000

Biography

Strandline Resources Limited, together with its subsidiaries, engages in the exploration and evaluation of mineral properties in Australia and Tanzania. It holds 100% interests in a portfolio of heavy mineral sands projects in Tanzania; the Coburn Heavy Mineral Sands project situated in Western Australia; and the Fowlers Bay nickel-gold project located in the Western Gawler region of South Australia. The company was formerly known as Gunson Resources Limited and changed its name to Strandline Resources Limited in December 2014. Strandline Resources Limited was founded in 2000 and is headquartered in West Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 00:41
End of Day Share Price2020/07/22 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.