Discounted Cash Flow Calculation for OTCPK:SUPG.F using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
OTCPK:SUPG.F DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Superior Gold's share price is below the future cash flow value, and at a moderate discount (> 20%).
Superior Gold's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Superior Gold's earnings available for a low price, and how does
this compare to other companies in the same industry?
Superior Gold's earnings are expected to grow significantly at over 20% yearly.
Superior Gold's revenue is expected to grow by 9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Superior Gold's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Metals and Mining
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Mr. Christopher John Bradbrook, also known as Chris, B.Sc. (Hons), M.Sc., serves as the Chief Executive Officer and President at Superior Gold Inc. Mr. Bradbrook has almost 35 years experience in the mining industry in progressively more senior roles and has worked both as a Direct Industry Participant and in the financial sector as a Mining Analyst. He has performed principal roles in many aspects of the industry, including exploration, mine development, corporate development work, financial analysis, investor relations and marketing. He has a unique and valuable perspective and understanding of the relationships between investors, mining companies and the creation of shareholder value. He served as the Chief Executive Officer and President at Newmarket Gold Inc. He founded Crocodile Gold Corp. (now Kirkland Lake Gold Ltd.). He served as the President and Chief Executive Officer at Crocodile Gold since February 2008. He was employed at Macquarie Capital Markets Canada Ltd., Research Division. He served as an Analyst at Macquarie Research. He served as Vice President of Strategic Development of Avion Gold Corporation from February 2009 to May 30, 2010 and assisted it in establishing itself as an emerging Gold Producer and ultimately as a Key Consolidator of Gold Assets in West Africa. He served as the President and Chief Executive Officer of New Gold Inc. from October 12, 2004 to January 29, 2008, where he was responsible for re-branding it and raising almost $500 million. From 1995 to 2001, he served as a Mining Analyst with a number of Canadian securities dealers, specializing in research of North American precious metals companies. He served as Vice President of Corporate Development at Goldcorp Inc. from January 2001 to May 7, 2004. He served as an Equity Analyst of Loewen Ondaatje McCutcheon Limited, Research Division. He served as an Equity Analyst at Laurentian Bank Securities, Inc., Research Division. He has been a Director of Superior Gold Inc. since July 4, 2016. He served as a Director of Newmarket Gold Inc. from November 6, 2009 to May 18, 2010 and New Gold Inc. from October 18, 2004 to January 2008. He served as an Independent Director of Rubicon Minerals Corporation from December 14, 2005 to May 9, 2014 and served as its Lead Independent Director until May 9, 2014. He served as a Director of Tri Origin Exploration Ltd. since February 2000. Mr. Bradbrook holds Bachelor of Science in Geology from University of Southampton and Master of Science degree in Geology from The University Of Western Ontario.
Chris's compensation has increased whilst company is loss making.
Chris's remuneration is higher than average for companies of similar size in United States of America.
VP of Finance & CFO
Chief Operating Officer
Vice President of Communications & Strategy
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Superior Gold board of directors is less than 3 years, this suggests a new board.
Superior Gold Inc. engages in the acquisition, exploration, development, and operation of gold resource properties. Its principal asset is the Plutonic gold mine that is located approximately 800km north east of Perth, Western Australia. The company was formerly known as 2525908 Ontario Inc. and changed its name to Superior Gold Inc. December 2016. Superior Gold Inc. was incorporated in 2016 and is headquartered in Toronto, Canada.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.