OTCPK:WFRS.F

Stock Analysis Report

Executive Summary

West African Resources Limited engages in the acquisition, exploration, and development of mineral resource projects in West Africa.


Snowflake Analysis

Exceptional growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

WFRS.F

10.7%

US Metals and Mining

10.5%

US Market


1 Year Return

40.0%

WFRS.F

-28.2%

US Metals and Mining

-11.5%

US Market

Return vs Industry: WFRS.F exceeded the US Metals and Mining industry which returned -28.2% over the past year.

Return vs Market: WFRS.F exceeded the US Market which returned -11.5% over the past year.


Shareholder returns

WFRS.FIndustryMarket
7 Day0%10.7%10.5%
30 Day-36.5%-20.3%-15.4%
90 Dayn/a-32.6%-21.4%
1 Year40.0%40.0%-26.1%-28.2%-9.6%-11.5%
3 Year51.7%51.7%-24.4%-28.7%12.6%5.4%
5 Year396.4%396.4%-4.4%-12.2%32.8%18.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is West African Resources undervalued compared to its fair value and its price relative to the market?

5.3x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: WFRS.F is overvalued based on its PB Ratio (5.3x) compared to the US Metals and Mining industry average (1x).


Next Steps

Future Growth

How is West African Resources forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

59.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WFRS.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: WFRS.F's revenue (60.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: WFRS.F's revenue (60.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WFRS.F's Return on Equity is forecast to be very high in 3 years time (99.3%).


Next Steps

Past Performance

How has West African Resources performed over the past 5 years?

-12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WFRS.F is currently unprofitable.

Growing Profit Margin: WFRS.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WFRS.F is unprofitable, and losses have increased over the past 5 years at a rate of -12.7% per year.

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

Earnings vs Industry: WFRS.F is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-26.9%).


Return on Equity

High ROE: WFRS.F has a negative Return on Equity (-5.84%), as it is currently unprofitable.


Next Steps

Financial Health

How is West African Resources's financial position?


Financial Position Analysis

Short Term Liabilities: WFRS.F's short term assets (A$85.1M) exceed its short term liabilities (A$15.8M).

Long Term Liabilities: WFRS.F's short term assets (A$85.1M) do not cover its long term liabilities (A$246.0M).


Debt to Equity History and Analysis

Debt Level: WFRS.F's debt to equity ratio (316.7%) is considered high.

Reducing Debt: WFRS.F's debt to equity ratio has reduced from 3693.3% to 316.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: WFRS.F's debt is not covered by short term assets (assets are 0.4x 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: WFRS.F has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: WFRS.F has less than a year of cash runway if free cash flow continues to reduce at historical rates of -72.1% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if WFRS.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 WFRS.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?

1.8yrs

Average management tenure


CEO

Richard Hyde

no data

Tenure

AU$550,056

Compensation

Mr. Richard Hyde, B.Sc. (Geology and Geophysics), MAusIMM, MAIG, is an Executive Chairman and CEO of West African Resources, Ltd. since September 2019. He served as the Managing Director of West African Re ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD1.45M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Hyde
Founderno dataAU$550.06k2.1% A$4.9m
Lyndon Hopkins
COO & Executive Director0.50yrAU$255.59k0.35% A$816.9k
Matthew Wilcox
Chief Development Officer1.5yrsAU$278.21k0.046% A$107.8k
Simon Storm
Secretary & Non-Executive Director12.33yrsAU$64.76k0.30% A$698.0k
Padraig O'Donoghue
Chief Financial Officer1.75yrsno data0.013% A$30.5k
Stuart Cruickshanks
General Manager of Technical Services0.50yrno datano data

1.8yrs

Average Tenure

Experienced Management: WFRS.F's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Richard Hyde
Founderno dataAU$550.06k2.1% A$4.9m
Lyndon Hopkins
COO & Executive Director0.50yrAU$255.59k0.35% A$816.9k
Simon Storm
Secretary & Non-Executive Director12.33yrsAU$64.76k0.30% A$698.0k
Rodney Leonard
Independent Non-Executive Director0.50yrno datano data
Mark Connelly
Non-Executive Director4.75yrsAU$46.46k0.0069% A$16.2k
Nigel Spicer
Independent Non-Executive Director0.50yrno datano data

0.5yrs

Average Tenure

57yo

Average Age

Experienced Board: WFRS.F's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


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 20.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: West African Resources Limited
  • Ticker: WFRS.F
  • Exchange: OTCPK
  • Founded: 2006
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$383.077m
  • Listing Market Cap: AU$234.959m
  • Shares outstanding: 870.63m
  • Website: https://www.westafricanresources.com

Number of Employees


Location

  • West African Resources Limited
  • 1 Alvan Street
  • Level 1
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WAFASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2010
W25DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2010
WAFTSXV (TSX Venture Exchange)YesOrdinary SharesCACADJun 2010
WAFCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2010
WFRS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2010

Biography

West African Resources Limited engages in the acquisition, exploration, and development of mineral resource projects in West Africa. The company explores for gold and copper. Its key asset is 100% owned Sanbrado gold project located in Burkina Faso. The company was incorporated in 2006 and 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 Analysis2020/03/28 02:53
End of Day Share Price2020/03/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.