Good afternoon Fellow Shareholders,I received an email...

Good afternoon Fellow Shareholders,
I received an email notification this morning of an update on Aurelia Metals by Simply Wall Street, I tried to copy the link but I believe you have to register with them for access. Anyway, I have taken the time today to write the bulk of the information here for you all as follows:-

AMI Analysis from Simply Wall Street (SWS)

The Rewards

Trading at 63.2% below our estimate of its fair value

Earnings are forecast to grow 46.15% per year

Earnings grew by 45.8% over the past year

The Risks

Quality Earnings: AMI has a large loss of A$20.0M impacting its June 30 2021 financial results

Snowflake Analysis

AMI is very undervalued with excellent balance sheet

Performance

Growing Profit Margin: AMI’s current net (10.3%) are higher than last year (8.9%)

Past 5 years annual earnings growth 5.1%. Industry annual earnings growth 23.2%

Past years earnings growth 45.8%. Industry past year earnings growth 27.5%

AMI’s Return on Equity (ROE)

At (10.2%) is considered low. Industry ROE 14.4%

Financial Position Analysis

AMI’s short term assets (A$136.3M) exceed its short term liabilities (A$84.9M)

AMI’s short term assets (A$136.3M) do not cover its long term liabilities (A$150.3M) however; their long term assets (A$520.11M) do.

Debt to Equity History & Analysis

AMI’s debt to equity ratio (8.2%) is considered satisfactory

AMI had negative shareholder equity 5 years ago, but is now positive and has therefore improved

AMI’s debt is well covered by operating cash flow (397%)

AMI’s interest payments on its debt are well covered by EBIT (18.9x coverage)

Dividend

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

High Dividend: Unable to evaluate AMI’s dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stable Dividend: Insufficient data to determine if AMI’s dividends per share have been stable in the past

Growing Dividend: Insufficient data to determine if AMI’s dividend payments have been increasing

Current Payout to Shareholders

Dividend Coverage: AMI is not paying a notable dividend for the Australian market

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMI’s dividend in 3 years as they are not forecast to pay a notable one for the Australian market

Management

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

1.8 Years Average Management Tenure

CEO: Dan Clifford

1.75yrs Tenure AU$1,235,935 Compensation

Compensation vs Market: Dan’s total compensation ($USD897.23K) is above average for companies of similar size in the Australian market ($USD686.56K)

Compensation vs Earnings: Insufficient data to compare Dan’s compensation with the company performance


I remain positive with my investment with AMI and remain confident that Dan and his mostly new Team (Average Tenure of 1.8yrs) and the relatively new Board of Directors (Average Tenure 1.2yrs) will at the very least, get the Stock Price of AMI in line with SWS's fair average price of $0.95 or 63.2% of today's high of $0.35.

I particularly like the Snowflake Analysis by SWS of 'AMI is very undervalued with excellent balance sheet'.

As always, patience is the key and please DYOR.
GLTAH

Regards,
Peakabooau