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SouthGobi Resources

TSX:SGQ
Snowflake Description

Slightly overvalued with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SGQ
TSX
CA$22M
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

SouthGobi Resources Ltd., together with its subsidiaries, operates as an integrated coal mining, development, and exploration company in Mongolia, Hong Kong, and China. The last earnings update was 136 days ago. More info.


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SGQ Share Price and Events
7 Day Returns
21.4%
TSX:SGQ
7%
CA Oil and Gas
7.1%
CA Market
1 Year Returns
-
TSX:SGQ
-46%
CA Oil and Gas
-25.3%
CA Market
SGQ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SouthGobi Resources (SGQ) 21.4% -15% -5.6% - -78.5% -90.1%
CA Oil and Gas 7% -40.8% -46.8% -46% -53.7% -57.4%
CA Market 7.1% -24.1% -26.7% -25.3% -23.4% -17.5%
1 Year Return vs Industry and Market
  • No trading data on SGQ.
  • No trading data on SGQ.
Price Volatility
SGQ
Industry
5yr Volatility vs Market

SGQ Value

 Is SouthGobi Resources undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SouthGobi Resources to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SouthGobi Resources.

TSX:SGQ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 13.6%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:SGQ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 6.1%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.825 (1 + (1- 25%) (1010.18%))
5.073
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (2 * 6.07%)
13.58%

Discounted Cash Flow Calculation for TSX:SGQ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SouthGobi Resources 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.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:SGQ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 13.58%)
2020 7.07 Est @ -32.83% 6.22
2021 5.48 Est @ -22.55% 4.24
2022 4.64 Est @ -15.35% 3.16
2023 4.16 Est @ -10.32% 2.50
2024 3.87 Est @ -6.79% 2.05
2025 3.71 Est @ -4.32% 1.73
2026 3.61 Est @ -2.59% 1.48
2027 3.56 Est @ -1.38% 1.29
2028 3.54 Est @ -0.54% 1.13
2029 3.54 Est @ 0.06% 0.99
Present value of next 10 years cash flows $24.00
TSX:SGQ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $3.54 × (1 + 1.44%) ÷ (13.58% – 1.44%)
$29.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $29.62 ÷ (1 + 13.58%)10
$8.29
TSX:SGQ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $24.00 + $8.29
$32.29
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $32.29 / 272.70
$0.12
TSX:SGQ Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:SGQ)
1.407
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $0.12 x 1.407
CA$0.17
Value per share (CAD) From above. CA$0.17
Current discount Discount to share price of CA$0.09
= -1 x (CA$0.09 - CA$0.17) / CA$0.17
49%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price SouthGobi Resources is available for.
Intrinsic value
49%
Share price is CA$0.085 vs Future cash flow value of CA$0.16664
Current Discount Checks
For SouthGobi Resources to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • SouthGobi Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • SouthGobi Resources'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 SouthGobi Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SouthGobi Resources's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:SGQ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $-0.01
TSX:SGQ Share Price ** TSX (2020-03-27) in CAD CA$0.09
TSX:SGQ Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.711 $0.06
Canada Oil and Gas Industry PE Ratio Median Figure of 55 Publicly-Listed Oil and Gas Companies 6.03x
Canada Market PE Ratio Median Figure of 497 Publicly-Listed Companies 10.58x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SouthGobi Resources.

TSX:SGQ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:SGQ Share Price ÷ EPS (both in USD)

= 0.06 ÷ -0.01

-4.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SouthGobi Resources is loss making, we can't compare its value to the CA Oil and Gas industry average.
  • SouthGobi Resources is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does SouthGobi Resources's expected growth come at a high price?
Raw Data
TSX:SGQ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -4.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Canada Oil and Gas Industry PEG Ratio Median Figure of 29 Publicly-Listed Oil and Gas Companies -0.04x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 0.69x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for SouthGobi Resources, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on SouthGobi Resources's assets?
Raw Data
TSX:SGQ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $-0.16
TSX:SGQ Share Price * TSX (2020-03-27) in CAD CA$0.09
TSX:SGQ Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.711 $0.06
Canada Oil and Gas Industry PB Ratio Median Figure of 198 Publicly-Listed Oil and Gas Companies 0.39x
Canada Market PB Ratio Median Figure of 2,351 Publicly-Listed Companies 1x
TSX:SGQ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:SGQ Share Price ÷ Book Value per Share (both in USD)

= 0.06 ÷ -0.16

-0.38x

* Primary Listing of SouthGobi Resources.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SouthGobi Resources has negative assets, we can't compare the value of its assets to the CA Oil and Gas industry average.
X
Value checks
We assess SouthGobi Resources's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. SouthGobi Resources has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SGQ Future Performance

 How is SouthGobi Resources expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as SouthGobi Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-3.7%
Expected Oil and Gas industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SouthGobi Resources expected to grow at an attractive rate?
  • Unable to compare SouthGobi Resources's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare SouthGobi Resources's earnings growth to the Canada market average as no estimate data is available.
  • Unable to compare SouthGobi Resources's revenue growth to the Canada market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
TSX:SGQ Future Growth Rates Data Sources
Data Point Source Value (per year)
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average -3.7%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 1.1%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:SGQ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:SGQ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 131 37 -4
2019-06-30 129 46 -9
2019-03-31 116 43 -36
2018-12-31 104 40 -41
2018-09-30 112 40 -42
2018-06-30 105 29 -49
2018-03-31 120 29 -31
2017-12-31 121 26 -38
2017-09-30 98 14 -44
2017-06-30 95 13 -43
2017-03-31 71 11 -55
2016-12-31 58 3 -61

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if SouthGobi Resources is high growth as no earnings estimate data is available.
  • Unable to determine if SouthGobi Resources is high growth as no revenue estimate data is available.
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.
Raw Data
TSX:SGQ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from SouthGobi Resources Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SGQ Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 -0.01
2019-06-30 -0.03
2019-03-31 -0.13
2018-12-31 -0.15
2018-09-30 -0.15
2018-06-30 -0.18
2018-03-31 -0.11
2017-12-31 -0.14
2017-09-30 -0.16
2017-06-30 -0.16
2017-03-31 -0.21
2016-12-31 -0.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if SouthGobi Resources will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Take a look at our analysis of SGQ’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  2. SouthGobi Resources's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Energy companies here
  3. SouthGobi Resources's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess SouthGobi Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SouthGobi Resources has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SGQ Past Performance

  How has SouthGobi Resources performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SouthGobi Resources's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SouthGobi Resources does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare SouthGobi Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare SouthGobi Resources's 1-year growth to the CA Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
SouthGobi Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SouthGobi Resources Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SGQ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 131.41 -3.86 9.75
2019-06-30 129.38 -8.69 10.42
2019-03-31 116.18 -35.94 11.53
2018-12-31 103.80 -41.13 10.90
2018-09-30 111.69 -42.20 11.44
2018-06-30 104.77 -49.26 11.18
2018-03-31 120.15 -31.01 9.54
2017-12-31 120.97 -37.59 9.45
2017-09-30 98.26 -43.76 9.89
2017-06-30 95.28 -43.35 9.54
2017-03-31 70.98 -55.06 9.04
2016-12-31 58.45 -60.85 8.31
2016-09-30 42.34 -153.63 7.91
2016-06-30 34.58 -162.44 7.78
2016-03-31 27.17 -178.88 7.84
2015-12-31 16.03 -186.77 7.65
2015-09-30 18.21 -112.14 8.29
2015-06-30 17.20 -118.12 8.93
2015-03-31 20.94 -106.21 9.35
2014-12-31 24.49 -103.68 10.26
2014-09-30 51.90 -206.78 11.58
2014-06-30 59.94 -224.58 13.32
2014-03-31 59.38 -234.55 15.20
2013-12-31 58.64 -237.46 16.80
2013-09-30 27.37 -155.30 19.23
2013-06-30 15.52 -159.78 20.98
2013-03-31 42.31 -124.29 26.33

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if SouthGobi Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • SouthGobi Resources used its assets more efficiently than the CA Oil and Gas industry average last year based on Return on Assets.
  • It is difficult to establish if SouthGobi Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess SouthGobi Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
SouthGobi Resources has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SGQ Health

 How is SouthGobi Resources's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SouthGobi Resources's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SouthGobi Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • SouthGobi Resources's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of SouthGobi Resources's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • SouthGobi Resources has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SouthGobi Resources Company Filings, last reported 5 months ago.

TSX:SGQ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 -43.39 155.88 5.23
2019-06-30 -44.85 149.97 4.14
2019-03-31 -46.10 148.52 8.85
2018-12-31 -48.14 144.04 6.96
2018-09-30 -34.46 139.89 6.29
2018-06-30 -23.24 135.86 0.47
2018-03-31 2.44 130.06 11.27
2017-12-31 7.83 123.56 6.47
2017-09-30 24.03 120.48 2.16
2017-06-30 34.49 119.50 1.13
2017-03-31 40.69 119.69 5.27
2016-12-31 46.01 125.92 0.97
2016-09-30 64.83 127.41 1.07
2016-06-30 77.02 127.00 2.99
2016-03-31 94.77 120.05 0.41
2015-12-31 110.69 117.56 0.38
2015-09-30 218.21 114.03 1.44
2015-06-30 233.45 110.69 0.90
2015-03-31 264.65 105.75 3.65
2014-12-31 284.28 99.13 3.79
2014-09-30 308.84 110.12 4.77
2014-06-30 331.42 105.13 8.79
2014-03-31 353.94 100.57 9.92
2013-12-31 375.06 96.60 21.84
2013-09-30 510.76 104.87 16.07
2013-06-30 550.73 107.91 19.17
2013-03-31 585.30 106.18 24.81
  • SouthGobi Resources has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if SouthGobi Resources's debt level has increased considering it has negative shareholder equity.
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.

  • Whilst loss making SouthGobi Resources has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making SouthGobi Resources has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -52% per year.
X
Financial health checks
We assess SouthGobi Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SouthGobi Resources has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SGQ Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from SouthGobi Resources dividends.
If you bought CA$2,000 of SouthGobi Resources shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate SouthGobi Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate SouthGobi Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:SGQ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Canada Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 8.6%
Canada Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 4.9%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as SouthGobi Resources has not reported any payouts.
  • Unable to verify if SouthGobi Resources's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of SouthGobi Resources's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as SouthGobi Resources has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess SouthGobi Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SouthGobi Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SouthGobi Resources has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SGQ Management

 What is the CEO of SouthGobi Resources's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Shougao Wang
COMPENSATION $454,610
AGE 52
TENURE AS CEO 1.8 years
CEO Bio

Mr. Shougao Wang is Chief Executive Officer and Executive Director of SouthGobi Resources Limited since June 1, 2018 and July 3, 2018. Mr. Wang s a seasoned mining professional, having accumulated over 30 years of project management and operational experience and has worked on a number of mining projects in Mongolia and across the globe. Prior to joining the Company, Mr. Wang was Manager of QHSE (Quality, Health, Safety and Environment) at China Nonferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd. (Shenzhen Stock Exchange: 00758) (“NFC”) from March 2017 until May 2018, during which he was responsible for project quality control, health, environmental protection, and workplace health and safety matters. Mr. Wang held various senior project management positions at different international mining projects operated by NFC and its parent company, China Nonferrous Metal Mining (Group) Co. Ltd. (“CNMC”), including Project Manager of the Chambishi copper mine, a large-scale copper mine in Zambia, and Project Manager and Vice President from 2000 to 2006 and Chief Executive Officer from 2011 to 2017 of Tsairt Mineral LLC, the parent company of the Tumurtiin-Ovoo zinc mine in Mongolia. Mr. Wang is a certified engineer and obtained his bachelor’s degree in civil engineering from Kunming University of Science and Technology in China in 1989 and a master’s degree in business administration from Renmin University in China in 2013.

CEO Compensation
  • Insufficient data for Shougao to compare compensation growth.
  • Shougao's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the SouthGobi Resources management team in years:

2.7
Average Tenure
52
Average Age
  • The tenure for the SouthGobi Resources management team is about average.
Management Team

Shougao Wang

TITLE
CEO & Executive Director
COMPENSATION
$455K
AGE
52
TENURE
1.8 yrs

Weiguo Zhang

TITLE
Chief Financial Officer
COMPENSATION
$287K
AGE
55
TENURE
1.8 yrs

Bing Wang

TITLE
General Manager of Sales & Marketing
COMPENSATION
$479K
AGE
45
TENURE
1.8 yrs

Kino Fu

TITLE
Deputy Chief Financial Officer
COMPENSATION
$301K
TENURE
1.9 yrs

Munkhbat Chuluun

TITLE
President & Executive Director of SouthGobi Sands LLC
COMPENSATION
$233K
TENURE
4.5 yrs

Alan Ho

TITLE
Controller
COMPENSATION
$307K
TENURE
4.5 yrs

Aiming Guo

TITLE
Chief Operating Officer
AGE
50
TENURE
1.8 yrs

Allison Snetsinger

TITLE
Corporate Secretary
TENURE
5.3 yrs

Seaman Kwok

TITLE
Hong Kong Company Secretary
AGE
60
TENURE
3.4 yrs

Zhai Yan

TITLE
Director of Marketing
TENURE
4.4 yrs
Board of Directors Tenure

Average tenure and age of the SouthGobi Resources board of directors in years:

2.4
Average Tenure
47
Average Age
  • The average tenure for the SouthGobi Resources board of directors is less than 3 years, this suggests a new board.
Board of Directors

Shougao Wang

TITLE
CEO & Executive Director
COMPENSATION
$455K
AGE
52
TENURE
1.7 yrs

Munkhbat Chuluun

TITLE
President & Executive Director of SouthGobi Sands LLC
COMPENSATION
$233K
TENURE
5 yrs

Jacqueline Quan

TITLE
Independent Non-Executive Director
COMPENSATION
$126K
AGE
56
TENURE
4.6 yrs

Mao Sun

TITLE
Lead Director
COMPENSATION
$176K
AGE
43
TENURE
3.6 yrs

Ian He

TITLE
Independent Non-Executive Director
COMPENSATION
$140K
AGE
57
TENURE
2.8 yrs

Zhiwei Chen

TITLE
Non-Executive Director
AGE
35
TENURE
1.9 yrs

Xiaoxiao Li

TITLE
Non-Executive Director
AGE
31
TENURE
1.9 yrs

Ben Niu

TITLE
Non-Executive Director
AGE
33
TENURE
0.8 yrs

Benjamin Bao

TITLE
Non-Executive Director
AGE
51
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
26. Sep 19 Buy Ying Bin He Individual 24. Sep 19 24. Sep 19 7,000 CA$0.10 CA$700
X
Management checks
We assess SouthGobi Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SouthGobi Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SGQ News

Simply Wall St News

SouthGobi Resources (TSE:SGQ) Is Using Debt In A Risky Way

TSX:SGQ Historical Debt, July 18th 2019 A Look At SouthGobi Resources's Liabilities Zooming in on the latest balance sheet data, we can see that SouthGobi Resources had liabilities of US$269.6m due within 12 months and liabilities of US$7.33m due beyond that. … So we'd watch its balance sheet closely, without a doubt After all, SouthGobi Resources would likely require a major re-capitalisation if it had to pay its creditors today. … Either way, since SouthGobi Resources does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

Are Earnings Prospects Improving For Loss-Making SouthGobi Resources Ltd's (TSE:SGQ)?

When SouthGobi Resources Ltd (TSX:SGQ) released its most recent earnings update (31 March 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were SouthGobi Resources's average earnings over the past couple of years, and its industry performance. … Check out our latest analysis for SouthGobi Resources Did SGQ beat its long-term earnings growth trend and its industry?

Simply Wall St -

Who Owns SouthGobi Resources Ltd (TSE:SGQ)?

This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. … As a result, potential investors should further explore the company's business relations with these companies and find out if they can affect shareholder returns in the long-term.Next Steps: Institutional ownership in SGQ is not at a level that would concern investors.

Simply Wall St -

Can SouthGobi Resources Ltd (TSE:SGQ) Improve Your Portfolio Returns?

SGQ’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … How SGQ's assets could affect its beta An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive. … I test SGQ’s ratio of fixed assets to total assets in order to determine how high the risk is associated with this type of constraint.

Simply Wall St -

Is SouthGobi Resources Ltd (TSE:SGQ) A Financially Sound Company?

Additionally, SGQ has produced cash from operations of US$2.76M during the same period of time, resulting in an operating cash to total debt ratio of 2.18%, meaning that SGQ’s debt is not appropriately covered by operating cash. … Furthermore, its cash flow coverage of less than a quarter of debt means that operating efficiency could also be an issue. … I admit this is a fairly basic analysis for SGQ's financial health.

Simply Wall St -

Did SouthGobi Resources Ltd's (TSE:SGQ) Recent Earnings Growth Beat The Trend?

In this commentary, I will examine SouthGobi Resources Ltd's (TSX:SGQ) latest earnings update (30 September 2017) and compare these figures against its performance over the past couple of years, as well as how the rest of the oil and gas industry performed. … For the most up-to-date info, I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … For SouthGobi Resources, its latest earnings (trailing twelve month) is -US$43.78M, which, against last year’s figure, has become less negative.

Simply Wall St -

SGQ Company Info

Description

SouthGobi Resources Ltd., together with its subsidiaries, operates as an integrated coal mining, development, and exploration company in Mongolia, Hong Kong, and China. It explores for coking and thermal coal in South Gobi Province of Mongolia to supply a range of coal products in China. The company’s flagship project is the Ovoot Tolgoi open pit coal mine located in the Umnugobi Aimag of Mongolia. In addition, it engages in logistics and trading of coal in Mongolia and China; provision of business services and investment; and provision of storage and warehouse, and customs clearance services, as well as transportation for imported goods. The company was formerly known as SouthGobi Energy Resources Ltd. and changed its name to SouthGobi Resources Ltd. in May 2010. SouthGobi Resources Ltd. was incorporated in 2002 and is based in Mongkok, Hong Kong.

Details
Name: SouthGobi Resources Ltd.
SGQ
Exchange: TSX
Founded: 2002
CA$21,816,226
272,702,835
Website: http://www.southgobi.com
Address: SouthGobi Resources Ltd.
Tower One,
Unit 1208-10,
Mongkok,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX SGQ Common Shares The Toronto Stock Exchange CA CAD 15. Dec 2003
OTCPK SGQR.F Common Shares Pink Sheets LLC US USD 15. Dec 2003
DB HOX Common Shares Deutsche Boerse AG DE EUR 15. Dec 2003
SEHK 1878 Common Shares The Stock Exchange of Hong Kong Ltd. HK HKD 15. Dec 2003
Number of employees
Current staff
Staff numbers
472
SouthGobi Resources employees.
Industry
Coal and Consumable Fuels
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 04:09
End of day share price update: 2020/03/27 00:00
Last earnings filing: 2019/11/13
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.