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
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Arafura Resources. This is due to cash flow or dividend data being
unavailable. The share price is
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
Arafura Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
Arafura Resources is not considered high growth as it is expected to be loss making for the next 1-3 years.
Arafura Resources's revenue is expected to grow significantly at over 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.
Arafura Resources'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.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Arafura Resources's finances.
The net worth of a company is the difference between its assets and liabilities.
Arafura Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Arafura Resources's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Arafura 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
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Arafura Resources has no debt, it does not need to be covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
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.
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.
TENURE AS CEO
Mr. Gavin John Lockyer has been Managing Director and CEO at Arafura Resources Ltd. since July 23, 2013 and has been its Director since July 23, 2013. Mr. Lockyer joined Arafura Resources Limited in 2006 as Chief Financial Officer and Company Secretary after having served as Financial Controller with the Tethyan Copper Company Limited. He previously held several senior finance and treasury positions in global mining companies Newcrest and Newmont following a successful international investment banking career with Bankwest and ANZ in Australia, and Bankers Trust and Deutsche Bank in London. His diverse, global experience has provided management and leadership opportunities in a range of disciplines including; Accounting, Financial & Investment Banking, Major Resource Development & Operations, and Global Bank Treasuries. He graduated with a Bachelor of Business in Accounting and Finance in Western Australia in 1987 and has subsequently become a member of both the Institute of Chartered Accountants and the Finance & Treasury Association of Australia. He holds BBus, ACA, FTA.
Gavin's compensation has increased whilst company is loss making.
Gavin's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Arafura Resources management team is over 5 years, this suggests they are a seasoned and experienced team.
CEO, MD & Director
CFO & Company Secretary
General Manager of Sales
General Manager of Exploration & Development
Joint Company Secretary
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Arafura Resources board of directors is about average.
Board of Directors
CEO, MD & Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Arafura Resources Limited explores and develops mineral properties in Australia. The company explores for rare earth deposits, as well as tungsten, copper, and vanadium deposits. Its principal project is the Nolans project, a rare earths-phosphate-uranium-thorium deposit that supplies neodymium and praseodymium products located in Northern Territory, Australia. The company is also involved in mining and associated infrastructure, and social and environmental feasibility evaluations. Arafura Resources Limited was incorporated in 1997 and is based in Perth, Australia.
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.