Gold Road Resources Limited

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Gold Road Resources Limited (ASX: GOR) is involved in the sale of gold and mineral exploration. The company’s operative segment includes development, production, and exploration.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~22.69% of the total shareholding. Van Eck Associates Corporation and Invesco Advisers, Inc. hold a maximum stake in the company at ~8.79% and ~2.56%, respectively.

1.4 Key Metrics:

During FY21, the company recorded cash cycle days of 41.8 days against the industry median of 55.5 days. In addition, the asset-to-equity ratio for FY21 stood at 1.48x as compared to 1.77x of the industry median. Below captured the trend of current ratio and debt-to-equity ratio. 

Section 2: Business Updates and Financial Highlights

2.1 Business Updates:

2.2 Insights of 2QFY22:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 19, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

Disclaimer

Kalkine New Zealand Limited is authorised to provide general advice only. The information on this website does not take into account any of your investment objectives, financial situation or needs. Before you make a decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement from the product issuer. You should consider the appropriateness of advice taking into account your own objectives, financial situation and needs and seek independent financial advice before making any financial decisions.