| Is Golden Dawn Minerals Inc’s (CVE:GOM) Balance Sheet A Threat To Its Future? | |
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Can GOM service its debt comfortably?With a debt-to-equity ratio of 90.24%, GOM can be considered as an above-average leveraged company. This is not uncommon for a small-cap company given that debt tends to be lower-cost and at times, more accessible. Though, since GOM is presently unprofitable, sustainability of its current state of operations becomes a concern. Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns. Next Steps:GOM’s high debt level indicates room for improvement. Furthermore, its cash flow coverage of less than a quarter of debt means that operating efficiency could also be an issue. In addition to this, its lack of liquidity raises questions over current asset management practices for the small-cap. Keep in mind I haven’t considered other factors such as how GOM has been performing in the past. I suggest you continue to research Golden Dawn Minerals to get a better picture of the stock by looking at: To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
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Golden Dawn Minerals Inc.
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EXPLORATION STAGE |
CODE : GOM.V |
ISIN : CA3808956070 |
CUSIP : 380895 10 2 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Golden Dawn is a gold exploration company based in Canada. Golden Dawn holds various exploration projects in Canada. Its main exploration properties are TAM O'SHANTER, CENTRAL CATHARINE, 80 FOOT FALL, LINK-CATHARINE and WILD ROSE BC in Canada. Golden Dawn is listed in Canada and in Germany. Its market capitalisation is CA$ 3.1 millions as of today (US$ 2.4 millions, € 2.1 millions). Its stock quote reached its highest recent level on May 27, 2011 at CA$ 2.85, and its lowest recent point on October 17, 2014 at CA$ 0.01. Golden Dawn has 101 870 000 shares outstanding. |