Ophir Gold Corp. engages in the acquisition and exploration of mineral property assets in the United States. The company explores for precious and base metal deposits. It primarily has an option to acquire a 100% interest in the Breccia Gold property located in Lemhi County, Idaho. The company was formerly known as MinKap Resources Inc. and changed its name to Ophir Gold Corp. in October 2020. Ophir Gold Corp. was incorporated in 2010 and is headquartered in Vancouver, Canada.

Canada

Ophir Gold Corp.

Basic Materials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

OPHR.V reported revenue of CAD 0mn in the last 12 months, down 0% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 1% from FY24 to CAD -0.06.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 66ppts over six months and grown 48ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is slightly negative.

Ophir Gold Corp. reported a return on equity (RoE) of -137.0% in the last 12 months, down from -83.1% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to -134.3% in the last 12 months, a decrease from -81.9% in FY24. 

In the last 12 months, the return on capital employed (RoCE) declined to -137.0%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -17.5 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

OPHR.V has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is relatively stable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors and we point to weak positions in its industry, negligible return on capital. We note an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, OPHR.V is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, OPHR.V is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

From both historical and forecast perspectives, the stock is considerably underpriced compared to similar stocks. 

Ophir Gold Corp.

CA$ 0.05

3

Ophir Gold Corp.

CA$ 0.05

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 0.05

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