White Gold Corp. engages in the acquisition, exploration, and development of mineral properties in Canada. Its flagship project is the Golden Saddle and Arc deposits in the White Gold property located in Dawson City, Yukon. It owns a portfolio of 17,584 quartz claims across 30 properties covering approximately 3,49,824 hectares located in the Yukon's White Gold District in Canada. The company was formerly known as G4G Capital Corp. and changed its name to White Gold Corp. in December 2016. White Gold Corp. was incorporated in 1987 and is headquartered in Toronto, Canada.

Canada

White 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. 

WGO.V reported revenue of CAD 0mn in the last 12 months, down 0% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 1% from FY23 to CAD -0.01. Market expects EPS to reach CAD -0.02 in FY25.

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). The stock has outperformed this peer group by 10ppts over past six months and grown 35ppts faster 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 'fair'.

In the last 12 months, the return on capital employed (RoCE) declined to -1.9%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to -1.9% in the last 12 months, a decrease from -1.7% in FY23. The market analysts predict that RoA will be -1.6% in FY24, again weaker than its peers. 

White Gold Corp. reported a return on equity (RoE) of -2.1% in the last 12 months, down from -1.9% in FY23. The market consensus projects an RoE of -1.8% in FY24, again behind its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.2 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.

WGO.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 very unstable 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, we point to weak positions in its industry, negligible return on capital, and inadequate interest coverage. We note an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, WGO.V is moderately volatile. In other words, the stock will fall more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be moderate. 

In normal market circumstances, WGO.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 large to immense. 

Considering past and projected metrics, the stock is distinctly 'cheaper' than its peers. 

White Gold Corp.

CA$ 0.31

3

White Gold Corp.

CA$ 0.31

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 0.31

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