Dragon Mining (1712) AI Stock Analysis

• Market Cap: HK$1.24B
• Dividend Yield: N/A
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.63
• Revenue Growth: 63.46%
• EPS Growth: 225.78%
• Country: HK
• Employees: 60
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.40
• Shares Outstanding: 189,715,940
• 10 Day Avg. Volume: 1,218,326
• 30 Day Avg. Volume: 2,242,256
• PEG Ratio: 0.03
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 2.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$7.50 ▲(15.21% Upside)

Dragon Mining's strong financial performance, characterized by robust revenue and profit growth, low leverage, and excellent cash flow generation, is the primary driver of its stock score. The valuation suggests the stock is undervalued, providing potential for price appreciation. However, mixed technical indicators and the absence of a dividend yield slightly temper the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective business strategies, supporting long-term financial stability.

Cash Flow Generation

Robust cash flow enhances the company's ability to fund operations and growth initiatives, ensuring financial resilience.

Profit Margin Improvement

Improved profit margins reflect better cost management and operational efficiency, contributing to sustainable profitability.

Negative Factors

Equity Dilution Risk

Potential equity dilution could impact shareholder value and reduce earnings per share, affecting investor returns.

Volatility in Gold Prices

Fluctuating gold prices can impact revenue and profitability, posing a challenge to financial predictability and planning.

Absence of Dividend Yield

Lack of dividend payments may deter income-focused investors, potentially affecting the stock's attractiveness in the market.

Dragon Mining Business Overview & Revenue Model

Company Description

Dragon Mining Limited, together with its subsidiaries, engages in the exploration, evaluation, and development of gold projects in the Nordic region. The company is involved in mining and processing gold ores in Finland and Sweden. It holds interests in the Jokisivu and Orivesi gold mines located in southern Finland; the Svartliden gold mine located in northern Sweden; the Fäboliden gold project located in northern Sweden; and the Kaapelinkulma gold mine located in southern Finland. The company was incorporated in 1990 and is headquartered in South Perth, Australia.

How the Company Makes Money

Dragon Mining generates revenue primarily through the extraction and sale of gold and other precious metals. The company earns money from its mining operations, which include the production of gold bars and other metal products that are sold in the global markets. Additionally, Dragon Mining may benefit from partnerships and joint ventures that enhance its operational capabilities and expand its market reach. The fluctuating prices of gold and metals are significant factors influencing the company's profitability, along with its efficiency in managing operational costs and maintaining compliance with environmental regulations.

Dragon Mining Financial Statement Overview

Summary

Dragon Mining demonstrates strong financial health with significant revenue and profit growth, low leverage, and excellent cash flow generation. The improvements in profit margins and return on equity highlight operational efficiency and profitability. However, potential equity dilution and volatility in gold prices are risks to monitor.

Income Statement

Dragon Mining has demonstrated strong financial performance with substantial growth in total revenue and net income over the past year. The gross profit margin improved significantly from 9.82% in 2023 to 29.11% in 2024, driven by increased efficiency and cost management. The net profit margin also showed a robust increase from 8.58% to 17.68%, indicating enhanced profitability. The revenue growth rate from 2023 to 2024 was 20.36%, showcasing a positive trajectory. EBIT and EBITDA margins have improved, reflecting better operational performance.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.005 in 2024, indicating low leverage and strong financial health. The return on equity (ROE) increased from 7.67% in 2023 to 15.56% in 2024, highlighting efficient use of equity to generate profits. The equity ratio improved from 62.49% to 62.44%, maintaining a solid level of equity relative to total assets. However, the significant increase in stockholders' equity suggests potential dilution risks.

Cash Flow

Cash flow generation is strong with a notable increase in free cash flow from 2023 to 2024, reflecting efficient capital management. The free cash flow growth rate is 460.3%, indicating substantial improvement. The operating cash flow to net income ratio is 1.91, and the free cash flow to net income ratio is 1.59, both of which demonstrate robust cash conversion and capital efficiency. This strong cash flow position enhances the company's ability to fund operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.36M	72.80M	60.49M	52.51M	50.00M	69.25M
Gross Profit	30.63M	21.20M	5.95M	7.34M	10.28M	17.66M
EBITDA	30.39M	20.29M	9.72M	4.95M	4.22M	10.80M
Net Income	17.25M	12.88M	5.19M	2.49M	292.00K	10.19M
Balance Sheet
Total Assets	165.63M	132.57M	108.31M	104.88M	95.30M	85.40M
Cash, Cash Equivalents and Short-Term Investments	32.77M	42.14M	20.89M	10.17M	7.74M	14.35M
Total Debt	413.00K	407.00K	1.30M	1.45M	2.01M	3.36M
Total Liabilities	63.06M	49.81M	39.56M	44.28M	35.33M	31.92M
Stockholders Equity	101.50M	81.69M	67.69M	59.53M	58.90M	53.48M
Cash Flow
Free Cash Flow	30.05M	20.42M	3.64M	-2.60M	-2.32M	9.47M
Operating Cash Flow	33.45M	24.60M	8.67M	2.69M	8.70M	20.77M
Investing Cash Flow	-19.87M	-6.96M	-3.23M	-5.29M	-10.64M	-11.32M
Financing Cash Flow	-125.50K	-165.00K	-172.00K	-238.00K	1.93M	-3.10M

Dragon Mining Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.51
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1712, the sentiment is Negative. The current price of 6.51 is below the 20-day moving average (MA) of 6.56, below the 50-day MA of 6.86, and above the 200-day MA of 4.77, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 47.33 is Neutral, neither overbought nor oversold. The STOCH value of 34.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1712.

Dragon Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3330	74 Outperform	HK$22.82B	17.02	35.84%	1.51%	70.92%	249.45%
1712	73 Outperform	HK$1.24B	8.66	27.05%	―	63.46%	225.78%
0340	68 Neutral	HK$14.29B	24.80	―	0.44%	6.76%	239.14%
1818	64 Neutral	HK$107.83B	41.65	15.17%	0.18%	44.37%	125.87%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
8299	59 Neutral	HK$4.19B	38.67	14.71%	―	59.18%	28.00%
0621	47 Neutral	HK$1.11B	-49.59	-0.99%	―	―	-25.51%

Dragon Mining Corporate Events

Dragon Mining Announces Relocation of Australian Headquarters

Dragon Mining Limited has announced a change in the address of its registered office, headquarters, and principal place of business in Australia, effective from December 1, 2025. This relocation to a new address in South Perth is a strategic move that may impact its operational logistics and stakeholder interactions, although the company’s contact information remains unchanged.

Dragon Mining Updates Company Information Sheet

Dragon Mining Limited has released an updated company information sheet, emphasizing the directors’ commitment to transparency and accuracy in reporting. The document outlines the latest versions of waivers, shareholders rights, taxation, and constitutional documents, reflecting the company’s ongoing compliance and governance efforts.

Dragon Mining Limited Announces Key Management Changes

Dragon Mining Limited announced the resignation of Mr. Hai-Young Lu as the company secretary and authorized representative, effective October 15, 2025. Mr. Peter Anthony Curry, with extensive experience in business and natural resources, has been appointed as the new joint company secretary and authorized representative. The company also appointed Ms. Lau Tung Ni as the other joint company secretary to assist Mr. Curry, ensuring compliance with the Australian Corporations Act and Hong Kong Stock Exchange listing rules.

Dragon Mining Unveils High-Grade Gold Discoveries at Jokisivu Mine

Dragon Mining Limited has announced promising results from its recent diamond core drilling campaigns at the Jokisivu Gold Mine in southern Finland. The drilling targeted the Arpola Flying Squirrel Zone and the southeast extensions of the Jokisivu host structure, revealing high-grade gold mineralization. These findings could enhance the company’s operational prospects and strengthen its position in the gold mining sector.

Dragon Mining Completes Share Placement, Raises HK$172.8 Million

Dragon Mining Limited has successfully completed the placement of 31,619,322 new shares under a general mandate, raising approximately HK$172.8 million. The proceeds will be used for acquiring a mining contractor business, settling environmental bonds, upgrading facilities in Finland and Sweden, and developing mining operations at Svartliden. This placement has altered the company’s shareholding structure, with the new shares representing 16.67% of the total issued shares post-completion.

Dragon Mining Clarifies Translation Error in Share Placement Announcement

Dragon Mining Limited issued a clarification announcement regarding a translation error in its previous announcement about the proposed placing of new shares. The error involved the total proceeds from the share placement, which should be approximately 177.4 million HKD instead of 117.4 million HKD as initially stated in the Chinese version. The English version of the announcement was accurate, and no other information has changed.

Dragon Mining Announces New Share Placement to Raise HK$177.4 Million

Dragon Mining Limited has announced a new share placement under a general mandate, aiming to raise approximately HK$177.4 million through the issuance of up to 31,619,322 new shares at a price of HK$5.61 each. The proceeds will be used for acquiring a mining contractor business, settling environmental bonds, upgrading processing facilities in Finland and Sweden, and developing mining operations at Svartliden. The placement represents a significant move to enhance the company’s operational capabilities and market positioning.