Dragon Mining (1712) AI Stock Analysis

• Market Cap: HK$548.60M
• Dividend Yield: N/A
• Average Volume (3M): 2.93M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.32
• Revenue Growth: 18.94%
• EPS Growth: 150.27%
• Country: HK
• Employees: 60
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Gold
• EPS (TTM): 0.35
• Shares Outstanding: 158,096,620
• 10 Day Avg. Volume: 2,049,490
• 30 Day Avg. Volume: 2,933,567
• PEG Ratio: 0.01
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.48
• 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

• Rating: 73 Outperform
• Price Target: HK$4.00 ▲(15.27%Upside)

Dragon Mining's strong financial performance, characterized by impressive revenue and profit growth, is a significant strength. However, the mixed technical indicators and low valuation P/E ratio suggest cautious optimism. The lack of dividend and absence of earnings call data limit further positive sentiment.

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 makes money primarily through the extraction and sale of gold from its mining operations. The company's revenue model is centered around the production of gold bullion, which is then sold to various buyers in the global market. Key revenue streams include the sale of gold and by-products extracted during the mining process. Additionally, Dragon Mining may engage in strategic partnerships or joint ventures with other mining companies to enhance its exploration and production capabilities. The company's earnings are significantly influenced by global gold prices, operational efficiency, and the successful development of its exploration projects.

Dragon Mining Financial Statement Overview

Summary

Dragon Mining exhibits strong financial health with substantial revenue and profit growth, low leverage, and excellent cash flow generation. Profit margins and return on equity have improved significantly, indicating operational efficiency and profitability. However, potential equity dilution remains a risk.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.80M	60.49M	52.51M	50.00M	69.25M
Gross Profit	21.20M	5.95M	7.34M	8.25M	17.66M
EBITDA	20.29M	9.72M	4.95M	4.22M	10.80M
Net Income	12.88M	5.19M	2.49M	292.00K	10.19M
Balance Sheet
Total Assets	132.57M	108.31M	104.88M	95.30M	85.40M
Cash, Cash Equivalents and Short-Term Investments	42.14M	23.57M	10.17M	7.74M	14.35M
Total Debt	407.00K	1.30M	1.45M	2.01M	3.36M
Total Liabilities	49.81M	39.56M	44.28M	35.33M	31.92M
Stockholders Equity	81.69M	67.69M	59.53M	59.97M	53.48M
Cash Flow
Free Cash Flow	20.42M	3.64M	-2.60M	-2.32M	9.47M
Operating Cash Flow	24.60M	8.67M	2.69M	8.70M	20.77M
Investing Cash Flow	-6.96M	-3.23M	-5.29M	-10.64M	-11.32M
Financing Cash Flow	-165.00K	-172.00K	-238.00K	1.93M	-3.10M

Dragon Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 3.47 is below the 20-day moving average (MA) of 4.17, below the 50-day MA of 3.49, and above the 200-day MA of 2.12, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 31.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1712.

Dragon Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1712	73 Outperform	HK$548.60M	8.75	17.34%	―	18.94%	150.27%
Sector *	62 Neutral	$10.11B	9.76	-0.15%	2.94%	2.14%	-32.15%
ZHAOF		$9.21B	42.00	11.20%	0.27%	―	―
INU1			―		―	―	―
LI9		€1.43B	15.50	22.79%	6.66%	―	―
8299	66 Neutral	HK$2.23B	34.78	12.45%	―	957.74%	194.12%
0621	47 Neutral	HK$1.03B	―	-1.05%	―	―	64.29%

Dragon Mining Corporate Events

Dragon Mining Releases Response Document for Conditional Cash Offer

Dragon Mining Limited has announced the despatch of a Response Document to its shareholders regarding a conditional voluntary cash offer made by Morton Securities on behalf of Wah Cheong Development (B.V.I.) Limited. This document includes recommendations and opinions from the DML Board, Independent Board Committee, and Financial Adviser, advising shareholders to carefully consider the offer’s fairness and reasonableness before making a decision.

Dragon Mining Delays Response Document, Extends Offer Timetable

Dragon Mining Limited has announced a delay in the dispatch of its response document related to an ongoing offer, extending the deadline to June 23, 2025. This extension, approved by relevant authorities, impacts the expected timetable of the offer, with the first closing date now set for August 8, 2025, allowing stakeholders more time to consider the proposal.

Dragon Mining Updates Mineral Resource and Ore Reserve Estimates

Dragon Mining Limited has announced a comprehensive review of its Mineral Resource and Ore Reserve estimates for projects in Finland and Sweden, conducted by independent consultants. The updated estimates, reported in compliance with the JORC Code, are intended for inclusion in an Independent Technical Expert Report, potentially enhancing the company’s operational transparency and investor confidence.

Dragon Mining Faces Acquisition Offer Amidst Strategic Developments

Dragon Mining Limited has announced the dispatch of an offer document related to a conditional voluntary cash offer by Morton Securities Limited on behalf of Wah Cheong Development, a subsidiary of Allied Group Limited, to acquire all issued shares of Dragon Mining. This move marks a significant development in the company’s strategic operations, although Allied Properties Resources Limited has withdrawn its offer, terminating a potential major transaction for APAC Resources Limited. This announcement could impact Dragon Mining’s market positioning and stakeholder interests as it navigates these corporate maneuvers.

Dragon Mining Limited Secures Shareholder Approval for Key Resolutions at AGM

Dragon Mining Limited successfully passed all proposed resolutions during its Annual General Meeting held on May 22, 2025. Key resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting mandates for issuing and buying back shares. These decisions indicate strong shareholder support and provide the company with flexibility in managing its capital structure, potentially impacting its market positioning and operational strategies positively.

Dragon Mining Receives Conditional Cash Offer from Allied Group Subsidiary

Dragon Mining Limited is the subject of a conditional voluntary cash offer by Wah Cheong Development, a subsidiary of Allied Group Limited, to acquire all issued shares of the company. The offer, priced at HK$2.60 per share, aims to acquire a maximum of 111,218,886 shares, with a total cash requirement of approximately HK$289 million. The offer is conditional on obtaining necessary regulatory approvals and is backed by financial resources from Allied Group Limited.

Dragon Mining Announces Trading Halt Pending Inside Information Release

Dragon Mining Limited has announced a trading halt on its shares, effective from May 6, 2025. This halt is pending the release of an announcement related to inside information and in accordance with The Hong Kong Code on Takeovers and Mergers, indicating potential significant developments that could impact the company’s operations and market position.

Dragon Mining Appoints Independent Financial Adviser for Offer Evaluation

Dragon Mining Limited has appointed Altus Capital Limited as the independent financial adviser to evaluate an offer made in accordance with the Takeovers Code and Australian takeovers laws. This appointment is aimed at ensuring the offer’s fairness and reasonableness, with the advice to be included in a forthcoming response document for shareholders. Stakeholders are advised to exercise caution when dealing with shares, and consult professionals if needed.

Dragon Mining Limited Announces 2025 Annual General Meeting

Dragon Mining Limited has announced its Annual General Meeting to be held on May 22, 2025, in Hong Kong. The meeting’s agenda includes adopting the company’s financial statements for 2024, re-electing directors, re-appointing auditors, and considering resolutions to authorize the issuance of additional shares. This meeting is significant for stakeholders as it addresses key governance and financial decisions that could impact the company’s strategic direction and shareholder value.