Dragon Mining (1712) AI Stock Analysis

• Market Cap: HK$1.18B
• Dividend Yield: N/A
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.64
• 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): 4.04
• Revenue Forecast (FY): HK$3.47B

• Rating: 66 Neutral
• Price Target: HK$6.50 ▲(2.36% Upside)

Dragon Mining's strong financial performance is the primary driver of its stock score, supported by robust revenue growth, profitability, and cash flow generation. However, bearish technical indicators and the lack of dividend yield weigh down the overall score. The stock appears undervalued, but potential equity dilution and market volatility are risks to consider.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and expansion.

Cash Flow Generation

Robust cash flow generation enhances the company's ability to fund operations and invest in growth opportunities, ensuring financial resilience.

Profit Margin Improvement

Improved profit margins reflect better cost management and operational efficiency, contributing to stronger profitability and competitive positioning.

Negative Factors

Potential Equity Dilution

Potential equity dilution could impact shareholder value and earnings per share, posing a risk to investor returns and market perception.

Volatility in Gold Prices

Fluctuations in gold prices can affect revenue and profitability, posing a risk to financial performance and strategic planning in the volatile gold market.

Absence of Dividend Yield

Lack of dividend yield could deter income-focused investors, potentially limiting the company's appeal and affecting stock demand in the long term.

Dragon Mining Business Overview & Revenue Model

Company Description

Dragon Mining (1712) is a mining company focused on the exploration, development, and production of gold and other precious metals primarily in the Nordic region. The company operates several mining projects and is engaged in various stages of the mining cycle, including resource exploration, extraction, and processing. With a commitment to sustainable practices, Dragon Mining aims to deliver value through the responsible management of its mineral resources.

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: Positive
• Last Price: 6.35
• 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 Positive. The current price of 6.35 is below the 20-day moving average (MA) of 6.51, below the 50-day MA of 7.13, and above the 200-day MA of 4.40, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 51.47 is Neutral, neither overbought nor oversold. The STOCH value of 57.78 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
0340	68 Neutral	€11.04B	22.63	―	0.44%	6.76%	239.14%
1712	66 Neutral	HK$1.18B	8.26	27.05%	―	63.46%	225.78%
3330	66 Neutral	€20.03B	14.94	35.84%	1.74%	70.92%	249.45%
1818	64 Neutral	$100.89B	38.97	15.17%	0.19%	44.37%	125.87%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
8299	59 Neutral	HK$4.74B	60.87	14.71%	―	59.18%	28.00%
0621	47 Neutral	HK$1.23B	―	-0.99%	―	―	-25.51%

Dragon Mining Corporate Events

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.

The most recent analyst rating on (HK:1712) stock is a Buy with a HK$5.50 price target. To see the full list of analyst forecasts on Dragon Mining stock, see the HK:1712 Stock Forecast page.

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.

The most recent analyst rating on (HK:1712) stock is a Buy with a HK$5.50 price target. To see the full list of analyst forecasts on Dragon Mining stock, see the HK:1712 Stock Forecast page.

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.

The most recent analyst rating on (HK:1712) stock is a Buy with a HK$5.50 price target. To see the full list of analyst forecasts on Dragon Mining stock, see the HK:1712 Stock Forecast page.

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.

The most recent analyst rating on (HK:1712) stock is a Buy with a HK$5.50 price target. To see the full list of analyst forecasts on Dragon Mining stock, see the HK:1712 Stock Forecast page.

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.

The most recent analyst rating on (HK:1712) stock is a Buy with a HK$5.50 price target. To see the full list of analyst forecasts on Dragon Mining stock, see the HK:1712 Stock Forecast page.