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Dragon Mining (HK:1712)
:1712
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Dragon Mining (1712) AI Stock Analysis

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HK:1712

Dragon Mining

(1712)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
HK$9.00
▲(7.66% Upside)
Dragon Mining's strong financial performance is the most significant factor, supported by solid revenue and profit growth, low leverage, and excellent cash flow generation. The technical analysis shows positive momentum, while the valuation indicates a reasonable price level. The absence of earnings call data and corporate events means these factors do not influence the score.

Dragon Mining (1712) vs. iShares MSCI Hong Kong ETF (EWH)

Dragon Mining Business Overview & Revenue Model

Company DescriptionDragon 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 MoneyDragon 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
85
Very Positive
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
78
Positive
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
90
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue69.36M72.80M60.49M52.51M50.00M69.25M
Gross Profit30.63M21.20M5.95M7.34M10.28M17.66M
EBITDA30.39M20.29M9.72M4.95M4.22M10.80M
Net Income17.25M12.88M5.19M2.49M292.00K10.19M
Balance Sheet
Total Assets165.63M132.57M108.31M104.88M95.30M85.40M
Cash, Cash Equivalents and Short-Term Investments32.77M42.14M20.89M10.17M7.74M14.35M
Total Debt413.00K407.00K1.30M1.45M2.01M3.36M
Total Liabilities63.06M49.81M39.56M44.28M35.33M31.92M
Stockholders Equity101.50M81.69M67.69M59.53M58.90M53.48M
Cash Flow
Free Cash Flow30.05M20.42M3.64M-2.60M-2.32M9.47M
Operating Cash Flow33.45M24.60M8.67M2.69M8.70M20.77M
Investing Cash Flow-19.87M-6.96M-3.23M-5.29M-10.64M-11.32M
Financing Cash Flow-125.50K-165.00K-172.00K-238.00K1.93M-3.10M

Dragon Mining Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price8.36
Price Trends
50DMA
7.13
Negative
100DMA
5.55
Positive
200DMA
4.02
Positive
Market Momentum
MACD
-0.28
Positive
RSI
42.19
Neutral
STOCH
42.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1712, the sentiment is Neutral. The current price of 8.36 is above the 20-day moving average (MA) of 7.25, above the 50-day MA of 7.13, and above the 200-day MA of 4.02, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 42.19 is Neutral, neither overbought nor oversold. The STOCH value of 42.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1712.

Dragon Mining Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$1.24B8.5627.05%63.46%225.78%
68
Neutral
€11.04B22.630.44%6.76%239.14%
67
Neutral
€20.03B14.9435.84%1.09%70.92%249.45%
64
Neutral
$98.62B38.0915.17%0.18%44.37%125.87%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
59
Neutral
HK$4.74B60.8712.45%94.75%5.75%
47
Neutral
HK$1.25B-1.05%-16.04%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1712
Dragon Mining
6.44
4.88
312.82%
HK:1818
Zhaojin Mining Industry Co
29.48
17.15
139.15%
HK:0340
Tongguan Gold Group Ltd.
2.72
2.24
470.23%
HK:3330
Lingbao Gold Group Company Ltd. Class H
16.45
13.28
419.09%
HK:0621
Taung Gold International Limited
0.69
0.35
102.94%
HK:8299
Grand T G Gold Holdings Ltd
0.53
0.38
253.33%

Dragon Mining Corporate Events

Dragon Mining Limited Announces Key Management Changes
Oct 15, 2025

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
Oct 8, 2025

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
Sep 22, 2025

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
Sep 9, 2025

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
Sep 8, 2025

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.

Dragon Mining Reports Strong Interim Results with Increased Profitability
Aug 20, 2025

Dragon Mining Limited announced its interim results for the six months ending June 30, 2025, showing a significant increase in revenue and profit compared to the same period in 2024. The company’s gross profit rose to AU$26.6 million from AU$3.9 million, and profit after tax increased to AU$12.7 million from AU$2 million, reflecting improved operational performance and market conditions.

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 Limited Sets Terms for Nomination Committee
Aug 20, 2025

Dragon Mining Limited has outlined the terms of reference for its Nomination Committee, emphasizing the importance of independent non-executive directors in its composition. The committee is tasked with reviewing the board’s structure and diversity, identifying qualified board candidates, and making recommendations on appointments and succession planning, thereby supporting the company’s corporate strategy.

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 Projects Significant Profit Increase Amid Rising Gold Prices
Aug 13, 2025

Dragon Mining Limited has announced a significant increase in its expected profit for the period ending June 30, 2025, ranging between AU$11.60 million and AU$13.60 million, compared to AU$1.97 million in the previous year. This improvement is primarily due to higher average gold prices achieved during the reporting period, although the results are based on preliminary unaudited accounts and may differ upon finalization.

Dragon Mining Extends Mineralization at Jokisivu Gold Mine
Aug 12, 2025

Dragon Mining Limited has announced promising results from its recent underground diamond core drilling campaigns at the Jokisivu Gold Mine in Finland. These campaigns have extended mineralization deeper within the mine, revealing high-grade gold intercepts in the Arpola and Basin Zones. The findings are expected to inform future mining studies and enhance the company’s operational capabilities within the region.

Dragon Mining’s Acquisition Offer Lapses Due to Insufficient Shareholder Support
Aug 8, 2025

Dragon Mining Limited has announced the lapse of a conditional voluntary cash offer made by Wah Cheong Development (B.V.I.) Limited, an indirect subsidiary of Allied Group Limited, to acquire all issued shares of Dragon Mining. The offer, which required more than 50% acceptance to become unconditional, received only 0.34% acceptance, leading to its lapse on 8 August 2025. This development indicates a lack of sufficient shareholder support for the acquisition, potentially impacting the company’s market positioning and future strategic decisions.

Dragon Mining to Review Interim Results and Dividend
Aug 8, 2025

Dragon Mining Limited has announced that its board of directors will meet on August 20, 2025, to approve the interim results for the first half of 2025 and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Conditional Cash Offer for Dragon Mining Limited Shares
Aug 1, 2025

A joint announcement was made regarding a conditional voluntary cash offer by Wah Cheong Development (B.V.I.) Limited, a subsidiary of Allied Group Limited, to acquire all issued shares of Dragon Mining Limited. The offer’s current status reveals that none of the conditions have been satisfied or waived, and the Offeror’s voting power in Dragon Mining Limited stands at approximately 29.83%. The offer remains subject to certain conditions, and stakeholders are advised to exercise caution as the offer may not become unconditional.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025