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Did Changing Sentiment Drive Auriant Mining's (STO:AUR) Share Price Down A Painful 73%?

Simply Wall St

Auriant Mining AB (publ) (STO:AUR) shareholders should be happy to see the share price up 23% in the last quarter. But the last three years have seen a terrible decline. In that time the share price has melted like a snowball in the desert, down 73%. So it sure is nice to see a big of an improvement. The thing to think about is whether the business has really turned around.

See our latest analysis for Auriant Mining

Because Auriant Mining is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last three years, Auriant Mining's revenue dropped 29% per year. That means its revenue trend is very weak compared to other loss making companies. And as you might expect the share price has been weak too, dropping at a rate of 35% per year. We prefer leave it to clowns to try to catch falling knives, like this stock. It's worth remembering that investors call buying a steeply falling share price 'catching a falling knife' because it is a dangerous pass time.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

OM:AUR Income Statement, October 21st 2019

This free interactive report on Auriant Mining's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We're pleased to report that Auriant Mining shareholders have received a total shareholder return of 50% over one year. That certainly beats the loss of about 4.3% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SE exchanges.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.