ASX:IKW

Stock Analysis Report

Executive Summary

Ikwezi Mining Limited engages in the acquisition, exploration, and development of coal projects in South Africa.

Rewards

PE ratio (15.4x) is below the Australian market (18.9x)

Became profitable this year

Risk Analysis

Shares are highly illiquid

High level of non-cash earnings

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (A$12M)

+ 1 more risk


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

How has Ikwezi Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IKW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

IKW

-0.7%

AU Oil and Gas

0.4%

AU Market


1 Year Return

200.0%

IKW

6.0%

AU Oil and Gas

19.5%

AU Market

Return vs Industry: IKW exceeded the Australian Oil and Gas industry which returned 11% over the past year.

Return vs Market: IKW exceeded the Australian Market which returned 19.6% over the past year.


Shareholder returns

IKWIndustryMarket
7 Day0%-0.7%0.4%
30 Day50.0%1.8%4.0%
90 Day200.0%5.3%4.9%
1 Year200.0%200.0%10.6%6.0%24.9%19.5%
3 Year-20.0%-40.0%14.4%2.3%38.6%19.9%
5 Year-20.0%-40.0%21.3%0.2%60.0%24.0%

Price Volatility Vs. Market

How volatile is Ikwezi Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ikwezi Mining undervalued compared to its fair value and its price relative to the market?

15.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate IKW's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate IKW's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: IKW is poor value based on its PE Ratio (15.4x) compared to the Oil and Gas industry average (11.7x).

PE vs Market: IKW is good value based on its PE Ratio (15.4x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IKW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IKW is good value based on its PB Ratio (0.5x) compared to the AU Oil and Gas industry average (1.4x).


Next Steps

Future Growth

How is Ikwezi Mining forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.4%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ikwezi Mining has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Ikwezi Mining performed over the past 5 years?

53.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IKW has a high level of non-cash earnings.

Growing Profit Margin: IKW became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: IKW has become profitable over the past 5 years, growing earnings by 53.2% per year.

Accelerating Growth: IKW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: IKW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (68.1%).


Return on Equity

High ROE: IKW's Return on Equity (5.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ikwezi Mining's financial position?


Financial Position Analysis

Short Term Liabilities: IKW's short term assets (A$5.3M) exceed its short term liabilities (A$1.2M).

Long Term Liabilities: IKW's short term assets (A$5.3M) exceed its long term liabilities (A$278.5K).


Debt to Equity History and Analysis

Debt Level: IKW is debt free.

Reducing Debt: IKW has no debt compared to 5 years ago when its debt to equity ratio was 0.4%.

Debt Coverage: IKW has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: IKW has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: IKW has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if IKW's debt is covered by short term assets.


Next Steps

Dividend

What is Ikwezi Mining's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate IKW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IKW's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IKW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IKW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IKW's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Ikwezi Mining's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average board tenure


CEO

Ikwezi Mining has no CEO, or we have no data on them.


Board Age and Tenure

5.1yrs

Average Tenure

Experienced Board: IKW's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 300%.


Management Team

  • David Pile

    Executive Chairman

    • Tenure: 5.6yrs
  • Alex Neuling

    Company Secretary

    • Tenure: 8.6yrs
    • Compensation: AU$1.35k
  • Ranaldo Anthony

    Executive Director

    • Tenure: 8.6yrs
  • Alok Joshi

    Executive Director

    • Tenure: 4.7yrs
  • Tushar Agrawal

    Executive Director

    • Tenure: 4.7yrs

Board Members

  • David Pile

    Executive Chairman

    • Tenure: 5.6yrs
  • Ranaldo Anthony

    Executive Director

    • Tenure: 8.6yrs
  • Alok Joshi

    Executive Director

    • Tenure: 4.7yrs
  • Tushar Agrawal

    Executive Director

    • Tenure: 4.7yrs

Company Information

Ikwezi Mining Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ikwezi Mining Limited
  • Ticker: IKW
  • Exchange: ASX
  • Founded: 2011
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$12.195m
  • Shares outstanding: 4.07b
  • Website: https://www.ikwezimining.com

Location

  • Ikwezi Mining Limited
  • Building 5
  • Thornhill Office Park
  • Johannesburg
  • Gauteng
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IKWASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2011
IKWCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2011

Biography

Ikwezi Mining Limited engages in the acquisition, exploration, and development of coal projects in South Africa. The company holds a 70% interest in the Newcastle project covering an area of 12,182 hectares located in KwaZulu Natal Province. It also holds a 60% interest in the Acorn project comprising 20,758 hectares situated in Gauteng Province; and a 60% interest in the Assegai project covering an area of 3,998 hectares located in Mpumalanga Province. The company was incorporated in 2011 and is based in Johannesburg, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/27 10:34
End of Day Share Price2020/01/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.