ASX:MCM

Stock Analysis Report

Executive Summary

MC Mining Limited, together with its subsidiaries, engages in the acquisition, exploration, development, and operation of metallurgical and thermal coal projects in South Africa.


Snowflake Analysis

High growth potential and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MCM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

MCM

-5.5%

AU Oil and Gas

-3.6%

AU Market


1 Year Return

-52.6%

MCM

-14.1%

AU Oil and Gas

10.9%

AU Market

Return vs Industry: MCM underperformed the Australian Oil and Gas industry which returned -14.1% over the past year.

Return vs Market: MCM underperformed the Australian Market which returned 10.9% over the past year.


Shareholder returns

MCMIndustryMarket
7 Day-1.1%-5.5%-3.6%
30 Day-3.2%-13.5%-3.7%
90 Day-1.1%-12.2%-0.2%
1 Year-52.6%-52.6%-10.8%-14.1%15.6%10.9%
3 Year-55.9%-55.9%9.0%-2.8%34.1%16.0%
5 Year-19.6%-19.6%-0.8%-17.5%44.9%12.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.32x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: MCM is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: MCM is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MCM is good value based on its PB Ratio (0.3x) compared to the AU Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is MC Mining forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

112.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

Earnings vs Market: MCM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MCM's is expected to become profitable in the next 3 years.

Revenue vs Market: MCM's revenue (52.2% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: MCM's revenue (52.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MCM's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has MC Mining performed over the past 5 years?

-14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCM is currently unprofitable.

Growing Profit Margin: MCM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MCM is unprofitable, and losses have increased over the past 5 years at a rate of -14.7% per year.

Accelerating Growth: Unable to compare MCM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MCM is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-0.7%).


Return on Equity

High ROE: MCM has a negative Return on Equity (-25.52%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MC Mining's financial position?


Financial Position Analysis

Short Term Liabilities: MCM's short term assets ($14.0M) do not cover its short term liabilities ($25.1M).

Long Term Liabilities: MCM's short term assets ($14.0M) do not cover its long term liabilities ($16.6M).


Debt to Equity History and Analysis

Debt Level: MCM's debt to equity ratio (13.9%) is considered satisfactory.

Reducing Debt: MCM's debt to equity ratio has increased from 12.8% to 13.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: MCM's debt is not covered by short term assets (assets are 0.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MCM has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MCM has less than a year of cash runway if free cash flow continues to grow at historical rates of 50.1% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.5%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate MCM'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 MCM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MCM'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 MCM's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.08yrs

Average management tenure


CEO

Brenda Berlin (55yo)

0.08yrs

Tenure

US$484,722

Compensation

Ms. Brenda Berlin, BCom (Wits), BAcc (Wits), CA (SA), has been Acting CEO of MC Mining Limited since January 31, 2020. Ms. Berlin has been Chief Financial Officer of MC Mining Ltd. since March 1, 2018 and  ...


CEO Compensation Analysis

Compensation vs Market: Brenda's total compensation ($USD320.05K) is about average for companies of similar size in the Australian market ($USD250.90K).

Compensation vs Earnings: Brenda's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brenda Berlin
Acting CEO0.08yrsUS$484.72kno data
David Brown
Executive Officer0.08yrsUS$929.60k0.029% $18.6k
P. Dillon
Chief Operating Officer of Nimag (Proprietary) Limited0yrsno datano data
Anthony Bevan
Company Secretary7.2yrsno datano data
Willem Hattingh
Commercial Director0yrsUS$294.58kno data

0.08yrs

Average Tenure

55yo

Average Age

Experienced Management: MCM's management team is not considered experienced ( 0.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Brenda Berlin
Acting CEO0.08yrsUS$484.72kno data
Bernard Pryor
Independent Non-executive Chairman6yrsUS$71.19k0.0053% $3.4k
Khomotso Mosehla
Independent Non-Executive Director9.3yrsUS$45.29kno data
Sebastiano Randazzo
Independent Non-Executive Director0.9yrsUS$16.89kno data
Andrew Mifflin
Independent Non-Executive Director5.2yrsUS$44.95kno data
Shangren Ding
Non-Executive Director3.3yrsno datano data
An Chee Sin
Non-Executive Director1.8yrsno datano data
He Zhen
Non-Executive Director1.8yrsno datano data

2.6yrs

Average Tenure

57.5yo

Average Age

Experienced Board: MCM's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: MC Mining Limited
  • Ticker: MCM
  • Exchange: ASX
  • Founded:
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: AU$63.490m
  • Shares outstanding: 141.09m
  • Website: https://www.mcmining.co.za

Location

  • MC Mining Limited
  • 7 The Esplanade
  • Suite 8
  • Mount Pleasant
  • Western Australia
  • 6153
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCMASX (Australian Securities Exchange)NPVAUAUDNo data
MCMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
MCMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992
MCZJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1992
G1VDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
MCMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

MC Mining Limited, together with its subsidiaries, engages in the acquisition, exploration, development, and operation of metallurgical and thermal coal projects in South Africa. The company’s principal projects include the Makhado hard coking and thermal coal project located to the southwest of Musina; and the Vele Colliery semi-soft coking and thermal coal mine located to the west of Musina in the Limpopo province. Its principal projects also include three exploration and development stage coking and thermal coal projects, including Chapudi, Generaal, and Mopane in the Soutpansberg Coalfield, as well as the Uitkomst Colliery, an operating metallurgical coal mine situated in the KwaZulu Natal province, South Africa. The company was formerly known as Coal of Africa Limited and changed its name to MC Mining Limited in November 2017. MC Mining Limited is based in Mount Pleasant, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 10:33
End of Day Share Price2020/02/25 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.