ASX:MCR

Stock Analysis Report

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Executive Summary

Mincor Resources NL engages in the exploration, development, and mining of mineral resources in Australia. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Mincor Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

14.2%

MCR

-0.9%

AU Metals and Mining

-0.3%

AU Market


1 Year Return

62.1%

MCR

13.1%

AU Metals and Mining

-6.9%

AU Market

Return vs Industry: MCR exceeded the Australian Metals and Mining industry which returned 13.1% over the past year.

Return vs Market: MCR exceeded the Australian Market which returned -6.9% over the past year.


Shareholder returns

MCRIndustryMarket
7 Day14.2%-0.9%-0.3%
30 Day16.2%0.5%3.7%
90 Day31.4%-2.1%3.8%
1 Year62.1%62.1%19.0%13.1%-3.5%-6.9%
3 Year258.9%258.9%58.6%36.3%18.1%3.0%
5 Year286.5%286.5%141.4%97.3%44.2%15.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mincor Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MCR (A$1.01) is trading below our estimate of fair value (A$9.89)

Significantly Below Fair Value: MCR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MCR is unprofitable, so we can't compare its PE Ratio to the AU Metals and Mining industry average.

PE vs Market: MCR 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 MCR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MCR is overvalued based on its PB Ratio (6x) compared to the AU Metals and Mining industry average (2.6x).


Next Steps

Future Growth

How is Mincor Resources forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

51.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

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

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

Revenue vs Market: MCR is forecast to have no revenue next year.

High Growth Revenue: MCR is forecast to have no revenue next year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MCR's Return on Equity is forecast to be very high in 3 years time (44.6%).


Next Steps

Past Performance

How has Mincor Resources performed over the past 5 years?

38.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCR is currently unprofitable.

Growing Profit Margin: MCR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MCR is unprofitable, but has reduced losses over the past 5 years at a rate of 38.8% per year.

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

Earnings vs Industry: MCR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (22.2%).


Return on Equity

High ROE: MCR has a negative Return on Equity (-24.65%), as it is currently unprofitable.


Next Steps

Financial Health

How is Mincor Resources's financial position?


Financial Position Analysis

Short Term Liabilities: MCR's short term assets (A$48.2M) exceed its short term liabilities (A$3.4M).

Long Term Liabilities: MCR's short term assets (A$48.2M) exceed its long term liabilities (A$13.1M).


Debt to Equity History and Analysis

Debt Level: MCR is debt free.

Reducing Debt: MCR has not had any debt for past 5 years.


Balance Sheet


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: MCR has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MCR is forecast to have sufficient cash runway for 7 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is Mincor Resources's current dividend yield, its reliability and sustainability?

4.48%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: MCR is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MCR'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?

2.9yrs

Average management tenure


CEO

David Southam (48 yo)

1.67yrs

Tenure

AU$1,016,853

Compensation

Mr. David Clifford Southam, B.comm, CPA, MAICD, has been Managing Director and Director of Mincor Resources NL since February 1, 2019. Mr. Southam served as Executive Director of Western Areas Limited from ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD723.17K) is about average for companies of similar size in the Australian market ($USD693.56K).

Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
David Southam
MD & Director1.67yrsAU$1.02mno data
Chen Sun
Chief Financial Officer3.83yrsAU$440.80k0.0040%
A$ 17.3k
Dean Will
Chief Operating Officer1.25yrsAU$563.08kno data
Robert Hartley
General Manager of Exploration3.25yrsAU$292.30k0%
A$ 0
Shannon Coates
Company Secretary2.92yrsno datano data

2.9yrs

Average Tenure

Experienced Management: MCR's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Southam
MD & Director1.67yrsAU$1.02mno data
Michael Bohm
Independent Non-Executive Director3.75yrsAU$79.39k0.23%
A$ 1.0m
Brett Lambert
Independent Non-Executive Chairman2.67yrsAU$114.98k0.043%
A$ 184.3k
Liza Carpene
Independent Non-Executive Director2.5yrsAU$79.39k0.040%
A$ 171.7k
Peter Bewick
Independent Non-Executive Director0.83yrAU$38.33kno data

2.5yrs

Average Tenure

54yo

Average Age

Experienced Board: MCR's board of directors are not considered experienced ( 2.5 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: MCR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 50.4%.


Top Shareholders

Company Information

Mincor Resources NL's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mincor Resources NL
  • Ticker: MCR
  • Exchange: ASX
  • Founded: 1996
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$433.477m
  • Shares outstanding: 431.32m
  • Website: https://www.mincor.com.au

Number of Employees


Location

  • Mincor Resources NL
  • 9 Havelock Street
  • Ground Floor
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCRZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1997
MV3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1997
MCRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 1997
MCRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 1997

Biography

Mincor Resources NL engages in the exploration, development, and mining of mineral resources in Australia. The company explores for nickel, gold, and copper deposits. Its flagship project is the Cassini Ni ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 10:40
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.