ASX:MGU

Stock Analysis Report

Magnum Mining and Exploration

Executive Summary

Magnum Mining and Exploration Limited explores for mineral properties.

Snowflake

Fundamentals

Worrying balance sheet with weak fundamentals.

Risks

  • Magnum Mining and Exploration has significant price volatility in the past 3 months.
  • Magnum Mining and Exploration is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

11.3%

ASX:MGU

-5.3%

AU Metals and Mining

-1.7%

AU Market


1 Year Return

60.5%

ASX:MGU

11.4%

AU Metals and Mining

1.5%

AU Market

MGU outperformed the Metals and Mining industry which returned 12.9% over the past year.

MGU outperformed the Market in Australia which returned 2.1% over the past year.


Share holder returns

MGUIndustryMarket
7 Day11.3%-5.3%-1.7%
30 Day7.8%-11.8%-3.2%
90 Day-2.8%-1.9%-0.1%
1 Year60.5%60.5%19.1%11.4%7.3%1.5%
3 Year72.5%72.5%63.9%46.1%30.7%13.8%
5 Year187.5%187.5%38.6%8.0%37.6%7.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Magnum Mining and Exploration undervalued based on future cash flows and its price relative to the stock market?

11.06x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Magnum Mining and Exploration to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Magnum Mining and Exploration to establish if it is available at substantial discount.


Price Based on Earnings

Magnum Mining and Exploration is loss making, we can't compare its value to the AU Metals and Mining industry average.

Magnum Mining and Exploration is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Magnum Mining and Exploration, we can't assess if its growth is good value.


Price Based on Value of Assets

Magnum Mining and Exploration is overvalued based on assets compared to the AU Metals and Mining industry average.


Next Steps

Future Growth

How is Magnum Mining and Exploration expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

4.9%

Forecasted Materials 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 Magnum Mining and Exploration 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 Magnum Mining and Exploration performed over the past 5 years?

-15.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Magnum Mining and Exploration does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Magnum Mining and Exploration's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Magnum Mining and Exploration's 1-year growth to the AU Metals and Mining industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Magnum Mining and Exploration has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Magnum Mining and Exploration has efficiently used its assets last year compared to the AU Metals and Mining industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Magnum Mining and Exploration improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Magnum Mining and Exploration's financial position?


Financial Position Analysis

Magnum Mining and Exploration's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Magnum Mining and Exploration has no long term commitments.


Debt to Equity History and Analysis

Magnum Mining and Exploration's level of debt (49%) compared to net worth is high (greater than 40%).

Unable to establish if Magnum Mining and Exploration's debt level has increased without past 5-year debt data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x 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.

Magnum Mining and Exploration has less than a year of cash runway based on current free cash flow.

Magnum Mining and Exploration has less than a year of cash runway if free cash flow continues to grow at historical rates of 11.2% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Magnum Mining and Exploration's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Magnum Mining and Exploration's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Magnum Mining and Exploration has not reported any payouts.

Unable to verify if Magnum Mining and Exploration's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Magnum Mining and Exploration has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

1.8yrs

Average board tenure


CEO

Grant Button (57yo)

12.1yrs

Tenure

AU$124,196

Compensation

Mr. Grant Michael Button, B.Bus.(Acc), CPA has been the Chief Executive Officer of Magnum Mining and Exploration Ltd since July 16, 2007 and has been its Company Secretary since January 16, 2009. Mr. Butto ...


CEO Compensation Analysis

Grant's remuneration is lower than average for companies of similar size in Australia.

Grant's compensation has increased whilst company is loss making.


Board Age and Tenure

1.8yrs

Average Tenure

The average tenure for the Magnum Mining and Exploration board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Grant Button (57yo)

    CEO, Company Secretary & Director

    • Tenure: 12.1yrs
    • Compensation: AU$124.20k
  • Steve Konecny

    Senior Geological Consultant

    • Tenure: 0.0yrs
  • Jacqueline Barry

    Joint Company Secretary

    • Tenure: 4.3yrs

Board Members

  • Howard Dawson

    Non-Executive Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: AU$76.24k
  • Grant Button (57yo)

    CEO, Company Secretary & Director

    • Tenure: 12.1yrs
    • Compensation: AU$124.20k
  • Frank Cannavo

    Non-Executive Director

    • Tenure: 1.0yrs
    • Compensation: AU$16.67k

Company Information

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


Key Information

  • Name: Magnum Mining and Exploration Limited
  • Ticker: MGU
  • Exchange: ASX
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$17.334m
  • Shares outstanding: 279.58m
  • Website: https://www.mmel.com.au

Location

  • Magnum Mining and Exploration Limited
  • Churchill Court
  • Suite 2
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
MGUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Magnum Mining and Exploration Limited explores for mineral properties. The company owns a 74% interest in the Gravelotte emerald project located close to the town of Gravelotte in the Limpopo province of S ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 10:32
End of Day Share Price2019/08/21 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.