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.

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

0%

MGU

1.1%

AU Metals and Mining

1.3%

AU Market


1 Year Return

22.2%

MGU

10.7%

AU Metals and Mining

9.9%

AU Market

Return vs Industry: MGU exceeded the Australian Metals and Mining industry which returned 10.7% over the past year.

Return vs Market: MGU exceeded the Australian Market which returned 9.9% over the past year.


Share holder returns

MGUIndustryMarket
7 Day0%1.1%1.3%
30 Day-15.4%-2.7%-0.7%
90 Day-12.7%-7.7%-0.4%
1 Year22.2%22.2%18.4%10.7%16.3%9.9%
3 Year37.5%37.5%66.1%46.1%35.8%17.6%
5 Year161.9%161.9%60.6%24.2%51.9%17.8%

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?

27.35x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: Insufficient data to calculate MGU's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate MGU's fair value to establish if it is undervalued.


Price Based on Earnings

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

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


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: MGU is overvalued based on its PB Ratio (27.3x) compared to the AU Metals and Mining industry average (1.6x).


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?

2.4%

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?

-22.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MGU is unprofitable, and losses have increased over the past 5 years at a rate of -22% per year.

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

Earnings vs Industry: MGU is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (1.3%).


Return on Equity

High ROE: MGU has a negative Return on Equity (-516.86%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: MGU is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: MGU is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Magnum Mining and Exploration's financial position?


Financial Position Analysis

Short Term Liabilities: MGU's short term assets (A$434.7K) do not cover its short term liabilities (A$2.4M)

Long Term Liabilities: MGU has no long term liabilities


Debt to Equity History and Analysis

Debt Level: MGU's debt to equity ratio (311.3%) is considered high

Reducing Debt: MGU's debt to equity ratio has increased from 0.01% to 311.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: MGU's debt is not covered by short term assets (assets are 0.3x 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: MGU has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MGU has less than a year of cash runway if free cash flow continues to reduce at historical rates of -31.8% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.6%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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

Growing Dividend: Insufficient data to determine if MGU'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 MGU'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 Magnum Mining and Exploration's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average board tenure


CEO

Grant Button (57yo)

12.3yrs

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

Compensation vs. Market: Grant's total compensation ($USD84.56K) is about average for companies of similar size in the Australian market ($USD257.37K).

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


Board Age and Tenure

2.0yrs

Average Tenure

Experienced Board: MGU's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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


Management Team

  • Grant Button (57yo)

    CEO, Company Secretary & Director

    • Tenure: 12.3yrs
    • Compensation: AU$124.20k
  • Steve Konecny

    Senior Geological Consultant

    • Tenure: 0yrs
  • Jacqueline Barry

    Joint Company Secretary

    • Tenure: 4.5yrs

Board Members

  • Howard Dawson

    Non-Executive Chairman of the Board

    • Tenure: 2yrs
    • Compensation: AU$76.24k
  • Grant Button (57yo)

    CEO, Company Secretary & Director

    • Tenure: 12.3yrs
    • Compensation: AU$124.20k
  • Frank Cannavo

    Non-Executive Director

    • Tenure: 1.2yrs
    • 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$16.741m
  • Shares outstanding: 304.38m
  • 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 Analysis2019/10/14 10:31
End of Day Share Price2019/10/03 00:00
Earnings2019/06/30
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.

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