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Montem Resources

ASX:MR1
Snowflake Description

Mediocre balance sheet with weak fundamentals.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MR1
ASX
A$36M
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

Montem Resources Limited operates as a metallurgical coal mine development company in Canada. The last earnings update was 133 days ago. More info.


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MR1 Share Price and Events
7 Day Returns
0%
ASX:MR1
-3%
AU Metals and Mining
-3.8%
AU Market
1 Year Returns
-
ASX:MR1
3.3%
AU Metals and Mining
-7.2%
AU Market
MR1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Montem Resources (MR1) 0% - - - - -
AU Metals and Mining -3% -8.3% -1.4% 3.3% 82.3% -1.5%
AU Market -3.8% -7.5% -10.5% -7.2% 14.8% -0.3%
1 Year Return vs Industry and Market
  • No trading data on MR1.
  • No trading data on MR1.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Montem Resources undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Montem Resources. This is due to cash flow or dividend data being unavailable. The share price is A$0.5.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Montem Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Montem Resources's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:MR1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2017-12-31) in AUD A$-0.03
ASX:MR1 Share Price ** ASX (2018-12-03) in AUD A$0.5
Australia Metals and Mining Industry PE Ratio Median Figure of 78 Publicly-Listed Metals and Mining Companies 9.78x
Australia Market PE Ratio Median Figure of 557 Publicly-Listed Companies 14.7x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Montem Resources.

ASX:MR1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:MR1 Share Price ÷ EPS (both in AUD)

= 0.5 ÷ -0.03

-19.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Montem Resources is loss making, we can't compare its value to the AU Metals and Mining industry average.
  • Montem Resources is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Montem Resources's expected growth come at a high price?
Raw Data
ASX:MR1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -19.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Australia Metals and Mining Industry PEG Ratio Median Figure of 41 Publicly-Listed Metals and Mining Companies 0.9x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Montem Resources, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Montem Resources's assets?
Raw Data
ASX:MR1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2017-12-31) in AUD A$0.04
ASX:MR1 Share Price * ASX (2018-12-03) in AUD A$0.5
Australia Metals and Mining Industry PB Ratio Median Figure of 575 Publicly-Listed Metals and Mining Companies 1.53x
Australia Market PB Ratio Median Figure of 1,652 Publicly-Listed Companies 1.68x
ASX:MR1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:MR1 Share Price ÷ Book Value per Share (both in AUD)

= 0.5 ÷ 0.04

12.91x

* Primary Listing of Montem Resources.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Montem Resources is overvalued based on assets compared to the AU Metals and Mining industry average.
X
Value checks
We assess Montem Resources's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Montem Resources has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Montem Resources expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 Montem Resources 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.8%
Expected Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Montem Resources expected to grow at an attractive rate?
  • Unable to compare Montem Resources's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Montem Resources's earnings growth to the Australia market average as no estimate data is available.
  • Unable to compare Montem Resources's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:MR1 Future Growth Rates Data Sources
Data Point Source Value (per year)
Australia Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 1.8%
Australia Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 1.1%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.2%
Australia Market Revenue Growth Rate Market Cap Weighted Average 2.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:MR1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (11 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:MR1 Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2017-12-31 -1 -2
2016-12-31 -0 -0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Montem Resources is high growth as no earnings estimate data is available.
  • Unable to determine if Montem Resources is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:MR1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (11 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Montem Resources Company Filings, last reported 11 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MR1 Past Financials Data
Date (Data in AUD Millions) EPS *
2017-12-31 -0.03
2016-12-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Montem Resources will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Montem Resources's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Materials companies here
  2. Montem Resources's competitive advantages and company strategy can generally be found in its financial reports archived here.
  3. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Montem Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Montem Resources has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Montem Resources performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Montem Resources's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Montem Resources does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.
  • Unable to compare Montem Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Montem Resources's 1-year growth to the AU Metals and Mining industry average as it is not currently profitable.
Earnings and Revenue History
Montem Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Montem Resources Company Filings, last reported 11 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MR1 Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2017-12-31 -1.84 1.84
2016-12-31 -0.05 0.05

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Montem Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Montem Resources has efficiently used its assets last year compared to the AU Metals and Mining industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Montem Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Montem Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Montem Resources has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Montem Resources's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Montem Resources's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Montem Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Montem Resources has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Montem Resources's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Montem Resources has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Montem Resources Company Filings, last reported 11 months ago.

ASX:MR1 Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2017-12-31 2.77 0.00 0.42
2016-12-31 1.06 0.00 0.02
  • Montem Resources has no debt.
  • Montem Resources has not taken on any debt in the past 5 years.
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.

  • Information is not available.
  • Unable to confirm if Montem Resources has at least 1 year of cash runway based on growing free cash flows without relevant data.
X
Financial health checks
We assess Montem Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Montem Resources has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Montem Resources dividends.
If you bought A$2,000 of Montem Resources shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Montem Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Montem Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:MR1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Australia Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 35 Stocks 4.7%
Australia Market Average Dividend Yield Market Cap Weighted Average of 420 Stocks 4.8%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.8%
Australia Bottom 25% Dividend Yield 25th Percentile 2.8%
Australia Top 25% Dividend Yield 75th Percentile 6.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Montem Resources has not reported any payouts.
  • Unable to verify if Montem Resources's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Montem Resources's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Montem Resources 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.
X
Income/ dividend checks
We assess Montem Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Montem Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Montem Resources has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Peter Doyle
CEO Bio

Mr. Peter Doyle, BSc. (Geology) MBA, serves as Managing Director & Chief Executive Officer at Montem Resources Limited. Mr. Doyle is responsible for Coal geology - exploration, reserves/resource estimates, due diligence, mining options, Coal market analysis, Coal quality assessment. Mr. Doyle's fields of special competence are Coal Geology, Resource / Reserve Estimates, Market Analysis and Forecasting, Coal Logistics and Due Diligence. Mr. Doyle served as Senior Consultant of Barlow Jonker Pty Ltd. (now Wood Mackenzie) since August 2005. He served as a Vice President of Marketing & Business Development at Atrum Coal NL from June 02, 2014 to September 2017. Mr. Doyle has spent 20 years in the international coal industry specializing in operations, marketing and offtake. He started his career as a Coal Quality Technician at the Australian Coal Industry Research Laboratories. Mr. Doyle spent five years at Wood Mackenzie as a Coal Marketing Specialist, where he served as Head of European Coal stationed in Sydney, London and Beijing. From February 2005 to July 2005, he served as Project Manager, Emu Creek Project of Xstrata Coal Australia, Hunter Valley, Australia and his role involved Devising and implementing the project plan, Evaluating regional synergies, Coordinating sub-contractors and liaising with management teams and Managing the project budget. Mr. Doyle spent three years at Xstrata Coal. From April 2002 to February 2005, He served as Senior Coal Quality and Logistics Analyst of Managing coal quality and logistics for the Hunter Valley mines, where he was responsible for Interface market plan and mine operational issues (geology, mining,processing), Maintain effective product mix to maximize resource profitability and Contract implementation - understanding design and function of domestic and export contracts; customers' requirements; and tendering processes, Customer relations with domestic and export clientele; Understanding of differing forces - corporate, customer. From April 1996 to February 2001, Mr. Doyle served as Senior Consultant of Mining and Exploration Geology Services (MEGS), Hunter Valley, Australia and Senior Mine Geologist (contract) Contract geologist of Liddell Open Cut Colliery for seven years and he was responsible for ensuring product coal quality within daily open-cut mining operations, Preparing detailed geological reports and resource statements, Building geological models and maintaining geological databases and Preparing detailed short term mine plans and schedules. He held Project Geologist roles at various Newcastle and Hunter Valley mines, including: Managing and supervising exploration at the Wyong coal mine project, Managing the exploration program at the Mandalong coal mine project, Supervision of the seismic safety system at the Moonee and West Wallsend Collieries. From November 1994 to December 1995, he served as Process Engineer of Australian Coal Industry Research Laboratories (ACIRL), Hunter Valley, Australia. Mr. Doyle holds Bachelor of Science (Geology) and Master of Business Administration from University of Newcastle, Newcastle, Australia.

CEO Compensation
  • Insufficient data for Peter to compare compensation growth.
  • Insufficient data for Peter to establish whether their remuneration is reasonable compared to companies of similar size in Australia.
Management Team

Peter Doyle

TITLE
MD. CEO & Director

Alan Ahlgren

TITLE
Chief Financial Officer

Bob Bell

TITLE
Chief Commercial Officer
AGE
60

Melanie Leydin

TITLE
Company Secretary
AGE
45
Board of Directors

Rob Yeates

TITLE
Independent Chairman

Peter Doyle

TITLE
MD. CEO & Director

Susan Henderson

TITLE
Independent Non-Executive Director

Will Souter

TITLE
Independent Non-Executive Director

Rob Tindall

TITLE
Non-Executive Director
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
X
Management checks
We assess Montem Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Montem Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Company Info

Map
Description

Montem Resources Limited operates as a metallurgical coal mine development company in Canada. It holds interests in the Chinook properties located in southwestern Alberta, Canada. The company was incorporated in 2017 and is based in South Melbourne, Australia.

Details
Name: Montem Resources Limited
MR1
Exchange: ASX
Founded: 2017
A$35,770,729
71,541,458
Website: http://www.montem-resources.com
Address: Montem Resources Limited
100 Albert Road,
Level 4,
South Melbourne,
Victoria, 3205,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX MR1 Ordinary Shares Australian Securities Exchange AU AUD 30. Nov 2018
Number of employees
Current staff
Staff numbers
0
Montem Resources employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/11 10:37
End of day share price update: 2018/12/03 00:00
Last earnings filing: 2018/07/31
Last earnings reported: 2017/12/31
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.