Montem Resources (ASX:MR1) - Share price, News & Analysis

MR1 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

MR1 Stock Overview

Montem Resources Limited operates as a steelmaking coal and renewable energy development company in Canada.

Risk Analysis

Earnings have declined by 33.5% per year over past 5 years

Has less than 1 year of cash runway

Makes less than USD$1m in revenue (A$0)

Does not have a meaningful market cap (A$12M)

+ 1 more risk

Montem Resources Competitors

AKORA Resources

ASX:AKO

AU$12.6m

Firebird Metals

ASX:FRB

AU$11.5m

NuCoal Resources

ASX:NCR

AU$8.5m

Kogi Iron

ASX:KFE

AU$8.1m

Price History & Performance

Summary of all time highs, changes and price drops for Montem Resources
Historical stock prices
Current Share Price	AU$0.04
52 Week High	AU$0.11
52 Week Low	AU$0.022
Beta	0
1 Month Change	25.00%
3 Month Change	25.00%
1 Year Change	-2.44%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-84.00%

Shareholder Returns

	MR1	AU Metals and Mining	AU Market
7D	0%	1.3%	0.7%
1Y	-2.4%	-11.3%	-6.5%

Return vs Industry: MR1 exceeded the Australian Metals and Mining industry which returned -11.3% over the past year.

Return vs Market: MR1 exceeded the Australian Market which returned -6.5% over the past year.

Price Volatility

Is MR1's price volatile compared to industry and market?
MR1 volatility
MR1 Average Weekly Movement	12.5%
Metals and Mining Industry Average Movement	12.4%
Market Average Movement	10.6%
10% most volatile stocks in AU Market	17.9%
10% least volatile stocks in AU Market	4.6%

Stable Share Price: MR1 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: MR1's weekly volatility has decreased from 20% to 12% over the past year.

About the Company

Founded	Employees	CEO	Website
2017	n/a	Peter Doyle	https://montem-resources.com

Montem Resources Limited operates as a steelmaking coal and renewable energy development company in Canada. It owns interests in the Tent Mountain mine re-start project; Chinook project; and Greenfield projects comprising Isola, 4-Stack, and Oldman properties, which are located in the Crowsnest Pass area of southwest Alberta and southeast British Columbia. Montem Resources Limited was incorporated in 2017 and is based in South Melbourne, Australia.

Montem Resources Fundamentals Summary

How do Montem Resources's earnings and revenue compare to its market cap?
MR1 fundamental statistics
Market Cap	AU$11.71m
Earnings (TTM)	-AU$14.06m
Revenue (TTM)	n/a

0.0x

P/S Ratio

-0.8x

P/E Ratio

Is MR1 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MR1 income statement (TTM)
Revenue	AU$0
Cost of Revenue	AU$0
Gross Profit	AU$0
Other Expenses	AU$14.06m
Earnings	-AU$14.06m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.048
Gross Margin	0.00%
Net Profit Margin	0.00%
Debt/Equity Ratio	0.2%

How did MR1 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is MR1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MR1?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MR1. This is calculated by dividing MR1's market cap by their current preferred multiple.
What is MR1's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AU$11.71m

MR1 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	-2.1x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does MR1's PB Ratio compare to its peers?

MR1 PB Ratio vs Peers

The above table shows the PB ratio for MR1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	2x
AKO AKORA Resources	1.6x	n/a	AU$12.6m
FRB Firebird Metals	2.5x	n/a	AU$11.5m
NCR NuCoal Resources	2.4x	n/a	AU$8.5m
KFE Kogi Iron	1.5x	n/a	AU$8.1m
MR1 Montem Resources	0.7x	n/a	AU$11.7m

Price-To-Book vs Peers: MR1 is good value based on its Price-To-Book Ratio (0.7x) compared to the peer average (2x).

Price to Earnings Ratio vs Industry

How does MR1's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

Price-To-Book vs Industry: MR1 is good value based on its Price-To-Book Ratio (0.7x) compared to the Australian Metals and Mining industry average (2x)

Price to Book Ratio vs Fair Ratio

What is MR1's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MR1 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	0.7x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate MR1's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of MR1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate MR1's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate MR1's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-8.3%

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 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 SimplyWall St do have past financial data.

Discover growth companies

Take a look at our analysis of MR1’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
Montem Resources competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Montem Resources performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-33.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MR1 is currently unprofitable.

Growing Profit Margin: MR1 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: MR1 is unprofitable, and losses have increased over the past 5 years at a rate of 33.5% per year.

Accelerating Growth: Unable to compare MR1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MR1 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (57.3%).

Return on Equity

High ROE: MR1 has a negative Return on Equity (-78.73%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Montem Resources's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: MR1's short term assets (A$3.9M) exceed its short term liabilities (A$680.0K).

Long Term Liabilities: MR1's short term assets (A$3.9M) exceed its long term liabilities (A$72.0K).

Debt to Equity History and Analysis

Debt Level: MR1 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if MR1's debt to equity ratio has reduced over the 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: MR1 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MR1 has less than a year of cash runway if free cash flow continues to reduce at historical rates of 12.6% each year

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate MR1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MR1'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 MR1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MR1's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MR1 has not reported any payouts.

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Management

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

4.3yrs

Average board tenure

CEO

Peter Doyle

no data

Tenure

AU$445,834

Compensation

Mr. Peter Charles Doyle, BSc. (Geology) MBA, serves as Chief Executive Officer at Montem Resources Limited and has been its Director since December 5, 2017 and its Managing Director since January 2018. Mr....

CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD313.75K) is about average for companies of similar size in the Australian market ($USD285.38K).

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

Board Members

Experienced Board: MR1's board of directors are considered experienced (4.3 years average tenure).

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 been diluted in the past year, with total shares outstanding growing by 25%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/16 00:00
End of Day Share Price	2022/07/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31