ASX:PM8

Stock Analysis Report

Executive Summary

Pensana Metals Ltd. explores for and develops mineral properties in Angola.

Risk Analysis

Earnings have declined by -32.51% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Adequate balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Pensana Metals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PM8's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.9%

PM8

3.5%

AU Metals and Mining

2.0%

AU Market


1 Year Return

20.0%

PM8

21.4%

AU Metals and Mining

18.2%

AU Market

Return vs Industry: PM8 underperformed the Australian Metals and Mining industry which returned 21.4% over the past year.

Return vs Market: PM8 matched the Australian Market which returned 18.2% over the past year.


Shareholder returns

PM8IndustryMarket
7 Day2.9%3.5%2.0%
30 Day2.9%2.5%-0.7%
90 Day-7.7%0.7%0.7%
1 Year20.0%20.0%30.3%21.4%24.1%18.2%
3 Year-28.0%-28.0%61.0%38.9%36.0%17.3%
5 Year-55.0%-55.0%117.8%66.3%64.1%27.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pensana Metals undervalued compared to its fair value and its price relative to the market?

1.55x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PM8's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PM8's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PM8 is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: PM8 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 PM8's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PM8 is overvalued based on its PB Ratio (1.5x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

1.5%

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 Pensana Metals 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 Pensana Metals performed over the past 5 years?

-32.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PM8 is currently unprofitable.

Growing Profit Margin: PM8 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PM8 is unprofitable, and losses have increased over the past 5 years at a rate of -32.5% per year.

Accelerating Growth: Unable to compare PM8's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PM8 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (7.8%).


Return on Equity

High ROE: PM8 has a negative Return on Equity (-34.54%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pensana Metals's financial position?


Financial Position Analysis

Short Term Liabilities: PM8's short term assets (A$8.3M) exceed its short term liabilities (A$635.5K).

Long Term Liabilities: PM8 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: PM8 is debt free.

Reducing Debt: PM8 has not had any debt for past 5 years.


Balance Sheet

Inventory Level: PM8 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if PM8's debt is covered by short term assets.


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: PM8 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PM8 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Pensana Metals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.5%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PM8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PM8's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PM8's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PM8'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 PM8'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 Pensana Metals's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Tim George (54yo)

0.7yrs

Tenure

AU$391,114

Compensation

Mr. Timothy George, BSc (Hons), also known as Tim, has been Chief Executive Officer of Pensana Metals Limited since April 22, 2019. Mr. George served as Chief Executive Officer at Xceldiam Limited. Mr. Geo ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD266.54K) is about average for companies of similar size in the Australian market ($USD260.15K).

Compensation vs Earnings: Insufficient data to compare Tim's compensation with company performance.


Management Age and Tenure

2.2yrs

Average Tenure

54yo

Average Age

Experienced Management: PM8's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

66yo

Average Age

Experienced Board: PM8'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.


Recent Insider Transactions

BuyAU$9,83226 Nov 19
Selection Capital Limited
EntityCompany
Shares44,249
Max PriceAU$0.22
BuyAU$4,14421 Nov 19
Selection Capital Limited
EntityCompany
Shares19,537
Max PriceAU$0.21
BuyAU$24,57720 Nov 19
Selection Capital Limited
EntityCompany
Shares121,142
Max PriceAU$0.20
BuyAU$35,11619 Nov 19
Selection Capital Limited
EntityCompany
Shares168,858
Max PriceAU$0.21
BuyAU$29,31408 Aug 19
Neil Thacker MacLachlan
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares133,245.3
Max PriceAU$0.22
BuyAU$64,71013 Jun 19
FIL Limited
EntityCompany
Shares345,000
Max PriceAU$0.19
BuyAU$1,634,95613 Jun 19
FIL Limited
EntityCompany
Shares8,174,918.4
Max PriceAU$0.20
BuyAU$1,220,28918 Mar 19
FIL Limited
EntityCompany
Shares6,101,582.4
Max PriceAU$0.20
SellAU$1,599,97110 Jan 19
RCF Management, LLC
EntityCompany
Shares10,000,002.8
Max PriceAU$0.16

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 49.7%.


Management Team

  • Rowan St. Caren (52yo)

    Consultant

    • Tenure: 0yrs
  • Graeme Clatworthy (54yo)

    GM of Angola & MD of Ozango Minerais SA

    • Tenure: 0yrs
    • Compensation: AU$115.90k
  • Paul Payne (56yo)

    Consultant

    • Tenure: 0yrs
    • Compensation: AU$207.68k
  • Tim George (54yo)

    Chief Executive Officer

    • Tenure: 0.7yrs
    • Compensation: AU$391.11k
  • Scott Mison (43yo)

    Company Secretary & CFO

    • Tenure: 0yrs
    • Compensation: AU$289.64k
  • Dave Hammond (54yo)

    COO & Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$640.20k
  • Geoff Gilmour (55yo)

    Consultant

    • Tenure: 2.3yrs
    • Compensation: AU$83.55k
  • Gosbert Kagaruki (56yo)

    Consultant

    • Tenure: 6.7yrs
  • Barry Bourne

    Consultant

    • Tenure: 0yrs
  • Gavin Beer

    Consultant

    • Tenure: 0yrs

Board Members

  • Neil Thacker MacLachlan (77yo)

    Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: AU$50.00k
  • Paul Atherley (63yo)

    Non-Executive Chairman

    • Tenure: 1.6yrs
    • Compensation: AU$1.58m
  • Dave Hammond (54yo)

    COO & Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$640.20k
  • Mark Hohnen (69yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$50.00k

Company Information

Pensana Metals Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pensana Metals Ltd
  • Ticker: PM8
  • Exchange: ASX
  • Founded: 2006
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$26.005m
  • Shares outstanding: 152.97m
  • Website: https://www.pensanametals.com

Location

  • Pensana Metals Ltd
  • 10 Outram Street
  • Ground Floor
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3T9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2007
PM8ASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2007
PM8CHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2007

Biography

Pensana Metals Ltd. explores for and develops mineral properties in Angola. The company primarily explores for rare earth metals, consisting of neodymium and praseodymium deposits. It holds interest in the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 10:36
End of Day Share Price2019/12/10 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.