ASX:STM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Sunstone Metals Limited engages in the exploration and development of mineral properties.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

28.6%

STM

2.7%

AU Metals and Mining

-1.0%

AU Market


1 Year Return

-75.0%

STM

0.4%

AU Metals and Mining

-11.8%

AU Market

Return vs Industry: STM underperformed the Australian Metals and Mining industry which returned 0.4% over the past year.

Return vs Market: STM underperformed the Australian Market which returned -11.8% over the past year.


Shareholder returns

STMIndustryMarket
7 Day28.6%2.7%-1.0%
30 Day28.6%1.9%-2.9%
90 Day50.0%23.4%12.5%
1 Year-75.0%-75.0%5.7%0.4%-8.2%-11.8%
3 Year-35.7%-35.7%69.9%46.1%16.5%1.1%
5 Year-64.0%-64.0%116.1%72.9%29.7%1.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.41x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: STM is good value based on its PB Ratio (0.4x) compared to the AU Metals and Mining industry average (1.8x).


Next Steps

Future Growth

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

3.2%

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 Sunstone 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 Sunstone Metals performed over the past 5 years?

-55.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STM is currently unprofitable.

Growing Profit Margin: STM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: STM is unprofitable, and losses have increased over the past 5 years at a rate of -55.1% per year.

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

Earnings vs Industry: STM is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-8.4%).


Return on Equity

High ROE: STM has a negative Return on Equity (-68.43%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sunstone Metals's financial position?


Financial Position Analysis

Short Term Liabilities: STM's short term assets (A$2.4M) exceed its short term liabilities (A$512.9K).

Long Term Liabilities: STM's short term assets (A$2.4M) exceed its long term liabilities (A$94.5K).


Debt to Equity History and Analysis

Debt Level: STM is debt free.

Reducing Debt: STM has not had any debt for 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: STM has sufficient cash runway for 3 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: STM is forecast to have sufficient cash runway for 1 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if STM'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 STM's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Malcolm Norris (61yo)

6.25yrs

Tenure

AU$450,816

Compensation

Mr. Malcolm S. Norris, B.Sc (Hons), M.Sc Grad Dip App Fin, MAICD, FAusIMM, A Fin, has been the Chief Executive Officer and Managing Director of Sunstone Metals Ltd. since April 1, 2014. Mr. Norris has more ...


CEO Compensation Analysis

Compensation vs Market: Malcolm's total compensation ($USD313.74K) is about average for companies of similar size in the Australian market ($USD263.40K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Malcolm Norris
MD, CEO & Director6.25yrsAU$450.82k1% A$221.0k
Gavin Leicht
Company Secretary & CFO5.25yrsAU$358.63k0.31% A$69.4k
Ray Robinson
General Manager of Studies & Technical Services5.5yrsAU$400.97k0.30% A$66.7k

5.5yrs

Average Tenure

Experienced Management: STM's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Malcolm Norris
MD, CEO & Director6.25yrsAU$450.82k1% A$221.0k
Graham Ascough
Independent Chairman of the Board6.67yrsAU$94.02k0.88% A$194.2k
Stephen Stroud
Independent Non-Executive Director2.83yrsAU$59.02k0.43% A$96.1k

6.3yrs

Average Tenure

54yo

Average Age

Experienced Board: STM's board of directors are considered experienced (6.3 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 substantially diluted in the past year, with total shares outstanding growing by 81%.


Top Shareholders

Company Information

Sunstone Metals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sunstone Metals Limited
  • Ticker: STM
  • Exchange: ASX
  • Founded: 2006
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$22.100m
  • Shares outstanding: 2.21b
  • Website: https://www.sunstonemetals.com.au

Location

  • Sunstone Metals Limited
  • 9 Gardner Close
  • Milton
  • Queensland
  • 4064
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STMCHIA (Chi-X Australia)NPVAUAUDNo data
STMASX (Australian Securities Exchange)NPVAUAUDNo data
STMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2007
AL9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2007
STMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2007

Biography

Sunstone Metals Limited engages in the exploration and development of mineral properties. It explores for gold and copper deposits. It holds interests in the Bramaderos gold-copper porphyry concession covering 4,949 hectares located in Loja province, Southern Ecuador; the Southern Finland gold project located to the north-west of Helsinki in southern Finland; and the Viscaria copper project located to the north of the Stockholm in the Kiruna region in Sweden. The company was formerly known as Avalon Minerals Limited. Sunstone Metals Limited was incorporated in 2006 and is headquartered in Milton, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 10:36
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
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.