Copper Mountain Mining (CHIA:C6C) - Share price, News & Analysis

Q: What is the Fair Price of C6C when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

C6C (A$2.01) is trading below our estimate of [[fair value]] (A$134.66)

C6C fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	5/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

C6C Stock Overview

Copper Mountain Mining Corporation operates as a mining company in Canada.

Rewards

Trading at 98.5% below our estimate of its fair value

Earnings are forecast to grow 44.27% per year

Risk Analysis

Profit margins (12%) are lower than last year (23%)

Copper Mountain Mining Competitors

Aeris Resources

ASX:AIS

AU$324.1m

Sandfire Resources

ASX:SFR

AU$1.8b

OZ Minerals

ASX:OZL

AU$5.8b

Perenti Global

ASX:PRN

AU$446.1m

Price History & Performance

Summary of all time highs, changes and price drops for Copper Mountain Mining
Historical stock prices
Current Share Price	CA$2.01
52 Week High	CA$4.61
52 Week Low	CA$1.97
Beta	2.75
1 Month Change	-32.78%
3 Month Change	-49.75%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	67.50%

Shareholder Returns

	C6C	AU Metals and Mining	AU Market
7D	-2.4%	-2.0%	-0.5%
1Y	n/a	-15.3%	-12.2%

Return vs Industry: Insufficient data to determine how C6C performed against the Australian Metals and Mining industry.

Return vs Market: Insufficient data to determine how C6C performed against the Australian Market.

Price Volatility

Is C6C's price volatile compared to industry and market?
C6C volatility
C6C Average Weekly Movement	11.8%
Metals and Mining Industry Average Movement	11.6%
Market Average Movement	9.9%
10% most volatile stocks in AU Market	16.6%
10% least volatile stocks in AU Market	4.4%

Stable Share Price: C6C is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: C6C's weekly volatility (12%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2006	n/a	Gil Clausen	https://www.cumtn.com

Copper Mountain Mining Corporation operates as a mining company in Canada. The company explores for copper, gold, and silver deposits. Its flagship asset is the Copper Mountain mine that comprise 138 crown granted mineral claims, 149 located mineral claims, 14 mining leases, and 12 fee simple properties covering an area of 6,702 hectares located to the south of Princeton, British Columbia.

Copper Mountain Mining Fundamentals Summary

How do Copper Mountain Mining's earnings and revenue compare to its market cap?
C6C fundamental statistics
Market Cap	CA$363.02m
Earnings (TTM)	CA$61.14m
Revenue (TTM)	CA$509.85m

5.9x

P/E Ratio

0.7x

P/S Ratio

Is C6C overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
C6C income statement (TTM)
Revenue	CA$509.85m
Cost of Revenue	CA$266.68m
Gross Profit	CA$243.18m
Other Expenses	CA$182.04m
Earnings	CA$61.14m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 25, 2022

Earnings per share (EPS)	0.29
Gross Margin	47.70%
Net Profit Margin	11.99%
Debt/Equity Ratio	61.7%

How did C6C perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is C6C undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for C6C?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for C6C. This is calculated by dividing C6C's market cap by their current preferred multiple.
What is C6C's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CA$363.02m

C6C 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	1.3x
Enterprise Value/EBITDA	2.9x
PEG Ratio	0.1x

Price to Earnings Ratio vs Peers

How does C6C's PE Ratio compare to its peers?

C6C PE Ratio vs Peers

The above table shows the PE ratio for C6C vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.9x
AIS Aeris Resources	11x	42.4%	AU$324.1m
SFR Sandfire Resources	9x	-3.3%	AU$1.8b
OZL OZ Minerals	10.9x	3.9%	AU$5.8b
PRN Perenti Global	12.8x	28.0%	AU$446.1m
C6C Copper Mountain Mining	5.9x	44.3%	AU$363.0m

Forward PE

Price-To-Earnings vs Peers: C6C is good value based on its Price-To-Earnings Ratio (5.9x) compared to the peer average (10.9x).

Price to Earnings Ratio vs Industry

How does C6C's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

Price-To-Earnings vs Industry: C6C is good value based on its Price-To-Earnings Ratio (5.9x) compared to the Australian Metals and Mining industry average (9.2x)

Price to Earnings Ratio vs Fair Ratio

What is C6C's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

C6C PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.9x
Fair PE Ratio	31.8x

Price-To-Earnings vs Fair Ratio: C6C is good value based on its Price-To-Earnings Ratio (5.9x) compared to the estimated Fair Price-To-Earnings Ratio (31.8x).

Share Price vs Fair Value

What is the Fair Price of C6C when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: C6C (A$2.01) is trading below our estimate of fair value (A$134.66)

Significantly Below Fair Value: C6C is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: C6C is good value based on its PEG Ratio (0.1x)

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Future Growth

How is Copper Mountain Mining forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

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

44.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: C6C's forecast earnings growth (44.3% per year) is above the savings rate (1.8%).

Earnings vs Market: C6C's earnings (44.3% per year) are forecast to grow faster than the Australian market (5.7% per year).

High Growth Earnings: C6C's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: C6C's revenue (23.9% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: C6C's revenue (23.9% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if C6C's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Copper Mountain Mining performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

31.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: C6C has high quality earnings.

Growing Profit Margin: C6C's current net profit margins (12%) are lower than last year (23%).

Past Earnings Growth Analysis

Earnings Trend: C6C has become profitable over the past 5 years, growing earnings by 31.9% per year.

Accelerating Growth: C6C's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: C6C had negative earnings growth (-41.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (57.3%).

Return on Equity

High ROE: C6C's Return on Equity (19.3%) is considered low.

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Financial Health

How is Copper Mountain Mining's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: C6C's short term assets (CA$222.1M) exceed its short term liabilities (CA$114.7M).

Long Term Liabilities: C6C's short term assets (CA$222.1M) do not cover its long term liabilities (CA$455.1M).

Debt to Equity History and Analysis

Debt Level: C6C's net debt to equity ratio (31.6%) is considered satisfactory.

Reducing Debt: C6C's debt to equity ratio has reduced from 183.6% to 61.7% over the past 5 years.

Debt Coverage: C6C's debt is well covered by operating cash flow (91.5%).

Interest Coverage: C6C's interest payments on its debt are well covered by EBIT (5.8x coverage).

Balance Sheet

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Dividend

What is Copper Mountain Mining 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
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate C6C's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate C6C'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 C6C's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if C6C'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 C6C has not reported any payouts.

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Management

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

4.1yrs

Average management tenure

CEO

Gil Clausen (65 yo)

4.08yrs

Tenure

CA$2,020,402

Compensation

Mr. Gilmour Clausen, also known as Gil, P. Eng, serves President, Chief Executive Officer and Director at Copper Mountain Mining Corporation since June 01, 2018. Mr. Clausen serves as the President of a di...

CEO Compensation Analysis

Compensation vs Market: Gil's total compensation ($USD1.56M) is above average for companies of similar size in the Australian market ($USD583.14K).

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

Leadership Team

Experienced Management: C6C's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: C6C's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.

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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/02 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31