New Risk • Jun 04
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 48% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (24% average weekly change). High level of non-cash earnings (611% accrual ratio). Market cap is less than US$10m (CA$5.48m market cap, or US$3.95m). Minor Risks Paying a dividend despite having no free cash flows. Significant insider selling over the past 3 months (CA$98k sold). Revenue is less than US$5m (CA$5.4m revenue, or US$3.9m). Announcement • May 06
McChip Resources Inc., Annual General Meeting, Jun 30, 2026 McChip Resources Inc., Annual General Meeting, Jun 30, 2026. New Risk • Apr 22
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Canadian stocks, typically moving 21% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (21% average weekly change). High level of non-cash earnings (215% accrual ratio). Minor Risks Significant insider selling over the past 3 months (CA$69k sold). Revenue is less than US$5m (CA$6.3m revenue, or US$4.6m). Market cap is less than US$100m (CA$14.0m market cap, or US$10.2m). New Risk • Apr 16
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: CA$69k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (215% accrual ratio). Market cap is less than US$10m (CA$12.2m market cap, or US$8.87m). Minor Risks Significant insider selling over the past 3 months (CA$69k sold). Revenue is less than US$5m (CA$6.3m revenue, or US$4.6m). Upcoming Dividend • Apr 16
Upcoming dividend of CA$1.10 per share Eligible shareholders must have bought the stock before 22 April 2026. Payment date: 21 April 2026. The company last paid an ordinary dividend in April 2015. The average dividend yield among industry peers is 3.6%. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to CA$2.16, the stock trades at a trailing P/E ratio of 3.3x. Average trailing P/E is 19x in the Oil and Gas industry in Canada. Total returns to shareholders of 243% over the past year. Announcement • Apr 07
McChip Resources Inc. Declares Special One-Time Cash Distribution, Payable on April 21, 2026 McChip Resources Inc. announced that the Board of Directors of the Company has declared a special one-time distribution of cash to its shareholders of record at the close of business on April 10, 2026. The Distributions will be made on April 21, 2026. The Company will distribute an aggregate of $6,556,105.60 pursuant to the Cash Distribution which will amount to $1.10 per common share of the Company. A portion of the Cash Distribution in the amount of $5,185,283.52 (or $0.87 per Common Share) will constitute a return of capital to the Shareholders, with the remainder in the amount of $1,370,822.08 (or $0.23 per Common Share) (the “Cash Dividend”) to be treated as a dividend. On October 1, 2025, the Shareholders approved a special resolution authorizing a reduction of the stated capital account maintained in respect of the Company Shares by an amount equal to $5,200,000 to allow the Company to make such return of capital in cash to the Shareholders. Valuation Update With 7 Day Price Move • Mar 26
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CA$1.99, the stock trades at a trailing P/E ratio of 3.1x. Average trailing P/E is 19x in the Oil and Gas industry in Canada. Total returns to shareholders of 177% over the past three years. New Risk • Mar 05
New minor risk - Revenue size The company makes less than US$5m in revenue. Total revenue: CA$6.3m (US$4.6m) This is considered a minor risk. Companies with a small amount of revenue are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (215% accrual ratio). Market cap is less than US$10m (CA$12.1m market cap, or US$8.84m). Minor Risk Revenue is less than US$5m (CA$6.3m revenue, or US$4.6m). New Risk • Nov 27
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: CA$115k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (221% accrual ratio). Market cap is less than US$10m (CA$9.42m market cap, or US$6.72m). Minor Risk Significant insider selling over the past 3 months (CA$115k sold). Reported Earnings • Nov 26
Third quarter 2025 earnings released: EPS: CA$0.70 (vs CA$0.043 in 3Q 2024) Third quarter 2025 results: EPS: CA$0.70 (up from CA$0.043 in 3Q 2024). Revenue: CA$4.38m (up CA$3.98m from 3Q 2024). Net income: CA$3.98m (up CA$3.73m from 3Q 2024). Profit margin: 91% (up from 61% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 18
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CA$1.63, the stock trades at a trailing P/E ratio of 7x. Average trailing P/E is 13x in the Oil and Gas industry in Canada. Total returns to shareholders of 134% over the past three years. Valuation Update With 7 Day Price Move • Sep 03
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CA$1.89, the stock trades at a trailing P/E ratio of 8.1x. Average trailing P/E is 12x in the Oil and Gas industry in Canada. Total returns to shareholders of 171% over the past three years. New Risk • Aug 27
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 36% Last year net profit margin: 77% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (29% average weekly change). Market cap is less than US$10m (CA$8.62m market cap, or US$6.25m). Minor Risks Profit margins are more than 30% lower than last year (36% net profit margin). Revenue is less than US$5m (CA$3.7m revenue, or US$2.7m). Reported Earnings • Aug 27
Second quarter 2025 earnings released: CA$0.046 loss per share (vs CA$0.29 profit in 2Q 2024) Second quarter 2025 results: CA$0.046 loss per share (down from CA$0.29 profit in 2Q 2024). Revenue: CA$1.33m (down 30% from 2Q 2024). Net loss: CA$262.3k (down 116% from profit in 2Q 2024). Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 30
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to CA$1.26, the stock trades at a trailing P/E ratio of 2.3x. Average trailing P/E is 13x in the Oil and Gas industry in Canada. Total returns to shareholders of 81% over the past three years. Valuation Update With 7 Day Price Move • Jul 10
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to CA$1.30, the stock trades at a trailing P/E ratio of 2.4x. Average trailing P/E is 12x in the Oil and Gas industry in Canada. Total returns to shareholders of 86% over the past three years. Valuation Update With 7 Day Price Move • Jun 24
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to CA$1.15, the stock trades at a trailing P/E ratio of 2.1x. Average trailing P/E is 13x in the Oil and Gas industry in Canada. Total returns to shareholders of 65% over the past three years. Reported Earnings • May 28
First quarter 2025 earnings released: EPS: CA$0.037 (vs CA$0.012 in 1Q 2024) First quarter 2025 results: EPS: CA$0.037 (up from CA$0.012 in 1Q 2024). Revenue: CA$438.6k (up 67% from 1Q 2024). Net income: CA$209.6k (up 199% from 1Q 2024). Profit margin: 48% (up from 27% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Board Change • May 02
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Doug Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Apr 30
McChip Resources Inc., Annual General Meeting, Jun 19, 2025 McChip Resources Inc., Annual General Meeting, Jun 19, 2025. Board Change • Mar 24
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Doug Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Jan 13
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Doug Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Dec 06
Upcoming dividend of CA$0.05 per share Eligible shareholders must have bought the stock before 12 December 2024. Payment date: 19 December 2024. Payout ratio is a comfortable 6.9% but the company is not cash flow positive. Trailing yield: 4.7%. Lower than top quartile of Canadian dividend payers (6.2%). In line with average of industry peers (4.5%). Board Change • Nov 28
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Doug Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Nov 27
McChip Resources Inc. Declares Cash Dividend, Payable on December 19, 2024 McChip Resources Inc. announced the declaration of a cash dividend in the amount of $0.05 per common share, payable on December 19, 2024 to shareholders of record on December 12, 2024. Board Change • Sep 10
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Doug Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Jun 25
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Doug Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • May 30
First quarter 2024 earnings released: EPS: CA$0.012 (vs CA$0.043 in 1Q 2023) First quarter 2024 results: EPS: CA$0.012 (down from CA$0.043 in 1Q 2023). Revenue: CA$263.4k (down 39% from 1Q 2023). Net income: CA$70.1k (down 71% from 1Q 2023). Profit margin: 27% (down from 57% in 1Q 2023). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 66 percentage points per year, which is a significant difference in performance. Board Change • May 22
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Doug Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • May 18
McChip Resources Inc., Annual General Meeting, Jun 06, 2024 McChip Resources Inc., Annual General Meeting, Jun 06, 2024. Location: suite 1910, 130 adelaide street west, ontario, m5h 3p5, toronto Canada Board Change • Apr 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Doug Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Mar 21
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Doug Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Feb 20
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Jan 17
Upcoming dividend of CA$0.04 per share at 6.5% yield Eligible shareholders must have bought the stock before 24 January 2024. Payment date: 01 February 2024. The company is not currently making a profit and is not cash flow positive. Trailing yield: 6.5%. Within top quartile of Canadian dividend payers (6.5%). Higher than average of industry peers (5.3%). Announcement • Jan 12
McChip Resources Inc. Declares Cash Dividend, Payable on February 1, 2024 McChip Resources Inc. announced the declaration of a cash dividend in the amount of $0.04 per common share, payable on February 1, 2024 to shareholders of record on January 25, 2024. This dividend is designated by the Company to be an ineligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. Reported Earnings • Nov 23
Third quarter 2023 earnings released: CA$0.03 loss per share (vs CA$0.036 loss in 3Q 2022) Third quarter 2023 results: CA$0.03 loss per share (improved from CA$0.036 loss in 3Q 2022). Net loss: CA$170.7k (loss narrowed 18% from 3Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. Buying Opportunity • Nov 14
Now 29% undervalued after recent price drop Over the last 90 days, the stock is down 44%. The fair value is estimated to be CA$0.84, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 37% over the last 3 years. Meanwhile, the company became loss making. Board Change • Nov 02
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Sep 19
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 26
Second quarter 2023 earnings released: CA$0.14 loss per share (vs CA$0.095 loss in 2Q 2022) Second quarter 2023 results: CA$0.14 loss per share (further deteriorated from CA$0.095 loss in 2Q 2022). Net loss: CA$826.3k (loss widened 52% from 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has increased by 26% per year, which means it is well ahead of earnings. Board Change • Aug 10
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Jul 07
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Jun 19
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • May 26
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • May 25
McChip Resources Inc., Annual General Meeting, Jun 15, 2023 McChip Resources Inc., Annual General Meeting, Jun 15, 2023, at 10:00 Eastern Daylight. Location: Suite 1910 130 Adelaide Street West, Toronto Ontario Canada Agenda: To receive the financial statements of the Company for its fiscal year ended December 31, 2022 and the Report of the Auditors thereon; to elect the directors of the Company; to appoint the Company's auditors and to authorize the Directors to fix their remuneration; and to transact any other business that may properly come before the Meeting, or any adjournments thereof. Reported Earnings • Apr 15
Full year 2022 earnings released: CA$0.066 loss per share (vs CA$0.22 profit in FY 2021) Full year 2022 results: CA$0.066 loss per share (down from CA$0.22 profit in FY 2021). Net loss: CA$374.5k (down 130% from profit in FY 2021). Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Apr 15
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Jan 17
Upcoming dividend of CA$0.06 per share Eligible shareholders must have bought the stock before 24 January 2023. Payment date: 01 February 2023. Payout ratio is a comfortable 19% and the cash payout ratio is 90%. Trailing yield: 4.0%. Lower than top quartile of Canadian dividend payers (5.7%). Lower than average of industry peers (4.9%). Board Change • Jan 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Jan 13
McChip Resources Inc Announces the Declaration of Cash Dividend, Payable on February 1, 2023 McChip Resources Inc. announced the declaration of a cash dividend in the amount of $0.06 per common share, payable on February 1, 2023 to shareholders of record on January 25, 2023, This dividend is designated by the Company to be an ineligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. Board Change • Dec 09
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 25
Third quarter 2022 earnings released: CA$0.036 loss per share (vs CA$0.11 loss in 3Q 2021) Third quarter 2022 results: CA$0.036 loss per share (improved from CA$0.11 loss in 3Q 2021). Net loss: CA$207.5k (loss narrowed 66% from 3Q 2021). Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Board Change • Nov 22
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Oct 25
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Sep 19
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Aug 04
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Jul 15
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Jun 24
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment improved over the past week After last week's 40% share price gain to CA$1.12, the stock trades at a trailing P/E ratio of 2.5x. Average trailing P/E is 10x in the Oil and Gas industry in Canada. Total returns to shareholders of 83% over the past three years. Reported Earnings • Jun 03
First quarter 2022 earnings released: EPS: CA$0.045 (vs CA$0.19 loss in 1Q 2021) First quarter 2022 results: EPS: CA$0.045 (up from CA$0.19 loss in 1Q 2021). Revenue: CA$404.1k (down 143% from 1Q 2021). Net income: CA$256.5k (up CA$1.33m from 1Q 2021). Profit margin: 64% (down from 115% in 1Q 2021). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 53% share price gain to CA$1.16, the stock trades at a trailing P/E ratio of 5.4x. Average trailing P/E is 8x in the Oil and Gas industry in Canada. Total returns to shareholders of 104% over the past three years. Board Change • May 13
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Apr 16
McChip Resources Inc., Annual General Meeting, Jun 16, 2022 McChip Resources Inc., Annual General Meeting, Jun 16, 2022. Upcoming Dividend • Jan 18
Upcoming dividend of CA$0.04 per share Eligible shareholders must have bought the stock before 25 January 2022. Payment date: 02 February 2022. Payout ratio is a comfortable 31% but the company is paying out more than the cash it is generating. Trailing yield: 4.0%. Lower than top quartile of Canadian dividend payers (4.6%). In line with average of industry peers (4.2%). Board Change • Jan 14
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Dec 24
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Dec 24
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Nov 03
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Director Douglas Bolton was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Sep 02
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CA$1.01, the stock trades at a trailing P/E ratio of 4.3x. Average trailing P/E is 7x in the Oil and Gas industry in Canada. Total returns to shareholders of 68% over the past three years. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS CA$0.22 (vs CA$0.43 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CA$1.37m (down 47% from 2Q 2020). Net income: CA$1.23m (down 50% from 2Q 2020). Profit margin: 90% (down from 95% in 2Q 2020). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 11
Investor sentiment improved over the past week After last week's 16% share price gain to CA$1.04, the stock trades at a trailing P/E ratio of 2.3x. Average trailing P/E is 7x in the Oil and Gas industry in Canada. Total returns to shareholders of 78% over the past three years. Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment improved over the past week After last week's 16% share price gain to CA$1.02, the stock trades at a trailing P/E ratio of 2.3x. Average trailing P/E is 12x in the Oil and Gas industry in Canada. Total returns to shareholders of 89% over the past three years. Reported Earnings • May 31
First quarter 2021 earnings released: CA$0.19 loss per share (vs CA$0.32 loss in 1Q 2020) First quarter 2021 results: Revenue: -CA$938.3k (down 45% from 1Q 2020). Net loss: CA$1.08m (loss narrowed 41% from 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Reported Earnings • May 03
Full year 2020 earnings released: EPS CA$0.32 (vs CA$0.059 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CA$2.39m (up 135% from FY 2019). Net income: CA$1.79m (up 438% from FY 2019). Profit margin: 75% (up from 33% in FY 2019). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings.