CNSX:KWG.A

Stock Analysis Report

Executive Summary

KWG Resources Inc., an exploration stage company, engages in the exploration and evaluation of base metals in Canada.

Rewards

Earnings have grown 32.3% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Shares are highly illiquid

Does not have a meaningful market cap (CA$5M)

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



Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has KWG Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

KWG.A

1.7%

CA Metals and Mining

-5.3%

CA Market


1 Year Return

-86.7%

KWG.A

25.4%

CA Metals and Mining

-1.6%

CA Market

Return vs Industry: KWG.A underperformed the Canadian Metals and Mining industry which returned 28% over the past year.

Return vs Market: KWG.A underperformed the Canadian Market which returned 9.8% over the past year.


Shareholder returns

KWG.AIndustryMarket
7 Day0%1.7%-5.3%
30 Dayn/a0.8%-4.2%
90 Dayn/a10.0%0.3%
1 Year-86.7%-86.7%26.4%25.4%1.4%-1.6%
3 Yearn/a1.1%-0.7%-4.3%-11.9%
5 Yearn/a28.3%24.1%10.3%-4.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is KWG Resources undervalued compared to its fair value and its price relative to the market?

0.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: KWG.A is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KWG.A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KWG.A is good value based on its PB Ratio (0.1x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

17.1%

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 KWG 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.


Next Steps

Past Performance

How has KWG Resources performed over the past 5 years?

32.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KWG.A is currently unprofitable.

Growing Profit Margin: KWG.A is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KWG.A is unprofitable, but has reduced losses over the past 5 years at a rate of 32.3% per year.

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

Earnings vs Industry: KWG.A is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-1.4%).


Return on Equity

High ROE: KWG.A has a negative Return on Equity (-1.5%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is KWG Resources's financial position?


Financial Position Analysis

Short Term Liabilities: KWG.A's short term assets (CA$343.7K) do not cover its short term liabilities (CA$2.5M).

Long Term Liabilities: KWG.A has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: KWG.A's debt to equity ratio (3.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if KWG.A's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: KWG.A's debt is not covered by short term assets (assets are 0.3x debt).


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

Forecast Cash Runway: KWG.A has less than a year of cash runway if free cash flow continues to reduce at historical rates of -5% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.5%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

What is the CEO of KWG Resources's salary, the management and board of directors tenure and is there insider trading?

8.1yrs

Average board tenure


CEO

Frank Smeenk (71yo)

16yrs

Tenure

CA$300,000

Compensation

Mr. Frank Cornelius Smeenk, BA, LL.B was the Managing Director of Debut Diamonds Inc. since 2007 until December 23, 2019. He served as the Chief Executive Officer and President at Debut Diamonds Inc. since ...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD165.37K).

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


Board Age and Tenure

8.1yrs

Average Tenure

72yo

Average Age

Experienced Board: KWG.A's board of directors are considered experienced (8.1 years average tenure).


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

BuyCA$1,99527 Aug 19
Frank Smeenk
EntityIndividual
Role
Chief Executive Officer
President
Shares380
Max PriceCA$5.25
BuyCA$19,99218 Jun 19
Frank Smeenk
EntityIndividual
Role
Chief Executive Officer
President
Shares3,808
Max PriceCA$5.25
BuyCA$9,59719 Mar 19
Douglas Flett
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,828
Max PriceCA$5.25
BuyCA$68,98519 Mar 19
Frank Smeenk
EntityIndividual
Role
Chief Executive Officer
President
Shares13,140
Max PriceCA$5.25
BuyCA$14,67919 Mar 19
Thomas Masters
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,796
Max PriceCA$5.25
BuyCA$6,74119 Mar 19
Donald Alexander Sheldon
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,284
Max PriceCA$5.25
BuyCA$11,99119 Mar 19
Bruce Hodgman
EntityIndividual
Role
Other Key Executive
Vice President
Shares2,284
Max PriceCA$5.25

Ownership Breakdown

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


Management Team

  • Frank Smeenk (71yo)

    President

    • Tenure: 16yrs
    • Compensation: CA$300.00k
  • Bruce Hodgman

    Vice President

    • Ted Masters

      Chief Financial Officer

      • Tenure: 10.3yrs
      • Compensation: CA$141.63k

    Board Members

    • Mousseau Tremblay

      Chairman Emeritus

      • Compensation: CA$3.00k
    • Bruce Reid (63yo)

      Independent Director

      • Tenure: 3.3yrs
      • Compensation: CA$13.00k
    • Don Sheldon (72yo)

      Director

      • Tenure: 5.8yrs
      • Compensation: CA$11.00k
    • Frank Smeenk (71yo)

      President

      • Tenure: 16yrs
      • Compensation: CA$300.00k
    • René Galipeau (73yo)

      Member of The Advisory Board

      • Tenure: 7.3yrs
      • Compensation: CA$134.90k
    • Doug Flett (74yo)

      Chairman of the Board

      • Compensation: CA$43.70k
    • Cameron Clark

      Member of Advisory Panel

      • Tenure: 8.8yrs
    • Sheila Willis

      Member of Advisory Panel

      • Tenure: 8.8yrs

    Company Information

    KWG Resources Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: KWG Resources Inc.
    • Ticker: KWG.A
    • Exchange: CNSX
    • Founded: 1937
    • Industry: Diversified Metals and Mining
    • Sector: Materials
    • Market Cap: CA$5.189m
    • Shares outstanding: 1.09b
    • Website: https://kwgresources.com

    Number of Employees


    Location

    • KWG Resources Inc.
    • 141 Adelaide Street West
    • Suite 420
    • Toronto
    • Ontario
    • M5H 3L5
    • Canada

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    KWGB.FOTCPK (Pink Sheets LLC)YesSubordinate Voting SharesUSUSDDec 1982
    KWGCNSX (Canadian National Stock Exchange)YesSubordinate Voting SharesCACADDec 1982
    KW6DB (Deutsche Boerse AG)YesSubordinate Voting SharesDEEURDec 1982
    KWG.ACNSX (Canadian National Stock Exchange)Multiple Voting SharesCACADApr 2017

    Biography

    KWG Resources Inc., an exploration stage company, engages in the exploration and evaluation of base metals in Canada. The company explores for copper, zinc, nickel, and chromite deposits. It holds interests in the Koper Lake project with approximately 1,024 hectares covered by four unpatented mining claims; and Big Daddy project with approximately 1,241 hectares covered by seven unpatented mining claims located in the James Bay Lowlands of Northern Ontario. The company was formerly known as Kewagama Gold Mines (Québec) Ltd. and changed its name to KWG Resources Inc. in August 1991. KWG Resources Inc. was incorporated in 1937 and is headquartered in Toronto, Canada. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/27 01:08
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.