TSX:BKI

Stock Analysis Report

Executive Summary

Black Iron Inc. operates as a Canadian iron ore exploration and development company.

Snowflake

Fundamentals

Worrying balance sheet with weak fundamentals.

Share Price & News

How has Black Iron's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

BKI

-5.7%

CA Metals and Mining

0.3%

CA Market


1 Year Return

-6.3%

BKI

9.0%

CA Metals and Mining

0.1%

CA Market

Return vs Industry: BKI underperformed the Canadian Metals and Mining industry which returned 9% over the past year.

Return vs Market: BKI underperformed the Canadian Market which returned 0.1% over the past year.


Shareholder returns

BKIIndustryMarket
7 Day0%-5.7%0.3%
30 Day0%-5.4%-2.5%
90 Day-46.4%-5.2%-1.4%
1 Year-6.3%-6.3%9.8%9.0%3.6%0.1%
3 Year114.3%114.3%-11.7%-13.4%14.3%4.1%
5 Year-16.7%-16.7%2.5%-1.4%25.0%6.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Black Iron undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Black Iron is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Black Iron has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of BKI’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Black Iron regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

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

44.6%

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 Black Iron 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 Black Iron performed over the past 5 years?

24.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BKI is unprofitable, but has reduced losses over the past 5 years at a rate of 24.4% per year.

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

Earnings vs Industry: BKI is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-13.7%).


Return on Equity

High ROE: BKI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: BKI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: BKI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Black Iron's financial position?


Financial Position Analysis

Short Term Liabilities: BKI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: BKI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: BKI is debt free.

Reducing Debt: BKI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: BKI has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if BKI'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: BKI has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: BKI has less than a year of cash runway if free cash flow continues to grow at historical rates of 1.6% each year.


Next Steps

Dividend

What is Black Iron's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

6.9yrs

Average management tenure


CEO

Matt Simpson 0

8.8yrs

Tenure

US$271,693

Compensation

Mr. Matthew Simpson, also known as Matt, P.Eng., has been the Chief Executive Officer and President at Forbes & Manhattan, Inc. since September 2014. Mr. Simpson has been the Chief Executive Officer of Bla ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Matt's total compensation is reasonable compared to companies of similar size in the Canadian market.

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


Management Age and Tenure

6.9yrs

Average Tenure

47yo

Average Age

Experienced Management: BKI's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

Experienced Board: BKI's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: BKI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$3,51019 Jul 19
John Detmold
EntityIndividual
Role
Member of the Board of Directors
Director
Shares27,000
Max PriceUS$0.13
BuyUS$12,50010 Jul 19
John Detmold
EntityIndividual
Role
Member of the Board of Directors
Director
Shares100,000
Max PriceUS$0.13
BuyUS$33,53404 Apr 19
John Detmold
EntityIndividual
Role
Member of the Board of Directors
Director
Shares558,909
Max PriceUS$0.06
BuyUS$20,00004 Apr 19
Matthew Simpson
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares333,333
Max PriceUS$0.06
BuyUS$126,99902 Apr 19
Forbes & Manhattan Inc., Asset Management Arm
EntityCompany
Shares2,116,666
Max PriceUS$0.06
SellUS$428,22122 Mar 19
Sulliden Mining Capital Inc.
EntityCompany
Shares6,945,000
Max PriceUS$0.065
SellUS$1,638,42820 Mar 19
Stan Bharti
EntityIndividual
Role
Senior Key Executive
Executive Officer
Shares16,384,282
Max PriceUS$0.10

Ownership Breakdown


Management Team

  • Paul Bozoki (47yo)

    Chief Financial Officer

    • Tenure: 8.8yrs
    • Compensation: US$77.63k
  • Stan Bharti (67yo)

    Executive Officer

    • Tenure: 0yrs
    • Compensation: US$235.63k
  • Matt Simpson

    CEO & Director

    • Tenure: 8.8yrs
    • Compensation: US$271.69k
  • Bill Hart

    Senior Vice President of Corporate Development

    • Tenure: 1.9yrs
  • Les Kwasik

    Chief Operating Officer

    • Tenure: 4.9yrs
    • Compensation: US$60.00k
  • Damian Lopez (36yo)

    Corporate Secretary

    • Tenure: 0yrs

Board Members

  • John Detmold

    Director

    • Tenure: 8.8yrs
    • Compensation: US$19.34k
  • Raymond Humphrey (67yo)

    Chairman of the Board

    • Tenure: 8.8yrs
    • Compensation: US$31.47k
  • Pierre Pettigrew (69yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$15.26k
  • Dave Porter

    Director

    • Tenure: 8.8yrs
    • Compensation: US$19.07k
  • Daniel Bilak

    Member of Ukraine Advisory Board

    • Tenure: 8.2yrs
  • Matt Simpson

    CEO & Director

    • Tenure: 8.8yrs
    • Compensation: US$271.69k

Company Information

Black Iron Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Black Iron Inc.
  • Ticker: BKI
  • Exchange: TSX
  • Founded: 2010
  • Industry: Steel
  • Sector: Materials
  • Market Cap: CA$13.972m
  • Shares outstanding: 186.29m
  • Website: https://www.blackiron.com

Number of Employees


Location

  • Black Iron Inc.
  • 65 Queen Street West
  • Suite 805
  • Toronto
  • Ontario
  • M5H 2M5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKITSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2011
BINDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2011
BKIR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2011

Biography

Black Iron Inc. operates as a Canadian iron ore exploration and development company. The company holds a 100% interest in the Shymanivske iron ore project, which covers an area of 2.56 square kilometers lo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:11
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.