TSX:KER

Stock Analysis Report

Executive Summary

Kerr Mines Inc. engages in the exploration and development of mineral properties in Canada and the United States.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has Kerr Mines's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KER has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.3%

KER

-6.0%

CA Metals and Mining

-6.2%

CA Market


1 Year Return

-18.8%

KER

2.2%

CA Metals and Mining

-2.0%

CA Market

Return vs Industry: KER underperformed the Canadian Metals and Mining industry which returned 6.3% over the past year.

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


Shareholder returns

KERIndustryMarket
7 Day-10.3%-6.0%-6.2%
30 Day-7.1%-1.0%-5.0%
90 Day-10.3%4.9%-2.8%
1 Year-18.8%-18.8%2.9%2.2%1.1%-2.0%
3 Year0%0%-2.8%-4.5%10.7%0.6%
5 Year-27.8%-27.8%25.0%21.4%27.6%8.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kerr Mines undervalued compared to its fair value and its price relative to the market?

32.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: KER is overvalued based on its PB Ratio (34.6x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

15.0%

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 Kerr Mines 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 Kerr Mines performed over the past 5 years?

20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KER is currently unprofitable.

Growing Profit Margin: KER is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KER is unprofitable, but has reduced losses over the past 5 years at a rate of 20.3% per year.

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

Earnings vs Industry: KER is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.8%).


Return on Equity

High ROE: KER has a negative Return on Equity (-728.73%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kerr Mines's financial position?


Financial Position Analysis

Short Term Liabilities: KER's short term assets (CA$299.6K) do not cover its short term liabilities (CA$2.7M).

Long Term Liabilities: KER's short term assets (CA$299.6K) do not cover its long term liabilities (CA$13.9M).


Debt to Equity History and Analysis

Debt Level: KER's debt to equity ratio (1141.9%) is considered high.

Reducing Debt: KER's debt to equity ratio has increased from 64.8% to 1141.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: KER's debt is not covered by short term assets (assets are 0x 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: KER has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: KER has less than a year of cash runway if free cash flow continues to grow at historical rates of 0.6% each year.


Next Steps

Dividend

What is Kerr Mines's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.1%markettop25%5.9%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

2.9yrs

Average board tenure


CEO

Giulio Bonifacio (58yo)

0.8yrs

Tenure

CA$700,370

Compensation

Mr. Giulio T. Bonifacio, CPA, CGA serves as an Independent Director at Candente Copper Corporation since January 2020. He has been the Chief Executive Officer and Director of Kerr Mines Inc. since April 15 ...


CEO Compensation Analysis

Compensation vs Market: Giulio's total compensation ($USD526.50K) is above average for companies of similar size in the Canadian market ($USD156.06K).

Compensation vs Earnings: Insufficient data to compare Giulio's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Giulio Bonifacio
CEO & Director0.8yrsCA$700.37k1.81% CA$676.0k
Claudio Ciavarella
Executive Vice Chairman0.8yrsCA$44.15k9.22% CA$3.4m
Martin Kostuik
President & Director2.8yrsCA$340.90k0.18% CA$66.3k
Ayman Arekat
Independent Director3.7yrsno data0.035% CA$13.0k
James McVicar
Independent Director2.9yrsno data0.062% CA$23.2k
Fahad Al-Tamimi
Independent Chairman of the Board3.7yrsno data7.29% CA$2.7m
Peter Damouni
Director3.7yrsno data0.39% CA$144.5k

2.9yrs

Average Tenure

50yo

Average Age

Experienced Board: KER's board of directors are not considered experienced ( 2.9 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.2%.


Top Shareholders

Company Information

Kerr Mines Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kerr Mines Inc.
  • Ticker: KER
  • Exchange: TSX
  • Founded: 1984
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$37.366m
  • Shares outstanding: 287.43m
  • Website: https://www.kerrmines.com

Number of Employees


Location

  • Kerr Mines Inc.
  • 18 King Street East
  • Suite 902
  • Toronto
  • Ontario
  • M5C 1C4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KERTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2006
KERM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2006
7AZ1DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2006
0V2XLSE (London Stock Exchange)YesCommon SharesGBCADAug 2006

Biography

Kerr Mines Inc. engages in the exploration and development of mineral properties in Canada and the United States. Its flagship property is the Copperstone gold mine, which encompasses approximately 47.7 square kilometers of mineral rights in La Paz County, Arizona. The company was formerly known as Armistice Resources Corp. and changed its name to Kerr Mines Inc. in January 2014. Kerr Mines Inc. was incorporated in 1984 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 Analysis2020/02/28 00:54
End of Day Share Price2020/02/27 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.