TSX:NDM

Stock Analysis Report

Northern Dynasty Minerals

Executive Summary

Northern Dynasty Minerals Ltd. engages in the exploration of mineral properties in the United States.

Risk Analysis

Earnings have declined by -10.52% per year over past 5 years

Has less than 1 year of cash runway

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

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

How has Northern Dynasty Minerals's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.9%

NDM

-0.2%

CA Metals and Mining

0.4%

CA Market


1 Year Return

-23.0%

NDM

22.8%

CA Metals and Mining

11.0%

CA Market

Return vs Industry: NDM underperformed the Canadian Metals and Mining industry which returned 22.8% over the past year.

Return vs Market: NDM underperformed the Canadian Market which returned 11% over the past year.


Shareholder returns

NDMIndustryMarket
7 Day-2.9%-0.2%0.4%
30 Day-11.8%3.5%0.01%
90 Day-19.3%-0.6%0.9%
1 Year-23.0%-23.0%23.8%22.8%14.7%11.0%
3 Year-69.3%-69.3%7.6%5.6%15.1%4.6%
5 Year62.2%62.2%41.3%36.8%37.8%17.4%

Price Volatility Vs. Market

How volatile is Northern Dynasty Minerals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Northern Dynasty Minerals undervalued compared to its fair value and its price relative to the market?

1.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NDM is overvalued based on its PB Ratio (1.9x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Northern Dynasty Minerals forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

17.3%

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 Northern Dynasty Minerals 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 Northern Dynasty Minerals performed over the past 5 years?

-10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NDM is currently unprofitable.

Growing Profit Margin: NDM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NDM is unprofitable, and losses have increased over the past 5 years at a rate of -10.5% per year.

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

Earnings vs Industry: NDM is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (4.1%).


Return on Equity

High ROE: NDM has a negative Return on Equity (-48.33%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Northern Dynasty Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: NDM's short term assets (CA$14.0M) do not cover its short term liabilities (CA$18.8M).

Long Term Liabilities: NDM's short term assets (CA$14.0M) exceed its long term liabilities (CA$992.0K).


Debt to Equity History and Analysis

Debt Level: NDM is debt free.

Reducing Debt: NDM had no debt 5 years ago.


Balance Sheet

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

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

Forecast Cash Runway: NDM has less than a year of cash runway if free cash flow continues to reduce at historical rates of -37.2% each year


Next Steps

Dividend

What is Northern Dynasty Minerals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.6%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if NDM'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 NDM'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 Northern Dynasty Minerals's salary, the management and board of directors tenure and is there insider trading?

9.7yrs

Average management tenure


CEO

Ron Thiessen (67yo)

18.1yrs

Tenure

CA$1,019,000

Compensation

Mr. Ronald William Thiessen, also known as Ron, FCPA, CPA, FCA has been the President and Chief Executive Officer of Northern Dynasty Minerals Ltd. from November 2001. Mr. Thiessen has been a Director of N ...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD770.26K) is about average for companies of similar size in the Canadian market ($USD681.94K).

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


Management Age and Tenure

9.7yrs

Average Tenure

67yo

Average Age

Experienced Management: NDM's management team is seasoned and experienced (9.7 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

62.5yo

Average Age

Experienced Board: NDM's board of directors are considered experienced (4.2 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$249,62423 Aug 19
Ronald Thiessen
EntityIndividual
Role
Chief Executive Officer
President
Shares284,375
Max PriceCA$1.00
BuyCA$405,75013 Aug 19
Stirling Global Value Fund Inc.
EntityCompany
Shares375,000
Max PriceCA$1.08
SellCA$10,91507 Aug 19
Kinder Dream Foundation, Endowment Arm
EntityCompany
Shares9,250
Max PriceCA$1.18
SellCA$2,95002 Aug 19
Kinder Dream Foundation, Endowment Arm
EntityCompany
Shares2,500
Max PriceCA$1.18
BuyCA$50,02009 Jul 19
Ronald Thiessen
EntityIndividual
Role
Chief Executive Officer
President
Shares122,000
Max PriceCA$0.41
BuyCA$661,00921 Jun 19
Ostvast Capital Management Limited
EntityCompany
Shares1,220,000
Max PriceCA$0.54
BuyCA$819,25218 Mar 19
Ostvast Capital Management Limited
EntityCompany
Shares959,250
Max PriceCA$0.85
SellCA$819,25218 Mar 19
Stirling Global Value Fund Inc.
EntityCompany
Shares959,250
Max PriceCA$0.85
BuyCA$819,25218 Mar 19
Stirling Global Value Fund Inc.
EntityCompany
Shares959,250
Max PriceCA$0.85
BuyCA$39,10003 Jan 19
Ronald Thiessen
EntityIndividual
Role
Chief Executive Officer
President
Shares50,000
Max PriceCA$0.79

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.6%.


Management Team

  • Bob Dickinson (71yo)

    Chairman of the Board

    • Tenure: 15.7yrs
    • Compensation: CA$284.00k
  • Ron Thiessen (67yo)

    President

    • Tenure: 18.1yrs
    • Compensation: CA$1.02m
  • Bruce Jenkins (69yo)

    Executive Vice President of Environment & Sustainability

    • Tenure: 15.5yrs
    • Compensation: CA$245.15k
  • Trevor Thomas (52yo)

    Secretary

    • Tenure: 11.8yrs
  • Tom Collier

    CEO, President & COO of Pebble Ltd Partnership

    • Tenure: 5.8yrs
    • Compensation: CA$1.99m
  • Mark Peters

    Chief Financial officer

    • Tenure: 0.7yrs
  • Doug Allen (61yo)

    Vice President of Corporate Communications

    • Tenure: 7.5yrs
    • Compensation: CA$199.48k

Board Members

  • Garry Keep (62yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: CA$107.33k
  • Bob Dickinson (71yo)

    Chairman of the Board

    • Tenure: 15.7yrs
    • Compensation: CA$284.00k
  • Ron Thiessen (67yo)

    President

    • Tenure: 18.1yrs
    • Compensation: CA$1.02m
  • Des Balakrishnan (48yo)

    Director

    • Tenure: 4yrs
    • Compensation: CA$101.55k
  • David Laing (63yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: CA$109.25k
  • Christian Milau (47yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: CA$114.97k
  • Ken Ewen (72yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$109.25k
  • Steve Decker (59yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: CA$107.33k

Company Information

Northern Dynasty Minerals Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Northern Dynasty Minerals Ltd.
  • Ticker: NDM
  • Exchange: TSX
  • Founded: 1983
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$251.439m
  • Shares outstanding: 380.97m
  • Website: https://www.northerndynastyminerals.com

Location

  • Northern Dynasty Minerals Ltd.
  • 1040 West Georgia Street
  • 15th Floor
  • Vancouver
  • British Columbia
  • V6E 4H1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NDMTSX (The Toronto Stock Exchange)YesCommon SharesCACADApr 1987
NAKAMEX (NYSE MKT LLC)YesCommon SharesUSUSDApr 1987
ND3DB (Deutsche Boerse AG)YesCommon SharesDEEURApr 1987
0VA3LSE (London Stock Exchange)YesCommon SharesGBCADApr 1987

Biography

Northern Dynasty Minerals Ltd. engages in the exploration of mineral properties in the United States. Its principal mineral property is the Pebble copper-gold-molybdenum project that includes 2,402 mineral ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:40
End of Day Share Price2019/12/10 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.