TSXV:BMK

Stock Analysis Report

MacDonald Mines Exploration

Executive Summary

MacDonald Mines Exploration Ltd., an exploration stage company, engages in the identification, acquisition, exploration, and development of mineral properties in Canada.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

25.0%

BMK

11.5%

CA Metals and Mining

6.4%

CA Market


1 Year Return

50.0%

BMK

-11.6%

CA Metals and Mining

-25.5%

CA Market

Return vs Industry: BMK exceeded the Canadian Metals and Mining industry which returned -11.6% over the past year.

Return vs Market: BMK exceeded the Canadian Market which returned -25.5% over the past year.


Shareholder returns

BMKIndustryMarket
7 Day25.0%11.5%6.4%
30 Day-16.7%-9.8%-22.6%
90 Day-31.8%-17.2%-26.8%
1 Year50.0%50.0%-11.0%-11.6%-23.2%-25.5%
3 Year-72.7%-72.7%-16.3%-17.9%-15.7%-23.5%
5 Year-50.0%-50.0%7.0%3.9%-3.1%-17.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether MacDonald Mines Exploration is trading at an attractive price based on the cash flow it is expected to produce in the future. But as MacDonald Mines Exploration 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 BMK’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 potential returns from the core activities, the size of each contract's opportunity, and the capacity 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 MacDonald Mines Exploration regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

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

11.4%

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 MacDonald Mines Exploration 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 MacDonald Mines Exploration performed over the past 5 years?

-30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BMK is currently unprofitable.

Growing Profit Margin: BMK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BMK is unprofitable, and losses have increased over the past 5 years at a rate of -30.3% per year.

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

Earnings vs Industry: BMK is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (16.5%).


Return on Equity

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


Next Steps

Financial Health

How is MacDonald Mines Exploration's financial position?


Financial Position Analysis

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

Long Term Liabilities: BMK 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: BMK is debt free.

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


Balance Sheet

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

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

Forecast Cash Runway: BMK has less than a year of cash runway if free cash flow continues to reduce at historical rates of -1.2% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if BMK'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 BMK'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?

2.8yrs

Average board tenure


CEO

Quentin Yarie (54yo)

4.5s

Tenure

CA$81,307

Compensation

Mr. Quentin Yarie, P.Geo, has been the Chief Executive Officer of MacDonald Mines Exploration Ltd. since September 1, 2015 and as its President since October 1, 2013 and serves as its Chairman. Mr. Yarie h ...


CEO Compensation Analysis

Compensation vs Market: Quentin's total compensation ($USD57.77K) is below average for companies of similar size in the Canadian market ($USD158.04K).

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


Board Members

NamePositionTenureCompensationOwnership
Quentin Yarie
Chairman4.5yrsCA$81.31k2.64% CA$309.9k
Hadyn Butler
Chief Geologist & Member of Technical Advisory Committee9.17yrsno datano data
MacKenzie Watson
Member of Technical Advisory Committeeno datano datano data
Stuart Adair
Director0.25yrno data0.97% CA$113.4k
James Franklin
Member of Technical Advisory Committee9yrsno datano data
Jean-Philippe Desrochers
Member of Technical Advisory Committeeno datano datano data
Kevin Tanas
Independent Director2.83yrsCA$17.99kno data
Patrice Dubreuil
Director0.58yrno datano data

2.8yrs

Average Tenure

75yo

Average Age

Experienced Board: BMK's board of directors are not considered experienced ( 2.8 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: BMK 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 substantially diluted in the past year, with total shares outstanding growing by 50.6%.


Top Shareholders

Company Information

MacDonald Mines Exploration Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MacDonald Mines Exploration Ltd.
  • Ticker: BMK
  • Exchange: TSXV
  • Founded: 1936
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$11.719m
  • Shares outstanding: 156.26m
  • Website: https://www.macdonaldmines.com

Number of Employees


Location

  • MacDonald Mines Exploration Ltd.
  • 145 Wellington Street West
  • Suite 1001
  • Toronto
  • Ontario
  • M5J 1H8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BMKTSXV (TSX Venture Exchange)YesClass A Common SharesCACADJan 1975
3M72DB (Deutsche Boerse AG)YesClass A Common SharesDEEURJan 1975
MCDM.FOTCPK (Pink Sheets LLC)YesClass A Common SharesUSUSDJan 1975

Biography

MacDonald Mines Exploration Ltd., an exploration stage company, engages in the identification, acquisition, exploration, and development of mineral properties in Canada. The company explores for gold, silver, zinc, cobalt, copper, nickel, platinum group elements, chromium, silica, iron-oxide, and vanadium deposits. It holds a 100% interest in the Wawa- Holdsworth gold and silver project that include 18 contiguous mining claims covering an area of approximately 285 hectares located in the Corbiere and Esquega Townships of Northern Ontario; and has an option to acquire 100% interest in the Scadding-Powerline-Jovan Properties that covers an area of 3,915 hectares located near Sudbury, Ontario. The company also holds a 100% interest in the Charlevoix silica property with 6 mining claims located in the Province of Quebec; 25% interest in the Butler property with 73 claim units covering an area of 76.9 square kilometers located in the Ontario; and 25% interest in the Sanderson property with 70 claim units covering an area of 158.3 square kilometers located in the Ontario. In addition, it holds a 100% interest in the Semple Property with 21 contiguous mining claims covering an area of 48.1 square kilometers; Baltic Property with 19 non-contiguous mining claims covering an area of 48.1 square kilometers located in Ontario; and in 38 claims located in Ontario. MacDonald Mines Exploration Ltd. was incorporated in 1936 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 Analysis2020/03/30 01:32
End of Day Share Price2020/03/27 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.