TSXV:BMX

Stock Analysis Report

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Executive Summary

Boreal Metals Corp., a mineral exploration company, acquires and explores for base and precious metals.


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has Boreal Metals's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.3%

BMX

2.6%

CA Metals and Mining

1.5%

CA Market


1 Year Return

10.0%

BMX

34.6%

CA Metals and Mining

-11.5%

CA Market

Return vs Industry: BMX underperformed the Canadian Metals and Mining industry which returned 31.4% over the past year.

Return vs Market: BMX exceeded the Canadian Market which returned -12.4% over the past year.


Shareholder returns

BMXIndustryMarket
7 Day-8.3%2.6%1.5%
30 Day10.0%14.0%-2.3%
90 Day37.5%45.4%12.2%
1 Year10.0%10.0%35.6%34.6%-8.4%-11.5%
3 Yearn/a32.4%30.2%4.4%-5.5%
5 Yearn/a87.9%82.8%21.9%3.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Boreal Metals undervalued compared to its fair value and its price relative to the market?

1.37x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: BMX is good value based on its PB Ratio (1.4x) compared to the CA Metals and Mining industry average (2.2x).


Next Steps

Future Growth

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

20.5%

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 Boreal Metals 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 Boreal Metals performed over the past 5 years?

-57.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BMX is currently unprofitable.

Growing Profit Margin: BMX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BMX is unprofitable, and losses have increased over the past 5 years at a rate of -57.7% per year.

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

Earnings vs Industry: BMX is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (18.3%).


Return on Equity

High ROE: BMX has a negative Return on Equity (-94.07%), as it is currently unprofitable.


Next Steps

Financial Health

How is Boreal Metals's financial position?


Financial Position Analysis

Short Term Liabilities: BMX's short term assets (CA$155.8K) do not cover its short term liabilities (CA$1.3M).

Long Term Liabilities: BMX has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: BMX's debt to equity ratio (25.9%) is considered satisfactory.

Reducing Debt: BMX had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


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

Forecast Cash Runway: BMX has less than a year of cash runway if free cash flow continues to reduce at historical rates of 52.6% each year


Next Steps

Dividend

What is Boreal Metals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if BMX'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 BMX'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

Pat Varas (58yo)

1.25yrs

Tenure

CA$95,500

Compensation

Mr. Jorge Patricio Varas, also known as Pat, B.Sc. & P.Geo., is the Founder of Western Resources Corp. (a/k/a: Western Potash Corp.) and served as its Chief Executive Officer since July 9, 2007 until Octob ...


Board Members

NamePositionTenureCompensationOwnership
Jorge Varas
Executive Chairman & CEO1.25yrsCA$95.50k4.27% CA$178.8k
David Reid
Independent Director2.58yrsno data2.4% CA$100.4k
Eric Jensen
Independent Director3.08yrsno data4.57% CA$191.1k
Jon Sherron
Director4.5yrsCA$6.50k0.16% CA$6.6k
Thomas Soderqvist
Independent Non-Executive Director1.5yrsno datano data

2.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: BMX'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: 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Boreal Metals Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Boreal Metals Corp.
  • Ticker: BMX
  • Exchange: TSXV
  • Founded: 2013
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$4.182m
  • Shares outstanding: 76.03m
  • Website: https://www.borealmetals.com

Location

  • Boreal Metals Corp.
  • 233 West 1st Street
  • Suite 340
  • North Vancouver
  • British Columbia
  • V7M 1B3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BMXTSXV (TSX Venture Exchange)YesCommon StockCACADNov 2017
03EDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2017
BORM.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 2017

Biography

Boreal Metals Corp., a mineral exploration company, acquires and explores for base and precious metals. The company primarily explores for zinc, lead, copper, silver, gold, cobalt, and nickel deposits. It principally owns interests in the Gumsberg VMS project covering an area of approximately 18,300 hectares located in the Bergslagen mining district of southern Sweden; and Burfjord iron oxide copper gold project comprising six exploration licenses totaling 5,500 hectares situated in Alta, Norway. The company was formerly known as European Ferro Metals Ltd. and changed its name to Boreal Metals Corp. in November 2016. Boreal Metals Corp. was incorporated in 2013 and is headquartered in North Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 00:17
End of Day Share Price2020/07/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.