TSXV:BSR

Stock Analysis Report

Bluestone Resources

Executive Summary

Bluestone Resources Inc. operates as a mineral exploration and development company.

Rewards

Trading at 98.8% below its fair value

Earnings are forecast to grow 115.58% per year

Risk Analysis

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Mediocre balance sheet with moderate growth potential.

Share Price & News

How has Bluestone Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.3%

BSR

2.4%

CA Metals and Mining

0.6%

CA Market


1 Year Return

22.9%

BSR

4.4%

CA Metals and Mining

5.8%

CA Market

Return vs Industry: BSR exceeded the Canadian Metals and Mining industry which returned 4.3% over the past year.

Return vs Market: BSR exceeded the Canadian Market which returned 5.8% over the past year.


Shareholder returns

BSRIndustryMarket
7 Day-2.3%2.4%0.6%
30 Day22.9%1.2%0.5%
90 Day49.6%6.6%3.6%
1 Year22.9%22.9%5.0%4.4%9.1%5.8%
3 Yearn/a-10.4%-11.9%15.4%5.0%
5 Year304.7%304.7%22.9%19.2%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Bluestone Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BSR (CA$1.72) is trading below our estimate of fair value (CA$145.75)

Significantly Below Fair Value: BSR is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: BSR is overvalued based on its PB Ratio (3.1x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Bluestone Resources forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

115.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: BSR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BSR's is expected to become profitable in the next 3 years.

Revenue vs Market: Insufficient data to determine if BSR's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if BSR's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BSR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Bluestone Resources performed over the past 5 years?

-79.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BSR is currently unprofitable.

Growing Profit Margin: BSR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BSR is unprofitable, and losses have increased over the past 5 years at a rate of -79.6% per year.

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

Earnings vs Industry: BSR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: BSR has a negative Return on Equity (-67.43%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bluestone Resources's financial position?


Financial Position Analysis

Short Term Liabilities: BSR's short term assets ($8.1M) exceed its short term liabilities ($2.1M).

Long Term Liabilities: BSR's short term assets ($8.1M) do not cover its long term liabilities ($9.2M).


Debt to Equity History and Analysis

Debt Level: BSR is debt free.

Reducing Debt: BSR has no debt compared to 5 years ago when its debt to equity ratio was 10.5%.


Balance Sheet

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

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

Forecast Cash Runway: BSR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -77.9% each year


Next Steps

Dividend

What is Bluestone Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.4yrs

Average management tenure


CEO

Jack O. Lundin (28yo)

0.08yrs

Tenure

0

Mr. Jack O.A. Lundin has been Chief Executive Officer and Director at Bluestone Resources Inc. since January 2020. Mr. Lundin has been involved in the natural resource industry his entire life through expo ...


Leadership Team

NamePositionTenureCompensationOwnership
John Robins
Executive Chairman of the Board2.5yrsUS$301.50k5.72% $8.1m
Darren Ervin Klinck
President & Executive Director2.5yrsUS$544.38k0.37% $526.6k
Peter Hemstead
Chief Financial Officer2.8yrsUS$380.25k0.40% $571.2k
Jack O. Lundin
CEO & Director0.08yrsno data0.12% $172.0k
David Gunning
Vice President of Operations2.8yrsno data0.16% $229.3k
Stephen Charles Williams
Vice President of Corporate Development & Investor Relations2.3yrsno data0.073% $103.2k
Penny Johnson
Corporate Secretary2yrsno datano data

2.4yrs

Average Tenure

45yo

Average Age

Experienced Management: BSR's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Robins
Executive Chairman of the Board2.5yrsUS$301.50k5.72% $8.1m
Darren Ervin Klinck
President & Executive Director2.5yrsUS$544.38k0.37% $526.6k
Jack O. Lundin
CEO & Director0.08yrsno data0.12% $172.0k
Allison Armstrong
CSR Advisor3yrsno datano data
Zara Boldt
Independent Director2.3yrsUS$46.00k0.061% $86.0k
James Paterson
Independent Director9.1yrsUS$41.00k0.98% $1.4m
Alfred Hills
Chair of Technical Advisors0yrsno datano data
William Lamb
Lead Director1.9yrsUS$60.79kno data
Peter Hathaway
Independent Director3yrsUS$41.00k0.20% $286.7k
Scott Donald
Technical Advisor0yrsno datano data

2.5yrs

Average Tenure

48yo

Average Age

Experienced Board: BSR's board of directors are not considered experienced ( 2.5 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: BSR 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 30.8%.


Top Shareholders

Company Information

Bluestone Resources Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bluestone Resources Inc.
  • Ticker: BSR
  • Exchange: TSXV
  • Founded: 2000
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$141.692m
  • Shares outstanding: 82.38m
  • Website: https://www.bluestoneresources.ca

Number of Employees


Location

  • Bluestone Resources Inc.
  • 800 West Pender Street
  • Suite 1020
  • Vancouver
  • British Columbia
  • V6C 2V6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BSRTSXV (TSX Venture Exchange)YesCommon Voting SharesCACADOct 2001
IX9DDB (Deutsche Boerse AG)YesCommon Voting SharesDEEUROct 2001
BBSR.FOTCPK (Pink Sheets LLC)YesCommon Voting SharesUSUSDOct 2001

Biography

Bluestone Resources Inc. operates as a mineral exploration and development company. It focuses on advancing its 100% owned Cerro Blanco gold and Mita geothermal projects located in Guatemala. The company was formerly known as Indicator Minerals Inc. and changed its name to Bluestone Resources Inc. in January 2012. Bluestone Resources Inc. was incorporated in 2000 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:08
End of Day Share Price2020/02/14 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.