TSXV:CIO

Stock Analysis Report

Executive Summary

Central Iron Ore Limited focuses on the exploration and development of iron ore and gold projects in Western Australia.

Risk Analysis

Makes less than USD$1m in revenue (A$110K)

Does not have a meaningful market cap (CA$727K)

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



Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Central Iron Ore's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

CIO

2.4%

CA Metals and Mining

0.6%

CA Market


1 Year Return

-60.0%

CIO

4.4%

CA Metals and Mining

5.8%

CA Market

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

Return vs Market: CIO underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

CIOIndustryMarket
7 Day0%2.4%0.6%
30 Day0%1.2%0.5%
90 Dayn/a6.6%3.6%
1 Year-60.0%-60.0%5.0%4.4%9.1%5.8%
3 Year-60.0%-60.0%-10.4%-11.9%15.4%5.0%
5 Year100.0%100.0%22.9%19.2%33.6%14.0%

Price Volatility Vs. Market

How volatile is Central Iron Ore's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Central Iron Ore undervalued compared to its fair value and its price relative to the market?

0.41x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CIO is good value based on its PB Ratio (0.4x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Central Iron Ore forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.6%

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 Central Iron Ore 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 Central Iron Ore performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIO is currently unprofitable.

Growing Profit Margin: CIO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CIO is unprofitable, but has reduced losses over the past 5 years at a rate of 17.1% per year.

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

Earnings vs Industry: CIO 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: CIO has a negative Return on Equity (-55.5%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Central Iron Ore's financial position?


Financial Position Analysis

Short Term Liabilities: CIO's short term assets (A$1.3M) do not cover its short term liabilities (A$1.4M).

Long Term Liabilities: CIO has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: CIO's debt to equity ratio (34.2%) is considered satisfactory.

Reducing Debt: CIO's debt to equity ratio has increased from 5.2% to 34.2% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CIO's debt is covered by short term assets (assets are 1.9x 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: Whilst unprofitable CIO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CIO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 17.9% per year.


Next Steps

Dividend

What is Central Iron Ore'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 CIO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

8.5yrs

Average management tenure


CEO

Brett Hodgins (46yo)

9yrs

Tenure

AU$82,422

Compensation

Mr. Brett James Hodgins BSc (Hons), Grad Dip FINSIA has been the Chief Executive Officer and President of Central Iron Ore Limited since February 2011. He has been Technical Director of Redstone Resources  ...


CEO Compensation Analysis

Compensation vs Market: Brett's total compensation ($USD55.38K) is below average for companies of similar size in the Canadian market ($USD155.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brett Hodgins
President9yrsAU$82.42k0.55% A$4.0k
David Deitz
Chief Financial Officer6.3yrsAU$39.28kno data
Hugh Pinniger
Chief Operating Officer9yrsno datano data
Katherine Garvey
Chief Information Officer & Company Secretary8.1yrsno datano data

8.5yrs

Average Tenure

Experienced Management: CIO's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brett Hodgins
President9yrsAU$82.42k0.55% A$4.0k
Anthony Howland-Rose
Non-Executive Director8.7yrsno datano data
Richard Homsany
Chairman of the Board9yrsAU$104.80kno data

9.0yrs

Average Tenure

49yo

Average Age

Experienced Board: CIO's board of directors are considered experienced (9 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Central Iron Ore Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Central Iron Ore Limited
  • Ticker: CIO
  • Exchange: TSXV
  • Founded: 1996
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$727.107k
  • Shares outstanding: 72.71m
  • Website: https://www.centralironorelimited.com

Location

  • Central Iron Ore Limited
  • 49-51 York Street
  • Suite 1
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CIOTSXV (TSX Venture Exchange)YesOrdinary SharesCACADJun 2004

Biography

Central Iron Ore Limited focuses on the exploration and development of iron ore and gold projects in Western Australia. It holds interests in the Yilgarn Iron Ore Project, which comprises 10 tenements covering 652 square kilometers located within the Yilgarn Iron Ore Province; and the South Darlot Gold Project that covers an area of 190 square kilometers situated in North West of Kalgoorlie. The company was formerly known as International Gold Mining Limited and changed its name to Central Iron Ore Limited in January 2010. Central Iron Ore Limited was incorporated in 1996 and is headquartered in Sydney, Australia. 


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 Price2020/01/31 00:00
Earnings2019/09/30
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.