TSXV:DEF

Stock Analysis Report

Executive Summary

Defiance Silver Corp., an exploration stage company, engages in the acquisition, exploration, evaluation, and development of mineral properties primarily in Mexico.

Risk Analysis

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

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

How has Defiance Silver's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.6%

DEF

2.4%

CA Metals and Mining

0.6%

CA Market


1 Year Return

-9.5%

DEF

4.4%

CA Metals and Mining

5.8%

CA Market

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

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


Shareholder returns

DEFIndustryMarket
7 Day-2.6%2.4%0.6%
30 Day-15.6%1.2%0.5%
90 Day0%6.6%3.6%
1 Year-9.5%-9.5%5.0%4.4%9.1%5.8%
3 Year-52.5%-52.5%-10.4%-11.9%15.4%5.0%
5 Year2.7%2.7%22.9%19.2%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Defiance Silver undervalued compared to its fair value and its price relative to the market?

1.94x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: DEF is overvalued based on its PB Ratio (1.9x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Defiance Silver 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 Defiance Silver 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 Defiance Silver performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DEF is currently unprofitable.

Growing Profit Margin: DEF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DEF is unprofitable, but has reduced losses over the past 5 years at a rate of 0.2% per year.

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

Earnings vs Industry: DEF 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: DEF has a negative Return on Equity (-10.17%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Defiance Silver's financial position?


Financial Position Analysis

Short Term Liabilities: DEF's short term assets (CA$2.3M) exceed its short term liabilities (CA$2.2M).

Long Term Liabilities: DEF's short term assets (CA$2.3M) exceed its long term liabilities (CA$36.0K).


Debt to Equity History and Analysis

Debt Level: DEF's debt to equity ratio (8.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DEF's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: DEF's debt is covered by short term assets (assets are 2x 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: DEF has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: DEF has less than a year of cash runway if free cash flow continues to reduce at historical rates of -21.7% each year


Next Steps

Dividend

What is Defiance Silver'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 DEF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

1.0yrs

Average management tenure


CEO

Chris Wright 0

0.7yrs

Tenure

0

Mr. Christopher David Wright, also known as Chris, has been Executive Chairman of the Board for Defiance Silver Corporation since May 2019 and Interim Chief Executive Officer since June 2019. Mr. Wright se ...


Leadership Team

NamePositionTenureCompensationOwnership
William Bruce Winfield
2.6yrsCA$60.00kno data
Christopher Wright
Interim President0.7yrsno data0.25% CA$72.1k
Sherry Roberge
CFO & Corporate Secretary1yrsno data0.000070% CA$19.9

1.0yrs

Average Tenure

Experienced Management: DEF's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christopher Wright
Interim President0.7yrsno data0.25% CA$72.1k
Dunham Craig
Independent Director0.9yrsno data0.63% CA$179.9k
Ronald Sowerby
Independent Director7.2yrsno data1.41% CA$399.7k
Frederick Davidson
Member of Advisory Board8.5yrsno datano data
George Cavey
Member of Advisory Board0.3yrsno datano data
Randy V. Smallwood
Member of Advisory Board0.2yrsno data0.54% CA$152.1k
James Bergin
Director0.7yrsno data0.073% CA$20.7k
Darrell Rader
Director12.6yrsCA$42.50k0.22% CA$63.2k
Paul Smith
Independent Director5.3yrsno data0.77% CA$218.5k
Douglas Cavey
Member of Advisory Board0.3yrsno datano data

0.8yrs

Average Tenure

64yo

Average Age

Experienced Board: DEF's board of directors are not considered experienced ( 0.8 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 been diluted in the past year, with total shares outstanding growing by 22.7%.


Top Shareholders

Company Information

Defiance Silver Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Defiance Silver Corp.
  • Ticker: DEF
  • Exchange: TSXV
  • Founded: 2007
  • Industry: Silver
  • Sector: Materials
  • Market Cap: CA$28.400m
  • Shares outstanding: 149.48m
  • Website: https://www.defiancesilver.com

Location

  • Defiance Silver Corp.
  • Howe Street
  • Suite 704-595
  • Vancouver
  • British Columbia
  • V6C 2T5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DEFTSXV (TSX Venture Exchange)YesCommon SharesCACADMay 2008
DNCV.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2008
D4EDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2008

Biography

Defiance Silver Corp., an exploration stage company, engages in the acquisition, exploration, evaluation, and development of mineral properties primarily in Mexico. It primarily explores for gold, copper, and silver deposits. The company holds interest in the Tepal gold/copper project located in Michoacán state, Mexico; and the Lagartos Project that consists of 14 concessions with a total area of approximately 800 hectares located in Zacatecas Silver District. It also has an option to acquire a 100% interest in the San Acacio silver deposit that consists of 10 mining concessions located to the north of the city of Zacatecas, Mexico. The company was formerly known as Defiance Capital Corp. and changed its name to Defiance Silver Corp. in June 2011. Defiance Silver Corp. was incorporated in 2007 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 00:27
End of Day Share Price2020/02/14 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.