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East Africa Metals

TSXV:EAM
Snowflake Description

Imperfect balance sheet with weak fundamentals.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EAM
TSXV
CA$37M
Market Cap
  1. Home
  2. CA
  3. Materials
Company description

East Africa Metals Inc., a minerals exploration company, focuses on the identification, acquisition, exploration, development, and sale of base and precious mineral resource properties in the Federal Democratic Republic of Ethiopia and the United Republic of Tanzania. The last earnings update was 109 days ago. More info.


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  • East Africa Metals has significant price volatility in the past 3 months.
EAM Share Price and Events
7 Day Returns
-4.7%
TSXV:EAM
-0.1%
CA Metals and Mining
0.9%
CA Market
1 Year Returns
-18%
TSXV:EAM
-7%
CA Metals and Mining
-0.2%
CA Market
EAM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
East Africa Metals (EAM) -4.7% 2.5% 28.1% -18% 127.8% 57.7%
CA Metals and Mining -0.1% 2.7% 11.6% -7% 7.6% -24.1%
CA Market 0.9% 2.2% 10.5% -0.2% 15.7% 4.9%
1 Year Return vs Industry and Market
  • EAM underperformed the Metals and Mining industry which returned -7% over the past year.
  • EAM underperformed the Market in Canada which returned -0.2% over the past year.
Price Volatility
EAM
Industry
5yr Volatility vs Market

EAM Value

 Is East Africa Metals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for East Africa Metals. This is due to cash flow or dividend data being unavailable. The share price is CA$0.205.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for East Africa Metals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are East Africa Metals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSXV:EAM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in CAD CA$-0.05
TSXV:EAM Share Price ** TSXV (2019-03-15) in CAD CA$0.21
Canada Metals and Mining Industry PE Ratio Median Figure of 115 Publicly-Listed Metals and Mining Companies 13.41x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 14.84x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of East Africa Metals.

TSXV:EAM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSXV:EAM Share Price ÷ EPS (both in CAD)

= 0.21 ÷ -0.05

-4.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • East Africa Metals is loss making, we can't compare its value to the CA Metals and Mining industry average.
  • East Africa Metals is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does East Africa Metals's expected growth come at a high price?
Raw Data
TSXV:EAM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -4.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Canada Metals and Mining Industry PEG Ratio Median Figure of 35 Publicly-Listed Metals and Mining Companies 0.69x
Canada Market PEG Ratio Median Figure of 251 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for East Africa Metals, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on East Africa Metals's assets?
Raw Data
TSXV:EAM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in CAD CA$0.10
TSXV:EAM Share Price * TSXV (2019-03-15) in CAD CA$0.21
Canada Metals and Mining Industry PB Ratio Median Figure of 1,081 Publicly-Listed Metals and Mining Companies 1.45x
Canada Market PB Ratio Median Figure of 2,348 Publicly-Listed Companies 1.57x
TSXV:EAM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSXV:EAM Share Price ÷ Book Value per Share (both in CAD)

= 0.21 ÷ 0.10

1.99x

* Primary Listing of East Africa Metals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • East Africa Metals is overvalued based on assets compared to the CA Metals and Mining industry average.
X
Value checks
We assess East Africa Metals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. East Africa Metals has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

EAM Future Performance

 How is East Africa Metals expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 East Africa 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
33.4%
Expected Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is East Africa Metals expected to grow at an attractive rate?
  • Unable to compare East Africa Metals's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare East Africa Metals's earnings growth to the Canada market average as no estimate data is available.
  • Unable to compare East Africa Metals's revenue growth to the Canada market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
TSXV:EAM Future Growth Rates Data Sources
Data Point Source Value (per year)
Canada Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 33.4%
Canada Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 6.9%
Canada Market Earnings Growth Rate Market Cap Weighted Average 17.9%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSXV:EAM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSXV:EAM Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
TSXV:EAM Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-09-30 -4 -8
2018-06-30 -5 -8
2018-03-31 -7 -8
2017-12-31 -8 -9
2017-09-30 -8 -8
2017-06-30 -8 -8
2017-03-31 -5 -6
2016-12-31 -4 -5
2016-09-30 -5 -6
2016-06-30 -6 -6
2016-03-31 -7 -7
2015-12-31 -8 -8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if East Africa Metals is high growth as no earnings estimate data is available.
  • Unable to determine if East Africa Metals is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSXV:EAM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from East Africa Metals Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSXV:EAM Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
TSXV:EAM Past Financials Data
Date (Data in CAD Millions) EPS *
2018-09-30 -0.05
2018-06-30 -0.05
2018-03-31 -0.05
2017-12-31 -0.06
2017-09-30 -0.06
2017-06-30 -0.06
2017-03-31 -0.05
2016-12-31 -0.05
2016-09-30 -0.06
2016-06-30 -0.06
2016-03-31 -0.07
2015-12-31 -0.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if East Africa Metals will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Take a look at our analysis of EAM’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.
  2. East Africa Metals's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Materials companies here
  3. East Africa Metals's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess East Africa Metals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
East Africa Metals has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

EAM Past Performance

  How has East Africa Metals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare East Africa Metals's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • East Africa Metals does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare East Africa Metals's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare East Africa Metals's 1-year growth to the CA Metals and Mining industry average as it is not currently profitable.
Earnings and Revenue History
East Africa Metals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from East Africa Metals Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSXV:EAM Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 -8.10 7.39
2018-06-30 -8.33 7.59
2018-03-31 -7.94 7.12
2017-12-31 -9.12 8.34
2017-09-30 -7.96 7.21
2017-06-30 -7.99 7.03
2017-03-31 -6.26 5.43
2016-12-31 -5.17 4.55
2016-09-30 -6.04 6.02
2016-06-30 -6.29 6.71
2016-03-31 -6.99 7.49
2015-12-31 -8.05 8.87
2015-09-30 -11.14 8.90
2015-06-30 -11.42 9.28
2015-03-31 -11.70 9.31
2014-12-31 -10.44 7.30
2014-09-30 -5.85 3.00
2014-06-30 -5.64 3.17
2014-03-31 -5.04 4.63
2013-12-31 -8.21 5.96
2013-09-30 -10.42 6.82
2013-06-30 -13.17 12.99
2012-06-30 -31.92 32.84

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if East Africa Metals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if East Africa Metals has efficiently used its assets last year compared to the CA Metals and Mining industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if East Africa Metals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess East Africa Metals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
East Africa Metals has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

EAM Health

 How is East Africa Metals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up East Africa Metals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • East Africa Metals's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • East Africa Metals's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of East Africa Metals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from East Africa Metals Company Filings, last reported 5 months ago.

TSXV:EAM Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 20.49 0.33 0.19
2018-06-30 21.64 0.32 0.50
2018-03-31 22.94 0.31 1.63
2017-12-31 22.69 0.62 2.27
2017-09-30 22.46 0.60 0.63
2017-06-30 24.56 0.00 1.24
2017-03-31 26.17 0.00 3.26
2016-12-31 23.90 0.00 0.37
2016-09-30 24.93 0.00 1.18
2016-06-30 24.55 0.00 0.98
2016-03-31 24.67 0.00 0.84
2015-12-31 27.56 0.00 2.32
2015-09-30 29.07 0.00 4.00
2015-06-30 29.10 0.00 5.27
2015-03-31 31.27 0.00 7.18
2014-12-31 32.10 0.00 10.44
2014-09-30 36.52 0.00 12.19
2014-06-30 37.23 0.00 14.61
2014-03-31 29.58 0.00 18.15
2013-12-31 31.00 0.00 20.00
2013-09-30 31.26 0.00 22.61
2013-06-30 32.32 0.00 19.27
2012-06-30 103.58 0.00 95.26
  • East Africa Metals's level of debt (1.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 1.6% today).
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.

  • East Africa Metals has less than a year of cash runway based on current free cash flow.
  • East Africa Metals has less than a year of cash runway if free cash flow continues to reduce at historical rates of -10.5% each year.
X
Financial health checks
We assess East Africa Metals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. East Africa Metals has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

EAM Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from East Africa Metals dividends.
If you bought CA$2,000 of East Africa Metals shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate East Africa Metals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate East Africa Metals's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSXV:EAM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Canada Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 1.2%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSXV:EAM Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as East Africa Metals has not reported any payouts.
  • Unable to verify if East Africa Metals's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of East Africa Metals's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as East Africa Metals has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess East Africa Metals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can East Africa Metals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. East Africa Metals has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

EAM Management

 What is the CEO of East Africa Metals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew Smith
COMPENSATION CA$309,000
AGE 61
CEO Bio

Mr. Andrew Lee Smith, B.Sc., P.Geo. has been an Interim Chief Executive Officer of True North Gems Inc. since February 20, 2017. Mr. Smith has been an Interim Chief Executive Officer and Interim President at Nickel North Exploration Corp. since June 26, 2014 and has been its Director since July 08, 2014. Mr. Smith serves as the President and Chief Executive Officer of Tigray Resources Inc. Mr. Smith serves as Director at Tigray Resources Inc. since September 23, 2010. He serves as the President and Chief Executive Officer of East Africa Metals Inc. He has been President of Iron Mask Explorations Ltd. since 1998. Mr. Smith served as Chief Executive Officer at Orca Gold Inc. until April 2013. He served as an Advisor of Pure Energy Minerals Limited since March 2010. He also served as President of True North Gems from February 29, 2008 to February 3, 2010. Mr. Smith co-founded True North Gems Inc. in May 2001 and served as its Chief Executive Officer from May 2001 to February 3, 2010. He served as Secretary of True North Gems Inc. Mr. Smith served as the Chief Executive Officer and the President of Canaco Resources Inc. from April 11, 2005 to March 30, 2006. He served as the Chief Executive Officer and President of Cincoro Capital Corp. From October 1989 to March 1998, he served as the Exploration Manager of Aurizon Mines Ltd. Mr. Smith served as the President of Hinterland Metals Inc. since September 26, 2002. He served as President and Chief Executive Officer of Galantas Gold Corp. from April 1, 2004 to February 4, 2005. Mr. Smith served as the President of International Jaguar Equities Inc. from March 1998 to January 2000 and as its Vice-President from January 2000 to June 2001. Mr. Smith joined Aurizon Mines Ltd. in 1985. He served as the Vice President of exploration of Aurizon Mines Ltd until 1998. From 1985 to 1998, while working with a junior mining company, he performed a frontline supervisory role as the Technical Lead for the development of two successful underground, narrow vein mining operations. Mr. Smith served as the Chairman of True North Gems Inc. He served as the Chairman of the Board at Canaco Resources Inc., since March 30, 2006. He has been a Director of East Africa Metals Inc. since December 7, 2012 and of Ultra Lithium Inc since December 3, 2015. He has been a Director at Scorpio Gold Corporation since May 29, 2006 and Daytona Energy Corp. since May 10, 2006. He has been a Director at True North Gems Inc. since May 2001. He serves as a Director of Iron Mask Exploration Ltd. He served as a Director at Resinco Capital Partners Inc. from March 21, 2014 to February 2018. Mr. Smith served as a Director of Discovery Energy Corp. from May 24, 2006 to November 14, 2011. He served as a Director at Golden Share Mining Corporation since June 09, 2010 until July 25, 2013. Mr. Smith served as a Director of Canaco Resources Inc. since August 12, 2004. He served as an Independent Director of Candente Gold Corp. from April 24, 2009 to September 14, 2012. Mr. Smith served as an Independent Director of Candente Copper Corp. since April 7, 2006. He served as a Director of Cincoro Capital Corp. since May 29, 2006. Mr. Smith served as a Director of Hinterland Metals Inc. from September 26, 2002 to June 8, 2007. He served as a Director of Tembo Gold Corp. from January 10, 2006 to June 21, 2007. Mr. Smith served as a Director of Galantas Gold Corp., from April 1, 2004 to February 4, 2005. He served as a Director of International Jaguar Equities Inc. from 1998 to 2001. Mr. Smith served as a Member of the Advisory Board of Douglas Lake Minerals Inc. since August 2, 2006. He served as Director of Canamax Energy Ltd. since May 10, 2006 until July 26, 2011. Mr. Smith is a Professional Geologist. He has over 30 years of experience successfully exploring, developing and operating North American base and precious metal mining projects. Since 1998, he has focused his activities on the corporate development of junior mineral exploration and mining companies. In 1994, he was the co-recipient of the 1994 “Mining Entrepreneur of the Year Award“ presented by the Quebec Prospector's Association for his work overseeing the exploration and development of the Sleeping Giant and Beaufor Gold Projects. He also received in 2009 a 'Distinguished Alumni' Award from the University of Waterloo, Faculty of Science for his contribution to mineral exploration. He was a Fellow of the Geological Association of Canada and the Society of Economic Geologists. Mr. Smith holds a Bachelor of Science Degree in Earth Sciences from the University of Waterloo.

CEO Compensation
  • Andrew's compensation has increased whilst company is loss making.
  • Andrew's remuneration is higher than average for companies of similar size in Canada.
Management Team

Andrew Smith

TITLE
President
COMPENSATION
CA$309K
AGE
61

Peter Granata

TITLE
Chief Financial Officer
COMPENSATION
CA$143K
AGE
48

Jeff Heidema

TITLE
Vice President of Exploration
COMPENSATION
CA$172K
AGE
57

Vera Yang

TITLE
Director of Corporate Communications

Denis Dillip

TITLE
Chief Geologist
COMPENSATION
CA$95K

Nick Watters

TITLE
Director of Business Development
COMPENSATION
CA$202K
AGE
46
Board of Directors Tenure

Average tenure and age of the East Africa Metals board of directors in years:

5.4
Average Tenure
61
Average Age
  • The tenure for the East Africa Metals board of directors is about average.
Board of Directors

Jingbin Wang

TITLE
Chairman of the Board
COMPENSATION
CA$24K
AGE
56
TENURE
6 yrs

Andrew Smith

TITLE
President
COMPENSATION
CA$309K
AGE
61
TENURE
6.3 yrs

Denis Dillip

TITLE
Chief Geologist
COMPENSATION
CA$95K

David Parsons

TITLE
Director
COMPENSATION
CA$21K
AGE
64
TENURE
4.8 yrs

Tony Harwood

TITLE
Director
COMPENSATION
CA$14K
AGE
63
TENURE
6 yrs

Sean Waller

TITLE
Director
COMPENSATION
CA$98K
AGE
61
TENURE
3 yrs

Zhijun He

TITLE
Director
COMPENSATION
CA$8K
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
07. Oct 18 Sell Jeffrey Heidema Individual 02. Oct 18 02. Oct 18 -23,500 CA$0.19 CA$-4,065
09. Sep 18 Sell Jeffrey Heidema Individual 05. Sep 18 05. Sep 18 -20,000 CA$0.28 CA$-5,600
27. Aug 18 Sell Peter Granata Individual 05. Jul 18 13. Aug 18 -56,000 CA$0.21 CA$-10,534
27. Aug 18 Sell Jeffrey Heidema Individual 22. Aug 18 22. Aug 18 -20,000 CA$0.21 CA$-4,200
12. Jul 18 Buy Jeffrey Heidema Individual 09. Jul 18 09. Jul 18 125,000 CA$0.20 CA$25,000
09. Jul 18 Sell Jeffrey Heidema Individual 06. Jul 18 06. Jul 18 -7,000 CA$0.20 CA$-1,400
02. Jul 18 Sell Peter Granata Individual 29. Jun 18 29. Jun 18 -40,000 CA$0.18 CA$-7,200
X
Management checks
We assess East Africa Metals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. East Africa Metals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

EAM News

Simply Wall St News

Is East Africa Metals Inc's (CVE:EAM) Balance Sheet A Threat To Its Future?

East Africa Metals Inc (CVE:EAM) is a small-cap stock with a market capitalization of CA$34.99m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health.

Simply Wall St -

East Africa Metals Inc (CVE:EAM): What Does It Mean For Your Portfolio?

With a beta of 3.73, East Africa Metals is a stock that tends to experience more gains than the market during a growth phase and also a bigger reduction in value compared to the market during a broad downturn. … With a market cap of CA$38.25M, EAM falls within the small-cap spectrum of stocks, which are found to experience higher relative risk compared to larger companies. … As a result, we should expect higher beta for small-cap stocks in a cyclical industry compared to larger stocks in a defensive industry.

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What You Must Know About East Africa Metals Inc's (CVE:EAM) Financial Strength

With this increase in debt, EAM's cash and short-term investments stands at CA$2.27M , ready to deploy into the business. … Moving onto cash from operations, its small level of operating cash flow means calculating cash-to-debt wouldn't be too useful, though these low levels of cash means that operational efficiency is worth a look. … Risk around debt is extremely low for EAM, and the company also has the ability and headroom to increase debt if needed going forward.Next Steps: Although EAM’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings.

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What You Must Know About East Africa Metals Inc's (CVE:EAM) Major Investors

Check out our latest analysis for East Africa Metals TSXV:EAM Ownership_summary Mar 22nd 18 Institutional Ownership Institutional investors are one of the largest group of market participants and their buy-sell decisions on a company's stock can significantly impact prices, more so, when there are relatively small amounts of shares available on the market to trade. … With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors. … With this size of ownership in EAM, this ownership class can affect the company's business strategy.

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Does East Africa Metals Inc's (CVE:EAM) CEO Pay Matter?

See our latest analysis for East Africa Metals What has EAM's performance been like? … Normally I would look at market cap and earnings as a proxy for performance, however, EAM's negative earnings lower the effectiveness of this method. … If you have not done so already, I highly recommend you to complete your research by taking a look at the following: Governance: To find out more about EAM's governance, look through our infographic report of the company's board and management.

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One Thing To Consider Before Buying East Africa Metals Inc (CVE:EAM)

If you are looking to invest in East Africa Metals Inc’s (TSXV:EAM), or currently own the stock, then you need to understand its beta in order to understand how it can affect the risk of your portfolio. … A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … I examine EAM’s ratio of fixed assets to total assets to see whether the company is highly exposed to the risk of this type of constraint.

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Are East Africa Metals Inc's (CVE:EAM) Interest Costs Too High?

How does EAM’s operating cash flow stack up against its debt? … Though its small level of operating cash flow means calculating cash-to-debt wouldn't be too useful, though these low levels of cash means that operational efficiency is worth a look. … EAM’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.

Simply Wall St -

East Africa Metals Inc (TSXV:EAM): Is Basic Materials An Attractive Sector Play?

TSXV:EAM PE PEG Gauge Nov 15th 17 metals and mining companies are typically trading at a PE of 11x, lower than the rest of the Canadian stock market PE of 17x. … If your initial investment thesis is around the growth prospects of EAM, there are other metals and mining companies that have delivered higher growth, and perhaps trading at a discount to the industry average. … Although its growth has delivered lower growth relative to its metals and mining peers in the near term, the market may be pessimistic on the stock, leading to a potential undervaluation.

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Should You Be Concerned About East Africa Metals Inc's (TSXV:EAM) Shareholders?

The company hardly has institutions in its ownership structure, indicating limited concern for investors to worry about potential sell-offs that could arise due to extensive liquidation. … Insider Ownership Another important group of shareholders are company insiders. … Private Company Ownership Potential investors in EAM should also look at another important group of investors: private companies, with a stake of 25.53%, who are primarily invested because of strategic and capital gain interests.

Simply Wall St -

EAM Company Info

Description

East Africa Metals Inc., a minerals exploration company, focuses on the identification, acquisition, exploration, development, and sale of base and precious mineral resource properties in the Federal Democratic Republic of Ethiopia and the United Republic of Tanzania. The company primarily explores for gold, copper, silver, and zinc deposits. It primarily holds a 70% interest in the Harvest project comprising 3 contiguous exploration concessions that covers an area of approximately 86 square kilometers located in the Tigray region of Ethiopia; a 100% interest in the Adyabo project covering 195.5 square kilometers located in the Arabian Nubian Shield in Northern Ethiopia; and an interest in the Handeni property comprising 2 mining licenses covering 9.9 square kilometers, and contiguous mineral tenures totaling approximately 83.5 square kilometers located in northeastern Tanzania. The company was incorporated in 2012 and is headquartered in Vancouver, Canada.

Details
Name: East Africa Metals Inc.
EAM
Exchange: TSXV
Founded: 2012
CA$36,569,661
178,388,591
Website: http://www.eastafricametals.com
Address: East Africa Metals Inc.
1055 West Georgia Street,
Suite 700,
Vancouver,
British Columbia, V6E 3P3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSXV EAM Common Shares TSX Venture Exchange CA CAD 11. Jul 2013
OTCPK EFRM.F Common Shares Pink Sheets LLC US USD 11. Jul 2013
DB EA1 Common Shares Deutsche Boerse AG DE EUR 11. Jul 2013
Number of employees
Current staff
Staff numbers
0
East Africa Metals employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/18 00:32
End of day share price update: 2019/03/15 00:00
Last estimates confirmation: 2017/04/28
Last earnings filing: 2018/11/29
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.