TSXV:GIGA

Stock Analysis Report

Executive Summary

Giga Metals Corporation engages in the acquisition, exploration, and development of mineral properties in Canada.

Risk Analysis

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

Does not have a meaningful market cap (CA$18M)



Snowflake Analysis

Flawless balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.2%

GIGA

0.3%

CA Metals and Mining

1.2%

CA Market


1 Year Return

30.6%

GIGA

28.3%

CA Metals and Mining

9.6%

CA Market

Return vs Industry: GIGA exceeded the Canadian Metals and Mining industry which returned 26.9% over the past year.

Return vs Market: GIGA exceeded the Canadian Market which returned 10.4% over the past year.


Shareholder returns

GIGAIndustryMarket
7 Day3.2%0.3%1.2%
30 Day-11.1%3.2%2.6%
90 Day-15.8%7.8%6.0%
1 Year30.6%30.6%29.2%28.3%13.1%9.6%
3 Year433.3%433.3%-0.4%-2.2%17.1%6.4%
5 Year60.0%60.0%28.4%24.2%36.1%16.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.38x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: GIGA is overvalued based on its PB Ratio (2.5x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Giga Metals 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 Giga 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 Giga Metals performed over the past 5 years?

60.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GIGA is currently unprofitable.

Growing Profit Margin: GIGA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GIGA is unprofitable, but has reduced losses over the past 5 years at a rate of 60.6% per year.

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

Earnings vs Industry: GIGA is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-1.4%).


Return on Equity

High ROE: GIGA has a negative Return on Equity (-62.08%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Giga Metals's financial position?


Financial Position Analysis

Short Term Liabilities: GIGA's short term assets (CA$3.7M) exceed its short term liabilities (CA$332.7K).

Long Term Liabilities: GIGA's short term assets (CA$3.7M) exceed its long term liabilities (CA$237.5K).


Debt to Equity History and Analysis

Debt Level: GIGA is debt free.

Reducing Debt: GIGA had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if GIGA'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: GIGA has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: GIGA has sufficient cash runway for 1.7 years if free cash flow continues to reduce at historical rates of -59.4% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if GIGA'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 GIGA's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Mark Jarvis (64yo)

16yrs

Tenure

CA$155,760

Compensation

Mr. Mark Jarvis has been the Chief Executive Officer and President of Shoal Point Energy Ltd. since June 28, 2013. He serves as Chief Executive Officer at Giga Metals Corporation since January 9, 2004. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD119.22K) is about average for companies of similar size in the Canadian market ($USD165.67K).

Compensation vs Earnings: Mark's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.3yrs

Average Tenure

57yo

Average Age

Experienced Management: GIGA's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

61yo

Average Age

Experienced Board: GIGA's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: GIGA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$27320 Nov 19
Lyle Davis
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares700
Max PriceCA$0.39
SellCA$12,00006 Nov 19
Leslie Young
EntityIndividual
Role
Secretary
Corporate Secretary
Shares25,000
Max PriceCA$0.48
SellCA$11,25031 Oct 19
Leslie Young
EntityIndividual
Role
Secretary
Corporate Secretary
Shares25,000
Max PriceCA$0.45
SellCA$10,50024 Oct 19
Leslie Young
EntityIndividual
Role
Secretary
Corporate Secretary
Shares25,000
Max PriceCA$0.42
SellCA$13,00011 Jun 19
Brian Usher-Jones
EntityIndividual
Shares54,000
Max PriceCA$0.25
BuyCA$7,50024 May 19
Brian Usher-Jones
EntityIndividual
Shares50,000
Max PriceCA$0.15
BuyCA$14,67522 May 19
Brian Usher-Jones
EntityIndividual
Shares65,500
Max PriceCA$0.24
BuyCA$8,21913 May 19
Brian Usher-Jones
EntityIndividual
Shares43,500
Max PriceCA$0.19
BuyCA$4,25003 May 19
Brian Usher-Jones
EntityIndividual
Shares25,000
Max PriceCA$0.17
BuyCA$3,41230 Apr 19
Brian Usher-Jones
EntityIndividual
Shares17,500
Max PriceCA$0.20
BuyCA$220,00025 Apr 19
Mark Jarvis
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares2,200,000
Max PriceCA$0.10
SellCA$30,00025 Apr 19
Frioud Holdings Inc.
EntityCompany
Shares120,000
Max PriceCA$0.25
SellCA$220,00025 Apr 19
Mark Jarvis
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares880,000
Max PriceCA$0.25
BuyCA$30,00025 Apr 19
Frioud Holdings Inc.
EntityCompany
Shares300,000
Max PriceCA$0.10
BuyCA$250,00024 Apr 19
Brian Usher-Jones
EntityIndividual
Shares2,500,000
Max PriceCA$0.10
SellCA$250,00024 Apr 19
Brian Usher-Jones
EntityIndividual
Shares1,000,000
Max PriceCA$0.25
BuyCA$48,88011 Apr 19
Martin Vydra
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares240,000
Max PriceCA$0.21
BuyCA$5,00022 Mar 19
Robert Morris
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceCA$0.20
SellCA$4,04926 Jan 19
Lyle Davis
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares15,000
Max PriceCA$0.27

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.2%.


Management Team

  • Mark Jarvis (64yo)

    CEO & Director

    • Tenure: 16yrs
    • Compensation: CA$155.76k
  • Leslie Young (60yo)

    Corporate Secretary

    • Tenure: 15.9yrs
    • Compensation: CA$57.25k
  • Lindsay MacLeod

    Investor Relations Executive

    • Tenure: 10yrs
  • Dave Tupper

    Manager of Exploration & Manager of Geology

    • Tenure: 2.3yrs
  • Matt Anderson (36yo)

    Controller & CFO

    • Tenure: 1.8yrs
    • Compensation: CA$60.17k
  • Martin Vydra (54yo)

    President & Director

    • Tenure: 1.2yrs
    • Compensation: CA$40.43k
  • Erick Bertsch

    Director of Corporate Communications

    • Tenure: 1.3yrs

Board Members

  • Tom Milner (73yo)

    Senior Mining Advisor to the President

    • Tenure: 2.3yrs
    • Compensation: CA$2.50k
  • Mark Jarvis (64yo)

    CEO & Director

    • Tenure: 16yrs
    • Compensation: CA$155.76k
  • Lyle Davis (62yo)

    Non-Executive Chairman

    • Tenure: 11.5yrs
    • Compensation: CA$31.56k
  • Jon Hykawy (54yo)

    Member of Advisory Board

    • Tenure: 1yrs
    • Compensation: CA$31.56k
  • Dave Dreisinger (61yo)

    Member of Advisory Board

    • Tenure: 2.3yrs
  • Tookie Angus

    Member of Advisory Board

    • Tony Milewski (38yo)

      Independent Director

      • Tenure: 0.8yrs
    • Cliff Carson (70yo)

      Member of Advisory Board

      • Tenure: 2.3yrs
      • Compensation: CA$222.07k
    • Martin Vydra (54yo)

      President & Director

      • Tenure: 1.2yrs
      • Compensation: CA$40.43k
    • Robert Morris (56yo)

      Independent Director

      • Tenure: 1yrs

    Company Information

    Giga Metals Corporation's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Giga Metals Corporation
    • Ticker: GIGA
    • Exchange: TSXV
    • Founded: 1983
    • Industry: Diversified Metals and Mining
    • Sector: Materials
    • Market Cap: CA$17.758m
    • Shares outstanding: 55.49m
    • Website: https://www.gigametals.com

    Location

    • Giga Metals Corporation
    • 700 West Pender Street
    • Suite 203
    • Vancouver
    • British Columbia
    • V6C 1G8
    • Canada

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    GIGATSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1988
    BRR2DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
    HNCK.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988
    0UXLLSE (London Stock Exchange)YesCommon SharesGBCADSep 1988

    Biography

    Giga Metals Corporation engages in the acquisition, exploration, and development of mineral properties in Canada. The company explores for nickel-cobalt sulphide deposits. It owns a 100% interest in the Turnagain property comprising 72 mineral claims covering an area of 40,016.7 hectares located in the Liard Mining Division of northern British Columbia. The company was formerly known as Hard Creek Nickel Corporation and changed its name to Giga Metals Corporation in August 2017. Giga Metals Corporation was founded in 1983 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 Analysis2020/01/17 01:46
    End of Day Share Price2020/01/16 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.