TSXV:LUKY

Stock Analysis Report

Luckystrike Resources

Executive Summary

Luckystrike Resources Ltd. engages in the acquisition, exploration, development, and evaluation of mineral properties in Canada.

Risk Analysis

Earnings have declined by -51.55% per year over past 5 years

Has less than 1 year of cash runway

Does not have a meaningful market cap (CA$6M)

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 Luckystrike Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.2%

LUKY

0.4%

CA Metals and Mining

1.6%

CA Market


1 Year Return

-70.0%

LUKY

28.4%

CA Metals and Mining

10.0%

CA Market

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

Return vs Market: LUKY underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

LUKYIndustryMarket
7 Day1.2%0.4%1.6%
30 Day-12.5%3.5%2.7%
90 Day68.0%8.8%6.4%
1 Year-70.0%-70.0%29.3%28.4%13.5%10.0%
3 Yearn/a-0.3%-2.1%17.5%6.8%
5 Yearn/a28.5%24.4%36.6%16.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.14x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: LUKY is good value based on its PB Ratio (0.1x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Luckystrike Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.7%

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 Luckystrike Resources 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 Luckystrike Resources performed over the past 5 years?

-51.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LUKY is currently unprofitable.

Growing Profit Margin: LUKY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LUKY is unprofitable, and losses have increased over the past 5 years at a rate of -51.5% per year.

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

Earnings vs Industry: LUKY 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: LUKY has a negative Return on Equity (-20.26%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Luckystrike Resources's financial position?


Financial Position Analysis

Short Term Liabilities: LUKY's short term assets (CA$791.0K) exceed its short term liabilities (CA$60.9K).

Long Term Liabilities: LUKY has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: LUKY is debt free.

Reducing Debt: LUKY has not had any debt for past 5 years.


Balance Sheet

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

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

Forecast Cash Runway: LUKY has less than a year of cash runway if free cash flow continues to reduce at historical rates of -12.6% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if LUKY'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 LUKY'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 Luckystrike Resources's salary, the management and board of directors tenure and is there insider trading?

0.3yrs

Average board tenure


CEO

John Newell 0

0.2yrs

Tenure

0

Mr. John Newell has been President, CEO and Director of Luckystrike Resources Ltd. since November 5, 2019. Mr. Newell has experience in the investment industry acting as an officer, director, and Portfolio ...


Board Age and Tenure

0.3yrs

Average Tenure

Experienced Board: LUKY's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: LUKY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$3,02223 Dec 19
John Newell
EntityIndividual
Role
Chief Executive Officer
President
Shares6,500
Max PriceCA$0.47
BuyCA$91,80023 Dec 19
John Newell
EntityIndividual
Role
Chief Executive Officer
President
Shares271,918
Max PriceCA$0.40
BuyCA$2,45914 Dec 19
John Newell
EntityIndividual
Role
Chief Executive Officer
President
Shares8,500
Max PriceCA$0.36
BuyCA$4,09830 Nov 19
John Newell
EntityIndividual
Role
Chief Executive Officer
President
Shares15,000
Max PriceCA$0.30
BuyCA$6,95025 Nov 19
John Newell
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceCA$0.29

Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Management Team

  • Lucy Zhang

    Director & CFO

    • John Newell

      President

      • Tenure: 0.2yrs

    Board Members

    • Larry Dick (67yo)

      Special Advisor

      • Rein Turna

        Director

        • Tenure: 0.2yrs
      • Lucy Zhang

        Director & CFO

        • Ewan Webster

          Director

          • Bill Jung

            Director

            • Tenure: 1.1yrs
          • Frank Högel

            Special Financial Advisor

            • Stephen Roach

              Member of Advisory Board

              • John Kuehne

                Special Advisor

                • Daniel Stuart

                  Independent Director

                  • Tenure: 0.3yrs
                • John Newell

                  President

                  • Tenure: 0.2yrs

                Company Information

                Luckystrike Resources Ltd.'s company bio, employee growth, exchange listings and data sources


                Key Information

                • Name: Luckystrike Resources Ltd.
                • Ticker: LUKY
                • Exchange: TSXV
                • Founded: 2018
                • Industry: Gold
                • Sector: Materials
                • Market Cap: CA$6.145m
                • Shares outstanding: 14.63m
                • Website: https://www.luckystrikeres.com

                Location

                • Luckystrike Resources Ltd.
                • 1130 West Pender Street
                • Suite 1010
                • Vancouver
                • British Columbia
                • V6E 4A4
                • Canada

                Listings

                TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                LUKYTSXV (TSX Venture Exchange)YesCommon SharesCACADAug 2018
                LCKY.DOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2018

                Biography

                Luckystrike Resources Ltd. engages in the acquisition, exploration, development, and evaluation of mineral properties in Canada. The company explores for gold deposits. Its flagship project is the Lucky Strike property, which covers an area of approximately 150 square kilometers located to the south of Dawson, Yukon. The company was incorporated in 2018 and is based in Vancouver, Canada. 


                Company Analysis and Financial Data Status

                All financial data provided by Standard & Poor's Capital IQ.
                DataLast Updated (UTC time)
                Company Analysis2020/01/19 00:38
                End of Day Share Price2020/01/15 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.