TSXV:MGI

Stock Analysis Report

Executive Summary

Magnum Goldcorp Inc. engages in the acquisition and exploration of mineral resource properties in Canada.

Risk Analysis

Earnings have declined by -9.95% per year over past 5 years

Has less than 1 year of cash runway

Does not have a meaningful market cap (CA$363K)

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

+ 2 more risks


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has Magnum Goldcorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-25.0%

MGI

-0.9%

CA Metals and Mining

-0.08%

CA Market


1 Year Return

-40.0%

MGI

21.9%

CA Metals and Mining

10.8%

CA Market

Return vs Industry: MGI underperformed the Canadian Metals and Mining industry which returned 21.9% over the past year.

Return vs Market: MGI underperformed the Canadian Market which returned 10.8% over the past year.


Shareholder returns

MGIIndustryMarket
7 Day-25.0%-0.9%-0.08%
30 Day-25.0%2.5%0.01%
90 Day-62.5%-1.2%1.2%
1 Year-40.0%-40.0%22.9%21.9%14.4%10.8%
3 Year-87.5%-87.5%4.6%2.7%15.0%4.6%
5 Year-87.5%-87.5%40.1%35.8%40.1%19.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Magnum Goldcorp undervalued compared to its fair value and its price relative to the market?

0.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: MGI is good value based on its PB Ratio (0.1x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

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

17.2%

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 Magnum Goldcorp 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 Magnum Goldcorp performed over the past 5 years?

-10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGI is currently unprofitable.

Growing Profit Margin: MGI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MGI is unprofitable, and losses have increased over the past 5 years at a rate of -10% per year.

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

Earnings vs Industry: MGI is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (4.1%).


Return on Equity

High ROE: MGI has a negative Return on Equity (-9.54%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Magnum Goldcorp's financial position?


Financial Position Analysis

Short Term Liabilities: MGI's short term assets (CA$69.7K) do not cover its short term liabilities (CA$470.0K).

Long Term Liabilities: MGI has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: MGI's debt to equity ratio (3.6%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: MGI's debt is not covered by short term assets (assets are 0.7x 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: MGI has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MGI has less than a year of cash runway if free cash flow continues to grow at historical rates of 11.3% each year.


Next Steps

Dividend

What is Magnum Goldcorp's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.6%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

6.1yrs

Average board tenure


CEO

Doug Mason (71yo)

6.1yrs

Tenure

CA$30,000

Compensation

Mr. Douglas L. Mason, also known as Doug, was Chief Executive Officer of Naturally Splendid Enterprises Ltd., from April 11, 2018 until August 2019 and was its Director from November 2017 until August 2019 ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD22.68K) is below average for companies of similar size in the Canadian market ($USD136.07K).

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


Board Age and Tenure

6.1yrs

Average Tenure

61yo

Average Age

Experienced Board: MGI's board of directors are considered experienced (6.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$30,00011 Sep 19
Andrzej Kowalski
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares600,000
Max PriceCA$0.05
BuyCA$70,00011 Sep 19
Criterion Capital Corporation
EntityCompany
Shares1,400,000
Max PriceCA$0.05
BuyCA$8,60318 Jul 19
Douglas Mason
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares172,000
Max PriceCA$0.05
SellCA$8,70817 Jul 19
Andrzej Kowalski
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares175,000
Max PriceCA$0.05
BuyCA$2,23117 Jul 19
Andrzej Kowalski
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceCA$0.045
BuyCA$1,50012 Jul 19
Douglas Mason
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares30,000
Max PriceCA$0.05
SellCA$47,00010 Jul 19
Criterion Capital Corporation
EntityCompany
Shares940,000
Max PriceCA$0.05
SellCA$10,65010 Jul 19
Douglas Mason
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares213,000
Max PriceCA$0.05
BuyCA$1,50027 Jun 19
Daniel Evans
EntityIndividual
Role
Member of the Board of Directors
Director
Shares30,000
Max PriceCA$0.05
SellCA$3,00021 Jun 19
Criterion Capital Corporation
EntityCompany
Shares60,000
Max PriceCA$0.05
BuyCA$1,96021 Jun 19
Criterion Capital Corporation
EntityCompany
Shares40,000
Max PriceCA$0.049
BuyCA$3,00012 Jun 19
Criterion Capital Corporation
EntityCompany
Shares60,000
Max PriceCA$0.05
BuyCA$1,75812 Jun 19
Hazmagic Holdings Inc.
EntityCompany
Shares39,000
Max PriceCA$0.045
BuyCA$5010 Jun 19
Hazmagic Holdings Inc.
EntityCompany
Shares1,000
Max PriceCA$0.05
BuyCA$2,45007 Jun 19
Hazmagic Holdings Inc.
EntityCompany
Shares49,000
Max PriceCA$0.05
BuyCA$3,49306 Jun 19
Criterion Capital Corporation
EntityCompany
Shares70,000
Max PriceCA$0.05
BuyCA$1,59503 Jun 19
Criterion Capital Corporation
EntityCompany
Shares40,000
Max PriceCA$0.04
BuyCA$1,60003 Jun 19
Daniel Evans
EntityIndividual
Role
Member of the Board of Directors
Director
Shares40,000
Max PriceCA$0.04
BuyCA$4,20016 May 19
Criterion Capital Corporation
EntityCompany
Shares120,000
Max PriceCA$0.035
BuyCA$5,00025 Jan 19
Criterion Capital Corporation
EntityCompany
Shares250,000
Max PriceCA$0.02
BuyCA$5,00025 Jan 19
Hazmagic Holdings Inc.
EntityCompany
Shares250,000
Max PriceCA$0.02
SellCA$22,86924 Jan 19
Cordilleran Resources LP
EntityCompany
Shares1,085,000
Max PriceCA$0.027

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.7%.


Management Team

  • Doug Mason (71yo)

    Chairman

    • Tenure: 6.1yrs
    • Compensation: CA$30.00k
  • Mike Perkins (64yo)

    Corporate Secretary

    • Tenure: 0yrs
  • Sead Hamzagic (56yo)

    CFO & Director

    • Tenure: 6.1yrs
    • Compensation: CA$30.00k

Board Members

  • Doug Mason (71yo)

    Chairman

    • Tenure: 6.1yrs
    • Compensation: CA$30.00k
  • Dan Evans (65yo)

    Director

    • Tenure: 8.7yrs
    • Compensation: CA$30.00k
  • David Evans (61yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: CA$4.00k
  • Sead Hamzagic (56yo)

    CFO & Director

    • Tenure: 6.1yrs
    • Compensation: CA$30.00k
  • Andrzej Kowalski (56yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: CA$4.00k
  • Hugh Maddin

    Director

    • Tenure: 0.6yrs

Company Information

Magnum Goldcorp Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Magnum Goldcorp Inc.
  • Ticker: MGI
  • Exchange: TSXV
  • Founded: 2011
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$362.561k
  • Shares outstanding: 24.17m
  • Website: https://magnumgoldcorp.com

Location

  • Magnum Goldcorp Inc.
  • 2489 Bellevue Avenue
  • West Vancouver
  • British Columbia
  • V7V 1E1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGITSXV (TSX Venture Exchange)YesCommon SharesCACADOct 2011
1CJADB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2011
MGID.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2011

Biography

Magnum Goldcorp Inc. engages in the acquisition and exploration of mineral resource properties in Canada. It owns a 100% interest in the LH gold property, which consists of 19 contiguous crown granted clai ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 00:25
End of Day Share Price2019/12/09 00:00
Earnings2019/08/31
Annual Earnings2019/05/31


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.