TSXV:MKA

Stock Analysis Report

Executive Summary

Mkango Resources Ltd., through its subsidiary, Lancaster Exploration Limited, explores for and develops rare earth elements and associated minerals in the Republic of Malawi, Africa.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has Mkango Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

n/a

MKA

-1.5%

CA Metals and Mining

-3.8%

CA Market


1 Year Return

n/a

MKA

4.9%

CA Metals and Mining

0.5%

CA Market

Return vs Industry: Insufficient data to determine how MKA performed against the Canadian Metals and Mining industry.

Return vs Market: Insufficient data to determine how MKA performed against the Canadian Market.


Shareholder returns

MKAIndustryMarket
7 Dayn/a-1.5%-3.8%
30 Dayn/a3.2%-2.0%
90 Dayn/a10.2%-0.3%
1 Yearn/a5.6%4.9%3.7%0.5%
3 Yearn/a-1.9%-3.6%13.6%3.4%
5 Yearn/a28.2%24.6%30.2%11.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: MKA is good value based on its PB Ratio (0x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

13.7%

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 Mkango 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 Mkango Resources performed over the past 5 years?

-31.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MKA is currently unprofitable.

Growing Profit Margin: MKA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MKA is unprofitable, and losses have increased over the past 5 years at a rate of -31.1% per year.

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

Earnings vs Industry: MKA is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.8%).


Return on Equity

High ROE: MKA has a negative Return on Equity (-34.35%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mkango Resources's financial position?


Financial Position Analysis

Short Term Liabilities: MKA's short term assets ($10.2M) exceed its short term liabilities ($222.0K).

Long Term Liabilities: MKA has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: MKA is debt free.

Reducing Debt: MKA currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

Inventory Level: MKA has a low level of unsold assets or inventory.

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

Forecast Cash Runway: MKA has sufficient cash runway for 1.4 years if free cash flow continues to reduce at historical rates of -29.4% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

4.6yrs

Average management tenure


CEO

Will Dawes 0

9.2yrs

Tenure

US$229,831

Compensation

Mr. William Dawes, also known as Will, is a graduate of Bristol University (BSc Geology) and Royal School of Mines, Imperial College, London (MSc Mineral Exploration with distinction). Having trained as a  ...


CEO Compensation Analysis

Compensation vs Market: Will's total compensation ($USD229.83K) is above average for companies of similar size in the Canadian market ($USD155.12K).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Dawes
Co-Founder9.2yrsUS$229.83k0.13% $21.9k
Alexander Lemon
Co-Founder9.2yrsUS$229.83k0.0030% $500.4
Sandra Evans
Consultant0.08yrsUS$56.24kno data
Timothy Slater
Interim Chief Financial Officer0.08yrsno datano data

4.6yrs

Average Tenure

Experienced Management: MKA's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Dawes
Co-Founder9.2yrsUS$229.83k0.13% $21.9k
Alexander Lemon
Co-Founder9.2yrsUS$229.83k0.0030% $500.4
Adrian Reynolds
Independent Non-Executive Director8.7yrsUS$24.92k0.048% $8.0k
Derek Linfield
Independent Non-Executive Chairman6.1yrsUS$58.67k3.86% $642.4k
Shaun Treacy
Non-Executive Director1.3yrsUS$178.27k0.54% $89.3k
Susan Muir
Independent Non-Executive Director1.5yrsUS$9.45k0.0090% $1.5k
Sandra du Toit
Non-Executive Independent Director1.5yrsUS$9.45kno data

6.1yrs

Average Tenure

62yo

Average Age

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


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Mkango Resources Ltd.
  • Ticker: MKA
  • Exchange: TSXV
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$16.625m
  • Shares outstanding: 133.00m
  • Website: https://www.mkango.ca

Location

  • Mkango Resources Ltd.
  • 550 Burrard Street
  • Suite 2900
  • Vancouver
  • British Columbia
  • V6C 0A3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MKALSE (London Stock Exchange)NPV(POST CONSOLIDATION)GBGBPNo data
MKATSXV (TSX Venture Exchange)YesCommon SharesCACADJan 2011
MKAAIM (London Stock Exchange AIM Market)YesCommon SharesGBGBPJan 2011
ZMKBST (Boerse-Stuttgart)YesCommon SharesDEEURJan 2011

Biography

Mkango Resources Ltd., through its subsidiary, Lancaster Exploration Limited, explores for and develops rare earth elements and associated minerals in the Republic of Malawi, Africa. It explores for uranium, niobium, tantalum, zircon, nickel, and cobalt ores. The company’s principal project is the Songwe Hill property within the Phalombe exploration license, which covers an area of 849.1 square kilometers located in southeast Malawi. It also holds 100% interests in the Thambani and Chimimbe Hill licenses. Mkango Resources Ltd. 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 Analysis2020/02/26 01:41
End of Day Share Price2020/02/10 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.