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.
Risk Analysis
Earnings have declined by -31.13% per year over past 5 years
Currently unprofitable and not forecast to become profitable over the next 3 years
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
| MKA | Industry | Market | |
|---|---|---|---|
| 7 Day | n/a | -1.5% | -3.8% |
| 30 Day | n/a | 3.2% | -2.0% |
| 90 Day | n/a | 10.2% | -0.3% |
| 1 Year | n/a | 5.6%4.9% | 3.7%0.5% |
| 3 Year | n/a | -1.9%-3.6% | 13.6%3.4% |
| 5 Year | n/a | 28.2%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
1 month ago | Simply Wall St
Here's Why We're Watching Mkango Resources's (CVE:MKA) Cash Burn Situation2 months ago | Simply Wall St
What Kind Of Investor Owns Most Of Mkango Resources Ltd. (CVE:MKA)?4 months ago | Simply Wall St
We're A Little Worried About Mkango Resources's (CVE:MKA) Cash Burn RateValuation
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
- Examine Mkango Resources's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Mkango Resources competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Materials industry.
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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 9.2yrs | US$229.83k | 0.13% $21.9k | |
| Co-Founder | 9.2yrs | US$229.83k | 0.0030% $500.4 | |
| Consultant | 0.08yrs | US$56.24k | no data | |
| Interim Chief Financial Officer | 0.08yrs | no data | no data |
4.6yrs
Average Tenure
Experienced Management: MKA's management team is considered experienced (4.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 9.2yrs | US$229.83k | 0.13% $21.9k | |
| Co-Founder | 9.2yrs | US$229.83k | 0.0030% $500.4 | |
| Independent Non-Executive Director | 8.7yrs | US$24.92k | 0.048% $8.0k | |
| Independent Non-Executive Chairman | 6.1yrs | US$58.67k | 3.86% $642.4k | |
| Non-Executive Director | 1.3yrs | US$178.27k | 0.54% $89.3k | |
| Independent Non-Executive Director | 1.5yrs | US$9.45k | 0.0090% $1.5k | |
| Non-Executive Independent Director | 1.5yrs | US$9.45k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MKA | LSE (London Stock Exchange) | NPV(POST CONSOLIDATION) | GB | GBP | No data | |
| MKA | TSXV (TSX Venture Exchange) | Yes | Common Shares | CA | CAD | Jan 2011 |
| MKA | AIM (London Stock Exchange AIM Market) | Yes | Common Shares | GB | GBP | Jan 2011 |
| ZMK | BST (Boerse-Stuttgart) | Yes | Common Shares | DE | EUR | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/26 01:41 |
| End of Day Share Price | 2020/02/10 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.