TSXV:MLR

Stock Analysis Report

Executive Summary

Melior Resources Inc. engages in the exploration and development of mineral properties in Australia and Canada.

Risk Analysis

Earnings have declined by -21.26% per year over past 5 years

Shares are highly illiquid

Auditors have raised going concern risks

Does not have a meaningful market cap (CA$449K)

+ 4 more risks


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

MLR

2.4%

CA Metals and Mining

0.6%

CA Market


1 Year Return

-97.5%

MLR

4.4%

CA Metals and Mining

5.8%

CA Market

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

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


Shareholder returns

MLRIndustryMarket
7 Day0%2.4%0.6%
30 Day0%1.2%0.5%
90 Day0%6.6%3.6%
1 Year-97.5%-97.5%5.0%4.4%9.1%5.8%
3 Year-97.3%-97.3%-10.4%-11.9%15.4%5.0%
5 Year-97.9%-97.9%22.9%19.2%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Melior Resources is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Melior Resources has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of MLR’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Melior Resources regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

How is Melior Resources 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 Melior 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 Melior Resources performed over the past 5 years?

-21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MLR is currently unprofitable.

Growing Profit Margin: MLR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MLR is unprofitable, and losses have increased over the past 5 years at a rate of -21.3% per year.

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

Earnings vs Industry: MLR 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: MLR's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Melior Resources's financial position?


Financial Position Analysis

Short Term Liabilities: MLR has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MLR has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MLR has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MLR's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: MLR has negative shareholder equity (liabilities exceed assets) therefore debt is not 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: Insufficient data to determine if MLR has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MLR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.5yrs

Average board tenure


CEO

Martyn Buttenshaw (42yo)

0.4yrs

Tenure

CA$27,531

Compensation

Mr. Martyn Buttenshaw serves as Chairman of Melior Resources Inc. since December 13, 2017 and has been Interim Chief Executive Officer since August 5, 2019. He is an advisor to Pala. He served as Managing  ...


Board Members

NamePositionTenureCompensationOwnership
Martyn Buttenshaw
Chairman & Interim CEO0.4yrsCA$27.53k0.14% CA$625.0
Mark David McCauley
Non-Executive Director5.7yrsCA$270.97k1.05% CA$4.7k
George Lloyd
Independent Non-Executive Director1.5yrsno datano data
Rishi Tibriwal
Independent Director2.8yrsCA$22.50kno data

2.5yrs

Average Tenure

50yo

Average Age

Experienced Board: MLR's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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 6%.


Top Shareholders

Company Information

Melior Resources Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Melior Resources Inc.
  • Ticker: MLR
  • Exchange: TSXV
  • Founded: 1995
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$448.526k
  • Shares outstanding: 29.90m
  • Website: https://www.meliorresources.com

Number of Employees


Location

  • Melior Resources Inc.
  • 120 Adelaide Street West
  • Suite 2500
  • Toronto
  • Ontario
  • M5H 1T1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MLRTSXV (TSX Venture Exchange)YesCommon SharesCACADFeb 1997
3C2ADB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1997
CCJM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 1997

Biography

Melior Resources Inc. engages in the exploration and development of mineral properties in Australia. Its primary project is the Goondicum ilmenite and apatite mine property located at Monto in Queensland, Australia. The company was formerly known as Coalcorp Mining Inc. and changed its name to Melior Resources Inc. in September 2011. Melior Resources Inc. was incorporated in 1995 and is based in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/29 00:12
End of Day Share Price2019/10/31 00:00
Earnings2019/03/31
Annual Earnings2018/06/30


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.