TSXV:NIC

Stock Analysis Report

Executive Summary

Pure Nickel Inc. engages in the acquisition, exploration, development, and evaluation of mineral properties in Canada and the United States.

Snowflake

Fundamentals

Worrying balance sheet with weak fundamentals.

Share Price & News

How has Pure Nickel's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

NIC

-3.8%

CA Metals and Mining

0.2%

CA Market


1 Year Return

233.3%

NIC

10.6%

CA Metals and Mining

1.2%

CA Market

Return vs Industry: NIC exceeded the Canadian Metals and Mining industry which returned 10.6% over the past year.

Return vs Market: NIC exceeded the Canadian Market which returned 1.2% over the past year.


Shareholder returns

NICIndustryMarket
7 Day0%-3.8%0.2%
30 Day-9.1%-4.9%-2.5%
90 Day25.0%-5.9%-1.5%
1 Year233.3%233.3%11.5%10.6%4.7%1.2%
3 Year150.0%150.0%-12.5%-14.1%14.0%3.8%
5 Year233.3%233.3%5.5%1.5%26.4%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pure Nickel undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Pure Nickel is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Pure Nickel 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 NIC’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 Pure Nickel regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

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

45.5%

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 Pure Nickel 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 Pure Nickel performed over the past 5 years?

39.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NIC is unprofitable, but has reduced losses over the past 5 years at a rate of 39.2% per year.

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

Earnings vs Industry: NIC is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-13.7%).


Return on Equity

High ROE: NIC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: NIC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NIC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Pure Nickel's financial position?


Financial Position Analysis

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

Long Term Liabilities: NIC 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: NIC is debt free.

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


Balance Sheet

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

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

Forecast Cash Runway: NIC has less than a year of cash runway if free cash flow continues to grow at historical rates of 26.1% each year.


Next Steps

Dividend

What is Pure Nickel's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.9%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if NIC's dividends per share have been stable in the past.

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

1.6yrs

Average management tenure


CEO

Robert Russell (62yo)

0.8yrs

Tenure

CA$18,187

Compensation

Mr. Robert David Russell serves as Chairman of the Board of Pure Nickel Inc and has been its CEO and President since January 2019. Mr. Russell was an Interim President & CEO of Atlanta Gold Inc since May 1 ...


Management Age and Tenure

1.6yrs

Average Tenure

Experienced Management: NIC's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Insider Trading

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


Recent Insider Transactions

BuyCA$100,00125 Sep 19
Robert Russell
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board
Shares2,000,000
Max PriceCA$0.05
BuyCA$70028 Aug 19
Thomas Kofman
EntityIndividual
Role
Member of the Board of Directors
Non-Independent Director
Shares10,000
Max PriceCA$0.07
BuyCA$25,00023 Jul 19
Thomas Kofman
EntityIndividual
Role
Member of the Board of Directors
Non-Independent Director
Shares500,000
Max PriceCA$0.05
BuyCA$204,43417 May 19
Eric Sprott
EntityIndividual
Shares10,221,732
Max PriceCA$0.02

Ownership Breakdown


Management Team

  • Robert Russell (62yo)

    Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: CA$18.19k
  • Lisa Buchan (52yo)

    Business Manager & Corporate Secretary

    • Tenure: 11.5yrs
  • Sonia Agustina

    Chief Financial Officer

    • Tenure: 1.6yrs

Board Members

  • Robert Russell (62yo)

    Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: CA$18.19k
  • Steve Vaughan (82yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: CA$9.00k
  • Tom Kofman

    Non-Independent Director

    • Tenure: 7.3yrs
    • Compensation: CA$9.75k

Company Information

Pure Nickel Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pure Nickel Inc.
  • Ticker: NIC
  • Exchange: TSXV
  • Founded: 1987
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$4.235m
  • Shares outstanding: 84.69m
  • Website: https://www.purenickel.com

Number of Employees


Location

  • Pure Nickel Inc.
  • TD Canada Trust Tower
  • Suite 2700
  • Toronto
  • Ontario
  • M5J 2S1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PNCK.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2007
NICTSXV (TSX Venture Exchange)YesCommon SharesCACADMar 2007
3H9DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2007

Biography

Pure Nickel Inc. engages in the acquisition, exploration, development, and evaluation of mineral properties in Canada and the United States. The company primarily explores for nickel, platinum group elemen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:56
End of Day Share Price2019/10/16 00:00
Earnings2019/05/31
Annual Earnings2018/11/30


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.