TSXV:NMI

Stock Analysis Report

Namibia Critical Metals

Executive Summary

Namibia Critical Metals Inc. engages in the exploration and development of critical metals properties in Namibia.

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

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

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Namibia Critical Metals's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.4%

NMI

4.6%

CA Metals and Mining

0.2%

CA Market


1 Year Return

15.4%

NMI

4.5%

CA Metals and Mining

4.9%

CA Market

Return vs Industry: NMI exceeded the Canadian Metals and Mining industry which returned 4.5% over the past year.

Return vs Market: NMI exceeded the Canadian Market which returned 4.9% over the past year.


Shareholder returns

NMIIndustryMarket
7 Day3.4%4.6%0.2%
30 Day-3.2%3.7%0.4%
90 Day-40.0%10.7%3.7%
1 Year15.4%15.4%5.1%4.5%8.2%4.9%
3 Year100.0%100.0%-5.4%-7.0%15.9%5.5%
5 Year-18.9%-18.9%26.4%22.6%33.8%14.3%

Price Volatility Vs. Market

How volatile is Namibia Critical Metals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Namibia Critical Metals undervalued compared to its fair value and its price relative to the market?

0.93x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NMI is good value based on its PB Ratio (0.9x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Namibia Critical Metals forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.8%

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 Namibia Critical Metals 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 Namibia Critical Metals performed over the past 5 years?

26.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NMI is currently unprofitable.

Growing Profit Margin: NMI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NMI is unprofitable, but has reduced losses over the past 5 years at a rate of 26.9% per year.

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

Earnings vs Industry: NMI is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (10.1%).


Return on Equity

High ROE: NMI has a negative Return on Equity (-5.49%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Namibia Critical Metals's financial position?


Financial Position Analysis

Short Term Liabilities: NMI's short term assets (CA$562.1K) exceed its short term liabilities (CA$335.1K).

Long Term Liabilities: NMI has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: NMI is debt free.

Reducing Debt: NMI has not had any debt for past 5 years.


Balance Sheet

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

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

Forecast Cash Runway: NMI 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 Namibia Critical Metals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

5.3yrs

Average management tenure


CEO

Pine van Wyk 0

2yrs

Tenure

CA$365,151

Compensation

Mr. Pienaar-Schalk van Wyk, also known as Pine, has been the Chief Executive Officer and Director of Namibia Critical Metals Inc. (formerly, Namibia Rare Earths Inc.) since February 21, 2018. Mr. van Wyk s ...


CEO Compensation Analysis

Compensation vs Market: Pine's total compensation ($USD275.38K) is above average for companies of similar size in the Canadian market ($USD154.66K).

Compensation vs Earnings: Insufficient data to compare Pine's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Pienaar-Schalk van Wyk
CEO & Director2yrsCA$365.15kno data
Donald Burton
President & Director0.08yrsCA$305.98k0.87% CA$235.6k
Darrin Campbell
Chief Financial Officer2.9yrsCA$182.09k0.11% CA$30.0k
Janice Stairs
General Counsel & Corporate Secretary7.8yrsno datano data
H. Swinden
Independent Technical Advisor0yrsno datano data

5.3yrs

Average Tenure

59yo

Average Age

Experienced Management: NMI's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pienaar-Schalk van Wyk
CEO & Director2yrsCA$365.15kno data
Donald Burton
President & Director0.08yrsCA$305.98k0.87% CA$235.6k
William Price
Independent Director6.7yrsCA$102.33k5.98% CA$1.6m
Gerald McConnell
Chairman of the Board3.2yrsCA$202.15k13.76% CA$3.7m
Adrian Hickey
Independent Director9.2yrsCA$99.83k4.1% CA$1.1m
Steve Kapp
Independent Director2yrsCA$102.33kno data

2.6yrs

Average Tenure

Experienced Board: NMI's board of directors are not considered experienced ( 2.6 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 substantially diluted in the past year, with total shares outstanding growing by 79.6%.


Top Shareholders

Company Information

Namibia Critical Metals Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Namibia Critical Metals Inc.
  • Ticker: NMI
  • Exchange: TSXV
  • Founded: 2010
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$27.049m
  • Shares outstanding: 180.33m
  • Website: https://www.namibiacriticalmetals.com

Number of Employees


Location

  • Namibia Critical Metals Inc.
  • Sun Tower
  • Suite 802
  • Halifax
  • Nova Scotia
  • B4A 1E6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NMITSXV (TSX Venture Exchange)YesCommon StockCACADApr 2011
7NRDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2011
NMRE.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDApr 2011

Biography

Namibia Critical Metals Inc. engages in the exploration and development of critical metals properties in Namibia. The company explores for heavy rare earths, including cobalt, copper, lithium, tantalum, niobium, nickel, and gold metals, as well as for platinum group elements. It holds interests in a portfolio of 7 projects comprising 16 exclusive prospecting licenses with a total surface area of approximately 6,200 square kilometers. The company was formerly known as Namibia Rare Earths Inc. and changed its name to Namibia Critical Metals Inc. in May 2018. Namibia Critical Metals Inc. was incorporated in 2010 and is headquartered in Halifax, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:31
End of Day Share Price2020/02/18 00:00
Earnings2019/08/31
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.