TSXV:NOT

Stock Analysis Report

Executive Summary

Noront Resources Ltd., a resource company, engages in the acquisition, development, and exploration of base and precious metals in Canada.

Risk Analysis

Earnings have declined by -6.65% per year over past 5 years

Has less than 1 year of cash runway

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

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.2%

NOT

4.6%

CA Metals and Mining

0.2%

CA Market


1 Year Return

-39.6%

NOT

4.5%

CA Metals and Mining

4.9%

CA Market

Return vs Industry: NOT underperformed the Canadian Metals and Mining industry which returned 4.5% over the past year.

Return vs Market: NOT underperformed the Canadian Market which returned 4.9% over the past year.


Shareholder returns

NOTIndustryMarket
7 Day3.2%4.6%0.2%
30 Day3.2%3.7%0.4%
90 Day0%10.7%3.7%
1 Year-39.6%-39.6%5.1%4.5%8.2%4.9%
3 Year-36.0%-36.0%-5.4%-7.0%15.9%5.5%
5 Year-61.0%-61.0%26.4%22.6%33.8%14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Noront 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 Noront Resources is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Noront 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 NOT’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 Noront Resources regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

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

-6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOT is currently unprofitable.

Growing Profit Margin: NOT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NOT is unprofitable, and losses have increased over the past 5 years at a rate of -6.6% per year.

Accelerating Growth: Unable to compare NOT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NOT 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: NOT'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 Noront Resources's financial position?


Financial Position Analysis

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

Long Term Liabilities: NOT 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: NOT has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet

Inventory Level: NOT has a high level of physical assets or inventory.

Debt Coverage by Assets: NOT 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: NOT has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NOT has less than a year of cash runway if free cash flow continues to grow at historical rates of 13.2% each year.


Next Steps

Dividend

What is Noront Resources'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 NOT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NOT'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 NOT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NOT'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 NOT'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?

6.3yrs

Average management tenure


CEO

Alan Coutts (57yo)

6.3yrs

Tenure

CA$660,116

Compensation

Mr. Al Coutts, P.Geo, has been the Chief Executive Officer and President of Noront Resources Ltd. since October 01, 2013. Mr. Coutts serves as an Executive General Manager of Australasia for Xstrata Nickel ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD497.83K) is above average for companies of similar size in the Canadian market ($USD154.66K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alan Coutts
President6.3yrsCA$660.12kno data
Gregory Rieveley
Chief Financial Officer10.8yrsCA$394.31k0.075% CA$49.1k
Stephen Flewelling
Chief Development Officer4.7yrsCA$440.16k0.062% CA$40.3k
Ryan Weston
Vice President of Exploration3.8yrsCA$274.69k0.037% CA$24.0k
McMillan Binch
Legal Counsel0yrsno datano data
Eric Mosley
Chief Geologist8.7yrsno datano data

6.3yrs

Average Tenure

Experienced Management: NOT's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alan Coutts
President6.3yrsCA$660.12kno data
Sybil Veenman
Independent Director4.5yrsCA$82.22kno data
Paul Parisotto
Independent Chairman of the Board12.1yrsCA$89.30kno data
Stephen Balch
Independent Advisor0yrsno datano data
John Pollesel
Independent Director2.7yrsCA$89.72kno data
Phillip Asp
Member of the First Nations Advisory Board10.3yrsno datano data
Sally Goodman
Independent Advisor0yrsno datano data
Jeremy Brett
Independent Advisor0yrsno datano data
Danielle Giovenazzo
Independent Advisor0yrsno datano data
Stewart McQuade
Independent Advisor0yrsno datano data

7.1yrs

Average Tenure

57yo

Average Age

Experienced Board: NOT's board of directors are considered experienced (7.1 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 8.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Noront Resources Ltd.
  • Ticker: NOT
  • Exchange: TSXV
  • Founded: 1980
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$65.545m
  • Shares outstanding: 409.66m
  • Website: https://www.norontresources.com

Number of Employees


Location

  • Noront Resources Ltd.
  • 212 King Street West
  • Suite 501
  • Toronto
  • Ontario
  • M5H 1K5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOTTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1988
NQ1DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
NOSO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988

Biography

Noront Resources Ltd., a resource company, engages in the acquisition, development, and exploration of base and precious metals in Canada. The company explores for nickel, copper, zinc, platinum group metals, chromite, iron, titanium, vanadium, gold, and silver. Its flagship property is the Eagle's Nest project located in the James Bay Lowlands, Ontario. The company was formerly known as White Wing Resources Inc. and changed its name to Noront Resources Ltd. in July 1983. Noront Resources Ltd. was incorporated in 1980 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:14
End of Day Share Price2020/02/18 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.