TSXV:NXN

Stock Analysis Report

Executive Summary

NxGold Ltd. acquires, develops, explores for, and evaluates early stage mineral properties, primarily gold in Canada.

Risk Analysis

Earnings have declined by -65.07% per year over past 5 years

Does not have a meaningful market cap (CA$2M)

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

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

NXN

2.4%

CA Metals and Mining

0.6%

CA Market


1 Year Return

-64.7%

NXN

4.4%

CA Metals and Mining

5.8%

CA Market

Return vs Industry: NXN underperformed the Canadian Metals and Mining industry which returned 4.3% over the past year.

Return vs Market: NXN underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

NXNIndustryMarket
7 Day0%2.4%0.6%
30 Day0%1.2%0.5%
90 Day20.0%6.6%3.6%
1 Year-64.7%-64.7%5.0%4.4%9.1%5.8%
3 Year-94.5%-94.5%-10.4%-11.9%15.4%5.0%
5 Year-45.5%-45.5%22.9%19.2%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.22x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NXN is good value based on its PB Ratio (0.2x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is NxGold 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 NxGold 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 NxGold performed over the past 5 years?

-65.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NXN is currently unprofitable.

Growing Profit Margin: NXN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NXN is unprofitable, and losses have increased over the past 5 years at a rate of -65.1% per year.

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

Earnings vs Industry: NXN is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: NXN has a negative Return on Equity (-13.76%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NxGold's financial position?


Financial Position Analysis

Short Term Liabilities: NXN's short term assets (CA$2.4M) exceed its short term liabilities (CA$117.0K).

Long Term Liabilities: NXN's short term assets (CA$2.4M) exceed its long term liabilities (CA$78.7K).


Debt to Equity History and Analysis

Debt Level: NXN is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if NXN'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: NXN has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: NXN has sufficient cash runway for 1.3 years if free cash flow continues to reduce at historical rates of -54% each year.


Next Steps

Dividend

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

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

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

2.9yrs

Average management tenure


CEO

Chris McFadden (50yo)

3yrs

Tenure

CA$300,000

Compensation

Mr. Christopher Walter McFadden, also known as Chris, has been Chief Executive Officer and President of NxGold Ltd. since February 2, 2017 and Director since April 12, 2017. Mr. McFadden serves as the Comm ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD226.38K) is above average for companies of similar size in the Canadian market ($USD155.16K).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher McFadden
President3yrsCA$300.00k0.27% CA$6.6k
Janine Richardson
Chief Financial Officer2yrsCA$104.01k0.061% CA$1.5k
Darren Lindsay
Vice President of Exploration & Development2.8yrsCA$220.00k0.23% CA$5.5k
Travis McPherson
Vice President of Corporate Development4.3yrsno data0.20% CA$4.8k

2.9yrs

Average Tenure

Experienced Management: NXN's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher McFadden
President3yrsCA$300.00k0.27% CA$6.6k
Leigh Curyer
Chairman0yrsCA$120.00k1.59% CA$39.0k
G. Armstrong
Member of Advisory Board8.9yrsno datano data
Richard Patricio
Independent Director3yrsCA$40.00k0.24% CA$6.0k
Trevor Thiele
Independent Director0yrsCA$50.00kno data
Karl Laufmann
Independent Director0yrsCA$31.10kno data

3.0yrs

Average Tenure

50yo

Average Age

Experienced Board: NXN's board of directors are considered experienced (3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 33.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: NxGold Ltd.
  • Ticker: NXN
  • Exchange: TSXV
  • Founded: 2004
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$2.449m
  • Shares outstanding: 81.63m
  • Website: https://www.nxgold.ca

Location

  • NxGold Ltd.
  • 1055 West Hastings Street
  • Suite 970
  • Vancouver
  • British Columbia
  • V6E 2E9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NXNTSXV (TSX Venture Exchange)YesCommon SharesCACADApr 2006
LBHR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2006

Biography

NxGold Ltd. acquires, develops, explores for, and evaluates early stage mineral properties, primarily gold in Canada. It holds an 80% interest in the Mt. Roe gold project comprising two exploration blocks covering an area of approximately 1,200 hectares located in the Pilbara region in Western Australia; and a right to acquire 70% interest in the Kuulu property covering an area of 4,174 hectares located in the Kavilliq region of Nunavut, Canada. The company was formerly known as Lancaster Capital Corp. and changed its name to NxGold Ltd. in November 2016. NxGold Ltd. was incorporated in 2004 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:24
End of Day Share Price2019/11/29 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.