TSXV:RZZ

Stock Analysis Report

Abitibi Royalties

Executive Summary

Abitibi Royalties Inc. engages in exploring, evaluating, and promoting mineral properties and other projects in Canada.


Snowflake Analysis

Adequate balance sheet with acceptable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.0%

RZZ

-1.5%

CA Metals and Mining

-3.8%

CA Market


1 Year Return

47.4%

RZZ

4.9%

CA Metals and Mining

0.5%

CA Market

Return vs Industry: RZZ exceeded the Canadian Metals and Mining industry which returned 4.9% over the past year.

Return vs Market: RZZ exceeded the Canadian Market which returned 0.5% over the past year.


Shareholder returns

RZZIndustryMarket
7 Day-4.0%-1.5%-3.8%
30 Day-5.6%3.2%-2.0%
90 Day30.0%10.2%-0.3%
1 Year48.0%47.4%5.6%4.9%3.7%0.5%
3 Year101.8%101.0%-1.9%-3.6%13.6%3.4%
5 Year411.3%409.2%28.2%24.6%30.2%11.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RZZ (CA$18.79) is trading above our estimate of fair value (CA$1.34)

Significantly Below Fair Value: RZZ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RZZ is poor value based on its PE Ratio (22.8x) compared to the Metals and Mining industry average (16.1x).

PE vs Market: RZZ is poor value based on its PE Ratio (22.8x) compared to the Canadian market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RZZ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RZZ is overvalued based on its PB Ratio (6.1x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

13.7%

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 Abitibi Royalties 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 Abitibi Royalties performed over the past 5 years?

-33.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RZZ has a high level of non-cash earnings.

Growing Profit Margin: RZZ became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RZZ has become profitable over the past 5 years, growing earnings by -33% per year.

Accelerating Growth: RZZ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RZZ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.8%).


Return on Equity

High ROE: RZZ's Return on Equity (26.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Abitibi Royalties's financial position?


Financial Position Analysis

Short Term Liabilities: RZZ's short term assets (CA$2.5M) do not cover its short term liabilities (CA$5.4M).

Long Term Liabilities: RZZ's short term assets (CA$2.5M) do not cover its long term liabilities (CA$2.7M).


Debt to Equity History and Analysis

Debt Level: RZZ is debt free.

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

Debt Coverage: RZZ has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RZZ has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: RZZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if RZZ's debt is covered by short term assets.


Next Steps

Dividend

What is Abitibi Royalties's current dividend yield, its reliability and sustainability?

0.64%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Abitibi Royalties before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.6%marketbottom25%2.0%markettop25%5.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: RZZ's dividend (0.64%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: RZZ's dividend (0.64%) is low compared to the top 25% of dividend payers in the Canadian market (5.7%).


Stability and Growth of Payments

Stable Dividend: RZZ is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: RZZ is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: RZZ is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RZZ'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?

5.2yrs

Average board tenure


CEO

Ian Ball (37yo)

4.7yrs

Tenure

CA$463,125

Compensation

Mr. Ian J. Ball, B.Com, has been the President of Abitibi Royalties Inc., since August 5, 2014 and has been its Chief Executive Officer since June 25, 2015. Mr. Ball served as the President of McEwen Minin ...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD348.52K) is below average for companies of similar size in the Canadian market ($USD684.74K).

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


Board Members

NamePositionTenureCompensationOwnership
Ian Ball
President4.7yrsCA$463.13k2.26% CA$5.4m
Glenn Mullan
Non-Executive Chairman4.7yrsCA$313.50k3.23% CA$7.8m
Christian Zinke
Independent Director10yrsCA$37.09k0.98% CA$2.4m
Andrew Pepper
Independent Director10yrsCA$45.00k0.76% CA$1.8m
Louis Doyle
Independent Director3.7yrsCA$37.91k0.042% CA$100.2k
Frank Mariage
Independent Director3.7yrsCA$30.00k0.012% CA$28.0k

5.2yrs

Average Tenure

53yo

Average Age

Experienced Board: RZZ's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RZZ 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 7%.


Top Shareholders

Company Information

Abitibi Royalties Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Abitibi Royalties Inc.
  • Ticker: RZZ
  • Exchange: TSXV
  • Founded: 2010
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$240.791m
  • Shares outstanding: 12.52m
  • Website: https://www.abitibiroyalties.com

Location

  • Abitibi Royalties Inc.
  • 152 Chemin de la Mine Ecole
  • Val-d'Or
  • Quebec
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RZZTSXV (TSX Venture Exchange)YesCommon SharesCACADJul 2011
ATBY.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2011
ABYBST (Boerse-Stuttgart)YesCommon SharesDEEURJul 2011

Biography

Abitibi Royalties Inc. engages in exploring, evaluating, and promoting mineral properties and other projects in Canada. Its flagship royalty is 3% net smelter return royalty located on the eastern portion of the Canadian Malartic mine, which includes the Jeffrey, Midway project, Sladen, Sheehan, Charlie, Gouldie, and Barnat Extension; and Odyssey North discovery and other portions of the Odyssey project, as well as portions of the East Malartic property. The company was incorporated in 2010 and is headquartered in Val-d'Or, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 01:12
End of Day Share Price2020/02/25 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.