TSXV:SFR

Stock Analysis Report

Sandfire Resources America

Executive Summary

Sandfire Resources America Inc. acquires, explores for, and develops resource properties in the United States and Canada.

Risk Analysis

Earnings have declined by -16.34% per year over past 5 years

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



Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-9.1%

SFR

0.8%

CA Metals and Mining

0.8%

CA Market


1 Year Return

257.1%

SFR

28.8%

CA Metals and Mining

10.6%

CA Market

Return vs Industry: SFR exceeded the Canadian Metals and Mining industry which returned 26.9% over the past year.

Return vs Market: SFR exceeded the Canadian Market which returned 10.4% over the past year.


Shareholder returns

SFRIndustryMarket
7 Day-9.1%0.8%0.8%
30 Day42.9%1.0%2.1%
90 Day4.2%8.5%6.6%
1 Year257.1%257.1%29.8%28.8%14.1%10.6%
3 Year284.6%284.6%-0.5%-2.3%17.0%6.4%
5 Year163.2%163.2%30.0%25.8%38.5%18.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sandfire Resources America undervalued compared to its fair value and its price relative to the market?

24.03x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SFR is overvalued based on its PB Ratio (23.1x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Sandfire Resources America forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.0%

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 Sandfire Resources America 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 Sandfire Resources America performed over the past 5 years?

-16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFR is currently unprofitable.

Growing Profit Margin: SFR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SFR is unprofitable, and losses have increased over the past 5 years at a rate of -16.3% per year.

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

Earnings vs Industry: SFR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-1.4%).


Return on Equity

High ROE: SFR has a negative Return on Equity (-169.35%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sandfire Resources America's financial position?


Financial Position Analysis

Short Term Liabilities: SFR's short term assets (CA$1.4M) exceed its short term liabilities (CA$732.8K).

Long Term Liabilities: SFR's short term assets (CA$1.4M) exceed its long term liabilities (CA$127.8K).


Debt to Equity History and Analysis

Debt Level: SFR is debt free.

Reducing Debt: SFR had no debt 5 years ago.


Balance Sheet

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

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

Forecast Cash Runway: SFR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -34% each year


Next Steps

Dividend

What is Sandfire Resources America's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if SFR'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 SFR'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 Sandfire Resources America's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Rob Scargill 0

1.6yrs

Tenure

CA$609,840

Compensation

Mr. Robert Scargill, also known as Rob, B.Eng (Hons) Grad Dip Mgmt serves as President of Sandfire Resources America Inc. Mr. Scargill serves as Chief Executive Officer and Director of Sandfire Resources A ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD464.99K) is below average for companies of similar size in the Canadian market ($USD671.54K).

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


Management Age and Tenure

3.1yrs

Average Tenure

63yo

Average Age

Experienced Management: SFR's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

1.9yrs

Average Tenure

Experienced Board: SFR's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

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 60.8%.


Management Team

  • Carl Hering (70yo)

    Consultant and Member of the Advisory Board

    • Tenure: 9.7yrs
    • Compensation: CA$38.10k
  • Joe Piekenbrock (64yo)

    Consultant

    • Steve Khan (63yo)

      Consultant

      • Tenure: 5.3yrs
      • Compensation: CA$33.69k
    • Rob McLeod (48yo)

      Consultant

      • Tenure: 9.7yrs
      • Compensation: CA$38.10k
    • Rob Scargill

      President

      • Tenure: 1.6yrs
      • Compensation: CA$609.84k
    • Mike Stammers

      Consultant

      • Wylie Hui (46yo)

        Consultant

        • Tenure: 3.1yrs
        • Compensation: CA$141.15k
      • Allan Kirk

        Consultant & Mine Permitting Manager

        • Nancy Schlepp

          VP of Communications & Corporate Secretary

          • Tenure: 3.1yrs
          • Compensation: CA$204.85k
        • John McGonigle

          Chief Financial Officer

          • Tenure: 0.8yrs
          • Compensation: CA$877.43k

        Board Members

        • Carl Hering (70yo)

          Consultant and Member of the Advisory Board

          • Tenure: 9.7yrs
          • Compensation: CA$38.10k
        • Rob Scargill

          President

          • Tenure: 1.6yrs
          • Compensation: CA$609.84k
        • Matt Fitzgerald (40yo)

          Chairman of the Board

          • Tenure: 3.1yrs
        • Chris Hedrich

          Independent Director

          • Tenure: 1.8yrs
          • Compensation: CA$5.63k
        • Alan Joscelyn

          Independent Director

          • Tenure: 2yrs
          • Compensation: CA$11.25k
        • Jason Grace

          Non-Executive Director

          • Tenure: 0.3yrs

        Company Information

        Sandfire Resources America Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Sandfire Resources America Inc.
        • Ticker: SFR
        • Exchange: TSXV
        • Founded: 1998
        • Industry: Diversified Metals and Mining
        • Sector: Materials
        • Market Cap: CA$205.278m
        • Shares outstanding: 821.11m
        • Website: https://www.sandfireamerica.com

        Location

        • Sandfire Resources America Inc.
        • 595 Howe Street
        • 10th Floor
        • Vancouver
        • British Columbia
        • V6C 2T5
        • Canada

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        SFRTSXV (TSX Venture Exchange)YesCommon SharesCACADFeb 1999
        SRAF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 1999
        T1RBST (Boerse-Stuttgart)YesCommon SharesDEEURFeb 1999

        Biography

        Sandfire Resources America Inc. acquires, explores for, and develops resource properties in the United States and Canada. The company explores for copper, cobalt, zinc, lead, and silver deposits. Its flagship property is the Black Butte copper project that consists of approximately 7,684 acres of fee-simple lands and 4,541 acres in 239 Federal unpatented lode-mining claims located in central Montana, the United States. The company was formerly known as Tintina Resources Inc. and changed its name to Sandfire Resources America Inc. in January 2018. The company was founded in 1998 and is headquartered in Vancouver, Canada. Sandfire Resources America Inc. is a subsidiary of Sandfire Resources NL. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/23 00:07
        End of Day Share Price2020/01/22 00:00
        Earnings2019/09/30
        Annual Earnings2019/06/30


        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.