Executive Summary
South Star Mining Corp. focuses on the acquisition and development of near-term mine production projects in Brazil.
Risk Analysis
Earnings have declined by -72.48% per year over past 5 years
Shareholders have been substantially diluted in the past year
+ 1 more risk
Snowflake Analysis
Adequate balance sheet and overvalued.
Share Price & News
How has South Star Mining's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: STS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0%
STS
3.5%
CA Metals and Mining
-1.5%
CA Market
1 Year Return
-38.9%
STS
6.8%
CA Metals and Mining
2.5%
CA Market
Return vs Industry: STS underperformed the Canadian Metals and Mining industry which returned 5.4% over the past year.
Return vs Market: STS underperformed the Canadian Market which returned 4.5% over the past year.
Shareholder returns
| STS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | 3.5% | -1.5% |
| 30 Day | 37.5% | 5.0% | -0.7% |
| 90 Day | 22.2% | 14.3% | 1.8% |
| 1 Year | -38.9%-38.9% | 7.5%6.8% | 5.7%2.5% |
| 3 Year | -21.4%-21.4% | 2.8%1.0% | 16.8%6.2% |
| 5 Year | -45.0%-45.0% | 29.1%25.4% | 32.0%12.8% |
Price Volatility Vs. Market
How volatile is South Star Mining's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
How Much Are South Star Mining Corp. (CVE:STS) Insiders Spending On Buying Shares?2 months ago | Simply Wall St
Do Institutions Own South Star Mining Corp. (CVE:STS) Shares?3 months ago | Simply Wall St
Here's Why We Worry About South Star Mining's (CVE:STS) Cash Burn SituationValuation
Is South Star Mining undervalued compared to its fair value and its price relative to the market?
0.39x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate STS's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate STS's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: STS is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.
PE vs Market: STS 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 STS's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: STS is good value based on its PB Ratio (0.4x) compared to the CA Metals and Mining industry average (1.6x).
Next Steps
Future Growth
How is South Star Mining forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
13.0%
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 South Star Mining 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
- Examine South Star Mining's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- South Star Mining competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Materials industry.
Past Performance
How has South Star Mining performed over the past 5 years?
-72.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STS is currently unprofitable.
Growing Profit Margin: STS is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: STS is unprofitable, and losses have increased over the past 5 years at a rate of -72.5% per year.
Accelerating Growth: Unable to compare STS's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: STS 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: STS has a negative Return on Equity (-39.05%), as it is currently unprofitable.
Next Steps
Financial Health
How is South Star Mining's financial position?
Financial Position Analysis
Short Term Liabilities: STS's short term assets (CA$479.1K) exceed its short term liabilities (CA$122.2K).
Long Term Liabilities: STS has no long term liabilities.
Debt to Equity History and Analysis
Debt Level: STS is debt free.
Reducing Debt: STS had no debt 5 years ago.
Balance Sheet
Inventory Level: STS has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if STS'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: STS has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: STS has less than a year of cash runway if free cash flow continues to reduce at historical rates of -50% each year
Next Steps
Dividend
What is South Star Mining's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate STS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate STS'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 STS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if STS'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 STS'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?
1.7yrs
Average board tenure
CEO
Richard Pearce 0
0.7yrs
Tenure
Mr. Richard L. Pearce, Jr., has been the President and Chief Executive Officer at South Star Mining Corp. since June 2019 and has been its Director since June 15, 2018. Mr. Pearce serves as Managing Direct ...
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Head of Business Development & Executive Director | 2.8yrs | no data | no data | |
| President | 0.7yrs | no data | 5.13% CA$121.1k | |
| VP of Exploration & Development and Executive Director | 1.7yrs | no data | 8.01% CA$189.0k | |
| Chairman | 2.6yrs | no data | 0.29% CA$6.9k | |
| Independent Director | 0.9yrs | no data | no data | |
| Independent Director | 1.2yrs | no data | 4.66% CA$110.0k |
1.7yrs
Average Tenure
Experienced Board: STS's board of directors are not considered experienced ( 1.7 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 62.5%.
Top Shareholders
Company Information
South Star Mining Corp.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: South Star Mining Corp.
- Ticker: STS
- Exchange: TSXV
- Founded: 1984
- Industry: Diversified Metals and Mining
- Sector: Materials
- Market Cap: CA$2.360m
- Shares outstanding: 42.91m
- Website: https://www.southstarmining.ca
Location
- South Star Mining Corp.
- 1200 - 750 West Pender Street
- Vancouver
- British Columbia
- V6C 2T8
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| STS | TSXV (TSX Venture Exchange) | Yes | Common Shares | CA | CAD | Sep 1988 |
| STSB.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Sep 1988 |
Biography
South Star Mining Corp. focuses on the acquisition and development of near-term mine production projects in Brazil. It is developing the Santa-Cruz Graphite project that consists of 13 licenses covering an area of approximately 13,000 hectares is located in Bahia State, Brazil. The company was formerly known as STEM 7 Capital Inc. and changed its name to South Star Mining Corp. in December 2017. South Star Mining Corp. was incorporated in 1984 and is headquartered in Vancouver, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/25 01:14 |
| End of Day Share Price | 2020/02/10 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.