TSXV:STS

Stock Analysis Report

South Star Mining

Executive Summary

South Star Mining Corp. focuses on the acquisition and development of near-term mine production projects in Brazil.


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

STSIndustryMarket
7 Day0%3.5%-1.5%
30 Day37.5%5.0%-0.7%
90 Day22.2%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

Valuation

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

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

NamePositionTenureCompensationOwnership
Eric Allison
Head of Business Development & Executive Director2.8yrsno datano data
Richard Pearce
President0.7yrsno data5.13% CA$121.1k
Felipe Alves
VP of Exploration & Development and Executive Director1.7yrsno data8.01% CA$189.0k
David McMillan
Chairman2.6yrsno data0.29% CA$6.9k
Marc Paul Leduc
Independent Director0.9yrsno datano data
Daniel Wilton
Independent Director1.2yrsno data4.66% 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STSTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1988
STSB.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:14
End of Day Share Price2020/02/10 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.