TSXV:SURG

Stock Analysis Report

Executive Summary

Surge Copper Corp. engages in the acquisition, exploration, and development of mineral properties in Canada.


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-15.4%

SURG

-1.5%

CA Metals and Mining

-3.8%

CA Market


1 Year Return

-8.3%

SURG

4.9%

CA Metals and Mining

0.5%

CA Market

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

Return vs Market: SURG underperformed the Canadian Market which returned 0.5% over the past year.


Shareholder returns

SURGIndustryMarket
7 Day-15.4%-1.5%-3.8%
30 Day0%3.2%-2.0%
90 Day37.5%10.2%-0.3%
1 Year-8.3%-8.3%5.6%4.9%3.7%0.5%
3 Year-59.3%-59.3%-1.9%-3.6%13.6%3.4%
5 Year-62.1%-62.1%28.2%24.6%30.2%11.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.15x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SURG 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 Surge Copper 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 Surge Copper 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 Surge Copper performed over the past 5 years?

35.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SURG is currently unprofitable.

Growing Profit Margin: SURG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SURG is unprofitable, but has reduced losses over the past 5 years at a rate of 35% per year.

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

Earnings vs Industry: SURG is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.8%).


Return on Equity

High ROE: SURG has a negative Return on Equity (-1.38%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Surge Copper's financial position?


Financial Position Analysis

Short Term Liabilities: SURG's short term assets (CA$180.5K) exceed its short term liabilities (CA$82.9K).

Long Term Liabilities: SURG's short term assets (CA$180.5K) do not cover its long term liabilities (CA$350.7K).


Debt to Equity History and Analysis

Debt Level: SURG is debt free.

Reducing Debt: SURG has no debt compared to 5 years ago when its debt to equity ratio was 4.8%.


Balance Sheet

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

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

Forecast Cash Runway: SURG has less than a year of cash runway if free cash flow continues to grow at historical rates of 44.5% each year.


Next Steps

Dividend

What is Surge Copper's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

3.3yrs

Average management tenure


CEO

Shane Ebert (52yo)

3.7yrs

Tenure

CA$83,550

Compensation

Dr. Shane W. Ebert, Ph.D., P.Geo., has been the Chief Executive Officer, President, VP of Exploration and Director of Surge Copper Corp. (formerly, Gold Reach Resources Ltd.) since July 1, 2016 and Decembe ...


CEO Compensation Analysis

Compensation vs Market: Shane's total compensation ($USD62.87K) is below average for companies of similar size in the Canadian market ($USD155.12K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Shane Ebert
President3.7yrsCA$83.55k1.09% CA$35.6k
Chantelle Collins
Chief Financial Officer3yrsCA$67.10k0.10% CA$3.4k
Conrad Swanson
1.8yrsno data4.84% CA$158.2k
Taryn Downing
Corporate Secretary8.8yrsCA$18.45kno data
Gerald Runolfson
Executive Officer0yrsno datano data

3.3yrs

Average Tenure

70yo

Average Age

Experienced Management: SURG's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shane Ebert
President3.7yrsCA$83.55k1.09% CA$35.6k
Patrick Glazier
Chairman of the Board4yrsno data8.02% CA$262.3k
Bradley Aelicks
7.7yrsno datano data
Alvin Jackson
0yrsno datano data
James Pettit
Independent Director16.2yrsno data0.81% CA$26.5k
Kinder Deo
Independent Director12.6yrsno data2.18% CA$71.2k
John-Mark Staude
5.5yrsno datano data
Patrick Bell
Independent Director4.7yrsno data0.056% CA$1.8k
Terry Kuzma
Independent Director2.3yrsno datano data

6.6yrs

Average Tenure

61yo

Average Age

Experienced Board: SURG's board of directors are considered experienced (6.6 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 6.7%.


Top Shareholders

Company Information

Surge Copper Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Surge Copper Corp.
  • Ticker: SURG
  • Exchange: TSXV
  • Founded: 1965
  • Industry: Copper
  • Sector: Materials
  • Market Cap: CA$3.270m
  • Shares outstanding: 59.46m
  • Website: https://www.surgecopper.com

Location

  • Surge Copper Corp.
  • 700 West Georgia Street
  • Suite 888
  • Vancouver
  • British Columbia
  • V7Y 1G5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SURGTSXV (TSX Venture Exchange)YesCommon SharesCACADNov 1989
GRJV.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 1989

Biography

Surge Copper Corp. engages in the acquisition, exploration, and development of mineral properties in Canada. It explores for copper, gold, silver, and molybdenum deposits. The company holds a 100% interest in the Ootsa property that comprises 124 mineral claims covering 72,710.4 hectares located in central British Columbia. It also owns 2% net smelter return royalty on the Auro and Auro South properties located in British Columbia. The company was formerly known as Gold Reach Resources Ltd. and changed its name to Surge Copper Corp. in February 2018. Surge Copper Corp. was incorporated in 1965 and is based in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 00:48
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.