BST:ZMK

Stock Analysis Report

Executive Summary

Mkango Resources Ltd., through its subsidiary, Lancaster Exploration Limited, explores for and develops rare earth elements and associated minerals in the Republic of Malawi, Africa.

Snowflake

Fundamentals

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

ZMK

4.3%

DE Metals and Mining

2.4%

DE Market


1 Year Return

-38.4%

ZMK

-30.6%

DE Metals and Mining

4.9%

DE Market

Return vs Industry: ZMK underperformed the German Metals and Mining industry which returned -30.6% over the past year.

Return vs Market: ZMK underperformed the German Market which returned 4.9% over the past year.


Shareholder returns

ZMKIndustryMarket
7 Day0%4.3%2.4%
30 Day0%2.8%2.3%
90 Day-25.9%7.9%2.7%
1 Year-38.4%-38.4%-29.5%-30.6%8.2%4.9%
3 Year129.2%129.2%-33.9%-36.0%18.3%8.0%
5 Yearn/a-18.3%-22.9%44.2%24.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.59x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: ZMK is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ZMK is good value based on its PB Ratio (0.6x) compared to the DE Metals and Mining industry average (4.1x).


Next Steps

Future Growth

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

68.9%

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 Mkango Resources 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 Mkango Resources performed over the past 5 years?

-30.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ZMK is unprofitable, and losses have increased over the past 5 years at a rate of -30.9% per year.

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

Earnings vs Industry: ZMK is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-7.4%).


Return on Equity

High ROE: ZMK has a negative Return on Equity (-46.1%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ZMK is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ZMK is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Mkango Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ZMK's short term assets ($11.2M) exceeds its short term liabilities ($204.6K)

Long Term Liabilities: ZMK has no long term liabilities


Debt to Equity History and Analysis

Debt Level: ZMK is debt free.

Reducing Debt: ZMK currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if ZMK'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: ZMK has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: ZMK has less than a year of cash runway if free cash flow continues to reduce at historical rates of -83.5% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if ZMK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ZMK'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 ZMK's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Mkango Resources's salary, the management and board of directors tenure and is there insider trading?

8.8yrs

Average management tenure


CEO

William Dawes 0

8.8yrs

Tenure

US$136,615

Compensation

Mr. William Dawes is a graduate of Bristol University (BSc Geology) and Royal School of Mines, Imperial College, London (MSc Mineral Exploration with distinction). Having trained as a geologist in South Af ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether William's total compensation is reasonable compared to companies of similar size in the German market.

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


Management Age and Tenure

8.8yrs

Average Tenure

Experienced Management: ZMK's management team is seasoned and experienced (8.8 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

62yo

Average Age

Experienced Board: ZMK's board of directors are considered experienced (5.8 years average tenure).


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


Management Team

  • Alex Lemon

    Co-Founder

    • Tenure: 8.8yrs
    • Compensation: US$136.62k
  • William Dawes

    Co-Founder

    • Tenure: 8.8yrs
    • Compensation: US$136.62k
  • Sandra Evans (60yo)

    Chief Financial Officer

    • Tenure: 8.3yrs
    • Compensation: US$34.74k

Board Members

  • Adrian Reynolds (65yo)

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: US$9.99k
  • Derek Linfield (62yo)

    Non-Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: US$16.64k
  • Shaun Treacy

    Non-Executive Director

    • Tenure: 1yrs
  • Susan Muir (62yo)

    Non-Executive Director

    • Tenure: 1.2yrs
  • Alex Lemon

    Co-Founder

    • Tenure: 8.8yrs
    • Compensation: US$136.62k
  • William Dawes

    Co-Founder

    • Tenure: 8.8yrs
    • Compensation: US$136.62k
  • Sandra du Toit (43yo)

    Non-Executive Director

    • Tenure: 1.2yrs

Company Information

Mkango Resources Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mkango Resources Ltd.
  • Ticker: ZMK
  • Exchange: BST
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$15.960m
  • Listing Market Cap: CA$10.948m
  • Shares outstanding: 133.00m
  • Website: https://www.mkango.ca

Location

  • Mkango Resources Ltd.
  • 550 Burrard Street
  • Suite 2900
  • Vancouver
  • British Columbia
  • V6C 0A3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MKALSE (London Stock Exchange)NPV(POST CONSOLIDATION)GBGBPNo data
MKATSXV (TSX Venture Exchange)YesCommon SharesCACADJan 2011
MKAAIM (London Stock Exchange AIM Market)YesCommon SharesGBGBPJan 2011
ZMKBST (Boerse-Stuttgart)YesCommon SharesDEEURJan 2011

Biography

Mkango Resources Ltd., through its subsidiary, Lancaster Exploration Limited, explores for and develops rare earth elements and associated minerals in the Republic of Malawi, Africa. It explores for uraniu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:44
End of Day Share Price2019/08/08 00:00
Earnings2019/06/30
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.