AIM:ARCM

Stock Analysis Report

Executive Summary

Arc Minerals Limited engages in the identification, evaluation, acquisition, and development of natural resource projects primarily in Africa.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

How has Arc Minerals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ARCM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.3%

ARCM

2.2%

GB Metals and Mining

3.9%

GB Market


1 Year Return

-39.2%

ARCM

-27.0%

GB Metals and Mining

-22.4%

GB Market

Return vs Industry: ARCM underperformed the UK Metals and Mining industry which returned -28.1% over the past year.

Return vs Market: ARCM underperformed the UK Market which returned -23% over the past year.


Shareholder returns

ARCMIndustryMarket
7 Day3.3%2.2%3.9%
30 Day-26.2%-11.9%-16.1%
90 Day-50.0%-24.3%-26.1%
1 Year-39.2%-39.2%-21.2%-27.0%-18.2%-22.4%
3 Year-58.7%-58.7%7.8%-10.3%-11.7%-23.1%
5 Year-81.8%-81.8%41.7%7.6%1.9%-21.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Arc Minerals undervalued compared to its fair value and its price relative to the market?

0.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ARCM is overvalued based on its PB Ratio (0.9x) compared to the GB Metals and Mining industry average (0.8x).


Next Steps

Future Growth

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

5.7%

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 Arc Minerals 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 Arc Minerals performed over the past 5 years?

-58.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARCM is currently unprofitable.

Growing Profit Margin: ARCM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARCM is unprofitable, and losses have increased over the past 5 years at a rate of -58.8% per year.

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

Earnings vs Industry: ARCM is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (7.2%).


Return on Equity

High ROE: ARCM has a negative Return on Equity (-150.76%), as it is currently unprofitable.


Next Steps

Financial Health

How is Arc Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: ARCM's short term assets (£13.3M) exceed its short term liabilities (£3.5M).

Long Term Liabilities: ARCM's short term assets (£13.3M) exceed its long term liabilities (£2.4M).


Debt to Equity History and Analysis

Debt Level: ARCM's debt to equity ratio (16.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ARCM's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ARCM's debt is covered by short term assets (assets are 5.6x debt).


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: ARCM has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: ARCM has sufficient cash runway for 1.5 years if free cash flow continues to reduce at historical rates of -15.9% each year.


Next Steps

Dividend

What is Arc Minerals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average board tenure


CEO

Arc Minerals has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Nicholas von Schirnding
Executive Chairman2.42yrsUK£189.00k2.35% £264.7k
Rémy Jaime Welschinger
Finance Director & Executive Director0.83yrno data1.79% £201.9k
Brian McMaster
Senior Independent Directorno dataUK£45.00k0.35% £39.6k
Jonathan de Thierry
Independent Non-Executive Director2.17yrsUK£8.00k1.89% £213.4k
Donald Bailey
Independent Non-Executive Director1.67yrsno data1.06% £119.3k
Mushinge Mumena
Non-Executive Director1yrno data7.89% £889.7k

1.7yrs

Average Tenure

54yo

Average Age

Experienced Board: ARCM'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 72.4%.


Top Shareholders

Company Information

Arc Minerals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arc Minerals Limited
  • Ticker: ARCM
  • Exchange: AIM
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: UK£11.272m
  • Shares outstanding: 727.22m
  • Website: https://www.arcminerals.com

Number of Employees


Location

  • Arc Minerals Limited
  • Craigmuir Chambers
  • Road Town
  • Tortola
  • VG 1110
  • British Virgin Islands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARCMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2007
OTCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2007

Biography

Arc Minerals Limited engages in the identification, evaluation, acquisition, and development of natural resource projects primarily in Africa. Its principal asset is the Zamsort copper-cobalt project covering an area of 872 square kilometers located in Zambia. The company was formerly known as Ortac Resources Limited and changed its name to Arc Minerals Limited in January 2018. Arc Minerals Limited is based in Road Town, British Virgin Islands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 21:17
End of Day Share Price2020/03/31 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.