AIM:HZM

Stock Analysis Report

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Executive Summary

Horizonte Minerals Plc, together with its subsidiaries, engages in the identification, acquisition, exploration, and development of mineral projects in Brazil.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

6.9%

HZM

4.0%

GB Metals and Mining

5.5%

GB Market


1 Year Return

97.2%

HZM

-2.2%

GB Metals and Mining

-9.2%

GB Market

Return vs Industry: HZM exceeded the UK Metals and Mining industry which returned -4.3% over the past year.

Return vs Market: HZM exceeded the UK Market which returned -10% over the past year.


Shareholder returns

HZMIndustryMarket
7 Day6.9%4.0%5.5%
30 Day32.1%19.4%10.8%
90 Day28.4%12.1%-0.4%
1 Year97.2%97.2%5.2%-2.2%-4.8%-9.2%
3 Year34.6%34.6%40.7%17.1%-0.8%-12.9%
5 Year33.3%33.3%75.4%36.3%18.1%-8.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.1x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: HZM is overvalued based on its PB Ratio (2.1x) compared to the GB Metals and Mining industry average (1.2x).


Next Steps

Future Growth

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

7.5%

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 Horizonte 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 Horizonte Minerals performed over the past 5 years?

-11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HZM is currently unprofitable.

Growing Profit Margin: HZM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HZM is unprofitable, and losses have increased over the past 5 years at a rate of -11.4% per year.

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

Earnings vs Industry: HZM is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (9.8%).


Return on Equity

High ROE: HZM has a negative Return on Equity (-15.54%), as it is currently unprofitable.


Next Steps

Financial Health

How is Horizonte Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: HZM's short term assets (£19.6M) exceed its short term liabilities (£425.4K).

Long Term Liabilities: HZM's short term assets (£19.6M) do not cover its long term liabilities (£29.6M).


Debt to Equity History and Analysis

Debt Level: HZM's debt to equity ratio (93.8%) is considered high.

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


Balance Sheet


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

Forecast Cash Runway: HZM has sufficient cash runway for 2.2 years if free cash flow continues to reduce at historical rates of 10.3% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

3.8yrs

Average management tenure


CEO

Jeremy Martin (41yo)

14.25yrs

Tenure

UK£516,240

Compensation

Mr. Jeremy John Martin, MSc, ASCM, has been the Chief Executive Officer of Horizonte Minerals PLC since March 17, 2006. Mr. Martin serves as a Country Manager of Exploration of Sweden for Aventine Resource ...


CEO Compensation Analysis

Compensation vs Market: Jeremy's total compensation ($USD656.59K) is above average for companies of similar size in the UK market ($USD339.72K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeremy Martin
CEO & Director14.25yrsUK£516.24k0.12% £63.1k
Simon Retter
CFO & Company Secretary3.75yrsUK£295.85k0.079% £39.8k
Antonio da Silva
Local Brazilian Director1.67yrsno datano data
Roger Billington
Senior Nickel Advisorno datano datano data

3.8yrs

Average Tenure

41yo

Average Age

Experienced Management: HZM's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeremy Martin
CEO & Director14.25yrsUK£516.24k0.12% £63.1k
William Fisher
Independent Non-Executive Director9yrsUK£88.85k0.19% £97.7k
David Hall
Non-Executive Chairman14.08yrsUK£96.96k0.072% £36.4k
Allan Walker
Independent Non-Executive Director14.25yrsUK£92.81k0.049% £24.7k
Owen Bavinton
Independent Non-Executive Director8.42yrsUK£100.39k0.14% £70.0k
Sepanta Dorri-Esfahani
Non-Executive Directorno datano datano data

14.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: HZM's board of directors are seasoned and experienced ( 14.1 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Horizonte Minerals Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Horizonte Minerals Plc
  • Ticker: HZM
  • Exchange: AIM
  • Founded: 2006
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: UK£50.623m
  • Shares outstanding: 1.45b
  • Website: https://horizonteminerals.com

Number of Employees


Location

  • Horizonte Minerals Plc
  • Rex House
  • 4-12 Regent Street
  • London
  • Greater London
  • SW1Y 4RG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HZMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPAug 2010
HZMTSX (The Toronto Stock Exchange)YesOrdinary SharesCACADAug 2010

Biography

Horizonte Minerals Plc, together with its subsidiaries, engages in the identification, acquisition, exploration, and development of mineral projects in Brazil. The company’s principal property is the Araguaia nickel project, a nickel laterite project located in the south of the Carajás mineral district in northern Brazil. It also explores for nickel-cobalt properties. Horizonte Minerals plc was incorporated in 2006 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 22:50
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.