AIM:KP2

Stock Analysis Report

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Executive Summary

Kore Potash plc engages in the exploration and development of potash minerals in the Republic of Congo.


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has Kore Potash's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KP2's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.1%

KP2

2.9%

GB Metals and Mining

-0.7%

GB Market


1 Year Return

-42.2%

KP2

-7.2%

GB Metals and Mining

-15.7%

GB Market

Return vs Industry: KP2 underperformed the UK Metals and Mining industry which returned -6.8% over the past year.

Return vs Market: KP2 underperformed the UK Market which returned -14.9% over the past year.


Shareholder returns

KP2IndustryMarket
7 Day-5.1%2.9%-0.7%
30 Day8.8%2.9%0.6%
90 Day15.6%24.0%11.3%
1 Year-42.2%-42.2%-0.6%-7.2%-11.7%-15.7%
3 Yearn/a37.2%14.1%-4.3%-16.1%
5 Yearn/a101.1%54.0%13.5%-11.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kore Potash undervalued compared to its fair value and its price relative to the market?

0.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate KP2's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate KP2's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: KP2 is unprofitable, so we can't compare its PE Ratio to the GB Metals and Mining industry average.

PE vs Market: KP2 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 KP2's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KP2 is good value based on its PB Ratio (0.1x) compared to the GB Metals and Mining industry average (1.2x).


Next Steps

Future Growth

How is Kore Potash forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.1%

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 Kore Potash 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 Kore Potash performed over the past 5 years?

-12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KP2 is currently unprofitable.

Growing Profit Margin: KP2 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KP2 is unprofitable, and losses have increased over the past 5 years at a rate of -12.3% per year.

Accelerating Growth: Unable to compare KP2's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KP2 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (1.8%).


Return on Equity

High ROE: KP2 has a negative Return on Equity (-2.6%), as it is currently unprofitable.


Next Steps

Financial Health

How is Kore Potash's financial position?


Financial Position Analysis

Short Term Liabilities: KP2's short term assets ($8.0M) exceed its short term liabilities ($3.0M).

Long Term Liabilities: KP2 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: KP2 is debt free.

Reducing Debt: KP2 had no debt 5 years ago.


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: KP2 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: KP2 has less than a year of cash runway if free cash flow continues to reduce at historical rates of 9.8% each year


Next Steps

Dividend

What is Kore Potash current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KP2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KP2'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 KP2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KP2'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 KP2'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?

2.4yrs

Average management tenure


CEO

Brad Sampson (54yo)

2.08yrs

Tenure

US$1,043,210

Compensation

Mr. Stuart Bradley Sampson, also known as Brad, B Eng (Mining) Hons, MBA, AMP, GAICD, MAusIMM, has been Chief Executive Officer and Director of Kore Potash Limited since January 2019. Mr. Sampson serves as ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD1.04M) is above average for companies of similar size in the UK market ($USD347.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Sampson
CEO & Director2.08yrsUS$1.04m0.16% $22.8k
Gavin Chamberlain
Chief Operating Officer2.75yrsUS$341.77kno data
Henko Vos
Joint Company Secretary3.67yrsUS$22.49kno data
Andrey Maruta
Chief Financial Officer0.83yrno datano data
Andrew Pedley
Chief Geologistno datano datano data
Werner Swanepoel
Project Directorno dataUS$601.38kno data
Pieter Sijtsema
Project Managerno datano datano data
Paul Kluge
Project Managerno datano datano data

2.4yrs

Average Tenure

Experienced Management: KP2's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stuart Sampson
CEO & Director2.08yrsUS$1.04m0.16% $22.8k
David Netherway
Senior Independent Director1.08yrsUS$94.59k0.25% $35.6k
David Hathorn
Independent Non-Executive Chairman4.67yrsUS$327.20k3.5% $503.7k
Jonathan Alfred Trollip
Independent Director2.67yrsUS$110.91k0.23% $32.8k
Timothy Keating
Non-Executive Director2.67yrsUS$79.00k0.032% $4.6k
José Merino
Non-Executive Director2.17yrsUS$55.99kno data

2.4yrs

Average Tenure

55.5yo

Average Age

Experienced Board: KP2's board of directors are not considered experienced ( 2.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 80.4%.


Top Shareholders

Company Information

Kore Potash plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kore Potash plc
  • Ticker: KP2
  • Exchange: AIM
  • Founded: 2017
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: UK£14.398m
  • Shares outstanding: 1.56b
  • Website: https://www.korepotash.com

Number of Employees


Location

  • Kore Potash plc
  • 25 Moorgate
  • London
  • Greater London
  • EC2R 6AY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KP2ASX (Australian Securities Exchange)NPV CDI 1:1AUAUDNov 2017
KP2CHIA (Chi-X Australia)NPV CDI 1:1AUAUDNov 2017
KP1DB (Deutsche Boerse AG)NPV CDI 1:1DEEURNov 2017
KP2AIM (London Stock Exchange AIM Market)YesNew Ordinary SharesGBGBPMar 2018
KP2JSE (The Johannesburg Securities Exchange)YesNew Ordinary SharesZAZARMar 2018

Biography

Kore Potash plc engages in the exploration and development of potash minerals in the Republic of Congo. Its flagship property is the 97%-owned Sintoukola potash project that comprises the Kola sylvinite and carnallite deposits located to the north of the city of Pointe Noire. The company was incorporated in 2017 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 Analysis2020/07/14 21:01
End of Day Share Price2020/07/14 00:00
Earnings2019/12/31
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.