OTCPK:MMLT.F

Stock Analysis Report

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Executive Summary

MMG Limited, an investment holding company, engages in the exploration, development, and mining of copper, zinc, gold, silver, nickel, and lead deposits in Australia and internationally.

Rewards

Trading at 74.9% below our estimate of its fair value

Earnings are forecast to grow 90.05% per year

Risk Analysis

No risks detected for MMLT.F from our risk checks.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

MMLT.F

3.1%

US Metals and Mining

1.2%

US Market


1 Year Return

n/a

MMLT.F

29.2%

US Metals and Mining

16.8%

US Market

Return vs Industry: Insufficient data to determine how MMLT.F performed against the US Metals and Mining industry.

Return vs Market: Insufficient data to determine how MMLT.F performed against the US Market.


Shareholder returns

MMLT.FIndustryMarket
7 Day0%3.1%1.2%
30 Day0%13.4%4.9%
90 Day26.7%28.5%20.0%
1 Yearn/a32.0%29.2%19.3%16.8%
3 Year-56.8%-56.8%21.7%13.9%43.7%34.4%
5 Year-49.3%-49.3%92.9%75.8%75.5%56.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MMLT.F ($0.19) is trading below our estimate of fair value ($0.76)

Significantly Below Fair Value: MMLT.F is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: MMLT.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MMLT.F is overvalued based on its PB Ratio (2.1x) compared to the US Metals and Mining industry average (1.9x).


Next Steps

Future Growth

How is MMG forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

90.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMLT.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: MMLT.F is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MMLT.F's is expected to become profitable in the next 3 years.

Revenue vs Market: MMLT.F's revenue (7.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: MMLT.F's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MMLT.F's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has MMG performed over the past 5 years?

30.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MMLT.F is currently unprofitable.

Growing Profit Margin: MMLT.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MMLT.F is unprofitable, but has reduced losses over the past 5 years at a rate of 30.7% per year.

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

Earnings vs Industry: MMLT.F is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-22.6%).


Return on Equity

High ROE: MMLT.F has a negative Return on Equity (-7.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is MMG's financial position?


Financial Position Analysis

Short Term Liabilities: MMLT.F's short term assets ($1.1B) do not cover its short term liabilities ($1.5B).

Long Term Liabilities: MMLT.F's short term assets ($1.1B) do not cover its long term liabilities ($8.5B).


Debt to Equity History and Analysis

Debt Level: MMLT.F's debt to equity ratio (284.9%) is considered high.

Reducing Debt: MMLT.F's debt to equity ratio has increased from 275.9% to 284.9% 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: Whilst unprofitable MMLT.F has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MMLT.F is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 40% per year.


Next Steps

Dividend

What is MMG current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if MMLT.F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MMLT.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MMLT.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Xiaoyu Gao (50 yo)

2yrs

Tenure

US$2,987,000

Compensation

Mr.Geoffrey Gao, also known as Xiaoyu , is Chief Executive Officer and Executive Director of MMG Limited since August 1, 2018. He was Non-Executive Director of MMG Limited since April 1, 2011 until August ...


CEO Compensation Analysis

Compensation vs Market: Xiaoyu's total compensation ($USD2.99M) is below average for companies of similar size in the US market ($USD4.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Geoffrey Gao
CEO & Executive Director2yrsUS$2.99mno data
Ross Carroll
Chief Financial Officer4.67yrsno datano data
Blake Ericksen
Head of Investor Relationsno datano datano data
Nick Myers
General Counselno datano datano data
Maggie Qin
Head of China Relationsno datano datano data
Andrea Atell
Head of Corporate Affairsno datano datano data
Suet Leung
Company Secretary19.17yrsno datano data
Andrew Michelmore
Executive3.5yrsUS$12.28mno data
Jianxian Wei
Executive General Manager of Operations – Americas1yrno datano data

3.5yrs

Average Tenure

56.5yo

Average Age

Experienced Management: MMLT.F's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Geoffrey Gao
CEO & Executive Director2yrsUS$2.99mno data
Peter Cassidy
Independent Non-Executive Director9.67yrsUS$158.00kno data
Wenqing Guo
Chairman of the Board3.5yrsno datano data
Jiqing Xu
Non-Executive Director11.25yrsUS$704.00kno data
Jian Jiao
Non-Executive Director9.67yrsUS$161.00kno data
Cheuk Yan Leung
Independent Non-Executive Director8.08yrsUS$149.00kno data
Ka Keung Chan
Independent Non-Executive Director0.67yrUS$14.00kno data
Shuqiang Zhang
Non-Executive Director3.5yrsUS$143.00kno data

8.7yrs

Average Tenure

55yo

Average Age

Experienced Board: MMLT.F's board of directors are considered experienced (8.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: MMG Limited
  • Ticker: MMLT.F
  • Exchange: OTCPK
  • Founded: 1988
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: HK$16.450b
  • Listing Market Cap: HK$2.122b
  • Shares outstanding: 8.06b
  • Website: https://www.mmg.com

Number of Employees


Location

  • MMG Limited
  • 28 Freshwater Place
  • Level 23
  • Southbank
  • Victoria
  • 3006
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1208SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 1994
OMS1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1994
MMLT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1994
1208SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 1994
1208SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 1994

Biography

MMG Limited, an investment holding company, engages in the exploration, development, and mining of copper, zinc, gold, silver, nickel, and lead deposits in Australia and internationally. It operates throug ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 23:48
End of Day Share Price2020/06/08 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.