OTCPK:MMLT.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with moderate growth potential.


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


Market Performance


7 Day Return

0%

OTCPK:MMLT.F

-3.3%

US Metals and Mining

-0.7%

US Market


1 Year Return

n/a

OTCPK:MMLT.F

-15.5%

US Metals and Mining

-0.5%

US Market

No trading data on MMLT.F.

No trading data on MMLT.F.


Share holder returns

MMLT.FIndustryMarket
7 Day0%-3.3%-0.7%
30 Day0%-10.3%-3.0%
90 Dayn/a0.7%0.9%
1 Yearn/a-13.1%-15.5%1.7%-0.5%
3 Year55.6%55.6%-3.0%-7.9%39.5%30.4%
5 Yearn/a-17.6%-23.8%54.1%37.0%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

MMG's share price is below the future cash flow value, and at a moderate discount (> 20%).

MMG's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

MMG is overvalued based on earnings compared to the US Metals and Mining industry average.

MMG is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

MMG is good value based on expected growth next year.


Price Based on Value of Assets

MMG is overvalued based on assets compared to the US Metals and Mining industry average.


Next Steps

Future Growth

How is MMG expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

40.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

MMG's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

MMG's earnings are expected to grow significantly at over 20% yearly.

MMG's revenue growth is positive but not above the United States of America market average.

MMG's earnings growth is expected to exceed the United States of America market average.

MMG's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

MMG is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has MMG performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

MMG's year on year earnings growth rate has been positive over the past 5 years.

MMG's 1-year earnings growth is negative, it can't be compared to the 5-year average.

MMG's 1-year earnings growth is negative, it can't be compared to the US Metals and Mining industry average.


Return on Equity

MMG has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

MMG used its assets less efficiently than the US Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

MMG has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is MMG's financial position?


Financial Position Analysis

MMG's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

MMG's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

MMG's level of debt (280.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (89.2% vs 280.8% today).

Debt is well covered by operating cash flow (21.3%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate MMG's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate MMG's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as MMG has not reported any payouts.

Unable to verify if MMG's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as MMG has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of MMG's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Geoffrey Gao (49yo)

1.0yrs

Tenure

US$1,576,000

Compensation

Mr. Xiaoyu Gao, also known as Geoffrey, 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

Geoffrey's remuneration is lower than average for companies of similar size in United States of America.

Geoffrey's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.6yrs

Average Tenure

50yo

Average Age

The average tenure for the MMG management team is less than 2 years, this suggests a new team.


Board Age and Tenure

7.1yrs

Average Tenure

55yo

Average Age

The tenure for the MMG board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Andrew Michelmore (66yo)

    Executive

    • Tenure: 2.5yrs
    • Compensation: US$12.28m
  • Lucia Leung (57yo)

    Company Secretary

    • Tenure: 18.2yrs
  • Troy Hey (49yo)

    Executive General Manager of Stakeholder Relations & People

    • Tenure: 0.6yrs
  • Ross Carroll (54yo)

    Chief Financial Officer

    • Tenure: 3.7yrs
  • Jiqing Xu (51yo)

    Executive General Manager of Commercial & Executive Director

    • Tenure: 10.3yrs
    • Compensation: US$1.61m
  • Geoffrey Gao (49yo)

    CEO & Executive Director

    • Tenure: 1.0yrs
    • Compensation: US$1.58m
  • Brent Walsh

    Group Manager of Strategy & Investor Relations

    • Tenure: 0.0yrs
  • Nick Myers

    General Counsel

    • Tenure: 0.0yrs
  • Mark Davis (46yo)

    Executive General Manager of Operations for Africa

    • Tenure: 1.6yrs
  • Suresh Vadnagra (45yo)

    Executive General Manager of Operations – Americas

    • Tenure: 1.6yrs

Board Members

  • Jenny Seabrook (62yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: US$175.00k
  • Peter Cassidy (73yo)

    Independent Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: US$169.00k
  • Buck Pei (62yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: US$160.00k
  • Wenqing Guo (55yo)

    Chairman of the Board

    • Tenure: 2.5yrs
  • Jiqing Xu (51yo)

    Executive General Manager of Commercial & Executive Director

    • Tenure: 10.3yrs
    • Compensation: US$1.61m
  • Jerry Jiao (50yo)

    Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: US$2.87m
  • Geoffrey Gao (49yo)

    CEO & Executive Director

    • Tenure: 1.0yrs
    • Compensation: US$1.58m
  • Cheuk Yan Leung (68yo)

    Independent Non-Executive Director

    • Tenure: 7.1yrs
    • Compensation: US$160.00k
  • Shuqiang Zhang (53yo)

    Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$152.00k

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$15.062b
  • Listing Market Cap: HK$1.920b
  • Shares outstanding: 8.05b
  • Website: https://www.mmg.com

Number of Employees


Location

  • MMG Limited
  • Level 23
  • 28 Freshwater Place
  • 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 worldwide. It operates through Las Bambas, Kinsevere ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:35
End of Day Share Price2019/06/13 00:00
Earnings2018/12/31
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.