OTCPK:RARM.F

Stock Analysis Report

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Executive Summary

Cadence Minerals Plc identifies, invests in, and develops lithium and rare earth assets.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

RARM.F

3.1%

US Metals and Mining

1.2%

US Market


1 Year Return

n/a

RARM.F

29.2%

US Metals and Mining

16.8%

US Market

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

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


Shareholder returns

RARM.FIndustryMarket
7 Day0%3.1%1.2%
30 Day0%13.4%4.9%
90 Dayn/a28.5%20.0%
1 Yearn/a32.0%29.2%19.3%16.8%
3 Yearn/a21.7%13.9%43.7%34.4%
5 Yearn/a92.9%75.8%75.5%56.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RARM.F is good value based on its PB Ratio (0.6x) compared to the US Metals and Mining industry average (1.9x).


Next Steps

Future Growth

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

21.2%

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 Cadence 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 Cadence Minerals performed over the past 5 years?

-32.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RARM.F is currently unprofitable.

Growing Profit Margin: RARM.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RARM.F is unprofitable, and losses have increased over the past 5 years at a rate of 32% per year.

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

Earnings vs Industry: RARM.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: RARM.F has a negative Return on Equity (-14.71%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cadence Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: RARM.F's short term assets (£3.9M) exceed its short term liabilities (£3.3M).

Long Term Liabilities: RARM.F has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: RARM.F's debt to equity ratio (19.3%) is considered satisfactory.

Reducing Debt: RARM.F's debt to equity ratio has increased from 4.4% to 19.3% 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: RARM.F has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: RARM.F has sufficient cash runway for 2.4 years if free cash flow continues to reduce at historical rates of 3.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

Growing Dividend: Insufficient data to determine if RARM.F'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 RARM.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?

6.0yrs

Average board tenure


CEO

Kiran Morzaria (47 yo)

6.92yrs

Tenure

UK£150,327

Compensation

Mr. Kiran Caldas Morzaria, B.Eng ACSM, (FGS), MBA, has been the Chief Executive Officer of Cadence Minerals Plc since September 19, 2013. Mr. Morzaria serves as a Finance Director of an AIM-quoted resource ...


CEO Compensation Analysis

Compensation vs Market: Kiran's total compensation ($USD196.64K) is below average for companies of similar size in the US market ($USD593.60K).

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


Board Members

NamePositionTenureCompensationOwnership
Kiran Morzaria
CEO & Director6.92yrsUK£150.33k0.67%
£ 104.5k
Donald Ian Layman Strang
Executive Finance Director6.92yrsUK£120.33k0.45%
£ 70.8k
Adrian Fairbourn
Non-Executive Director9.5yrsUK£48.14k0.11%
£ 16.4k
Andrew Suckling
Non-Executive Chairman4.67yrsUK£100.33k0.050%
£ 7.7k

6.0yrs

Average Tenure

47.5yo

Average Age

Experienced Board: RARM.F's board of directors are considered experienced (6 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 been diluted in the past year, with total shares outstanding growing by 22.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Cadence Minerals Plc
  • Ticker: RARM.F
  • Exchange: OTCPK
  • Founded: 2004
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: UK£11.944m
  • Listing Market Cap: UK£15.624m
  • Shares outstanding: 129.26m
  • Website: https://www.cadenceminerals.com

Number of Employees


Location

  • Cadence Minerals Plc
  • The Broadgate Tower
  • 20 Primrose Street
  • London
  • Greater London
  • EC2A 2EW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KDNCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMar 2005
RARM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2005
2READB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2005

Biography

Cadence Minerals Plc identifies, invests in, and develops lithium and rare earth assets. The company is also exploring for iron ore and other mining related opportunities. In addition, it holds interests i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 00:32
End of Day Share Price2020/07/08 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.