Kingfisher Metals Corp., a junior mineral exploration company, engages in the acquisition, exploration, and evaluation of mineral properties in British Columbia, Canada. The company primarily explores for gold, copper, silver, and zinc deposits. It holds 100% interests in the Ecstall property covering 20,735 hectares located in Northwest British Columbia; the Goldrange project covering 36,692 hectares located in Central British Columbia; and the Thibert project covering 12,475 hectares located to the north of Dease Lake. Kingfisher Metals Corp. is based in Vancouver, Canada.

Canada

Kingfisher Metals Corp.

Basic Materials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

KFR.V reported revenue of CAD 0mn in the last 12 months, down 0% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 0% from FY23 to CAD -0.06.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 97ppts over past six months and grown 9ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

Kingfisher Metals Corp. reported a return on equity (RoE) of -12.9% in the last 12 months, up from -16.6% in FY22. 

Another important profitability metric, return on assets (RoA), amounted to -11.3% in the last 12 months, an increase from -14.7% in FY22. 

In the last 12 months, the return on capital employed (RoCE) grew to -11.6%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -3.4 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

KFR.V has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity may be unstable and becomes extremely unfavourable on the days with the lowest activity. However, under highly turbulent market conditions, the trading volume tends to improve significantly. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, negligible return on capital, and inadequate interest coverage. We note an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, KFR.V is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, KFR.V is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Based on key historical and expected multiples, the stock is undervalued relative to its peers. 

Kingfisher Metals Corp.

CA$ 0.27

3

Kingfisher Metals Corp.

CA$ 0.27

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 0.27

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