Maritime Resources Corp., an exploration stage company, engages in the exploration and development of mineral properties. It primarily explores for gold, silver, copper, lead, and zinc deposits. The company holds interests in the Lac Pelletier project that consists of 16 mineral claims and 1 mining lease covering an area of 443 hectares located in Rouyn Noranda, Quebec; Green Bay project, as well as Whisker Valley project situated in Newfoundland and Labrador; and Orion deposit located to the east of Hammerdown. The company was incorporated in 2007 and is based in Vancouver, Canada.

Canada

Maritime Resources 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. 

MAE.V reported revenue of CAD 0mn in the last 12 months, down 0% from FY23. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS grew 124% from FY23 to CAD -0.01. Market expects EPS to reach CAD -0.01 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. The stock has outperformed its global peers from the same sector and industry (as shown above), surpassing them by 98ppts in total. 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'.

Maritime Resources Corp. reported a return on equity (RoE) of -17.0% in the last 12 months, down from -6.6% in FY23. The market consensus projects an RoE of -7.6% in FY24, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to -12.6% in the last 12 months, a decrease from -5.5% in FY23. The market analysts predict that RoA will be -5.6% in FY24, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to -12.9%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.7 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.

MAE.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 is relatively stable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. 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, MAE.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, MAE.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 overvalued relative to its peers. 

Maritime Resources Corp.

CA$ 0.12

2

Maritime Resources Corp.

CA$ 0.12

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 0.12

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