McFarlane Lake Mining Limited acquires, explores, and develops gold properties in Canada. It holds an option agreement to acquire 100% interest in the High Lake mineral property located east of the Ontario-Manitoba border; West Hawk Lake mineral property located within Southwestern Manitoba; the McMillan mineral property located within Northeastern Ontario; Mongowin property located in Northeastern Ontario; and the Michaud/Munro properties located in Matheson, Ontarios. McFarlane Lake Mining Limited is headquartered in Sudbury, Canada.

Canada

McFarlane Lake Mining Limited

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. 

The stock has been growing steadily in the past six months, adding 175% in total. The stock has outperformed its global peers from the same sector and industry (as shown above), surpassing them by 140ppts 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'.

McFarlane Lake Mining Limited reported a return on equity (RoE) of 1094.8% in the last 12 months, up from -462.1% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to -430.8% in the last 12 months, a decrease from -168.6% in FY24. 

In the last 12 months, the return on capital employed (RoCE) grew to 1094.8%, above the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 45.1 in the past several years. This ratio implies a excellent 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.

MLM.NE 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 very unstable 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, inadequate interest coverage, and poor cash flow generation. We note an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, MLM.NE 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, MLM.NE 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. 

McFarlane Lake Mining Limited

CA$ 0.06

2

McFarlane Lake Mining Limited

CA$ 0.06

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 0.06

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