Mawson Gold Limited operates as a gold exploration company in Finland and Sweden. The company also explores for cobalt, copper, lead, zinc, and silver deposits. Its flagship project is the Rompas-Rajapalot project that consists of 5 granted exploration permits and 9 exploration permit applications located in Finland. The company was formerly known as Mawson Resources Limited and changed its name to Mawson Gold Limited in August 2020. Mawson Gold Limited was incorporated in 2004 and is headquartered in Vancouver, Canada.

Canada

Mawson Gold 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. 

MWSNF reported revenue of CAD 0mn in the last 12 months, down 0% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 26% from FY24 to CAD -0.02. Market expects EPS to reach CAD -0.06 in FY25.

Over the past six months, the stock has consistently climbed, resulting in 26% total increase. When compared to its international counterparts in the same sector and industry (as shown above), the stock has exceeded their performances, leading by 16ppts in total. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is mildly favourable.

Mawson Gold Limited reported a return on equity (RoE) of -24.1% in the last 12 months, down from -22.4% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to -12.4% in the last 12 months, a decrease from -11.5% in FY24. 

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 9.1 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.

MWSNF 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 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 small 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 and we point to weak positions in its industry, negligible return on capital. We note an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, MWSNF 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, MWSNF 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 greatly overvalued relative to its peers. Specifically, the stock is overvalued on EV/EBITDA. 

Mawson Gold Limited

$ 3.17

2

Mawson Gold Limited

$ 3.17

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

$ 3.17

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