NorthIsle Copper and Gold Inc. engages in the exploration and development of mineral properties in Canada. The company explores for copper, gold, molybdenum, and rhenium deposits. Its principal property is the North Island project consisting of approximately 34,000 hectares located on Northern Vancouver Island, British Columbia. The company was incorporated in 2011 and is headquartered in Vancouver, Canada.

Canada

NorthIsle Copper and Gold Inc.

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. 

NTCPF 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 61% from FY23 to CAD -0.04. Market expects EPS to reach CAD -0.02 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 49ppts and its growth decelerated by 11ppts in the past month. 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.

Another important profitability metric, return on assets (RoA), amounted to -51.7% in the last 12 months, a decrease from -39.9% in FY22. 

In the last 12 months, the return on capital employed (RoCE) declined to -62.2%, below the peers. 

NorthIsle Copper and Gold Inc. reported a return on equity (RoE) of -62.4% in the last 12 months, down from -45.2% in FY22. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -3.3 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.

NTCPF 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 very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is very high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, negligible return on capital, and poor cash flow generation.

In highly turbulent market conditions, NTCPF 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, NTCPF 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. 

From both historical and forecast perspectives, the stock is considerably overpriced compared to similar stocks. 

NorthIsle Copper and Gold Inc.

$ 0.5

2

NorthIsle Copper and Gold Inc.

$ 0.5

2

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Risk / Profitability

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Profitability factor

$ 0.5

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