QMC Quantum Minerals Corp., an exploration stage company, engages in the acquisition, evaluation, exploration, and development of resource properties in Canada. The company explores for lithium, copper, nickel, gold, silver, palladium, platinum, and zinc deposits. Its flagship project is the Irgon Lithium Mine property that consists of 22 mining claims covering an area of approximately 11,325 acres located in Manitoba, Canada. QMC Quantum Minerals Corp. was incorporated in 2003 and is based in Vancouver, Canada.

Canada

QMC Quantum Minerals 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. 

QMC.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 15% from FY23 to CAD -0.00.

The stock has been falling steadily in the past six months, losing 10% in total. The stock has lagged its global peers from the same sector and industry (as shown above), underperforming then by 2ppts 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 neutral.

QMC Quantum Minerals Corp reported a return on equity (RoE) of -11.6% in the last 12 months, down from -11.5% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to -5.7% in the last 12 months, an increase from -5.9% in FY24. 

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

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -1.7 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.

QMC.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, slow historical revenue growth, bleak profitability, negligible return on capital, poor working capital management, and inadequate interest coverage. We note low margin volatility and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, QMC.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, QMC.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. 

Considering past and projected metrics, the stock is 'expensive' compared to its peers. 

QMC Quantum Minerals Corp

CA$ 0.05

2

QMC Quantum Minerals Corp

CA$ 0.05

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 0.05

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