Radisson Mining Resources Inc., a gold exploration company, engages in the acquisition, exploration, and development of mining properties in Canada. Its flagship project is the 100% owned O'Brien gold project that comprise 120 claims covering a total area of 5,839 hectares located in the Abitibi Témiscamingue region of Quebec. The company was founded in 1983 and is headquartered in Rouyn-Noranda, Canada.

Canada

Radisson Mining Resources 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. 

RDS.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 fell 10% from FY23 to CAD -0.00. Market expects EPS to reach CAD -0.01 in FY24.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 2ppts over past six months and grown 12ppts slower in the past month. 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.

In the last 12 months, the return on capital employed (RoCE) grew to -1.6%, below the peers. 

Radisson Mining Resources Inc. reported a return on equity (RoE) of -1.8% in the last 12 months, up from -4.5% in FY22. 

Another important profitability metric, return on assets (RoA), amounted to -1.6% in the last 12 months, an increase from -3.9% in FY22. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.5 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.

RDS.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. 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, RDS.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, RDS.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 fairly valued relative to its peers. 

Radisson Mining Resources Inc.

CA$ 0.31

2

Radisson Mining Resources Inc.

CA$ 0.31

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 0.31

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