West Vault Mining Inc., a mineral exploration and development company, focuses on the acquisition, exploration, and development of gold projects. Its flagship asset is the 100% owned Hasbrouck and Three Hills properties located in southwestern Nevada. The company was formerly known as West Kirkland Mining Inc. and changed its name to West Vault Mining Inc. in July 2020. West Vault Mining Inc. was incorporated in 2007 and is based in Vancouver, Canada.

Canada

West Vault Mining 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. 

WVM.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 54% from FY23 to CAD -0.04. Market expects EPS to reach CAD -0.01 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). Within the past six months, its performance has trailed this peer group's by 3ppts and its growth decelerated by 0ppts 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 neither favourable nor unfavourable.

West Vault Mining Inc. reported a return on equity (RoE) of -6.2% in the last 12 months, down from -4.0% in FY23. The market consensus projects an RoE of -4.1% in FY24, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to -4.8% in the last 12 months, a decrease from -3.2% in FY23. The market analysts predict that RoA will be -3.3% in FY24, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to -4.8%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.7 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.

WVM.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 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, and inadequate interest coverage. We note an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, WVM.V is highly volatile. In other words, the stock will fall substantially more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be significant. 

In normal market circumstances, WVM.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 significant to immense. 

Based on key historical and expected multiples, the stock is fairly valued relative to its peers. 

West Vault Mining Inc.

CA$ 1.22

2

West Vault Mining Inc.

CA$ 1.22

2

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Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 1.22

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