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 15% from FY23 to CAD -0.03. 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). It has underperformed this peer group by 16ppts over six months and grown 6ppts faster 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.

West Vault Mining Inc. reported a return on equity (RoE) of -4.6% in the last 12 months, down from -4.2% in FY22. 

Another important profitability metric, return on assets (RoA), amounted to -3.6% in the last 12 months, a decrease from -3.5% in FY22. 

In the last 12 months, the return on capital employed (RoCE) declined to -3.7%, below the peers. 

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.

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. 

From both historical and forecast perspectives, the stock is fairly priced compared to similar stocks. 

West Vault Mining Inc.

CA$ 1.19

2

West Vault Mining Inc.

CA$ 1.19

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 1.19

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