Nemaska Lithium, Inc. :NMX-CA: Earnings Analysis: Q2, 2017 By the Numbers

Nemaska Lithium, Inc. reports financial results for the quarter ended December 31, 2016.

Analysis

  • Summary numbers: Revenues of CAD 0 million, Net Earnings of CAD -2.75 million.
  • The company did not record any revenues for the last twelve months making the comparison of net margin versus asset turnover meaningless.
  • NMX-CA‘s earnings and EBITDA are both negative which suggest that P/E or Price/EBITDA are not meaningful to make this analysis between operating advantage (ROE) and growth expectations (as suggested by P/E or P/EBITDA).
  • Cash and Cash equivalents were up this period to 56.11 million compared to 2.72 million in the same period last year.
  • With debt at a relatively low 0.60% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 0.30%), and relatively tight interest coverage level of -830.93x, NMX-CA would have a hard time raising much additional debt. Thus, the company is classified as having Limited Flexibility when it comes to raising more debt.
  • Of the 7 chosen peers for the company, only 2 of the stocks have an outstanding debt balance (including MNO-CA and SPT-CA). Companies with no debt include ULI-CA, RM-CA, BCN-CA, RCK-CA and RHT-CA.
  • Net income of -2.75 million this period compared to a net income of -1.17 million last period. This is a growth of -135.01% over the previous period. In comparison, the peer group grew at -145.89%

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Company Profile

Nemaska Lithium, Inc. is an exploration company which, engages in the provision of development and exploration of lithium mining properties. It includes producing lithium hydroxide and lithium carbonate. The company was founded on May 16, 2007 and is headquartered in Quebec, Canada.

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