Monument Mining Limited (MMY:TSX) Analysts Bullish with a Strong Buy, $.32 target

STA Research
by: STA Research
mmy stock

Monument Mining Limited Stock Analysis:

Based on the Monument Mining stock forecasts from 2 analysts, the average analyst target price for mmy stock is CAD 0.32 over the next 12 months. Monument Mining stock’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of monument mining stock is Neutral, which is based on 7 positive signals and 6 negative signals. At the last closing, Monument Mining Limited’s stock price was CAD 0.10Monument Mining Limited’s stock price has changed by +0.00% over the past week, +18.75% over the past month and -32.14% over the last year.

About Monument Mining STock

Monument Mining stock operates as a gold producer and mining asset developer in Canada, Australia, and Malaysia. MMY stock focuses on the gold deposits; and explores for copper and iron deposits. The company holds 100% interest in the Selinsing gold mine, including the Selinsing, Buffalo Reef, Felda Land, Peranggih, and Famehub projects that are located in Pahang State within the Central Gold Belt of Western Malaysia; and the Murchison gold project portfolio comprising the Burnakura, Tuckanarra, and Gabanintha projects, which are located in the Murchison region of Western Australia. In addition, it owns Mengapur copper and iron project located in Pahang state, Malaysia. The company is headquartered in Vancouver, Canada.

Most Recent Analyst Ratings:

Monument Mining Stock Company News:

On May 30th, 2022, mmy stock company reported it’s third quarter of fiscal 2022  that concluded on March 31, 2022.

President and CEO Cathy Zhai commented: “Our Murchison Gold Project delivered significant assay results from Phase II RC drilling in the third quarter. These results strengthen our conviction that the NOA structure is highly prospective with the potential to expand and upgrade the existing Mineral Resource, which remains open at depth”.

Q3 Financial Results:

Three months ended
March 31,
Nine months ended
March 31,
2022 2021 2022 2021
Financial (expressed in thousands of US$) $ $ $ $
Revenue 6,160 4,397 13,589 17,151
Gross margin from mining operations 158 1,079 353 6,832
Income (loss) before other items (1,957 ) (396 ) (4,836 ) 2,706
Net loss (2,840 ) (96,104 ) (6,609 ) (96,615 )
Cash flows (used in) provided by operations 2,170 (2,097 ) (1,830 ) (554 )
Working capital 32,617 50,638 32,617 50,638
   
Loss per share – basic and diluted (US$/share) (0.01 ) (0.30 ) (0.02 ) (0.30 )

 

What we like:

Superior risk adjusted returns

MMY stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to book value

MMY stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization

Monument mining stock management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

Monument mining stock company is less leveraged than its peers and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

MMY stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

High volatility

The total returns for MMY stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

MMY stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis

Monument mining stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis

Monument mining stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

Monument mining stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

MMY stock has shown below median revenue growth in the previous 5 years compared to its sector

Disclaimer

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