FNI.TO  First Nickel Inc

Exchange

TSX

Sector

Mining

Industry

Market Cap.

7.75M

Vuru Grade

0.00/100

Current Price

$0.01
+0.000 (+0.000%)

Company Metrics

  • P/E 1
  • P/S 0.124
  • P/B 1.25
  • EPS -0.065
  • Cash ROIC -7.85%
  • Cash Ratio 0.11
  • Dividend 0 / 0.4%
  • Avg. Vol. 8,738.00
  • Shares 665.87M
  • Market Cap. 7.75M

Company Description

First Nickel Inc. engages in the acquisition, exploration, and development of mineral resource prospects in Canada. The company primarily involves in nickel mining through its principal property, the Lockerby Mine property, which is located in the southwest of the city of Sudbury, Ontario. It holds interests in various properties, including the West Graham property, which is located at the south w... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

There is no news available at this time.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for FNI.TO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate FNI.TO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$0.01 Current Price

$-0.01 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$-0.00 Book Price

Overvalued by 177.65%


Very Poor Cash Return on Invested Capital over the past 5 years

FNI.TO has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

FNI.TO has lost $7.85 of cash for every $100 invested.
Figures in CAD. Fiscal year ends in December
20102011201220132014
Free Cash Flow -9.37M 17.91M -24.55M -17.65M -837,138.00
divided by
Invested Capital 53.32M 93.51M 69.62M 52.75M -3.00M
Cash ROIC -17.57% 19.15% -35.26% -33.47% 27.90%

Very Poor Return on Equity over the past 5 years

FNI.TO has shown an inability to deliver results for shareholders. This could be due to poor management, FNI.TO operating in a highly competitive industry, or having a weak business in general.

FNI.TO has generated a $83.31 loss for every $100 of Shareholders' Equity.
Figures in CAD. Fiscal year ends in December
20102011201220132014
Net Income -9.10M 25.16M -36.33M -55.62M -20.70M
divided by
Stockholders' Equity 67.59M 99.05M 64.65M 14.94M -4.25M
Return on Equity -13.46% 25.40% -56.19% -372.32% -

Poor Business Performance over the past 10 years

FNI.TO's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

FNI.TO has been losing money for the majority of the past 10 years.
Figures in CAD. Fiscal year ends in December
2005200620072008200920102011201220132014
Free Cash Flow -9.53M -15.02M 911,113.00 -11.81M -5.88M -9.37M 17.91M -24.55M -17.65M -837,138.00

Very Weak Balance Sheet

FNI.TO is in a poor financial position. This could be due to a slowdown in sales, indulging in debt-fuelled growth, or the nature of FNI.TO's business. If it is highly capital intensive (see Economic Moat), they likely have to outlay significant capital just to stay competitive. This habit often destroys more value than it creates.
Figures in CAD. Fiscal year ends in December
2005200620072008200920102011201220132014
Cash 7.36M 6.50M 23.62M 7.78M 7.29M 29.15M 25.97M 4.77M 3.62M 5.89M
Current Assets 11.64M 15.80M 35.44M 12.77M 7.88M 30.07M 34.81M 13.37M 15.53M 17.86M
Total Assets 51.42M 67.73M 92.84M 62.12M 61.71M 84.26M 127.42M 96.88M 68.43M 58.50M
Current Liabilities 7.13M 22.42M 11.46M 4.40M 1.43M 1.79M 7.93M 22.49M 12.06M 55.61M
Total Liabilities 29.36M 32.95M 22.93M 11.20M 16.41M 16.67M 28.37M 32.23M 53.49M 62.75M
Stockholder' Equity 22.07M 34.78M 69.91M 50.92M 45.30M 67.59M 99.05M 64.65M 14.94M -4.25M
Current Ratio 1.63 0.70 3.09 2.91 5.50 16.79 4.39 0.59 1.29 0.32
TL-to-TA 0.57 0.49 0.25 0.18 0.27 0.20 0.22 0.33 0.78 1.07

Low or No Reinvestment of Profits over the past 10 years

FNI.TO has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to FNI.TO operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in CAD. Fiscal year ends in December
2005200620072008200920102011201220132014
Retained Earnings -4.11M -4.54M -3.73M -27.93M -35.45M -44.55M -25.93M -62.26M -117.88M -138.59M
Retained Earnings Growth - -10.42% 17.94% -649.84% -26.92% -25.66% 41.79% -140.09% -89.33% -17.56%

Erratic Net Profit Margins over the past 10 years

FNI.TO has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in CAD. Fiscal year ends in December
2005200620072008200920102011201220132014
Net Income -4.00M -949,914.00 814,354.00 -24.21M -7.52M -9.10M 25.16M -36.33M -55.62M -20.70M
divided by
Revenue 390,054.00 28.89M 56.93M 48.19M 4.48M - - 36.08M 71.64M 78.36M
Net Profit Margin -1,025.88% -3.29% 1.43% -50.24% -167.68% - - -100.70% -77.63% -26.42%

Erratic Gross Profit Margins over the past 10 years

FNI.TO has had highly erratic gross profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in CAD. Fiscal year ends in December
2005200620072008200920102011201220132014
Gross Profit 390,054.00 6.80M 17.43M 698,941.00 -5.38M -5.34M - -25.22M -34.45M -9.07M
divided by
Revenue 390,054.00 28.89M 56.93M 48.19M 4.48M - - 36.08M 71.64M 78.36M
Gross Margin 100.00% 23.55% 30.63% 1.45% -119.89% - - -69.91% -48.08% -11.57%

High Capital Intensity over the past 10 years

FNI.TO spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

930.28% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in CAD. Fiscal year ends in December
2005200620072008200920102011201220132014
Capital Expenditure 9.22M 14.94M 14.86M 7.11M - 1.88M 9.03M 26.08M 13.09M 9.01M
divided by
Net Income -4.00M -949,914.00 814,354.00 -24.21M -7.52M -9.10M 25.16M -36.33M -55.62M -20.70M
Capital Expenditure Ratio -230.43% -1,572.71% 1,824.67% -29.36% - -20.66% 35.88% -71.80% -23.54% -43.53%

No Dividend History over the past 10 years

FNI.TO has never distributed dividends or has recently suspended their dividend distribution.
Figures in CAD. Fiscal year ends in December
2005200620072008200920102011201220132014
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 44.46M 67.15M 115.02M 143.46M 156.24M 173.30M 480.01M 514.76M 594.73M 665.87M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 1.48 0.61 0.63 0.06 0.13 0.13 0.11 0.06 0.02 0.02
Dividend Yield - - - - - - - - - -

No History of Stock Buybacks over the past 10 years

We're neutral on this. It's not necessarily good or bad that FNI.TO hasn't initiated a stock buyback.
Figures in CAD. Fiscal year ends in December
2005200620072008200920102011201220132014
Shares Outstanding 44.46M 67.15M 115.02M 143.46M 156.24M 173.30M 480.01M 514.76M 594.73M 665.87M
Stock Bought Back - -33.79% -41.62% -19.82% -8.18% -9.85% -63.90% -6.75% -13.45% -10.68%
Share your thoughts about FNI.TO

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!