Friday, October 20, 2017

Trigon Metals Inc.

Sound bite for Twitter and StockTwits is: Penny Mining Stock. I am following this for fun. I have not recommendation. See my spreadsheet on Trigon Metals Inc .

I own this stock of Kombat Copper Inc. (TSX-KBT, OTC-PNTZF) which is now Trigon Metals Inc. (TSX-TM, OTC-PNTZF). I am following this stock because I own it. I am following it because I am interested in how it all will turn out.

The first thing to notice is shares have increased at an astounding rate. Over the past 5 and 10 years outstanding shares have increase by 45 and 31% per year or in total 4075% and 2585%. In 2017 outstanding shares grew by 25% and have g5rowth by almost 9% so far this year. The stock has been consolidated twice.

I bought this stock as Tathacus Resources Ltd (TSX-TTC). In 2011 there was a reverse takeover and company was Pan Terra Industries Inc. May 2, 2012 the name was changed from Pan Terra Industries (TSX-PNT) to Kombat Copper Inc. (TSX-KBT). On December 22, 2016 the stock changed its name and from Kombat Copper Inc. (TSX-KBT, OTC-PNTZF) to Trigon Metals Inc. (TSX-TM, OTC-PNTZF). The reason I have not sold is that the stock is worth so little. The current value of my shares is $2.10.

This company has not had any revenue since 2010. Most of the years they have had earning losses and all the previous 10 years there are earning losses. There is no positive cash flow. About the only good thing is that there is a positive book value.

Debt ratios have varied. It has mostly had reasonable Liquidity Ratios expect for 2009 when it was 0.22. It has to be at 1.00 for current assets to cover current liabilities. The Liquidity Ratio for the last financial year ending in March 2017 was 1.49. The Debt Ratios has also varied a lot, but the most recent annual statement it was 2.50. Leverage and Debt/Equity Ratios are also reasonable with the one for the last financial year at 1.66 and 0.66 respectively.

The only check to make on price is the Price/Book Value per Share Ratio. The 10 year median ratio is 3.24 and the current one is 18.10. The current one is some 458% higher than the 10 year ratio. However, both ratios are high. A ratio of 18.10 is extraordinarily high. The P/B Ratio of 18.10 is based on a Book Value of .449M, BVPS of $ 0.02 and a stock price of $0.41. This test would say that the stock price is relatively expensive; however this is a penny stock in mining.

There does not seem to be any analysts following this stock. This can hardly be a surprise. It is a penny stock in mining in Africa. So far it probably has not made any profit for investors. Whether it ever will is up for grabs.

Stephan Theron reports in Junior Mining Network that the company has received the environmental approvals required to commence exploration on the area targeted for open pit mining. Lockport Staff on Lockport Press gives some technical analysis of this company. From the new rooms at Market Wired we see that this company completed a non-brokered private placement financing of up to 3,333,333 units at a price of $0.30 per Unit for gross proceeds of up to $1,000,000.

Trigon Metals Inc. is engaged in acquisition, maintenance, exploration and development of mines and mineral properties in Namibia. Its web site is here Trigon Metals Inc .

The last stock I wrote about was about was Logistec Corp (TSX- LGT.B, OTC-LTKBF)... learn more. The next stock I will write about will be Canadian Pacific Railway (TSX-CP, NYSE-CP)... learn more on Monday, October 23, 2017 around 5 pm. Today on my other blog I will write about Money Show 2017 - Ryan Irvine 2... learn more on Friday, October 20, 2017 around 5 pm

Also, on my book blog I have put a review of the book Maximum Canada by Doug Saunders learn more...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

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