Monday, October 15, 2018

Trigon Metals Inc

Sound bite for Twitter and StockTwits is: Penny Mining Stock. There is no way to value this stock. A positive is that there is lots of insider buy at 0.09% of market cap (where this value is usually 0.01% to 0.02%). Awful debt ratios. See my spreadsheet on Trigon Metals Inc.

I own this stock of Trigon Metals Inc (TSX-TM, OTC-PNTZF). I originally brought this stock in 2000 as Tathacus Resources Ltd. because it was doing interesting things. There was a reverse takeover (RTO) of this company on April 28, 2011 by Pan Terra Industries Inc. Symbol PNT. On May 2, 2012 there was a name change from Pan Terra Industries (PNT) to Kombat Copper Inc. (KBT). On December 22, 2016, stock changed its name and TSX symbol from Kombat Copper Inc. (TSX-KBT, OTC-PNTZF) to Trigon Metals Inc. (TSX-TM, OTC-PNTZF)

When I was updating my spreadsheet, I noticed they are burning through their cash quickly. They sold more shares to raise money but cash went down by 92%. They issued more shares in the first quarter and now cash is up by 859% or only down by 31% since the prior year. Also, note that the financial year ends at March 31 each year. Insiders are buying that includes Chairman, CEO and CFO.

This stock has no dividends and never did. When I bought this stock in 2000, it was part of a basket of small caps that I was buying at that time. With all the changes my shares went from 300 to 60 to currently 6 shares. With the changes listed above there were to consolidations of stocks, one in 2009 and one in 2016.

They did not have any long term debt until 2018. Currently the Long Term Debt/Market Cap Ratio is 0.28. The other debt ratios are not good. The Liquidity Ratio is 0.26. If this ratio is below 1.00, it means that current assets cannot cover current liabilities. The Debt Ratio is 0.87. When this ratio is below 1.00, it means that assets cannot cover liabilities. Because equity is negative, Leverage and Debt/Equity Ratios cannot be calculated.

The Total Return per year is shown below for years of 5 to 20. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See charts below.

This certainly has been a loser for me. It is worth to me is less than what it would cost to sell the shares I have.

Years Tot Ret Cap Gain Div.
5 -29.31% -29.31% 0.00%
10 -35.69% -35.69% 0.00%
15 -31.63% -31.63% 0.00%
20 -13.12% -13.12% 0.00%

There are no Price/Earnings per Share Ratios for this stock has it does not have revenue, let alone earnings. With no earnings I cannot calculate a Graham Price. Since the Book Value is now negative, I can do not stock price testing using Price/Book Value per Share Ratio. There are no dividends, so no dividend yield price testing cannot be done. I also cannot do any Price/Sales (Revenue) Ratio testing as the company has no revenue.

When I look at analysts’ recommendations I find no analysts following this stock on any site I looked at.

The company announced via the Junior Mining Network some management and Board appointments. The company talks about new, short term loans via the Junior Mining Network. The company talks about a recent feasibility study on Global News Wire. You can see the feasibility study in a slide show on Seeking Alpha. There are rumors on a buyout for this company on Stock House.

Trigon Metals Inc together with its subsidiaries engages in the acquisition, exploration, development, and maintenance of mines and mineral properties in the African country of 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 Wednesday, October 17, 2018 around 5 pm. Tomorrow on my other blog I will write about Money Show 2018 – Kevin Prins.... learn more on Tuesday, October 16, 2018 around 5 pm.

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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