Wednesday, October 9, 2019

Trigon Metals Inc

Sound bite for Twitter and StockTwits is: Materials Stock. The only hint about what the stock might be worth is the recent private placement at $0.10 and warrant to buy more within 24 months at $0.15. This company has no revenue and only earnings losses. 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. It was part of a basket of small caps that I was buying at that time. 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). It is worth less than $10 fee to sell, so I am holding.

When I was updating my spreadsheet, I noticed the company still has no revenue. They issued more shares and outstanding shares when up by 68%. The new shares were via private placement in October 2018 at $0.15 a share. Shares outstanding have gone up by 32% per year over the past 5 years and 53% per year over the past 10 years. Any green on the spreadsheet just denote less bad results and not anything positive.

This stock, of course, has no dividends.

Debt Ratios are not good and having a negative book value is a vulnerability. The Long Term Debt/Market Cap Ratio for 2018 is 0.27. They only took on long term debt for the first time in 2018. Because of the rise in the stock price, the current Long Term Debt/Market Cap Ratio is 0.18. The Liquidity Ratio for 2018 is 1.44, with5 year median also at 1.44. The Debt Ratio is 0.56. This means that assets cannot cover the liabilities and they have a negative book Value. However, the book value just turned negative last year. With a negative book value, the Leverage and Debt/Equity Ratios cannot be calculated.

The Total Return per year is shown below for years of 5 to 21 to the end of 2018. 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 chart below.

From Years Tot Ret Cap Gain
2013 5 -43.03% -43.03%
2008 10 -38.69% -38.69%
2003 15 -33.11% -33.11%
1998 20 -26.04% -26.04%
1997 21 -18.99% -18.99%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative as is the corresponding 10 year ratios and the historical ratios. This testing cannot be done. Since they have no earnings, I cannot get a Graham Price, so this testing cannot be done.

I get a 10 year median Price/Book Value per Share Ratio of 3.70. However, the current P/B Ratio is negative. So, this testing cannot be done. I cannot do any dividend yield testing as there is no dividend. There are no revenues, so I cannot do any Price/Sales (Revenue) Ratio testing.

Results of stock price testing is that the stock price is that it is impossible to judge the stock price on any basis that I know of. However, there was a recent private placement at $0.10 with a warrant to buy shares at $0.15 within 24 months. Private placements are usually for better deal than you would find on the open market. This will give an idea of what the shares might be worth.

When I look at analysts’ recommendations, I find there are no analysts following this stock.

Juniorbullalive has a post on Stockhouse Bullboard about mines in Namibia. The CEO of trigon Metals provides an update. The company on Globe Newswire talk about a recent private placement. A writer on Simply Wall Street talks about insider buying shares in the company.

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. It operates through the development of its Namibian mining and exploration permits segment. The company's project includes Kombat Mine, Gross Otavi and Harasib. 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 Friday, October 11, 2019 around 5 pm. Tomorrow on my other blog I will write about Money Show 2019 – Michael Cooke.... learn more on Thursday, October 10, 2019 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.

1 comment:

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