Monday, October 4, 2021

Trigon Metals Inc

Sound bite for Twitter and StockTwits is: Risky Mining Stock. The stock price could be reasonable based on recent warrants issued. They only are getting money from selling shares. There is no revenue, earnings, or cash flow. 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). September 2016 there was a name change to Trigon Metals Inc.

When I was updating my spreadsheet, I noticed the company still has no revenue. The only source of money is in the sale of new shares in the company. This is how they are raising money. They have a positive book value because they issue new shares. The financial year ends for this company at March 31 each year. Here I am dealing with the March 31, 2021 financial year.

This stock was always a resource stock and it never had any dividends.

Debt Ratios are currently fine. They paid off their long term debt in 2021, so for 2021 the Long Term Debt/Market Cap is 0.00. They had a debt in the second quarter, but the ratio is low at 0.02. The Liquidity Ratio is good at 2.98. Currently the Debt Ratio is fine at 1.66. The Leverage and Debt/Equity Ratios are fine at 2.51 and 1.51.

The Total Return per year is shown below for years of 5 to 23 to the end of 2020. 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. Please note that this has gone through a number of different mining companies, so how much the following reflects past performance is questionable.

From Years Div. Gth Tot Ret Cap Gain Div.
2015 5 0.00% 1.30% 1.30% 0.00%
2010 10 0.00% -18.90% -18.90% 0.00%
2005 15 0.00% -15.77% -15.77% 0.00%
2000 20 0.00% -28.67% -28.67% 0.00%
1997 23 0.00% -11.27% -11.27% 0.00%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative and so cannot be used for any testing. The corresponding 10 year ratios and the corresponding historical ratios are all negative, so they also cannot be used for any testing.

Because of negative earnings, a Graham Price cannot be calculated, so we cannot do testing using a Graham Price testing.

I get a 10 year median Price/Book Value per Share Ratio of 8.10, a very high value. The current P/B Ratio is even higher at 19.61 based on a stock price of $0.475, Book Value of $2.7M and Book Value per Share of $0.02. The current ratio is 156% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I cannot do any Price/Cash Flow testing as the cash flow is negative and has been negative for some time. I also cannot do any dividend yield testing because the stock has no dividends. Since this stock has no Revenue, I cannot do any P/S Ratio testing.

Results of stock price testing is that the stock price is probably expensive. However, there was also private placement of shares last year. The most recent private place on September 2021 priced the shares at $0.40 plus had warrants allowing shares to be bought within 24 months at $0.50.

Is it a good company at a reasonable price? The current price is probably reasonable given that warrants were issued with a $0.50 price. The current price is $0.475. However, this is a mining stock and therefore quite risky. They are only getting money currently by selling more shares.

When I look at analysts’ recommendations, I find that there seems to be no analysts following this stock.

News File Corp via Yahoo Finance talks about Eric Sprott exercising his warrants. Access Wire via Yahoo Finance talks about the company commencing mining at their Kombat Mine. Access Wire via Yahoo Finance talks about the company issuing new shares in a private placement. The executive summary on Simply Wall Street gives this stock 2 stars out of 5 and list 5 risks and no rewards.

Trigon Metals Inc is an emerging copper and silver producer in the African continent. Trigon operates through the development of its Namibian mining and exploration permits. The company's projects include Kombat Mine and Gross Otavi in Namibia and the newly Silver Hill copper-silver exploration project in Morocco. 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 North West Company (TSX-NWC, OTC-NWTUF) ... learn more on Wednesday, October 6, 2021 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks October 2021 .... learn more on Tuesday, October 5, 2021 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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