Sound bite for Twitter and StockTwits is: Risky Mining Stock. The stock price is probably cheap, but very risky. In the first quarter of 2023 they finally had some revenue, or at least the financial statements show this. Debt Ratios are fine, but company has a Liquidity problem. See my spreadsheet on Trigon Metals Inc.
Is it a good company at a reasonable price? The price is probably cheap. But let us face it, this is a mining company selling at $0.15 a share. It is of very high risk, but could be fun.
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 that for the first quarter of 2023, this company had some Revenue. The yearly financial statements are dated March 31 each year. The last yearly financial statement is dated March 31, 2022. So, currently, the statements are dated for 2023. This is no estimates for this stock.
If you had invested in this company in December 2011, for $1,003.50 you would have bought 223 shares at $4.50 per share. In December 2021, after 10 years you would have received $0.00 in dividends. The stock would be worth $109.27. Your total return would have been $109.27.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $4.50 | $1,003.50 | 223 | 10 | $0.00 | $109.27 | $109.27 |
This company is not paying dividends
Debt Ratios are fine, but company has a Liquidity problem. The Long Term Debt/Market cap is 0.03 in 2022. For the first quarter of 2023, the ratio is 0.13 because debt has increased by 54%. This is still a low ratio. The Liquidity Ratio is very low at 0.24. There is no cash flow to help this. The Debt Ratio is good at 1.96. The Leverage and Debt/Equity Ratios for 2022 are 2.04 and 1.04. These are fine.
The Total Return per year is shown below for years of 5 to 24 to the end of 2021. 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. Although how much we can attribute this to the current company is problematic.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2016 | 5 | 0.00% | 4.14% | 4.14% | 0.00% |
| 2011 | 10 | 0.00% | -19.89% | -19.89% | 0.00% |
| 2006 | 15 | 0.00% | -14.57% | -14.57% | 0.00% |
| 2001 | 20 | 0.00% | -28.16% | -28.16% | 0.00% |
| 1997 | 24 | 0.00% | -9.22% | -9.22% | 0.00% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are negative, as is the 10 year and historical ratios. The company until 2022 had not revenue, so there are no earnings. There is no estimate for this company. The last 12 months for EPS are a loss. So, there is no way we can do any testings for P/E Ratios.
This stock price testing suggests that the stock price is relatively reasonable and below the median.
With no EPS, a Graham Price cannot be calculated.
I get a 10-year median Price/Book Value per Share Ratio of 8.16. The current P/B Ratio is 2.41 based on a Book Value of $10.58M, Book Value per share of $0.06 and a stock price of $0.15. The current P/B Ratio is 71% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. There is a book value because the company has been raising funds.
I cannot do any Price/Cash Flow per Share Ratio testing because there is no positive cash flow from operations.
This company, of course, has no dividends, so there is not dividend testing.
There has been no Revenue for this company, so I cannot do any P/S Ratio testings. The first revenue has occurred in the First Quarter of 2023. We now have a current P/S Ratio based on the last 12 months of Revenue, but nothing to test it against. The current ratio is 64.67. This is an extremely high ratio a good ratio for the company with no earnings would be around 1.00. This would imply that the stock price is expensive.
Results of stock price testing is that the stock price is probably cheap. The only real testing of the stock price I can do is the P/B Ratio test and it says the stock is cheap. It is only $0.15. However, it is highly risky.
When I look at analysts’ recommendations, I find none. There are also no estimates.
This Business Wire item on Yahoo Finance talks about Latest Drilling at the Kombat. There are some statistics on this company at Simply Wall Street. There is recent information on the company’s funding at Yahoo Finance vis Global Newswire. The company on Business Wire via Yahoo Finance talks about a private placement in March 2022. There is no publishing by the company of company results. Annual statements at Sedar.
Simply Wall Street list 6 risks of Earnings have declined by 23.7% per year over past 5 years; has less than 1 year of cash runway; makes less than USD$1m in revenue (CA$394K); volatile share price over the past 3 months Shareholders have been diluted in the past year; does not have a meaningful market cap (CA$25M).
Trigon Metals Inc is an emerging copper and silver producer in the African continent. 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 Tuesday, October 11, 2022 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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