Is it a good company at a reasonable price? Buying this stock is a gamble on a mine. I knew that when I bought this stock. None of my stock price testing worked. So who knows about the current price.
I own this stock of Trigon Metals Inc (TSX-TM, OTC-PNTZF). This stock is not having a good year. Stock price is down by 55% so far this year. I also find the financials and other information confusing and I am not sure that my spreadsheet is totally accurate. It probably does not matter as this is a cheap mining stock that still has not seen any revenue or profit and I do not want to waste anymore of my time on it.
If you had invested in this company in December 2014, for $1,001.25 you would have bought 445 shares at $2.25 per share. In December 2024, after 10 years you would have received $0.00 in dividends. The stock would be worth $106.80. Your total return would have been $106.80. This would be a total loss of 13.79% per year with 13.79% from capital loss and 0.0% from dividends. This calculation takes into consideration stock consolidations, which means that the original cost would be increased by these consolidations.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $2.25 | $1,001.25 | 445 | 10 | $0.00 | $106.80 | $106.80 |
When I was updating my spreadsheet, I noticed the stock is not making any revenue and therefore no earnings. I find little in information besides the financial statements. The US$ prices are generally off the CDN$ prices because the stock is traded so seldom. This is a mining company and therefore a gamble on my part.
There are no dividends, so no dividend yields or Dividend Payout Ratios (DPR).
Some Debt Ratios fine like the Long Term Debt/Market Cap Ratio, but the stock has a negative book value. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.13 and currently at 0.39. The Liquidity Ratio for 2024 is far too low at 0.85 and 0.78 currently. If you added in Cash Flow after dividends, the ratios are still far too low at 0.86 and currently at 0.29. The Debt Ratio for 2024 is far too low at 0.85 and 0.78 currently and the book value is negative. The Leverage and Debt/Equity Ratios for 2024 cannot be calculated because of the negative book value.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.13 | 0.39 |
| Intang/GW | 0.00 | 0.00 |
| Liquidity | 0.85 | 0.78 |
| Liq. + CF | 0.86 | 0.29 |
| Debt Ratio | 0.85 | 0.78 |
| Leverage | -49.03 | -8.23 |
| D/E Ratio | -57.47 | -10.53 |
The Total Return per year is shown below for years of 5 to 15 to the end of 2024. 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 | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 0.00% | -4.74% | -4.74% | 0.00% |
| 2014 | 10 | 0.00% | -13.79% | -13.79% | 0.00% |
| 2009 | 15 | 0.00% | -10.06% | -10.06% | 0.00% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are negative and useless, as are the 10 year and historical corresponding ratios.
I cannot calculate a Graham Price because the company is not making any money.
I cannot do a Price/Book Value per Share Ratio test because of a negative book value.
I cannot do a Price/Cash Flow per Share Ratio test because of negative cash flows.
I cannot do any dividend yield tests because there are no dividends.
I cannot do a Price/Sales (Revenue) Ratio test because there is no revenue.
Results of stock price testing is that there is no basis for any of the testing I generally do. Buying this stock is a gamble on a mine.
When I look at analysts’ recommendations, I find on the Globe and Mail site and on WSJ site, a Strong Buy (1). They both have a price target of $1.50. The target price of $1.50 implies a total return of 665% all from capital gains based on a current stock price of $0.20.
There are no entries on Stock Chase for this stock. There is an article on Business Wire about Trigon Metals selling Kombat Mines. The company put out a press release via Businesswire of private placement of common shares at $0.25 in March 2025. The company put out a press release via Businesswire about their fourth quarter ending March 2025. The company put out a Press Release via Businesswire about their first quarter ending in June 2025.
Simply Wall Street has 6 warnings on this stock of has less than 1 year of cash runway; negative shareholders equity; earnings have declined by 2.2% per year over past 5 years; makes less than USD$1m in revenue ($0); does not have a meaningful market cap (CA$13M); and shareholders have been diluted in the past year.
Trigon Metals Inc and its subsidiaries are the acquisition, maintenance, exploration and development of mines and mineral properties on the African continent. The Company derives revenues and pre-production revenues from the sale of copper and silver concentrate. The company's projects include Kalahari Copperbelt Project. Its web site is here Trigon Metals Inc.
The last stock I wrote about was about was Dollarama Inc (TSX-DOL, OTC-DLMAF) ... learn more. The next stock I will write about will be Keyera Corp (TSX-KEY, OTC-KEYUF) ... learn more on Thursday, October 31, 2025 around 5 pm. Tomorrow on my other blog I will write about Value Stocks to Buy.... learn more on Tuesday, October 28, 2025 around 5 pm.
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