Common Stock: Panoro Minerals (TSXV:PML)
Current Market Price: $0.20 CAD
Market Capitalization: $52.8 Million CAD
**Note: All values in this article are expressed in Canadian Dollars (CAD) unless otherwise noted.
Panoro Minerals Stock – Summary of the Company
Panoro Minerals is a copper exploration company focused on the acquisition, exploration, and development of copper properties. The company’s main focus is their Cotabambas copper project located in southern Peru. They also own several other exploration stage properties in Peru. Panoro Minerals was founded in 1994 and is headquartered in Vancouver, Canada.
Revenue and Cost Analysis
Panoro Minerals does not have any properties that are currently producing and therefore does not have any revenue. The company consistently runs a net loss and is likely to continue to do so for the foreseeable future.
In 2019 the company had a net loss of $5.2 million, an increase compared to $4.5 million in 2018. Their largest expenses were compensation related in both years.
Balance Sheet Analysis
Panoro Minerals has a weak balance sheet and will need to raise additional capital in order to continue as a going concern.
Panoro Minerals – Debt Analysis
As of year-end 2019 the company does not have any debt outstanding.
Panoro Minerals Stock – Share Dynamics and Capital Structure
As of February 2021 the company has 263.8 million common shares outstanding. In addition the have 16.2 million options outstanding. Fully diluted shares outstanding is around 280 million shares.
Panoro Minerals Stock – Dividends
The company does not pay a dividend and is unlikely to do so for the foreseeable future.
Management – Skin in the game
Insiders at Panoro Minerals have been net sellers of the company’s stock in the recent past. This is generally viewed as a bearish signal by investors.
Panoro Minerals Stock – 2 Metrics to Consider
Debt to Equity Ratio
Total Liabilities/Total Share Holder Equity
$13 million / $64 million = .2
A debt to equity ratio of .2 indicates that Panoro Minerals uses a mix of debt and equity in its capital structure, but relies more heavily on equity financing for funding.
Working Capital Ratio
Current Assets/Current Liabilities
$784 thousand / $10 million = .07
A working capital ratio of .07 indicates an extremely weak liquidity position. Panoro Minerals will need to raise additional capital in order to survive.
Panoro Minerals Stock – Summary and Conclusions
Panoro Minerals is an exploration company whose largest expenses are compensation related, not exploration related. This is a major red flag and enough to render the company uninvestable in my opinion. I would prefer to invest in exploration company’s actually focused on exploration, such as O3 Mining.
Disclaimer
This is not investment advice. Nothing in this analysis should be construed as a recommendation to buy, sell, or otherwise take action related to the security discussed. If I own a position in the security discussed, I will clearly state it.
This is not intended to be a comprehensive analysis and you should not make an investment decision based solely on the information in this analysis. I hope this serves as a useful starting point for a more comprehensive analysis, and hopefully draws attention to aspects of the company that were overlooked or merit further investigation. This is by no means intended to be a complete analysis. Again, this is not investment advice, do your own research.
