Common Stock: New Destiny Mining (TSXV: NED)
Current Market Price: $ .075 CAD
Market Capitalization: $ 1.3 million CAD
**Note: All values in this article are expressed in Canadian Dollars (CAD) unless otherwise noted.
New Destiny Mining Stock – Summary of the Company
New Destiny Mining is a mineral exploration company focused on the acquisition, exploration, and development of mineral properties. Their main focus is the Treasure Mountain property located in British Columbia, Canada. The property is 100% owned and covers 9,500 hectares. The property is believed to hold silver, lead, zinc, and/or copper occurrences, as well as gold quartz occurrences. New Destiny Mining was founded in 2009 and is headquartered in Vancouver, Canada.
Revenue and Cost Analysis
New Destiny Mining 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.
For the fiscal year end June 30, 2020 the company had a net loss of $ 257 thousand, a decrease compared to $ 785 thousand in the previous year. Exploration expenses were $ 64 thousand in 2020, a significant decrease from $ 455 thousand the previous year.
New Destiny Mining – Royalty and Streaming Agreements
The Treasure Mountain Property in British Columbia, Canada is subject to a 2.5% net smelter royalty.
Balance Sheet Analysis
As of the company’s last audited annual report, their balance sheet was weak with low liquidity. However they have since raised capital, providing them with the liquidity to continue advancing their project. Liabilities still appear too high for a project at this stage.
New Destiny Mining – Debt Analysis
As of the fiscal year end June 2020 the company does not have any debt outstanding.
New Destiny Mining Stock – Share Dynamics and Capital Structure
As of January 2021 the company has 17.1 million common shares outstanding. In addition they have 5.4 million warrants outstanding. Fully diluted shares outstanding is around 22.5 million shares.
New Destiny has a dilutive capital structure. Investors should consider the effects of dilution before investing.
New Destiny Mining Stock – Dividends
The company does not currently pay a dividend and is unlikely to do so for the foreseeable future.
Management – Skin in the game
Insiders at New Destiny Mining have not made any transactions in the company’s stock in the past six months, providing no signal to investors.
Gold Market – Economic Factors and Competitive Landscape
Gold mining is a highly competitive, capital intensive business. The company will need to compete fiercely for both new projects and capital. However, given the current economic environment of global money printing and zero or negative interest rates, it would appear gold companies are poised to benefit from a strong economic tailwind.
New Destiny Mining Stock – Summary and Conclusions
I don’t see anything about New Destiny Mining stock that would compel me to invest. Sure, they have a sizable land package in a solid mining region. But their exploration expenditure is low and their capital structure is dilutive. I am much more intrigued by other projects in the same region, such as Dolly Varden.
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.
