Common Stock: Thunder Mountain Gold (OTC: THMG)
Current Market Price: $.23 USD
Market Capitalization: $13.8 million USD
**Note: All values in this article are expressed in United States Dollars (USD) unless otherwise noted.
Thunder Mountain Gold – Summary of the Company
Thunder Mountain Gold is a gold exploration company focused on exploration stage properties in the state of Idaho in The United States. Their principal project tis the South Mountain Projects, which consists of 17 patented claims and a total of 489 acres. The company is headquartered in Idaho.
Revenue and Cost Analysis
Thunder Mountain 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.
The company had total expenses of $695 thousand in 2019. Their largest expenses were administrative, including compensation. Exploration expenses was tiny, totaling $26 thousand in 2019.
Balance Sheet Analysis
Thunder Mountain has a weak balance sheet. Short term liquidity is constrained and its liability levels are concerning. The company has a significant deferred compensation expensed in addition to other accrued liabilities.
Thunder Mountain Gold – Share Dynamics and Capital Structure
The company has a dilutive capital structure with significant amounts of options and warrants outstanding.
Thunder Mountain Gold – 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 Thunder Mountain have not made any relevant transactions in the company’s stock recently, providing no signal for 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.
Thunder Mountain Gold – Summary and Conclusions
Thunder Mountain owns a small land package in Idaho with limited potential. The project has not advanced recently and the company is in poor financial health. I am not willing to invest in Thunder Mountain Gold Stock, as there are much more promising and well run exploration companies I would prefer to invest in, such as O3 Mining or Orefinders.
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.
