TSXV:PAL

Stock Analysis Report

Executive Summary

Parallel Mining Corp. evaluates, acquires, explores for, develops, and exploits base and precious metal properties in Canada and Africa.

Risk Analysis

Earnings have declined by -43.85% per year over past 5 years

Has less than 1 year of cash runway

Does not have a meaningful market cap (CA$578K)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 1 more risk


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

How has Parallel Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PAL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

13.3%

PAL

0.8%

CA Metals and Mining

0.8%

CA Market


1 Year Return

-74.8%

PAL

28.8%

CA Metals and Mining

10.6%

CA Market

Return vs Industry: PAL underperformed the Canadian Metals and Mining industry which returned 26.9% over the past year.

Return vs Market: PAL underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

PALIndustryMarket
7 Day13.3%0.8%0.8%
30 Day30.8%1.0%2.1%
90 Day-24.4%8.5%6.6%
1 Year-74.8%-74.8%29.8%28.8%14.1%10.6%
3 Year-87.4%-87.4%-0.5%-2.3%17.0%6.4%
5 Year-67.6%-67.6%30.0%25.8%38.5%18.2%

Price Volatility Vs. Market

How volatile is Parallel Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Parallel Mining undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Parallel Mining is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Parallel Mining has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of PAL’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Parallel Mining regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

How is Parallel Mining forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.0%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Parallel Mining has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Parallel Mining performed over the past 5 years?

-43.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PAL is currently unprofitable.

Growing Profit Margin: PAL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PAL is unprofitable, and losses have increased over the past 5 years at a rate of -43.8% per year.

Accelerating Growth: Unable to compare PAL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PAL is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-1.4%).


Return on Equity

High ROE: PAL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Parallel Mining's financial position?


Financial Position Analysis

Short Term Liabilities: PAL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PAL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PAL is debt free.

Reducing Debt: PAL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: PAL has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if PAL's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PAL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: PAL has less than a year of cash runway if free cash flow continues to grow at historical rates of 13.1% each year.


Next Steps

Dividend

What is Parallel Mining's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PAL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PAL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PAL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PAL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PAL's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Parallel Mining's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

John Anderson (55yo)

5.8yrs

Tenure

CA$45,500

Compensation

Mr. John David Anderson, B.A., has been the Chief Executive Officer of Orofino Minerals Inc. since May 17, 2017. Mr. Anderson has been the Interim Chief Executive Officer of Dawson Gold Corp. since August  ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD34.83K) is below average for companies of similar size in the Canadian market ($USD165.67K).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.8yrs

Average Tenure

Experienced Management: PAL's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

55yo

Average Age

Experienced Board: PAL's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$3,00019 Mar 19
John Anderson
EntityIndividual
Role
Chief Executive Officer
President
Shares6,666.66
Max PriceCA$0.45

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.2%.


Management Team

  • Bob Sibthorpe (69yo)

    Vice President of Exploration

    • John Anderson (55yo)

      President

      • Tenure: 5.8yrs
      • Compensation: CA$45.50k
    • Rakesh Patel

      Chief Financial Officer

      • Tenure: 5.7yrs
      • Compensation: CA$36.00k
    • Jan Urata

      Secretary

      • Tenure: 5.8yrs

    Board Members

    • John Anderson (55yo)

      President

      • Tenure: 5.8yrs
      • Compensation: CA$45.50k
    • Al Fabbro (62yo)

      Lead Director

      • Tenure: 3yrs
    • Wilson Jin (49yo)

      Independent Director

      • Tenure: 0.3yrs

    Company Information

    Parallel Mining Corp.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Parallel Mining Corp.
    • Ticker: PAL
    • Exchange: TSXV
    • Founded: 2007
    • Industry: Diversified Metals and Mining
    • Sector: Materials
    • Market Cap: CA$755.964k
    • Shares outstanding: 4.45m
    • Website: https://parallelmining.com

    Location

    • Parallel Mining Corp.
    • 750 West Pender Street
    • Suite 804
    • Vancouver
    • British Columbia
    • V6C 2T7
    • Canada

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    PALTSXV (TSX Venture Exchange)YesCommon SharesCACADAug 2007
    PARL.DOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2007

    Biography

    Parallel Mining Corp. evaluates, acquires, explores for, develops, and exploits base and precious metal properties in Canada and Africa. It holds an option to acquire a 100% interest in the Mane II gold property covering an area of 163 square kilometers located in the Kaya-Goren greenstone belt in Ouagadougou, Burkina Faso. The company was formerly known as Parallel Resources Ltd. and changed its name to Parallel Mining Corp. in December 2011. Parallel Mining Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 00:15
    End of Day Share Price2020/01/21 00:00
    Earnings2019/08/31
    Annual Earnings2019/05/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.