TSXV:PAN

Stock Analysis Report

Pangolin Diamonds

Executive Summary

Pangolin Diamonds Corp., together with its subsidiaries, engages in the acquisition, exploration, and development of mineral properties in Botswana.

Rewards

Earnings have grown 26.2% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Does not have a meaningful market cap (CA$5M)

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

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

How has Pangolin Diamonds's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

PAN

2.4%

CA Metals and Mining

0.6%

CA Market


1 Year Return

-25.0%

PAN

4.4%

CA Metals and Mining

5.8%

CA Market

Return vs Industry: PAN underperformed the Canadian Metals and Mining industry which returned 4.3% over the past year.

Return vs Market: PAN underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

PANIndustryMarket
7 Day0%2.4%0.6%
30 Day-25.0%1.2%0.5%
90 Day-45.5%6.6%3.6%
1 Year-25.0%-25.0%5.0%4.4%9.1%5.8%
3 Year-33.3%-33.3%-10.4%-11.9%15.4%5.0%
5 Year-45.5%-45.5%22.9%19.2%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pangolin Diamonds undervalued compared to its fair value and its price relative to the market?

7.12x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PAN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PAN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PAN is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: PAN is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PAN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PAN is overvalued based on its PB Ratio (7.1x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

15.6%

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 Pangolin Diamonds 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 Pangolin Diamonds performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PAN is currently unprofitable.

Growing Profit Margin: PAN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PAN is unprofitable, but has reduced losses over the past 5 years at a rate of 26.2% per year.

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

Earnings vs Industry: PAN is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: PAN has a negative Return on Equity (-49.24%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pangolin Diamonds's financial position?


Financial Position Analysis

Short Term Liabilities: PAN's short term assets (CA$782.2K) exceed its short term liabilities (CA$244.8K).

Long Term Liabilities: PAN has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: PAN's debt to equity ratio (4%) is considered satisfactory.

Reducing Debt: PAN had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: PAN has a low level of unsold assets or inventory.

Debt Coverage by Assets: PAN's debt is covered by short term assets (assets are 29.2x debt).


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: PAN has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: PAN has less than a year of cash runway if free cash flow continues to grow at historical rates of 28.6% each year.


Next Steps

Dividend

What is Pangolin Diamonds's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate PAN'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 PAN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PAN'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 PAN's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Leon R. Daniels (62yo)

4.6yrs

Tenure

CA$90,584

Compensation

Dr. Leon R. M. Daniels, B.Sc., B.Sc. Hons. Geology, Ph.D. Geochemistry, has been the Chief Executive Officer and President of Pangolin Diamonds Corp. since July 9, 2015. Dr. Daniels serves as Managing Dire ...


CEO Compensation Analysis

Compensation vs Market: Leon R.'s total compensation ($USD68.35K) is below average for companies of similar size in the Canadian market ($USD155.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Leon R. Daniels
President4.6yrsCA$90.58k5.68% CA$273.4k
Graham Warren
Secretary & CFO6.9yrsCA$72.00k2.8% CA$134.6k
Tom McCandless
Technical Advisor0yrsno datano data
Gareth Herbert Penny
Advisor to the Board1.9yrsno datano data

4.6yrs

Average Tenure

57yo

Average Age

Experienced Management: PAN's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leon R. Daniels
President4.6yrsCA$90.58k5.68% CA$273.4k
Louis Péloquin
Independent Director8.1yrsno data0.062% CA$3.0k
Thomas Fenton
Director8.1yrsno data0.028% CA$1.3k
Patrick Harford
Independent Director4.6yrsno data0.31% CA$15.0k

7.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: PAN's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.8%.


Top Shareholders

Company Information

Pangolin Diamonds Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pangolin Diamonds Corp.
  • Ticker: PAN
  • Exchange: TSXV
  • Founded: 2011
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: CA$4.809m
  • Shares outstanding: 160.29m
  • Website: https://pangolindiamonds.com

Location

  • Pangolin Diamonds Corp.
  • 25 Adelaide Street East
  • Suite 1614
  • Toronto
  • Ontario
  • M5C 3A1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PANTSXV (TSX Venture Exchange)YesNew Common SharesCACADMar 2013
KGHZ.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDMar 2013
PM3DB (Deutsche Boerse AG)YesNew Common SharesDEEURMar 2013

Biography

Pangolin Diamonds Corp., together with its subsidiaries, engages in the acquisition, exploration, and development of mineral properties in Botswana. It holds 100% interest in eight diamond properties that include Tsabong North, Jwaneng South, Lorolwane, Mmadinare, Malatswae, Rehoboth, Machaneng South, and Motloutse River properties covering an area of approximately 10,705 square kilometers in Botswana. It also holds interest in Malatswae Diamond Property. The company was incorporated in 2011 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:52
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.