TSXV:PGM

Stock Analysis Report

Executive Summary

Pure Gold Mining Inc., an exploration stage company, engages in the acquisition, exploration, and development of gold, and other precious and base metal properties in Canada.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

6.5%

PGM

4.7%

CA Metals and Mining

0.1%

CA Market


1 Year Return

20.6%

PGM

5.4%

CA Metals and Mining

4.5%

CA Market

Return vs Industry: PGM exceeded the Canadian Metals and Mining industry which returned 5.4% over the past year.

Return vs Market: PGM exceeded the Canadian Market which returned 4.5% over the past year.


Shareholder returns

PGMIndustryMarket
7 Day6.5%4.7%0.1%
30 Day5.1%4.2%0.9%
90 Day26.2%14.1%3.7%
1 Year20.6%20.6%6.0%5.4%7.8%4.5%
3 Year36.7%36.7%0.2%-1.5%18.2%7.5%
5 Year164.5%164.5%26.6%22.9%33.7%14.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.38x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: PGM 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 PGM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PGM is overvalued based on its PB Ratio (5.4x) compared to the CA Metals and Mining industry average (1.6x).


Next Steps

Future Growth

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

13.5%

Forecasted Materials industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PGM's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if PGM's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if PGM's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if PGM's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PGM's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has Pure Gold Mining performed over the past 5 years?

-30.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PGM is currently unprofitable.

Growing Profit Margin: PGM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PGM is unprofitable, and losses have increased over the past 5 years at a rate of -30.7% per year.

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

Earnings vs Industry: PGM 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: PGM has a negative Return on Equity (-40.13%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pure Gold Mining's financial position?


Financial Position Analysis

Short Term Liabilities: PGM's short term assets (CA$88.3M) exceed its short term liabilities (CA$3.5M).

Long Term Liabilities: PGM's short term assets (CA$88.3M) exceed its long term liabilities (CA$49.6M).


Debt to Equity History and Analysis

Debt Level: PGM's debt to equity ratio (18.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if PGM's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: PGM's debt is covered by short term assets (assets are 8.8x 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: PGM has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: PGM has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -28.6% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if PGM'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 PGM'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?

3.8yrs

Average management tenure


CEO

Darin Labrenz (53yo)

9yrs

Tenure

CA$439,931

Compensation

Mr. Darin Labrenz, P.Geo. has been the President and Chief Executive Officer of Pure Gold Mining Inc. (formerly Laurentian Goldfields, Ltd)., since February 15, 2011. Mr. Labrenz serves as the Chief Geolog ...


CEO Compensation Analysis

Compensation vs Market: Darin's total compensation ($USD332.94K) is below average for companies of similar size in the Canadian market ($USD663.47K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Darin Labrenz
President9yrsCA$439.93k0.42% CA$1.2m
Sean Tetzlaff
CFO & Corporate Secretary5.8yrsCA$293.95k0.46% CA$1.3m
Kenneth Donner
Vice President of Operations3.4yrsCA$293.95k0.035% CA$102.5k
Philip Smerchanski
Vice President of Exploration3.8yrsCA$293.95k0.022% CA$64.8k
Adam Buchanan
Manager of Investor Relations0yrsno datano data
Barbara Womersley
Head of Human Resources0.4yrsno datano data

3.8yrs

Average Tenure

50yo

Average Age

Experienced Management: PGM's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Darin Labrenz
President9yrsCA$439.93k0.42% CA$1.2m
Mark O'Dea
Independent Director5.9yrsCA$101.25k1.5% CA$4.4m
Troy Fierro
Independent Director5.8yrsCA$26.25k0.25% CA$738.0k
Robert Bruce Pease
Independent Director5.7yrsCA$26.25k0.13% CA$370.5k
Dougald Currie
Chair of the Board5.9yrsCA$120.00k0.64% CA$1.9m
Lenard Boggio
Independent Director5.9yrsCA$33.75k0.17% CA$492.0k
Maryse Bélanger
Director0yrsno datano data

5.9yrs

Average Tenure

57yo

Average Age

Experienced Board: PGM's board of directors are considered experienced (5.9 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 23.4%.


Top Shareholders

Company Information

Pure Gold Mining Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pure Gold Mining Inc.
  • Ticker: PGM
  • Exchange: TSXV
  • Founded:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$294.120m
  • Shares outstanding: 358.68m
  • Website: https://www.puregoldmining.ca

Number of Employees


Location

  • Pure Gold Mining Inc.
  • 1055 West Hastings Street
  • Suite 1900
  • Vancouver
  • British Columbia
  • V6E 2E9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PGMTSXV (TSX Venture Exchange)YesCommon SharesCACADMay 2008
LRTN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2008
L11ADB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2008
PURLSE (London Stock Exchange)YesCommon SharesGBGBPMay 2008

Biography

Pure Gold Mining Inc., an exploration stage company, engages in the acquisition, exploration, and development of gold, and other precious and base metal properties in Canada. It primarily holds a 100% interest in the Madsen Gold project comprising 251 mining claims that covers an area of approximately 4,648 hectares located in the prolific Red Lake gold camp of Northwestern Ontario. The company 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 Analysis2020/02/24 00:14
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.