TSXV:PGM

Stock Analysis Report

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Market Cap

CA$464.6m

Last Updated

2021/07/28 03:13 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and slightly overvalued.

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 is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: PGM's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-6.3%

PGM

1.9%

CA Metals and Mining

1.2%

CA Market


1 Year Return

-49.6%

PGM

-10.3%

CA Metals and Mining

27.8%

CA Market

Return vs Industry: PGM underperformed the Canadian Metals and Mining industry which returned -10.1% over the past year.

Return vs Market: PGM underperformed the Canadian Market which returned 27.9% over the past year.


Shareholder returns

PGMIndustryMarket
7 Day-6.3%1.9%1.2%
30 Day-24.5%-1.9%-1.5%
90 Day-10.0%-4.3%2.1%
1 Year-49.6%-49.6%-9.2%-10.3%31.7%27.8%
3 Year81.5%81.5%54.6%50.9%29.5%17.0%
5 Year58.5%58.5%16.0%12.2%51.9%29.6%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PGM (CA$1.13) is trading below our estimate of fair value (CA$11.35)

Significantly Below Fair Value: PGM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PGM is unprofitable, so we can't compare its PE Ratio to the Canadian 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 (7.2x) compared to the CA Metals and Mining industry average (2.5x).


Future Growth

How is Pure Gold Mining forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

37.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: PGM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PGM's is expected to become profitable in 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 very high in 3 years time (61.8%).


Past Performance

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

-8.4%

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 8.4% 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 (214.7%).


Return on Equity

High ROE: PGM has a negative Return on Equity (-58.85%), as it is currently unprofitable.


Financial Health

How is Pure Gold Mining's financial position?


Financial Position Analysis

Short Term Liabilities: PGM's short term assets (CA$22.6M) do not cover its short term liabilities (CA$28.5M).

Long Term Liabilities: PGM's short term assets (CA$22.6M) do not cover its long term liabilities (CA$153.5M).


Debt to Equity History and Analysis

Debt Level: PGM's debt to equity ratio (146.9%) is considered high.

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


Balance Sheet


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 less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PGM has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

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


Dividend Yield vs Market

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

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

6.0yrs

Average management tenure


CEO

Darin Labrenz (55 yo)

10.42yrs

Tenure

CA$1,841,229

Compensation

Mr. Darin Labrenz, P.Geo., has been the Chief Executive Officer, President and Director of Pure Gold Mining Inc. since February 15, 2011. Mr. Labrenz serves as the Chief Geologist of Terrane Metals Corp. H...


CEO Compensation Analysis

Compensation vs Market: Darin's total compensation ($USD1.47M) is above average for companies of similar size in the Canadian market ($USD884.05K).

Compensation vs Earnings: Darin's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: PGM's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: PGM's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PGM 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 7.3%.


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: NaN
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$464.581m
  • Shares outstanding: 412.96m
  • 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


Biography

Pure Gold Mining Inc. engages in the acquisition, exploration, and development of gold, and other precious and base metal properties in Canada. Its principal property is the Pure Gold Red Lake Gold project...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 03:13
End of Day Share Price2021/07/27 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.