TSXV:TRO

Stock Analysis Report

Taranis Resources

Executive Summary

Taranis Resources Inc., an exploration stage company, engages in the acquisition, exploration, and development of precious and base metal deposits in Canada.

Rewards

Earnings have grown 52.9% 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$4M)

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

Shareholders have been diluted in the past year



Snowflake Analysis

Overvalued with worrying balance sheet.

Share Price & News

How has Taranis Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.3%

TRO

4.6%

CA Metals and Mining

0.2%

CA Market


1 Year Return

-38.9%

TRO

4.5%

CA Metals and Mining

4.9%

CA Market

Return vs Industry: TRO underperformed the Canadian Metals and Mining industry which returned 4.5% over the past year.

Return vs Market: TRO underperformed the Canadian Market which returned 4.9% over the past year.


Shareholder returns

TROIndustryMarket
7 Day-8.3%4.6%0.2%
30 Day0%3.7%0.4%
90 Day-21.4%10.7%3.7%
1 Year-38.9%-38.9%5.1%4.5%8.2%4.9%
3 Year-47.6%-47.6%-5.4%-7.0%15.9%5.5%
5 Year22.2%22.2%26.4%22.6%33.8%14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Taranis Resources undervalued compared to its fair value and its price relative to the market?

0.83x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TRO is good value based on its PB Ratio (0.8x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

15.8%

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 Taranis Resources 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 Taranis Resources performed over the past 5 years?

52.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRO is currently unprofitable.

Growing Profit Margin: TRO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TRO is unprofitable, but has reduced losses over the past 5 years at a rate of 52.9% per year.

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

Earnings vs Industry: TRO is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (10.1%).


Return on Equity

High ROE: TRO has a negative Return on Equity (-0.96%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Taranis Resources's financial position?


Financial Position Analysis

Short Term Liabilities: TRO's short term assets (CA$356.6K) do not cover its short term liabilities (CA$558.2K).

Long Term Liabilities: TRO's short term assets (CA$356.6K) do not cover its long term liabilities (CA$403.0K).


Debt to Equity History and Analysis

Debt Level: TRO's debt to equity ratio (6.5%) is considered satisfactory.

Reducing Debt: TRO's debt to equity ratio has increased from 1.9% to 6.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: TRO's debt is covered by short term assets (assets are 1.2x 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: TRO has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: TRO has less than a year of cash runway if free cash flow continues to reduce at historical rates of -4.3% each year


Next Steps

Dividend

What is Taranis Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

11.0yrs

Average management tenure


CEO

John Gardiner (61yo)

19.1yrs

Tenure

CA$119,980

Compensation

John J. Gardiner is a Geologist with over thirty years of experience in the mining industry, working as both an Exploration Geologist and Mining Geologist. He also has a Diploma in Computer Science and bus ...


Leadership Team

NamePositionTenureCompensationOwnership
John Gardiner
President19.1yrsCA$119.98k7.71% CA$301.3k
Gary McDonald
CFO & Director17.2yrsCA$46.00k0.84% CA$32.9k
James Helgeson
VP of Exploration & Independent Director17.3yrsCA$30.00k0.59% CA$23.2k
Glenn Yeadon
Secretary & Director18.3yrsCA$70.00k1.76% CA$68.7k
Thomas Gardiner
Vice President of Operations0.9yrsno datano data

11.0yrs

Average Tenure

64.5yo

Average Age

Experienced Management: TRO's management team is seasoned and experienced (11 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Gardiner
President19.1yrsCA$119.98k7.71% CA$301.3k
Gary McDonald
CFO & Director17.2yrsCA$46.00k0.84% CA$32.9k
James Helgeson
VP of Exploration & Independent Director17.3yrsCA$30.00k0.59% CA$23.2k
Glenn Yeadon
Secretary & Director18.3yrsCA$70.00k1.76% CA$68.7k
Richard McCloskey
Independent Director17.2yrsCA$30.00k0.15% CA$5.8k

17.3yrs

Average Tenure

68yo

Average Age

Experienced Board: TRO's board of directors are seasoned and experienced ( 17.3 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 9.2%.


Top Shareholders

Company Information

Taranis Resources Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Taranis Resources Inc.
  • Ticker: TRO
  • Exchange: TSXV
  • Founded: 2001
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$3.909m
  • Shares outstanding: 71.07m
  • Website: https://www.taranisresources.com

Location

  • Taranis Resources Inc.
  • 1177 West Hastings Street
  • Suite 1710
  • Vancouver
  • British Columbia
  • V6E 2L3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TROTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 2003
TNRE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2003

Biography

Taranis Resources Inc., an exploration stage company, engages in the acquisition, exploration, and development of precious and base metal deposits in Canada. The company primarily explores for silver, gold, lead, zinc, and copper deposits. It holds a 100% interest in the Thor property comprising 27 crown granted mineral claims and 14 mineral tenures covering an area of 3,314 hectares located in the Revelstoke mining district of British Columbia. The company was incorporated in 2001 and is based in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:21
End of Day Share Price2020/02/18 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.