Health Check: How Prudently Does Tintina Mines (CVE:TTS) Use Debt?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. We note that Tintina Mines Limited (CVE:TTS) does have debt on its balance sheet. But is this debt a concern to shareholders?

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

When Is Debt A Problem?

Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. If things get really bad, the lenders can take control of the business. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we examine debt levels, we first consider both cash and debt levels, together.

What Is Tintina Mines's Debt?

As you can see below, Tintina Mines had CA$4.70m of debt, at September 2025, which is about the same as the year before. You can click the chart for greater detail. But it also has CA$6.06m in cash to offset that, meaning it has CA$1.37m net cash.

How Healthy Is Tintina Mines' Balance Sheet?

The latest balance sheet data shows that Tintina Mines had liabilities of CA$190.8k due within a year, and liabilities of CA$5.33m falling due after that. Offsetting these obligations, it had cash of CA$6.06m as well as receivables valued at CA$24.9k due within 12 months. So it can boast CA$572.4k more liquid assets than total liabilities.

Having regard to Tintina Mines' size, it seems that its liquid assets are well balanced with its total liabilities. So while it's hard to imagine that the CA$46.2m company is struggling for cash, we still think it's worth monitoring its balance sheet. Simply put, the fact that Tintina Mines has more cash than debt is arguably a good indication that it can manage its debt safely. The balance sheet is clearly the area to focus on when you are analysing debt. But you can't view debt in total isolation; since Tintina Mines will need earnings to service that debt. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.

Check out our latest analysis for Tintina Mines

Since Tintina Mines has no significant operating revenue, shareholders probably hope it will develop a valuable new mine before too long.

So How Risky Is Tintina Mines?

By their very nature companies that are losing money are more risky than those with a long history of profitability. And the fact is that over the last twelve months Tintina Mines lost money at the earnings before interest and tax (EBIT) line. Indeed, in that time it burnt through CA$3.4m of cash and made a loss of CA$3.6m. With only CA$1.37m on the balance sheet, it would appear that its going to need to raise capital again soon. Even though its balance sheet seems sufficiently liquid, debt always makes us a little nervous if a company doesn't produce free cash flow regularly. When analysing debt levels, the balance sheet is the obvious place to start. However, not all investment risk resides within the balance sheet - far from it. We've identified 3 warning signs with Tintina Mines (at least 2 which are significant) , and understanding them should be part of your investment process.

If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.