Patagonia Gold (PGDC) AI Stock Analysis

• Market Cap: C$34.88M
• Dividend Yield: N/A
• Average Volume (3M): 105.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.32
• Revenue Growth: -4.62%
• EPS Growth: -2.69%
• Country: CA
• Employees: 154
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Other Precious Metals
• EPS (TTM): -0.03
• Shares Outstanding: 465,051,480
• 10 Day Avg. Volume: 36,131
• 30 Day Avg. Volume: 105,726
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.01
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -29.08
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Patagonia Gold's overall stock score reflects substantial financial difficulties, with weak income, balance sheet, and cash flow metrics. Despite some technical momentum, valuation concerns due to unprofitability weigh on the stock's attractiveness.

Patagonia Gold Business Overview & Revenue Model

Company Description

Patagonia Gold Corp., a mining and exploration company, engages in the exploration, exploitation, and development of mineral resources and mineral reserves in Argentina. Its principal project is the Calcatreu project located in south central Rio Negro Province. The company also holds interests in Lomada gold deposit; La Manchuria project; La Josefina project; and Martha Mill property. It holds an option to acquire a 100% interest in the Mina Angela property located in the Province of Chubut, Argentina which comprises of 44 individual claims. In addition, the company's exploration projects comprise Tornado and Huracán, Sarita, Los Toldo, El Gateado, Bajo Pobre project, and La Valenciana. Patagonia Gold Corp. is headquartered in Buenos Aires, Argentina.

How the Company Makes Money

Patagonia Gold makes money through the exploration, extraction, and sale of precious metals, primarily gold and silver. The company's revenue model is centered around mining operations that produce these metals, which are then sold in global commodities markets. Key revenue streams include the direct sale of extracted metals and potential joint ventures or partnerships with other mining companies to co-develop projects. Additionally, the company's earnings can be influenced by fluctuations in global metal prices, operational efficiency, and the successful advancement of its exploration projects.

Patagonia Gold Financial Statement Overview

Summary

Patagonia Gold faces significant financial challenges with declining revenues, negative profitability margins, and high leverage. Cash flow inefficiencies further strain its financial health, necessitating strategic improvements.

Income Statement

Patagonia Gold's income statement highlights a declining revenue trend with a steep drop from $8.22M in 2023 compared to $12.34M in 2022. The company reported negative gross profit margins, indicating cost of sales exceeded revenue. The consistent negative EBIT and net income margins reflect ongoing operational challenges and profitability issues.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, with total debt significantly outweighing stockholders' equity. The equity ratio is low, indicating a leveraged position with potential financial risk. The declining stockholders' equity over recent years underscores financial vulnerability, although the company maintains a moderate asset base.

Cash Flow

The cash flow statement reveals negative operating cash flow and free cash flow, indicating cash outflows exceed inflows from operations. The free cash flow has deteriorated over time, highlighting cash management challenges. The operating cash flow to net income ratio is unfavorable, reflecting inefficiency in converting income into cash.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
8.22M	12.34M	18.10M	19.85M	21.94M
	Gross Profit
-2.41M	-2.81M	4.54M	6.60M	5.51M
	EBIT
-10.78M	-12.92M	-6.31M	767.00K	-5.71M
	EBITDA
-10.17M	-13.07M	-6.29M	3.00M	-3.75M
	Net Income Common Stockholders
-6.30M	-4.22M	-11.17M	-4.41M	-9.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
185.00K	231.00K	291.00K	819.00K	685.00K
	Total Assets
49.57M	54.29M	57.74M	60.07M	54.79M
	Total Debt
37.01M	29.35M	22.98M	24.92M	27.34M
	Net Debt
36.83M	29.12M	22.69M	24.10M	26.66M
	Total Liabilities
42.31M	41.49M	40.04M	38.66M	45.61M
	Stockholders Equity
8.87M	14.30M	19.09M	22.70M	9.42M
Cash Flow		Free Cash Flow
-6.19M	-5.64M	-4.82M	-2.45M	1.78M
	Operating Cash Flow
-5.74M	-5.33M	-591.00K	-535.00K	2.77M
	Investing Cash Flow
-294.00K	-286.00K	-3.89M	-1.50M	-880.00K
	Financing Cash Flow
5.55M	5.58M	3.87M	1.10M	593.00K

Patagonia Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PGDC, the sentiment is Positive. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.19 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PGDC.

Patagonia Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$1.94B	-1.23	-21.28%	3.73%	1.19%	-29.73%
PGDC	48 Neutral	C$34.88M	―	-426.77%	―	-4.62%	-2.69%
EQTY	42 Neutral	C$35.07M	―	-102.11%	―	―	14.44%
DMET	31 Underperform	C$36.29M	―	-25.01%	―	―	48.28%

Patagonia Gold Corporate Events

Patagonia Gold Corp. Grants Stock Options

Patagonia Gold Corp. has granted a total of 15,300,000 incentive stock options to its directors, officers, and senior management as part of a long-term incentive plan. These options, which represent about 3.3% of the company’s outstanding shares, are exercisable over five years at $0.035 per share. This move aligns with Patagonia’s strategy to enhance shareholder value through strategic management incentives.

Patagonia Gold Expands Loan Facility to $40 Million

Patagonia Gold Corp. has secured an agreement with Cantomi Capital Ltd. to increase its loan facility to $40 million and extend its maturity date. The additional funds will be used for the development of the Calcatreu project and general working capital. This move aligns with Patagonia’s strategic focus on expanding its gold and silver projects in Argentina.

Patagonia Gold Reports Q3 Revenue and Developments

Patagonia Gold Corp. reported a revenue of $2.4 million in Q3 2024, alongside significant developments including receiving a permit for the Calcatreu project and acquiring new mineral properties. The company’s production and sales of gold equivalent ounces reflect its ongoing efforts to enhance shareholder value through strategic exploration and development activities in Argentina.

Patagonia Gold Advances with Calcatreu Project

Patagonia Gold has received the final permit to begin construction and development at its Calcatreu gold and silver project in Argentina’s Rio Negro province. The company plans to implement a heap leach operation to produce gold and silver doré, drawing from its extensive experience in such operations. With significant measured and indicated mineral resources, this project marks a major step forward for Patagonia Gold’s expansion in South America.