Patagonia Gold (PGDC) AI Stock Analysis

• Market Cap: C$68.83M
• Dividend Yield: N/A
• Average Volume (3M): 174.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.39
• Revenue Growth: -4.02%
• EPS Growth: -88.55%
• Country: CA
• Employees: 154
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): >-0.01
• Shares Outstanding: 465,051,480
• 10 Day Avg. Volume: 112,816
• 30 Day Avg. Volume: 174,918
• PEG Ratio: >-0.01
• Price to Book (P/B): -3.27
• Price to Sales (P/S): 1.10
• P/FCF Ratio: -1.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Patagonia Gold's overall stock score is primarily impacted by its poor financial performance, characterized by significant losses and high leverage. While technical indicators show strong momentum, the overbought conditions suggest caution. The negative P/E ratio and lack of dividend yield further weigh on the stock's valuation.

Patagonia Gold Business Overview & Revenue Model

Company Description

Patagonia Gold (PGDC) is a mining company focused on the exploration and development of gold and silver properties in South America, particularly in Argentina and Chile. The company aims to identify and develop high-quality mineral resources, leveraging its expertise in geology and mining operations. Patagonia Gold is engaged in various stages of mining, including exploration, resource estimation, and production, with a commitment to sustainable practices in the mining sector.

How the Company Makes Money

Patagonia Gold generates revenue primarily through the extraction and sale of gold and silver. The company's main revenue streams include the sale of dore bars, which are semi-pure alloys of gold and silver, produced at its mining operations. Additionally, revenue is supplemented by strategic partnerships and joint ventures with other mining companies and local stakeholders, which can enhance resource access and operational efficiency. Factors contributing to its earnings include fluctuating commodity prices, operational efficiency, and successful exploration efforts that lead to new discoveries and the expansion of existing mines.

Patagonia Gold Financial Statement Overview

Summary

Patagonia Gold faces significant financial challenges. The income statement shows persistent losses and negative margins. The balance sheet highlights high leverage and negative equity, indicating financial instability. Cash flow analysis underscores liquidity issues. The company must address these critical areas to improve financial health and sustainability.

Income Statement

Patagonia Gold's income statement shows significant challenges with negative profit margins across the board. The gross profit margin is negative, indicating that the cost of goods sold exceeds revenue. Net profit margin is also deeply negative, reflecting substantial losses. Despite a high revenue growth rate, the company struggles with profitability, as evidenced by negative EBIT and EBITDA margins. These factors suggest a need for operational improvements to achieve profitability.

Balance Sheet

The balance sheet reveals a precarious financial position with a negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is extremely high, suggesting heavy reliance on debt financing, which poses a risk in terms of financial stability. Return on equity is positive due to negative equity, but this is misleading as it reflects financial distress rather than profitability. The equity ratio is negative, highlighting the company's insolvency risk.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows, which are concerning for liquidity. However, the free cash flow to net income ratio is positive, suggesting some efficiency in converting earnings to cash flow. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Overall, the cash flow situation reflects significant financial strain, necessitating improvements in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.63M	8.83M	8.22M	12.34M	18.10M	19.85M
Gross Profit	-648.00K	-549.00K	-2.41M	-2.81M	4.54M	6.60M
EBITDA	-7.10M	-7.31M	-10.17M	-13.07M	-6.29M	3.00M
Net Income	-10.41M	-11.55M	-6.30M	-4.22M	-11.17M	-4.41M
Balance Sheet
Total Assets	89.60M	50.96M	49.57M	54.29M	57.74M	60.07M
Cash, Cash Equivalents and Short-Term Investments	25.48M	948.00K	185.00K	231.00K	291.00K	819.00K
Total Debt	50.09M	47.75M	37.01M	29.35M	22.98M	24.92M
Total Liabilities	57.55M	55.89M	42.31M	41.49M	40.04M	38.66M
Stockholders Equity	21.71M	-2.96M	8.87M	14.30M	19.09M	22.70M
Cash Flow
Free Cash Flow	-22.73M	-8.26M	-6.19M	-5.64M	-4.82M	-2.45M
Operating Cash Flow	-7.85M	-5.15M	-5.74M	-5.33M	-591.00K	-535.00K
Investing Cash Flow	-14.83M	-3.07M	-294.00K	-286.00K	-3.89M	-1.50M
Financing Cash Flow	47.24M	8.20M	5.55M	5.58M	3.87M	509.00K

Patagonia Gold Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PGDC, the sentiment is Neutral. The current price of 0.15 is below the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.11, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:PGDC.

Patagonia Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PGDC	46 Neutral	C$68.83M	―	-2578.52%	―	-4.02%	-88.55%
EQTY	42 Neutral	C$38.49M	―	-125.19%	―	―	-12.34%
SSVR	41 Neutral	―	―	―	―	―	19.69%
DMET	31 Underperform	C$36.29M	―	-39.57%	―	―	-0.76%
KCP	31 Underperform	$263.03M	―	-304.66%	―	―	15.28%

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.