Trigon Metals Inc (TM) AI Stock Analysis

• Market Cap: C$11.41M
• Dividend Yield: N/A
• Average Volume (3M): 30.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 535
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Copper
• EPS (TTM): -0.32
• Shares Outstanding: 48,535,683
• 10 Day Avg. Volume: 27,977
• 30 Day Avg. Volume: 30,085
• 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: 1.05
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -10.46
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$1.50
• Price Target Upside: 525.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Trigon Metals Inc faces significant financial instability, with negative profitability and high leverage, impacting its overall stock score. Technical analysis indicates a bearish trend, while the valuation suffers due to a negative P/E ratio and no dividend yield. Although corporate events suggest potential strategic shifts providing financial flexibility, operational challenges pose risks. The overall score reflects these significant challenges, suggesting caution for potential investors.

Positive Factors

Debt Reduction

The all-cash transaction is at the asset level, therefore removing a significant portion of TM’s debt, allowing them to realize the entire consideration.

Financing

Trigon Metals has signed a binding loan agreement with Horizon for up to $5M to allow for the project to continue to advance.

Future Exploration

The Company has specified that the cash will be used to explore its other assets and distribute a dividend to shareholders.

Negative Factors

Financial Performance

Trigon also announced its Q2/25 operating and financial results, reporting weaker than expected financials compared to Q1, returning to a negative EBITDA position.

Shareholder Approval Uncertainty

Horizon will purchase TM’s 80% ownership in the Kombat mine for $30M pending shareholder approval.

Trigon Metals Inc Business Overview & Revenue Model

Company Description

Trigon Metals Inc. (TM) is a Canadian-based mining company focused on the exploration, development, and production of base metals, primarily copper and silver. With operations mainly concentrated in Africa, Trigon is committed to advancing its mining projects while adhering to sustainable and responsible mining practices. The company's core assets include strategically located properties with significant resource potential, aimed at meeting the global demand for essential industrial metals.

How the Company Makes Money

Trigon Metals Inc. generates revenue primarily through the extraction and sale of base metals, particularly copper and silver, from its mining operations. The company's key revenue streams include the sale of extracted ore and refined metals to various industrial customers and metal traders. Trigon may also enter into strategic partnerships or joint ventures with other mining firms to enhance its operational capabilities and market reach. Additionally, fluctuations in global metal prices and the efficiency of the company's mining operations significantly influence its earnings.

Trigon Metals Inc Financial Statement Overview

Summary

Trigon Metals Inc shows financial instability with negative profitability and high leverage. Operational and financial inefficiencies are evident, with profitability and cash flow concerns. The company's financial structure poses risks, requiring strategic improvements to stabilize finances and enhance shareholder value.

Income Statement

Trigon Metals Inc shows a negative gross profit margin and net profit margin in the TTM, indicating challenges in managing costs relative to revenue. Revenue growth is erratic, with significant fluctuations over the years. EBITDA margins have been negative, highlighting operational inefficiencies. While there is some revenue generation, profitability remains a concern.

Balance Sheet

The company has a high debt-to-equity ratio due to negative equity, pointing to financial instability and potential solvency risks. Return on equity is negative, reflecting losses. The equity ratio is also negative, highlighting a concerning financial structure with liabilities exceeding assets.

Cash Flow

Cash flow management is challenging, with negative operating cash flow and inconsistent free cash flow trends. The free cash flow has shown some positive movement in recent TTM, but sustainability is uncertain given historical volatility. The reliance on financing activities for cash is evident.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
9.59M	949.19K	0.00	0.00	0.00
	Gross Profit
-1.15M	-1.00M	-194.28K	-14.59K	―
	EBIT
―	-12.83M	-5.76M	―	―
	EBITDA
1.00M	-13.19M	-6.54M	-6.35M	-2.49M
	Net Income Common Stockholders
-773.94K	-16.47M	-5.18M	―	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.42M	20.73M	319.87K	2.65M	1.45M
	Total Assets
38.05M	35.67M	18.15M	3.02M	1.71M
	Total Debt
5.13M	194.18K	3.29M	1.85M	294.90K
	Net Debt
3.71M	-20.54M	2.97M	-796.46K	-1.15M
	Total Liabilities
42.13M	42.58M	9.27M	1.82M	554.61K
	Stockholders Equity
62.07K	-4.26M	9.78M	1.59M	1.50M
Cash Flow		Free Cash Flow
-22.34M	-13.59M	-16.43M	―	―
	Operating Cash Flow
-4.08M	-8.45M	-2.60M	―	―
	Investing Cash Flow
-18.14M	-5.14M	-13.82M	―	―
	Financing Cash Flow
3.02M	34.00M	14.07M	4.08M	2.75M

Trigon Metals Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TM, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.25, and below the 200-day MA of 0.58, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TM.

Trigon Metals Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$1.96B	-1.23	-21.20%	3.72%	0.95%	-28.96%
SLMN	43 Neutral	C$10.43M	―	-102.55%	―	―	-135.92%
CCI	42 Neutral	C$16.00M	―	-38.29%	―	―	-50.88%
TM	39 Underperform	C$11.41M	―	-81.80%	―	―	―
KCC	38 Underperform	C$8.75M	―	-14.69%	―	―	-25.32%
USCU	36 Underperform	C$5.93M	―	-311.56%	―	―	47.59%
WCU	33 Underperform	C$9.60M	―	-104.33%	―	―	-463.67%

Trigon Metals Inc Corporate Events

Trigon Metals to Vote on Sale of Kombat Mine Interest

Trigon Metals Inc. has announced an upcoming annual and special meeting of shareholders to vote on the proposed sale of its interest in the Kombat Mine to Horizon Corporation Limited. This transaction is expected to transition Trigon into a well-funded exploration company, allowing it to focus on its copper and silver projects in Morocco and Namibia. If approved, the sale will provide Trigon with financial flexibility and capital to pursue development activities without additional shareholder dilution, potentially enhancing growth and returns.

Spark’s Take on TSE:TM Stock

According to Spark, TipRanks’ AI Analyst, TSE:TM is a Neutral.

Trigon Metals Inc faces significant challenges with financial instability and operational hurdles, reflected in its low financial performance score. The technical analysis suggests bearish trends, compounded by a negative valuation. Corporate events are mixed with strategic moves for financial flexibility but operational disruptions due to equipment failures. Overall, the stock is risky, with a need for strategic improvements to stabilize and grow.

To see Spark’s full report on TSE:TM stock, click here.

Trigon Metals Updates on Kombat Mine Sale Progress

Trigon Metals Inc. has provided an update on its agreement with Horizon Corporation Limited for the sale of its ownership interest in the Kombat Mine in Namibia. Despite missing the initial target date for finalizing the share purchase agreement, both parties are committed to completing the transaction, which involves a structured loan and a purchase price payable in installments. The transaction is expected to impact Trigon’s operations by potentially enhancing its financial flexibility and focusing its resources on other projects. The completion of the transaction is contingent upon regulatory approvals and other customary conditions.

Trigon Metals Reports Q3 Results Amid Operational Challenges and Strategic Shifts

Trigon Metals reported its third-quarter results for 2024, highlighting steady copper production and significant silver output despite operational challenges. The company is advancing a $24 million asset sale of its Kombat Mine to Horizon Corporation, which provides financial flexibility and potential long-term value linked to copper prices and mine expansion. However, Trigon faced a net loss due to impairment charges and operational disruptions, including a temporary suspension of mining operations following equipment failures.

Trigon Metals Upsizes Private Placement Amid Strong Demand

Trigon Metals Inc. announced the successful closure of the first tranche of its non-brokered private placement, raising $1,097,500 through the issuance of 4,390,000 common shares. In response to strong investor demand, the company has decided to increase the size of the offering to $2,533,100, with the second tranche expected to close soon. The funds raised will be utilized for working capital and general corporate purposes, pending necessary approvals from the TSX Venture Exchange.

Trigon Metals Revises Sale Terms for Kombat Mine

Trigon Metals Inc. has amended the terms for the sale of its 80% interest in the Kombat Mine in Namibia to Horizon Corporation Limited. The revised agreement reduces the loan amount from Horizon, adjusts the purchase consideration, and introduces flexible financing and contingent payment structures, strategically benefiting shareholders and impacting the company’s financial positioning.