Pacific Ridge Exploration Ltd., an exploration stage company, acquires and explores for resource properties in Canada and the United States. The company primarily explores for gold and copper. Its flagship project is the Kliyul copper-gold project covering an area of approximately 6,000 hectares located in the northern Quesnel terrane, British Columbia. The company was formerly known as Columbia Gold Mines and changed its name to Pacific Ridge Exploration Ltd. Pacific Ridge Exploration Ltd. was incorporated in 1979 and is headquartered in Vancouver, Canada.

Canada

Pacific Ridge Exploration Ltd.

Basic Materials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

PEX.V reported revenue of CAD 0mn in the last 12 months, down 0% from FY23. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS fell 67% from FY23 to CAD -0.02. Market expects EPS to reach CAD -0.70 in FY24.

Over the past six months, the stock has consistently fallen, resulting in a 62% total decrease. When measured against its worldwide peers from the same industry (as shown above), the stock has been weaker, underperforming by 73ppts. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is slightly unfavourable.

Pacific Ridge Exploration Ltd. reported a return on equity (RoE) of -58.2% in the last 12 months, up from -274.8% in FY22. 

Another important profitability metric, return on assets (RoA), amounted to -53.3% in the last 12 months, an increase from -237.4% in FY22. 

In the last 12 months, the return on capital employed (RoCE) grew to -58.1%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -12.7 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

PEX.V has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, negligible return on capital, inadequate interest coverage, and poor cash flow generation. We note an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, PEX.V is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, PEX.V is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

From both historical and forecast perspectives, the stock is considerably underpriced compared to similar stocks. 

Pacific Ridge Exploration Ltd.

CA$ 0.12

3

Pacific Ridge Exploration Ltd.

CA$ 0.12

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 0.12

About

About

About

About