Panoro Minerals Ltd., an exploration-stage company, engages in the acquisition, exploration, and development of mineral properties in Peru. The company explores for copper, molybdenum, lead, gold, silver, and zinc deposits. Its flagship project is the Cotabambas project located in the District of Cotabambas. The company was formerly known as Panoro Resources Ltd. and changed its name to Panoro Minerals Ltd. in June 2003. Panoro Minerals Ltd. was incorporated in 1994 and is headquartered in Vancouver, Canada.

Canada

Panoro Minerals 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. 

PML.V reported revenue of USD 0mn in the last 12 months, down 0% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 48% from FY23 to USD -0.00.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 37ppts over past six months and grown 11ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

In the last 12 months, the return on capital employed (RoCE) declined to -2.3%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to -1.8% in the last 12 months, a decrease from -0.9% in FY22. 

Panoro Minerals Ltd. reported a return on equity (RoE) of -2.4% in the last 12 months, down from -1.1% in FY22. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.4 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.

PML.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, and inadequate interest coverage. We note solid cash flow generation and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, PML.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, PML.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. 

Considering past and projected metrics, the stock is moderately 'expensive' compared to its peers. 

Panoro Minerals Ltd.

CA$ 0.4

2

Panoro Minerals Ltd.

CA$ 0.4

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 0.4

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