Trilogy Metals Inc. (NYSE: TMQ)

Sector: Basic Materials Industry: Other Industrial Metals & Mining CIK: 0001543418
Market Cap 599.50 Mn
P/B 4.83
P/E -14.19
P/S 0.00
ROIC (Qtr) -7.46
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 111,000.00
Debt/Equity (Qtr) 0.00
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About

Trilogy Metals Inc., known by its ticker symbol TMQ, is a company that operates in the mineral exploration and development industry, with a specific focus on copper in the Ambler Mining District of Northwest Alaska. The company's primary business activities involve advancing its Upper Kobuk Mineral Projects, which encompass the Arctic Project and the Bornite Project. The Arctic Project is a high-grade polymetallic volcanogenic massive sulfide (VMS) deposit, while the Bornite Project is a carbonate-hosted copper-cobalt deposit. Trilogy Metals aims...

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Investment thesis

Bull case

  • Healthy cash reserves of 51.61M provide 1258.85x coverage of short-term debt 41000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 157.30M provides 1417.15x coverage of total debt 111000, indicating robust asset backing and low credit risk.
  • Long-term investments of 105.26M provide solid 1503.76x coverage of long-term debt 70000, indicating strategic financial planning.
  • Robust tangible asset base of 157.30M provides 8.36x coverage of working capital 18.81M, indicating strong operational backing.
  • Tangible assets of 157.30M provide robust 5.12x coverage of other current liabilities 30.74M, indicating strong asset backing.

Bear case

  • Investment activities of (1M) provide weak support for R&D spending of 166000, which is -6.02x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 51.61M provide limited coverage of acquisition spending of (1M), which is -51.61x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (3.25M) shows concerning coverage of stock compensation expenses of 3.34M, with a -0.97 ratio indicating potential earnings quality issues.
  • Long-term investments of 105.26M represent a high 899.68x of fixed assets 117000, indicating potential overexposure to financial assets versus operational capabilities.
  • Operating cash flow of (3.25M) barely covers operating expenses of 2.06M with a -1.58 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Other Industrial Metals & Mining
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BHP BHP Group Ltd 188.54 Bn 18.41 3.49 29.90 Bn
2 TECK Teck Resources Ltd 28.53 Bn 31.70 3.75 3.67 Bn
3 MP MP Materials Corp. / DE 9.57 Bn -81.36 41.12 1.00 Bn
4 SKE Skeena Resources Ltd 3.70 Bn -44.17 0.00 0.04 Bn
5 MTRN MATERION Corp 3.18 Bn 42.47 1.78 0.53 Bn
6 ALM Almonty Industries Inc. 2.45 Bn -216.48 122.35 0.14 Bn
7 USAS Americas Gold & Silver Corp 1.71 Bn -27.92 15.69 0.06 Bn
8 USAR USA Rare Earth, Inc. 1.68 Bn -6.60 0.00 0.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.66 2.89
EV to Cash from Ops. EV/CFO -177.42 -38.49
EV to Debt EV to Debt 5,191.42 537.19
EV to EBIT EV/EBIT -13.64 -24.27
EV to EBITDA EV/EBITDA -61.05 458.80
EV to Free Cash Flow [EV/FCF] EV/FCF -177.42 -18.50
EV to Market Cap EV to Market Cap 0.96 0.42
EV to Revenue EV to Revenue 0.00 34.60
Price to Book Value [P/B] P/B 4.83 10.18
Price to Earnings [P/E] P/E -14.19 -32.46
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -16.19
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.36
Dividend per Basic Share Div per Share (Qtr) 0.00 0.05
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -4.32
Interest Coverage Interest Coverage 0.00 412.60
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -7,554.56
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 99.79 2,335.82
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -2.77
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -391.92 -76.97
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -40.96 -2.67
EBIT Growth (1y) % EBIT 1y % (Qtr) -391.92 -36.91
EBT Growth (1y) % EBT 1y % (Qtr) -391.92 -100.70
EPS Growth (1y) % EPS 1y % (Qtr) -420.00 -24.28
FCF Growth (1y) % FCF 1y % (Qtr) -77.68 -5,480.62
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 9.93
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.56 3.63
Current Ratio Curr Ratio (Qtr) 1.57 5.14
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.74
Interest Cover Ratio Interest Cover Ratio 0.00 412.60
Times Interest Earned Times Interest Earned 0.00 412.60
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -684.08
EBIT Margin % EBIT Margin % 0.00 -696.03
EBT Margin % EBT Margin % 0.00 -788.18
Gross Margin % Gross Margin % 0.00 11.20
Net Profit Margin % Net Profit Margin % 0.00 -790.68