Tertiary Minerals Plc

Tertiary Minerals Plc (LON: TYM) is a mining company, engaged in the business of identifying, acquiring, explore and develop mineral projects related to fluorspar. 

Financial Highlights – Financial Year 2019 (30^th September 2019, GBP)

(Source: Annual Report, Company Website)
 
For the financial year ending 30^th September 2019, driven by lower head office revenue for the period, the company revenue declined to GBP 189,742 from GBP 218,841 in the financial year 2018. Due to the decline in the operating expenses, the company’s operating loss declined to GBP 831,741 in the financial year 2019 versus an operating loss of GBP 2,304,433 in the financial year 2018. The LBT and LAT (Loss before tax and Loss after tax) stood at GBP 831,507 in the financial year 2019 versus an LBT and LAT (Loss before tax and Loss after tax)of GBP 2,267,197in the financial year 2018. The basic and diluted loss per share for the financial year 2019 was 0.19 pence versus a basic and diluted loss per share of 0.65 pence in FY2018.

Share Price Performance

Daily Chart as of February 19^th, 2020, before the market close (Source: Thomson Reuters)

Tertiary Minerals Plc shares were trading at GBX 0.3955 at the time of writing before the market close (at 1:57 PM GMT) on 19^th February 2020 and were down by 48.30% versus the previous day closing price. Stock's 52 weeks High is GBX 0.855 and Low is GBX 0.177.

Key Risks
Any change in regulations and government policies could affect the overall business of the company.The company’s profitability margins and Return on equity remained in the negative zone from last five years. Risks related to environment and climate change could hamper the operations of the company. Liquidity and interest rate risks which could affect the operations of the company.

Conclusion
The company has shownan improvement in the financial performance in financial year 2019. The company’s revenue has declined, while the bottom-line performance has improved, but the profitability remained in the negative zone for the period. The company, through the development of organic opportunities, is focussing on its operations. The company operates in a challenging environment which requires continuous investment, sometimes at the cost of profitability, to stay ahead of competitors. The company managed to control its operating costs effectively, which will give a boost to the company’s financial performance.

Based on the above rationale, we have given an “Avoid” recommendation at the current price of GBX 0.88 (as on 19^th February 2020, before the market close at 8:00 AM GMT).
 

Conroy Gold and Natural Resources Plc
 

Conroy Gold and Natural Resources Plc (LON: CGNR) is a mining company engaged in the business of exploration and development of gold. The company operates in the geographic regions of Finland and Ireland.

Recent News
On 18th February 2020, Conroy Gold and Natural Resources announced the placing 2,083,333 shares at 12 pence/share to raise GBP 250,000 before expenses. The share placing was arranged by the Company’s broker BHC (Brandon Hill Capital Limited). The company has also undertaken 437,500 Shares for subscription at 12 pence/share to raise a subscription of GBP 52,500.

Financial Highlights – Financial Year 2019 (31^st May 2019, EUR)

(Source: Annual Report, Company Website)

For the financial year ending 31^st May 2019, the company’s remained on the development phase, hence does not generate any revenues. The LBT and LAT (Loss before tax and Loss after tax) stood at EUR 557,569 in the financial year 2019 versus an LBT and LAT (Loss before tax and Loss after tax)of EUR 745,485in the Financial Year 2018. The basic loss per share for the financial year 2019 was EUR 0.0244 versus basic loss per share of EUR 0.0485 in FY2018.The diluted loss per share for FY2019 was EUR 0.0244 versus diluted loss per share of EUR 0.0396 in the financial year 2018.As on 31^st May 2019, the company’s cash reserves stood at EUR 77,299 as against EUR 233,161 as on 31^st May 2018. The company’s total assets for the FY2019 was EUR 21,966,872 versus EUR 21,318,977 in the financial year 2018.

Share Price Performance

Daily Chart as of February 19^th, 2020, before the market close (Source: Thomson Reuters)

Conroy Gold and Natural Resources Plc shares were trading at GBX 11.90 at the time of writing before the market close (at 1:39 PM GMT) on 19^th February 2020 and were up by 13.33% versus the previous day closing price. Stock's 52 weeks High is GBX 18.25 and Low is GBX 4.00. The shares of the company have delivered a negative return of 20.13 per cent in the last week.

Key Risks
The company operates inmultiple geographies, and its profits can be impacted negatively due to foreign exchange rate fluctuations. The ongoing trade war between the US and China has impacted the company’s performance. Many environmental factors such as rainfall, drought etc. also determine the level of production achieved by the company.

Conclusion
Since the company is in the development phase, it doesn’t generate any revenues, and all the operations are financed through its cash reserves and grants. The bottom-line performance has improved, while the profitability margins remained in the negative zone for the period.  

The company operates in a challenging environment which requires continuous investment, sometimes at the cost of profitability, to stay ahead of competitors. The company witnessed success in exploration activities and developed the first gold mine in Ireland, which will help then to generate revenue in the near future.

Keeping in mind the risks faced by the company, investors are recommended to keep a “WATCH” on the stock at the current price of GBX 11.90 (as on 19^th February 2020, before the market close), while we look for any upcoming catalysts. 

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