PLG  Platinum Group Metals Ltd.

Exchange

AMEX

Sector

Basic Industries

Industry

Precious Metals

Market Cap.

215.45M

Vuru Grade

5.00/100

Current Price

$1.91
-0.12 (-5.91%)

Company Metrics

  • P/E 13.33
  • P/S 0
  • P/B 0.52
  • EPS -0.27
  • Cash ROIC -31.17%
  • Cash Ratio 0.38
  • Dividend 0 / N/A %
  • Avg. Vol. 885,177.00
  • Shares 80.44M
  • Market Cap. 215.45M

Company Description

Platinum Group Metals Ltd. engages in the exploration and development of mineral properties in Canada and South Africa. The company primarily explores for platinum resources. It holds interests in the Western Bushveld Joint Venture, War Springs, and Tweespalk properties in South Africa; and the Agnew Lake and Lac Des Iles properties in Canada. The company was founded in 2000 and is headquartered i... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

News Platinum Group Metals Ltd.PLG
Wall Street Journal - Feb 12, 2011
Press Release. 01/23/17; Press Release. (MKTW) Platinum Group Metals Announces US$25 Million Bought Deal Financing. Press Release.
Platinum Group Metals Ltd. Announces Increase to Sprott Credit Facility
Marketwired (press release) - Oct 12, 2016
... Metals Ltd. (TSX:PTM)(NYSE MKT:PLG) ("Platinum Group" or the "Company") announces that the Sprott Resource Lending Partnership lenders ("Sprott") have provided a US $5.0 million second advance to the Company. The original US $40.0 million credit ...
Platinum Group Metals Ltd.: Corporate Update
Yahoo Finance - Sep 19, 2016
VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA--(Marketwired - Sep 19, 2016) - Platinum Group Metals Ltd. (PTM.
Platinum Group Metals - Maseve Mine (Update): The Company Accessed Mining ... - Seeking Alpha
Platinum Group Metals Ltd. (PTM:CA) Declines 8.58% for January 16
Equities.com - Jan 16, 2017
It was a tough day for Platinum Group Metals Ltd. (PTM:CA) as its stock fell 8.58% to finish the day at $2.13 a share on January 16.
Platinum Group Metals Q1 2017: The Chickens Have Come Home To Roost Again - Seeking Alpha
Platinum Group Metals, Ltd. (NYSEMKT:PLG
Seeking Alpha - Oct 13, 2016
This article is an update to my previous article on Platinum Group Metal on September 19, 2016 about the last Maseve update.
Platinum Group Metals Limited's (PLG) 30% Jump Causes Company to Issue a Press ...
Independent Reporter - Feb 16, 2016
You don't see it too often that a stock suddenly surges in price and then the company issues a press release denying knowledge of the reason.
Platinum Group Metals - Announced A Reverse Split 1:10 Effective On January 28 ...
Seeking Alpha - Jan 26, 2016
PLG announced today that the company will implement a reverse split 1:10 effective on January 28, to meet the NYSE MKT share price requirements.
Platinum Group Metals - Positive Results For The Waterberg Project
Seeking Alpha - Oct 20, 2016
Platinum Group holds a 58.62% effective interest in the Waterberg Project with the Japan, Oil, Gas and Metals National Corporation ("JOGMEC") holding a 28.35% interest.
PTM to advance Waterberg PGM project to feasibility, construction decision stage - Creamer Media's Mining Weekly
Platinum Group Metals - All You Have To Know About The Q4 2016
Seeking Alpha - Dec 1, 2016
Shareholders like myself are increasingly frustrated by the management's inability to manage and control the work at the Maseve mine and delays after delays are piling up.
Platinum Group Metals: Update On Maseve Mine And Financial Transactions
Seeking Alpha - May 6, 2016
2 - The Company reports that the US $40 million working capital facility with the Sprott Resource Lending Partnership, among other lenders ("Sprott"), and the US $40 million working capital facility with Liberty Metals & Mining Holdings, LLC ("LMM ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for PLG to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate PLG's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$1.91 Current Price

$-6.11 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$8.97 Book Price

Undervalued by 369.59%


Very Poor Cash Return on Invested Capital over the past 5 years

PLG has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

PLG has lost $31.17 of cash for every $100 invested.
Figures in CAD. Fiscal year ends in August
20122013201420152016
Free Cash Flow -45.36M -82.92M -170.89M -182.89M -136.15M
divided by
Invested Capital 218.29M 253.14M 413.51M 582.67M 459.82M
Cash ROIC -20.78% -32.76% -41.33% -31.39% -29.61%

Very Poor Return on Equity over the past 5 years

PLG has shown an inability to deliver results for shareholders. This could be due to poor management, PLG operating in a highly competitive industry, or having a weak business in general.

PLG has generated a $4.52 loss for every $100 of Shareholders' Equity.
Figures in CAD. Fiscal year ends in August
20122013201420152016
Net Income -10.20M -12.07M -10.46M -4.80M -36.65M
divided by
Stockholders' Equity 181.41M 297.20M 428.68M 551.55M 380.77M
Return on Equity -5.62% -4.06% -2.44% -0.87% -9.63%

Poor Business Performance over the past 10 years

PLG's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

PLG has been losing money for the majority of the past 10 years.
Figures in CAD. Fiscal year ends in August
2007200820092010201120122013201420152016
Free Cash Flow -4.81M -6.51M -5.67M -33.51M -24.56M -45.36M -82.92M -170.89M -182.89M -136.15M

Good Balance Sheet

PLG's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in CAD. Fiscal year ends in August
2007200820092010201120122013201420152016
Cash 14.88M 2.90M 32.97M 2.37M 64.12M 17.67M 111.78M 108.15M 51.42M 16.45M
Current Assets 18.55M 4.03M 36.71M 4.66M 66.07M 22.67M 119.21M 122.71M 65.10M 22.90M
Total Assets 36.76M 32.49M 67.07M 126.99M 286.71M 243.73M 389.98M 550.24M 655.63M 519.86M
Current Liabilities 5.91M 2.88M 861,041.00 2.27M 5.98M 7.78M 25.06M 28.58M 21.54M 43.59M
Total Liabilities 5.92M 2.88M 861,041.00 35.24M 39.78M 62.33M 92.78M 121.56M 104.08M 139.09M
Stockholder' Equity 30.85M 29.62M 66.21M 91.75M 246.94M 181.41M 297.20M 428.68M 551.55M 380.77M
Current Ratio 3.14 1.40 42.63 2.05 11.05 2.91 4.76 4.29 3.02 0.53
TL-to-TA 0.16 0.09 0.01 0.28 0.14 0.26 0.24 0.22 0.16 0.27

Low or No Reinvestment of Profits over the past 10 years

PLG has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to PLG operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in CAD. Fiscal year ends in August
2007200820092010201120122013201420152016
Retained Earnings -22.17M -27.26M -34.22M -7.56M -19.78M -55.32M -85.35M -120.48M -114.17M -125.25M
Retained Earnings Growth - -22.94% -25.55% 77.91% -161.63% -179.73% -54.29% -41.17% 5.24% -9.70%

Highly Competitive Industry over the past 10 years

It's likely that PLG is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely PLG invests heavily in R&D and Sales, General & Administrative expenses.

Only $- of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in August
2007200820092010201120122013201420152016
Net Income -6.76M -5.09M -6.96M 26.66M -12.22M -10.20M -12.07M -10.46M -4.80M -36.65M
divided by
Revenue - - - - - - - - - -
Net Profit Margin - - - - - - - - - -

Weak Pricing Power over the past 10 years

PLG is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that PLG has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in August
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue - - - - - - - - - -
Gross Margin - - - - - - - - - -

High Capital Intensity over the past 10 years

PLG spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

100.52% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in CAD. Fiscal year ends in August
2007200820092010201120122013201420152016
Capital Expenditure 1.13M 1.96M 252,935.00 26.80M 18.67M 42.85M 82.63M 164.77M 182.70M 133.35M
divided by
Net Income -6.76M -5.09M -6.96M 26.66M -12.22M -10.20M -12.07M -10.46M -4.80M -36.65M
Capital Expenditure Ratio -16.66% -38.50% -3.63% 100.52% -152.79% -420.10% -684.83% -1,575.39% -3,803.79% -363.84%

No Dividend History over the past 10 years

PLG has never distributed dividends or has recently suspended their dividend distribution.
Figures in CAD. Fiscal year ends in August
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 45.80M 61.98M 72.47M 95.45M 164.22M 177.58M 324.99M 501.64M 695.84M 80.44M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 4.11 1.38 2.12 2.69 0.87 0.82 1.09 0.49 0.14 1.43
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

PLG has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in CAD. Fiscal year ends in August
2007200820092010201120122013201420152016
Shares Outstanding 45.80M 61.98M 72.47M 95.45M 164.22M 177.58M 324.99M 501.64M 695.84M 80.44M
Stock Bought Back - -26.10% -14.47% -24.08% -41.88% -7.53% -45.36% -35.21% -27.91% 765.05%
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