Stock Alert for Portage Resources Inc. (POTG)
  • Stock Alert for Portage Resources Inc. (POTG)
  • Pink Sheet Review; Portage Resources at a Glance
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    Stock Alert for Portage Resources Inc. (POTG)

    Portage Resources Inc. (POTG), a pre-exploration stage mineral company, focuses on the exploration and production of precious and base metals in Peru. The Company plans to recognize and acquire near-term production mining properties.  Its Peruvian management team intends to research, review and prove any reserves for the purpose of production.

    Share Statistics (19-July-11)
    Symbol POTG
    Current price $0.64
    52wk Range: n/a
    Avg Vol (3m): n/a
    Market Cap. 414.18M
    Shares Outstanding 637.20M

    Source: Reuters.com, SEC Filings.

    Recent News

    POTG shares ticked higher in Tuesday trading, a day after the Company announced that Portage Minerals S.A., the Company’s wholly owned Peruvian subsidiary, has signed a letter of intent to acquire three adjacent gold and silver mining concessions in Huancavelica, Peru. Spread over an area of approximately 700 hectares, the concessions are said to be production ready and the turnaround time could be less than a year based on all available reporting.

    Portage Minerals S.A. will close the acquisition on or before the 15th of next month, giving the company time to conduct its due diligence process.

    Following a recent management restructuring, POTG has entered into a number of deals in the past few weeks to acquire mining properties in Peru. Just last week, the Company announced it entered into negotiations to acquire a mining concession near the Antamina mining complex, which has had the highest investment in the history of mining in Peru.  The concession is comprised of 1,200 hectares of rich polymetalic formations.

    While capitalizing on its Peruvian mining opportunities, POTG also recently announced that it signed a letter of intent to acquire the Holly Gold Properties in Pershing County, Nevada.  The properties, which are spread over an area of about 283 hectares, are comprised of 35 contagious, unpatented, lode mining claims on federal lands regulated by the Bureau of Land Management.

    In a recent corporate update, POTG stated that it and its board of directors have received multiple offers for financing and is currently performing all due diligence on  all current financing options for the Company.  CEO Paul Luna, who currently has been personally funding all operations to date, said funding will be at zero interest and will be paid back in full or in parts after a final decision on financing has been made.

    Shares of POTG traded as high $0.69 yesterday, up 7.8% from the previous close. The stock was traded on high volume of 8.53 million shares. The current market capitalization stands at $417.37 million and shares outstanding is at 637.20 million shares.

    Financial Summary

    POTG is a start-up mineral company in the pre-exploration stage and has not generated any operating revenues since inception. It has incurred losses since inception and its auditors have issued a going concern opinion since it must raise additional capital, through the sale of its securities, in order to fund it operations.  The Company has an accumulated deficit of $158,597 as of April 19, 2011.

    For the nine-month period ended February 28, 2011, POTG reported a loss from operations of $13,337, as compared to a loss from operations of $17,135 in the nine-month period ending February 28, 2010.  The Company attributed the narrower loss to a decrease in management fees.

    To date, POTG’s growth has been funded by the sale of shares and advances by its director in order to meet the requirements of filing with the SEC and to seek out a new mineral property.  The Company intends to search and obtain a new mineral claim with the potential for future exploration work over the next twelve months, POTG stated in its latest filing with the Securities and Exchange Commission.

    Source: Form 10-Q for POTG

    Financial Strength (19-July-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 2.25 1.22 0.72
    Current Ratio (MRQ) 0.00 2.74 1.65 1.07
    LT Debt to Equity (MRQ) 21.24 19.27 132.62
    Total Debt to Equity (MRQ) 29.85 37.83 176.09
    Interest Coverage (TTM) 0.00 0.21 18.61

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    No analyst recommendations and revisions data available.

    Technical Analysis

    Source: http://stockcharts.com

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    July19-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Barrick Gold Corp. ABX 48.31 48.28B 10.93 10.30 3.73 3.50
    Contact Minerals Corp. CNTM 0.25 4.13M n/a n/a n/a n/a
    PolyMet Mining Corp. PLM 1.78 275.98M n/a n/a n/a n/a
    AngloGold Ashanti Ltd. AU 44.40 17.06B 11.75 9.98 2.41 2.33
    Petaquilla Minerals Ltd. PTQMF 0.72 127.17M n/a n/a n/a n/a
    Gold Median n/a n/a n/a 41.19
    Portage Resources Inc. POTG 0.65 414.18M n/a n/a n/a n/a

    Source: Thomson Financial

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