Stock Alert for Portage Resources Inc. (POTG)
  • Stock Alert for Portage Resources Inc. (POTG)
  • Portage Resources soars on Aggressive Acquisition Campaign
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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 (22-Sept-11)
    Symbol POTG
    Current price $0.10
    52wk Range: n/a
    Avg Vol (3m): n/a
    Market Cap. 454.10M
    Shares Outstanding 4.45B

    Source:, SEC Filings.

    Investment Highlights

    Shares of POTG soared as high $0.28 yesterday, jumping almost 155% from the previous close. The stock was traded on high volume of more than 22 million shares.  The current market capitalization stands at $454.10 million and shares outstanding is at 4.45 billion shares.

    The Peruvian-focused mineral company last month announced its board of directors unanimously approved a dividend whereby POTG shareholders will receive a dividend payable as a 10:1 forward stock split. As part of this approved action of the board, CEO Paul Luna Belfiore agreed to return a total of 230 million restricted shares to treasury for cancellation prior to the record date, which would leave a total of 445.20 million shares issued and outstanding as at the record date.

    The report said the dividend shares, when issued, will boost its issued and outstanding common shares to over 4.45 billion common shares, all with par value of $0.001.

    The Company also last month provided an update on its sampling programs and other recent events.

    POTG said the Company has decided to vacate any further interests or negotiations on the Holly Properties in Pershing, Nevada, as its “management felt the said properties were an excellent prospect but did not fit into the overall company plan of responsible growth.” The Company announced it signed a letter of intent to acquire the said properties in July.

    Updating shareholders with its progress in Peru, the Company last month said its explorations team headed by Elias Garate has been working and visiting the Wukakuy Properties, the Cordillera Negra 1 and 2 mining concessions and its most recent acquisition.

    POTG reported that sample processing has started, samples have been turned over to an independent testing facility and the team is looking forward to receiving the results in the near future. It also said it is in the process of reviewing other potential projects for the company.


    Financial Summary

    POTG has not generated any operating revenues since its inception. The Company posted a loss of ($21,591) for the fiscal year ended May 31, 2011, as compared to a loss of ($25,264) for the same period in 2010.  The Company attributed the minimal decrease to a reduction in general and administrative expenses from $16.37K in 2010 to $14.21K in 2011, and a reduction in professional fees from $8.90K in 2010 to $6.10 in 2011, offset by a charge for legal fees of $1.29K in 2011, as compared to $0 legal fees in 2010.

    POTG expects to incur substantial costs while it commences exploration work on its properties, in addition to meeting its ongoing corporate obligations and debt servicing. As of May 31, 2011, the Company said it has no cash, which means it insufficient to meet its current liabilities which total $136.90K at May 31, 2011, versus $120.04K in 2010). Further, it has no capital with which to continue operations or to meet commitments for its properties that will be required during the upcoming twelve months.

    Accordingly, the Company will require additional funds to implement its exploration and development programs on its properties, and to meet its other pending obligations, including general and administrative costs and contractual property payments.

    POTG’s management believes that it will require a minimum of $1.2 million during the next twelve months to meet its planned commitments. These funds may be raised through equity financing, debt financing, or other sources, which may result in further dilution in the equity ownership of its shares. POTG needs to raise additional funds in the near future in order to proceed with its exploration program.


    Financial Strength (22-Sept-2011)




    S&P 500

    Quick Ratio (MRQ) 0.39 0.73 0.78
    Current Ratio (MRQ) 0.00 0.58 1.12 1.15
    LT Debt to Equity (MRQ) 11.92 11.32 108.97
    Total Debt to Equity (MRQ) 19.44 29.71 145.77
    Interest Coverage (TTM) -0.03 0.13 23.55

    Source:, SEC Filings.

    Analyst Consensus

    No analyst recommendations and revisions data available.

    Technical Analysis



    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Sept22-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    AngloGold Ashanti Ltd. AU 44.32 17.09B 12.56 9.29 2.46 2.18
    Barrick Gold Corp. ABX 48.76 48.73B 9.87 8.32 3.41 2.95
    Newmont Mining Corp. NEM 65.24 32.24B 13.29 11.04 2.98 2.69
    Gold Median       20.47 n/a 16.92 n/a
    Portage Resources Inc. POTG 0.10 454.10M n/a n/a n/a n/a

    Source: Thomson Financial

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