Liabilities Breakdown
85.8 M
Current Liabilities
70.8 M
Long-Term Liabilities
| Total Liabilities | 170.38 Million | |
| Current Liabilities | 85.83 Million | |
| Long-Term Liabilities | 70.85 Million | |
| Tax Liabilities | 440,211 |
Will Polymet Mining (USA Stocks:PLM) debt increase in August
 | By Raphi Shpitalnik | Macroaxis Story |
Polymet Mining Corp, a player in the Other Industrial Metals & Mining industry, has shown potential for significant investment opportunities. Despite a net loss of 34.1M and operating income of -12.9M, the company has a strong market valuation of 2.05 and a naive expected forecast value of 2.27. With a total stockholder equity of 328.2M and net invested capital of 422.6M, the company's financial stability is evident. The company also holds a significant amount of property, plant, and equipment net, valued at 442.1M. Despite a negative free cash flow of -23.2M, the company managed to increase its end period cash flow to 11M from a begin period cash flow of 3M. Analysts have a strong buy consensus on the stock, indicating potential for future growth. However, investors should be aware of the company's high short term debt of 94.5M and total current liabilities of 99.5M. Polymet Mining Corp is set to announce its earnings today, with the forthcoming quarterly report expected on August 10, 2023. The company's Debt to Equity Ratio is currently very stable compared to the previous year. Last year, Polymet Mining reported a Debt to Equity Ratio of 0.50. As of July 17, 2023, the Price to Book Value is anticipated to rise to 0.88, while the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are likely to decrease to -$15.2 million. Despite many aggressive traders entering the metals and mining sector, Polymet Mining Corp may not necessarily be your top choice. We will further evaluate why recent price movements in Polymet Mining suggest a potential rebound in August.
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Reviewed by Michael Smolkin
Polymet Mining Corp's investment potential is a mixed bag, with several key data points painting a complex picture. The company's Total Stockholder Equity stands at a robust 328.2M, backed by a Net Invested Capital of 422.6M. However, it's important to note that the company reported a Free Cash Flow of 23.2M loss, and an EBITDA loss of 20.4M. The company's stock price fluctuates between a low of 1.97 and a high of 2.05, with a Standard Deviation of 19.69 indicating significant volatility. Despite these risks, Polymet Mining Corp's Risk Adjusted Performance of 0.0453 and a Jensen Alpha of 0.9474 suggest that the company's stock could provide a reasonable return on investment when considering the inherent risks.
Additional examination
Polymet Mining Corp carries a debt of 94.72 million, with a debt to equity (D/E) ratio of 0.21. This may indicate that Polymet Mining is not fully leveraging the potential profits from borrowing. The company's current ratio stands at 0.12, suggesting that it may lack sufficient short-term capital to meet its financial obligations when they come due. While debt can aid Polymet Mining up to a point, difficulties may arise if the company struggles to pay it off, either through new capital or free cash flow. In such a scenario, Polymet Mining's shareholders could potentially lose their entire investment if the company fails to meet its legal debt repayment obligations. However, a more common scenario is when companies like Polymet Mining Corp issue additional shares at discounted prices, thereby diluting the value of existing shares. In this context, debt can be an excellent tool for Polymet to invest in high-return growth opportunities. When evaluating Polymet Mining's use of debt, it is crucial to consider it in conjunction with the company's cash and equity positions.Polymet Mining financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Polymet Mining, including all of Polymet Mining's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Polymet Mining assets, the company is considered highly leveraged. Understanding the composition and structure of overall Polymet Mining debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.How important is Polymet Mining's Liquidity
Polymet Mining financial leverage refers to using borrowed capital as a funding source to finance Polymet Mining Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Polymet Mining financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Polymet Mining's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Polymet Mining's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Polymet Mining's total debt and its cash.
An Additional Perspective On Polymet Mining Corp
The recent price roll up of Polymet Mining Corp may encourage insiders to take a closer look at the company as it is trading at a share price of 2.05 on very low momentum in trading volume. The company directors and management may have good odds in positioning the company resources to exploit market volatility in August. The stock standard deviation of daily returns for 90 days investing horizon is currently 20.32. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Polymet Mining partners.
Polymet Mining Corp, a player in the Other Industrial Metals & Mining industry, is currently under the spotlight for its financial performance. The company's financial health is a concern, with a current ratio of 0.12X, indicating a potential liquidity problem. The company has a total debt of 94.72M, including short term debt of 94.5M and long term debt total of 205K. The net debt stands at 83.7M, reflecting a significant financial burden.Polymet Mining Corp's operating income shows a loss of 12.9M, contributing to a net income loss of 34.1M. The company's total operating expenses are 14.6M, with selling general administrative expenses accounting for 8.7M. The company's EBIT is also in the negative territory at -12.9M. The company's stock performance shows a downside deviation of 5.9, with a risk-adjusted performance of 0.0453. The company's shares outstanding are 194.44M, with 151.92K shares shorted. The price to book ratio is 0.84X, suggesting that the stock may be undervalued. However, the company's probability of bankruptcy stands at a worrying 41.78%. Investors considering Polymet Mining Corp must weigh these factors carefully before making an investment decision. .
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