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Paramount Gold & Silver (PZG) |
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WIKI ANALYSIS
Paramount Gold & Silver (NYSE:PZG) is a mineral exploration company which focuses on precious metals in Mexico. In particular, Paramount focuses on the exploration and eventual extraction of gold and silver. Paramount has acquired a series of companies in the hope of expanding its potential reserves. Because the company is largely before commercial levels of production, it has incurred large losses through its exploration phase.
Business Overview
For the full year 2010, Paramount reported a total revenue of $36K. However, its high exploration costs caused it to incur a net loss of $10.2M.[2]
Trends & Forces
High costs of exploration and extraction require high prices
Paramount has taken on large debts with the expectation of identifying substantial reserves of gold and silver. However, these expenses rely on the continued high price of Gold and Silver. The loss of these prices could make the company's investments no longer favorable.[3]
Competition
Because gold and silver are commodities, the company competes with all mining companies which extract them. However, Paramount competes particularly closely with those which bid for the same or similar properties.
References
- ↑ KGN 20-F "Business" pg1-2
- ↑ KGN 20-F "Selected Financial Data" pgF4-5
- ↑ KGN 20-F "Risk Factors" pg33-35
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