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Argenta Silver (TSXV:AGAG) Valuation Check After Upsized CA$20m Bought Deal Private Placement

Simply Wall St · 4d ago

Upsized financing draws attention to Argenta Silver stock

Argenta Silver (TSXV:AGAG) has caught investor attention after upsizing its bought deal private placement to 25,000,000 common shares at CA$0.80, targeting CA$20,000,000 in gross proceeds, plus an underwriters’ option.

See our latest analysis for Argenta Silver.

The upsized financing comes after a volatile stretch, with a 1-day share price return of an 11.83% decline to CA$0.82, but a 1-year total shareholder return of about 3.4x, which hints at strong underlying momentum despite a softer 90-day share price return.

If Argenta’s financing has you thinking about where growth-focused capital might head next, this could be a good moment to check out fast growing stocks with high insider ownership.

With the stock now trading close to the CA$0.80 financing price and a 1 year return of about 2.4x, the key question is simple: are you looking at an undervalued silver explorer, or has the market already priced in future growth?

Price-to-Book of 6.8x: Is it justified?

With Argenta Silver last closing at CA$0.82, its current P/B of 6.8x sits well above both the Canadian Metals and Mining industry and its closest peers.

P/B compares the company’s market value to its book value, which is particularly watched for early stage resource names that do not yet generate revenue or profits. In Argenta’s case, investors are paying a multiple of its underlying net assets rather than current earnings.

Here, the statements flag that Argenta trades on a P/B of 6.8x, versus around 3.1x for the wider Canadian Metals and Mining group and about 4x for peers. That is a clear premium and it indicates that the market is assigning a higher value to Argenta’s silver exploration assets and future potential than it does to comparable companies.

Compared to the industry average, that near 2x step up versus 3.1x P/B and a premium to the 4x peer mark is hard to miss, especially for a company that is currently unprofitable and reported a CA$10.54m loss with no revenue.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-book of 6.8x (OVERVALUED)

However, that premium P/B sits against a CA$10.54m loss and zero revenue, so any setback at the El Quevar project could quickly challenge the current narrative.

Find out about the key risks to this Argenta Silver narrative.

Build Your Own Argenta Silver Narrative

If you see the numbers differently, or prefer to test your own assumptions against the latest data, you can build a personalized view in a few minutes by starting with Do it your way.

A great starting point for your Argenta Silver research is our analysis highlighting 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.