What is Contango Ore Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Contango Ore's Probability of Financial Distress (%) is 1.63%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Contango Ore's Probability of Financial Distress (%)
For the Gold subindustry, Contango Ore's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Contango Ore's Probability of Financial Distress (%) Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Contango Ore's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Contango Ore's Probability of Financial Distress (%) falls into.
Contango Ore Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -4.10 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 1.63% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Contango Ore (Contango Ore) Business Description
Traded in Other Exchanges
Address
3700 Buffalo Speedway, Suite 925, Houston, TX, USA, 77098
Contango Ore Inc operates in the United States. The company is engaged in the exploration of gold, silver, and copper ores in the State of Alaska. The company's primary focus is the exploration of a mineral lease with the Native Village of Tetlin whose governmental entity is the Tetlin Tribal Council for the exploration of minerals near Tok, Alaska. It has formed a joint venture to advance exploration of the Tetlin Property, which is prospective for gold and associated minerals. The Tetlin Property is located in the Tetlin Hills and Mentasta Mountains of eastern interior Alaska.
Executives
| Nieuwenhuyse Rick Van |
director, officer: President and CEO |
C/O TRILOGY METALS, 1950 - 777 DUNSMUIR STREET, VANCOUVER A1 V7Y 1K4 |
| John B Juneau |
director, officer: President and CEO |
3700 BUFFALO SPEEDWAY, SUITE 960, HOUSTON TX 77098 |
| Joseph S Compofelice |
director |
24 WATERWAY AVENUE, STE 200, THE WOODLANDS TX 77380 |
| Richard Shortz |
director |
3700 BUFFALO SPEEDWAY, SUITE 925, HOUSTON TX 77098 |
| Michael Aaron Clark |
officer: Executive VP-Finance |
6202 OVERSTONE DR, WEST VANCOUVER Z4 V7W1X5 |
| Leah S Gaines |
officer: Chief Financial Officer |
3700 BUFFALO SPEEDWAY, SUITE 1010, HOUSTON TX 77098 |
| Curtis J. Freeman |
director |
3700 BUFFALO SPEEDWAY, STE. 925, HOUSTON TX 77098 |
| Royal Gold Inc |
10 percent owner |
1144 15TH STREET, SUITE 2500, DENVER CO 80202 |
| Scott J. Reiman |
10 percent owner, other: Member of 10% owner group |
730 17TH STREET SUITE 800, DENVER CO 80202 |
| Kenneth R. Peak Marital Trust |
10 percent owner |
2 LONGFELLOW LANE, HOUSTON TX 77005 |
| Estate Of Kenneth R. Peak |
10 percent owner |
C/O CONTANGO OIL & GAS COMPANY, 3700 BUFFALO SPEEDWAY, SUITE 960, HOUSTON TX 77098 |
| Joseph G. Greenberg |
director |
3700 BUFFALO SPEEDWAY, STE 960, HOUSTON TX 77098 |
| Donald Gillen |
10 percent owner |
21 CAPILANO DRIVE, SASKATOON A9 S7K 4A4 |
| Hexagon, Llc |
10 percent owner, other: Member of 10% owner group |
730 SEVENTEENTH STREET, SUITE 800, DENVER CO 80202 |
| Sergio Castro |
officer: Vice President, CFO, Treasurer |
2019 MOUNTAIN CREEK, PEARLAND TX 77584 |
Contango Ore (Contango Ore) Headlines
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