Scorpion Minerals Limited
Scorpion Minerals Limited (SCN) is an Australian mineral exploration and resource development company with a focus on creating wealth for shareholders through the discovery of world-class deposits, over a diversified range of minerals.
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Metals & Mining
What does Scorpion Minerals Limited (SCN) do?
Scorpion Minerals (previously known as Pegasus Metals Limited) is a mineral exploration and resource company.
Based in Balcatta, Western Australia, Scorpion Minerals is currently focused on a single exploration endeavour, The Pharos Project. Located in WA around 50 kilometres north-west of the small mining town of Cue, in the Murchison Mineral Field, the project is spread across 1,544 square kilometres.
Pharos is prospective for gold, iron ore, platinum-group element (PGE)-Ni-Cu, lithium and Volcanogenic Massive Sulphide (VMS) hosted Cu-Zn-Ag Au mineralisation.
Of particular interest to Scorpion Minerals are the following areas within The Pharos Project’s 1,544 square kilometres:
Mt Mulcahy Prospect for VMS hosted Cu-Zn-Ag-Au mineralisation
Olivers Patch Area for gold
Pallas Prospect for PGE-Ni-Cu mineralisation
Poona Area for PGE-Ni-Cu mineralisation
Glen Nickel Prospect for PGE-Ni-Cu mineralisation
Ulysses Prospect for gold
Iron Ridge for iron ore (a joint venture with Fenix Resources Ltd (FEX))
Is Scorpion Minerals a profitable company?
No, Scorpion Minerals has earned no revenue and has only recorded net losses since FY2012. In FY2021 alone, the company incurred a loss before tax of A$2.23m, a working capital deficiency of A$2.41m and net liabilities of A$347.5k.
As of 28 September 2021, Scorpion Minerals had a cash balance of A$470.7k.
Like many mineral exploration companies, Scorpion Minerals has continued its operations by issuing more shares. In FY2012, the number of Scorpion Minerals shares available was 142m. By FY2021, the number of shares available had risen to 228m.
By its own admission, the company’s focus has “been to raise sufficient funds through equity and to sell surplus assets to fund exploration and evaluation activities.”
Is SCN stock a buy?
Speculative investors were particularly excited by Scorpion Minerals' announcement of the successful completion of a A$3m equity raise on April 13 2022. It sent the SCN stock price flying from A$0.067 to A$0.083, a substantial 24% jump.
Scorpion Minerals intends to use the cash to advance lithium/base metals exploration and support planned drilling and geophysics programmes at The Pharos Project.
Chairman Bronwyn Barnes stated:
“Scorpion is now well capitalised to accelerate our exploration plans across several promising lithium and base metals targets at Pharos.”
For other investors, SCN stock may be too risky as it could be years before Scorpion Minerals finds lithium, if at all.
Does SCN stock pay dividends?
No, Scorpion Minerals does not pay dividends at this time and has not made any announcements to do so in the future.
Who owns SCN stock?
Holding 62.7% of the total float, the general public is by far the largest owner of SCN stock. Individual insiders hold 22.7% of the total float.
Significant shareholders include Michael Fotios (11.06%), Investment Limited (9.37%) Scorpion Minerals Chairman Bronwyn Barnes (5.38%), Netwealth Investments Ltd (1.99%), Perth Select Seafoods Pty Ltd (1.72%), Anthony Fotios (1.29%), Black Raven Mining Pty Ltd (1.08%) and Orange Corporation Pty Ltd (1%).
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This does not constitute financial advice. You should do your own research before making an investment decision. Past performance is not a reliable indication of future performance. No representation is made as to the timeliness, reliability, accuracy or completeness of the market data provided.