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QMC Quantum Minerals Corp (OTCMKTS:QMCQF) Continues to Increase its Lithium Property Portfolio

QMC Quantum Minerals Corp (OTCMKTS:QMCQF) Continues to Increase its Lithium Property Portfolio
Written by
Jim Bloom
Published on
March 7, 2018
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QMC Quantum Minerals Corp (OTCMKTS:QMCQF) is in hot pursuit of any lithium property acquisition opportunities and this caused the firm’s value to skyrocket to a high of $1.46.However, in recent weeks, questions have emerged regarding the firm and it has dropped its values lower. It may just be the right time for the firm to readjust its strategy and begin to focus on churning out actual results.Take a look at its performance in the last year: QMCQF Daily ChartFirm ProfileQMC was founded on November 7, 2003, and is headquartered in Vancouver, Canada. The firm operates in the exploration, development as well as of lithium resources. QMC’s goal is to find and then develop marketable precious, rare, base, metal and resource properties of merit. Some of the properties it owns covers the Rocky-Namew, widely referred to as the Namew Lake District Project, the Rocky Lake, Irgon Lithium Mine project and two VMS properties. It also has some ownership of the CAT lake Lithium and Carrot River project. Presently, all of its properties are situated in Manitoba.For more details on the firm, take a look at our previous write up here.Recent DevelopmentsIn January 2018, the form gave an update to the public on the exploration operations ongoing at its fully owned Irgon Lithium Mine Project located in Manitoba.A new pegmatite dike was found roughly fifty meters in ahead of the eastern section of the Irgon Dike. From the first assessment carried out, it was observed that there was some localized spodumene mineralization. It was then channel sampled over the course of the last year’s fall program when 11 channel samples of about 1metre length were collected from the dike. Assay results are being awaited.It was noted in outcrop that the dike consisted of two pegmatite dikes. Both dikes located in a subparallel manner with an estimated strike length of about twenty meters and defined strike length currently shown on the surface. The obvious girth of the dike ranges from 0.40 to 2.6 meters while the dikes are apart by about four to nine meters and appear to pinch out along the strike. Presently, it remains unknown whether the two dikes makeup one or fully separate from each other. Those noted happen to be trending towards north-east to the south-west while their dips remain unconfirmed.An assay analysis for all of the channel and grab samples were requested for and given to SGS Labs in Lakefield, Ontario. The result stated that it contained a sodium peroxide fusion and other scans taken revealed numerous other elements which can be found in the Winnipeg River area.This result along with results of tests from other dikes will be evaluated during the 2018 season.Further updates on exploration activities the fully owned Irgon Lithium Mine Project, S.E. Manitoba revealed that QMC has completed the acquisition, by staking of a further nine contiguous mineral claims increasing the total number of claims under its control to thirteen and the total area of its Irgon Lithium Mine Property to comprise 6,538 acres.In addition to this, multiple dikes, also pegmatite along with the well-known Irgon Dike, have been identified to be located on the Irgon Lithium Mine Property. Some of these major dikes, situated close to Cat Lake and have gone through exploration in the past are the Central Dike and the Mapetre Dike.Financial PerformanceFor 2017, there no revenues reported, a trend which has continued since as far back as 2014. It is expected that in years to come, the firm will move out of this growth phase and generate revenues from the sale of its products.In the same period, selling, general and admin expenses rose by nearly 400%, which could be a worrying sign for investors. The only other item on the statement of comprehensive income was other expenses which rose to $0.13 million from $12,000 the previous year. Hence, operating loss for the year was recorded at $0.62 million. It is, however, well documented that it is regular for developing companies to be unable to generate revenues while still incurring costs in the growth years.Net loss for the year was also $0.62 million, a drop from the prior year loss of $1.1 million.The statement of financial position reveals that the firm is quite highly geared. On its books, its total debt is worth just $1.98 million, resulting in a debt-to-equity ratio of 1.5. It also has a very high liquidity ratio of 0.26. ConclusionQMCQF has continued to build its property portfolio and this is good considering the large market for lithium. However, it needs to begin to generate revenues to finance these operations as soon as possible.Disclosure: We have no position in QMCQF and have not been compensated for this article.

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