Research from Atrium Research, Atrium Research Corporation

Atrium Research

Research from Atrium Research

Atrium Research Corporation

Atrium Research provides institutional quality issuer paid research on public equities in North America. Our investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Our research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, unit economics, and an in-depth valuation analysis. 

Our research product includes in-depth initiation reports, research notes, thematic research pieces, and company fact sheets.

Equity Bottom-Up

Trigon Metals Inc. provides mining services. The Company develops mineral properties, as well as offers investment solutions. Trigon Metals serves customers in Canada.

<ul>
<li>Trigon announced its Q1/25 financial results, reporting strong numbers with Q1 being the first full quarter of underground production.</li>
<li>TM more than doubled its revenues from the previous quarter ($10M vs. $3.9M) and reported its first positive operating cash flow since starting production.</li>
<li>The Company reported an improved adjusted EBITDA of $1.8M and a further decreasing C1 cash cost of $3.23/lb.</li>
</ul>


Trigon announced its Q1/25 financial results, reporting strong numbers with Q1 being the first full quarter of underground production.
TM more than doubled its revenues from the previous quarter ($10M vs. $3.9M) and reported its first positive operating cash flow since starting production.
The Company reported an improved adjusted EBITDA of $1.8M and a further decreasing C1 cash cost of $3.23/lb.


Dynacor Group Inc. provides exploration and mining services. The Company explores and develops gold projects. Dynacor Group serves customers worldwide.

<ul>
<li>DNG continued to take advantage of the high gold price in Q2, beating revenue and profitability estimates, boosting its cash balance and reducing development risk as it enters its next phase of growth.</li>
<li>Dynacor posted record cash gross operating margin of $346/oz AuEq sold, compared to $234/oz in Q2/23 and our estimate of $233/oz.</li>
<li>DNG added to its strong balance sheet with $35M in cash (up from $28M in December 2023), $55M in working capital, and negligible debt.</li>
</ul>


DNG continued to take advantage of the high gold price in Q2, beating revenue and profitability estimates, boosting its cash balance and reducing development risk as it enters its next phase of growth.
Dynacor posted record cash gross operating margin of $346/oz AuEq sold, compared to $234/oz in Q2/23 and our estimate of $233/oz.
DNG added to its strong balance sheet with $35M in cash (up from $28M in December 2023), $55M in working capital, and negligible debt.


DNG: Q2 Financials - Margins Improve Further

Visionstate Corporation develops and sells electronic commerce technology and develops and maintains online shopping portals. The Company's electronic commerce technology, developed in modular format, is designed to build electronic commerce marketplaces for the business-to- consumer and business-to-business markets to help the businesses improve efficiencies.

<ul>
<li>Visionstate is a rapidly growing SaaS provider for the facilities management industry across the globe.</li>
<li>The Company is targeting a largely untapped market across hospitality, education, and healthcare.</li>
<li>The Company has hit an inflection point in its financial results, as revenue is growing &gt;100% and costs are declining dramatically.</li>
</ul>


Visionstate is a rapidly growing SaaS provider for the facilities management industry across the globe.
The Company is targeting a largely untapped market across hospitality, education, and healthcare.
The Company has hit an inflection point in its financial results, as revenue is growing &gt;100% and costs are declining dramatically.


VIS: Micro-Cap SaaS Provider Hitting an Inflection Point

Endurance Gold Corporation evaluates, acquires, and develops mineral properties throughout North America. The Company has an interest in a property located in Ontario, Canada. Endurance Gold also has an option to earn an interest in gold prospects located in British Columbia, Canada.

<ul>
<li>EDG announced it has completed its first five diamond drill holes totalling 1,854m, as part of its 10,000m 2024 diamond drill program.</li>
<li>Assays are expected to start rolling in late August or early September.</li>
<li>Additional work is ongoing throughout the property to set up drill targets at the undrilled Olympic area and new targets at Upper Eagle.</li>
</ul>


EDG announced it has completed its first five diamond drill holes totalling 1,854m, as part of its 10,000m 2024 diamond drill program.
Assays are expected to start rolling in late August or early September.
Additional work is ongoing throughout the property to set up drill targets at the undrilled Olympic area and new targets at Upper Eagle.


EDG: Five Drill Holes Completed – Assays Pending

ADF Group Inc. manufactures and erects structural steel for complex structures and miscellaneous metal work. The Company offers Standard Structural Steel, Complex Steel Structures, and Trial Assemblies. ADF Group serves clients throughout North America and Canada.

<ul>
<li>DRX stock is down 38% since reaching ATHs in June; we have aggregated some of the bearish points that we are hearing and provide our rebuttals as to why ADF will continue to be one of the best performing stocks on the TSX.</li>
<li>ADF Group will be reporting Q2/25 financials in early September, we are expecting revenue of $92.6M (+15% YoY) and EBITDA of $17.9M (19% margin, +41% YoY).</li>
<li>ADF Group (DRX:TSX, ADFJF:OTC) is down 35% since reaching highs of $20.50/share on the back of its Q1 financials which largely beat our estimates (read here).</li>
</ul>


DRX stock is down 38% since reaching ATHs in June; we have aggregated some of the bearish points that we are hearing and provide our rebuttals as to why ADF will continue to be one of the best performing stocks on the TSX.
ADF Group will be reporting Q2/25 financials in early September, we are expecting revenue of $92.6M (+15% YoY) and EBITDA of $17.9M (19% margin, +41% YoY).
ADF Group (DRX:TSX, ADFJF:OTC) is down 35% since reaching highs of $20.50/share on the back of its Q1 financials which largely beat our estimates (read here).
