Pioneer Exploration Inc (OTCMKTS:PIEX) was incorporated on June 9, 2005, in the State of Nevada, is an exploration-stage company and is engaged in exploration and acquisition of mining properties. IBA Green, Inc. incorporated on July 21, 2011, in the State of Delaware. Pioneer’s sole business is the managing IBA Green’s which focuses on the utilization and development of technology which can be used in conversion and treatment of incinerated bottom ash. Mr. Angelo Scola is the Chief Executive Officer, President, Treasurer, Chief Financial Officer Corporate Secretary, Director of Pioneer Exploration. He has 40 years of private sector experience in the construction materials and utility business and has served both domestic and international markets.
Both have failed to generate revenue until August 31, 2012, and had no operations, manufacturing facilities, products, suppliers or customers till date. The revenue from IBA Green over the coming 12 months might not be sufficient to meet the working capital requirement of the company. The company would have to raise additional funds via debt or equity to generate significant and consistent revenue.
Assets of the company is cash of $284 while liabilities include $364K of accrued liabilities and accounts payable, $27K of loan payable $196K of convertible notes payable, and $442K due to related parties. As of May 31, 2013 Pioneer had a cash balance of $284 and a working capital deficit of $1.02 million. If IBA Green faces issues as to finding sufficient funds finish its phase it will have to terminate its operations and need to raise further capital in order to initiate its operations. For the coming 12 months Pioneer has laid down the following phases for IBA Green’s plan of operation to make it profitable and competitive:-
Phase One:- IBA plans to
- Finish negotiating and signing contracts with purpose of acquiring IBA’s and convert the itself into commercial viable products; and
- Obtain office and lab space.
It has allocated $450K for this phase and the phase is to finish in three months.
Phase Two:- IBA plans to
- Conduct and finish analytical laboratory tests on IBA’s, also gather and ship the IBA samples and conduct initial characterization tests on its samples;
- Develop the IBA Aggregates and other products of the highest quality and display the best use for the particular IBA;
- Commence the long-term environmental compliance tests;
- Develop and market IBA Green’s business; and
- Develop the required chemistry to stabilize the IBA’s.
It will also populate and develop its website (www.ibagreen.com) with information related to its products and business.
It has allocated $550K for this phase and the phase is to finish in three months.
Phase Three:- IBA plans to
- Retain industrial engineers and production engineers to design the line specification and equipment for a prototype that will transform the IBA’s into IBA Aggregate;
- Build a production prototype;
- Acquire the mechanical engineering hardware; and
- Further development and marketing IBA Green’s products and business.
It has allocated $500K for this phase and the phase is to finish in three months.
Phase Four:- IBA plans to
- Set up on-site manufacturing prototype to convert IBA’s into IBA Aggregates and other products;
- For certification complete third party laboratory product testing;
- Perform further testing on the IBA Aggregates and other products manufactured on-site to confirm that they are the best-use site specific and highest quality to the particular IBA; and
- Marketing and development of IBA Green’s business and products.
It has allocated $2 million for this phase and the phase is to finish in three months.
Shanks Group plc (LON:SKS) a peer group has a market cap of $384.55 million other peer China Everbright International Ltd. (HKG:0257) has a market cap of $26.96 billion while Pioneer Exploration has a market cap of $2.74 million. The industry has a P/E ratio of 44.05, while the sector has a P/E ratio of 11.94.
The stock is trading above its 50 days SMA of $0.05 but below its 200 days SMA of $0.102 and has a RSI of 74.27 and has seen a surge in volume in past few trading session.
The stock of Pioneer Exploration is currently trading at $0.0520 down by 5.45% in its current trading session.
