Cannara at Planet MicroCap Showcase: Toronto 2026: growth with discipline

On Wednesday, 28 October 2026, Paragon Advanced Labs (PALS) presented their business at the Planet MicroCap Showcase: Toronto 2026. The mining-services company showcased revenue growth, improved margins, and increasing customer demand. PALS is working within a competitive market, emphasizing faster assay results as a key selling point.

CEO Peter Shippen highlighted Paragon's PhotonAssay platform, which reduces turnaround times from weeks to minutes. Shippen also mentioned the need to expand capacity, broaden services, and secure anchor customers for new sites.

Revenue for Q2 2026 increased to CAD 4.1 million, up 85% from the prior quarter and 500% from the previous year. Paragon reported moving from negative to positive gross margins and nearing EBITDA and cash-flow positivity. The PhotonAssay platform remains the core growth engine, while management aims to add more testing services to increase revenue per sample. Paragon is expanding through partnerships with Chrysos, McEwen Inc., SLB Inc., and Veracio, while maintaining a low capital spending approach.

The global supply of PhotonAssay machines is limited, which Paragon views as a long-term competitive advantage. Presently, only 46 machines are deployed globally, with 18 manufactured annually. Management expects over 600 machines will be needed to replace traditional fire assay methods. Each machine maintains a 200-kilometer radius and requires a 50% utilization commitment within six months of deployment.

Paragon's core business involves laboratory testing for mining companies, focusing on gold, silver, and copper assays. The PhotonAssay technology enables rapid and non-destructive testing, providing geological data in about three minutes compared to six weeks for traditional methods. Current operations include three major hub laboratories and spoke laboratories in Timmins, Thunder Bay, and Coeur d’Alene, Idaho.

The company highlights the Reno laboratory, which includes a PhotonAssay unit, fire assay capabilities, and a full geochemical testing suite. Paragon aims to broaden its revenue per sample from CAD 20 to CAD 30, potentially reaching CAD 100 through more comprehensive services.