Metals Corp (MTAL) AI Stock Analysis

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Metals Corp

(NYSE:MTAL)

63Neutral

Metals Corp shows promise with significant revenue growth and operational improvements, as highlighted in the earnings call. However, ongoing profitability challenges and a negative P/E ratio weigh on valuation. Technical indicators suggest caution, with the stock near resistance levels. Overall, while the company's strategic initiatives and financial improvements are positive, they are tempered by valuation concerns and market momentum.

Metals Corp (MTAL) vs. S&P 500 (SPY)

Market Cap

$810.60M

Dividend YieldN/A

Average Volume (3M)457.49K

Price to Earnings (P/E)―

Beta (1Y)1.24

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees500

SectorBasic Materials

Sector Strength63

IndustryShell Companies

Share Statistics

EPS (TTM)0.13

Shares Outstanding82,462,036

10 Day Avg. Volume468,256

30 Day Avg. Volume457,487

Financial Highlights & Ratios

PEG Ratio-0.21

Price to Book (P/B)1.37

Price to Sales (P/S)0.00

P/FCF Ratio13.19

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$12.25

Price Target Upside27.60% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Metals Corp Business Overview & Revenue Model

Company DescriptionMetals Acquisition Corp does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The company intends to focus its search on metals and mining businesses. Metals Acquisition Corp was incorporated in 2021 and is based in Fort Worth, Texas.

How the Company Makes MoneyMetals Corp generates revenue primarily through the sale of its extracted and processed metal products. The company operates large-scale mining operations to extract raw materials, which are then processed in its facilities to produce refined metals. These metals are sold to various industries that require them for manufacturing and construction purposes. Additionally, Metals Corp engages in strategic partnerships with industrial firms, enhancing its distribution network and securing long-term supply contracts. The company also invests in research and development to innovate new metal products and improve operational efficiencies, which can lead to cost savings and increased profit margins.

Metals Corp Financial Statement Overview

Summary

Metals Corp is on a positive trajectory with significant revenue growth and improved operational margins. The balance sheet reflects moderate leverage and a stable equity position. Although profitability metrics are still recovering, cash flow improvements provide a promising outlook. Continued focus on enhancing profitability and cash flows will be key for sustained financial health.

Income Statement

Positive

Metals Corp has demonstrated significant revenue growth, with TTM (Trailing-Twelve-Months) revenue increasing from the previous year. Gross profit margin improved to 34.44% from 11.22%, and EBIT margin turned positive at 22.61% compared to negative in the past. However, the net profit margin remains negative at -20.61%, indicating ongoing profitability challenges despite operational improvements.

Balance Sheet

Positive

The company shows a solid equity ratio of 40.28% in TTM, indicating a stable financial structure. The debt-to-equity ratio is 0.73, which is relatively moderate for the mining industry. Return on equity remains negative due to continued net losses, but improvements in operational performance suggest potential future profitability.

Cash Flow

Neutral

Metals Corp's free cash flow turned positive to $56.33M in TTM from a negative position. The operating cash flow to net income ratio shows improvement, though the free cash flow to net income ratio is impacted by negative net income. Continued positive cash flow generation is crucial for financial stability.

TTM	Dec 2023	Dec 2022	Dec 2021
Breakdown
Income Statement		Total Revenue
340.74M	159.00M	0.00	0.00
	Gross Profit
117.34M	17.83M	-2.12M	0.00
	EBIT
77.04M	-74.95M	3.79M	-1.12M
	EBITDA
149.87M	-72.29M	-4.74M	10.82M
	Net Income Common Stockholders
-70.22M	-144.55M	-13.28M	10.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.37M	32.37M	42.31K	954.97K
	Total Assets
1.31B	1.31B	270.19M	266.64M
	Total Debt
474.16M	411.44M	786.10K	0.00
	Net Debt
441.79M	409.07M	743.78K	-954.97K
	Total Liabilities
1.04B	1.04B	25.68M	18.32M
	Stockholders Equity
268.03M	268.03M	244.52M	248.31M
Cash Flow		Free Cash Flow
56.33M	-36.86M	-2.90M	-1.04M
	Operating Cash Flow
116.74M	-11.71M	-2.90M	-1.04M
	Investing Cash Flow
-165.34M	-779.11M	0.00	-265.15M
	Financing Cash Flow
194.90M	823.14M	1.99M	267.14M

Metals Corp Technical Analysis

Technical Analysis Sentiment

Positive

Last Price9.60

Price Trends

50DMA

9.51

Positive

100DMA

10.15

Negative

200DMA

11.20

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

56.58

Neutral

STOCH

78.89

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTAL, the sentiment is Positive. The current price of 9.6 is above the 20-day moving average (MA) of 9.06, above the 50-day MA of 9.51, and below the 200-day MA of 11.20, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.58 is Neutral, neither overbought nor oversold. The STOCH value of 78.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTAL.

Metals Corp Risk Analysis

Metals Corp disclosed 95 risk factors in its most recent earnings report. Metals Corp reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Metals Corp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (49)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTAL	63 Neutral	$810.60M	―	-53.93%	―	―	―
Sector *	49 Neutral	$1.97B	-1.18	-21.24%	3.71%	1.29%	-31.16%

* Basic Materials Sector Average

Performance Comparison

MTAL

Metals Corp

9.83

-3.19

-24.50%

AACT

Ares Acquisition Corporation II Class A

11.29

0.67

6.31%

ANSC

Agriculture & Natural Solutions Acquisition Corporation Class A

10.73

0.50

4.89%

CLBR

Colombier Acquisition Corp II Class A

13.03

2.69

26.02%

LEGT

Legato Merger Corp. III

10.62

0.51

5.04%

GPAT

GP-Act III Acquisition Corporation Class A

10.45

0.46

4.60%

Metals Corp Earnings Call Summary

Earnings Call Date:Jan 28, 2025

(Q4-2024)

% Change Since: -7.60%|

Next Earnings Date:Aug 28, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong operational and financial performance, including record copper production, significant cost reductions, and balance sheet improvements. Despite a few challenges such as a delayed shipment and contractor issues, the company is well-positioned for future growth with ongoing projects and a clear strategy.

Q4-2024 Updates

Positive Updates

Record Copper Production

MAC Copper Limited achieved a record copper production of 11,320 tonnes at a grade of 4.1% milled, surpassing the mid-point of their guidance.

Strong Financial Performance

The company reported a 47% EBITDA margin and converted 74% of that to cash. Liquidity stood at US$213 million, with a significant reduction in net gearing to 15%.

Cost Reduction Achievements

Achieved a record low C1 cash cost of US$1.66/lb, with a significant 70% reduction impacting costs positively.

Balance Sheet Deleveraging

Net gearing reduced from 41% to 15%, and cash and cash equivalents increased from US$32 million to US$172 million.

Future Growth Plans

The company is on track to exceed 50,000 tonnes of copper production by 2026, with ongoing projects like the Ventilation project and QTS South Upper development.

Safety Improvements

TRIFR improved from 14 to just under 11, indicating better safety performance.

Negative Updates

Delayed Shipping Impact

A delayed shipment in December affected revenue recognition, impacting free cash flow from operations which could have been US$37 million instead of US$30 million.

Challenges with External Contractors

The company faced delays in QTS South Upper development due to the inability to secure external contractors, losing about three months in the process.

Company Guidance

During the MAC Copper Limited Q4 2024 Conference Call, CEO Mick McMullen highlighted key metrics and achievements that positioned the company favorably for the future. The company reported production of 11,320 tonnes of copper at a grade of 4.1% milled, surpassing the mid-point of last year's guidance. The C1 cost for the quarter stood at US$1.66/lb, with a total cash cost of US$2.31/lb, reflecting a solid EBITDA margin of 47% and a cash conversion rate of 74%. The company's liquidity at year-end reached US$213 million, or A$340 million, bolstered by a net gearing reduction to 15%. MAC Copper Limited aims to exceed 50,000 tonnes of copper production by 2026, with the mid-point of guidance for 2025 at around 50,000 tonnes. The company is also implementing growth projects like the Ventilation project and QTS South Upper, while maintaining a focus on organic growth and further balance sheet optimization.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.