Ascot Resources (AOT) AI Stock Analysis

• Market Cap: C$98.40M
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.07
• Revenue Growth: N/A
• EPS Growth: -101.02%
• Country: CA
• Employees: 121
• Sector: Basic Materials
• Sector Strength: 52
• Industry: Industrial Materials
• EPS (TTM): -0.04
• Shares Outstanding: 984,020,700
• 10 Day Avg. Volume: 1,152,823
• 30 Day Avg. Volume: 1,422,481
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.38
• Price to Cash Flow (P/CF): -22.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.50
• Price Target Upside: 400.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Ascot Resources' overall stock score is primarily impacted by its poor financial performance, with consistent net losses and negative cash flow. The technical analysis shows bearish momentum, and the valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield. Recent corporate events further underscore operational delays and financing challenges, contributing to a low stock score.

Ascot Resources Business Overview & Revenue Model

Company Description

Ascot Resources Ltd. (AOT) is a Canadian-based exploration and development company focused on re-starting the past producing Premier gold mine, located in British Columbia's prolific Golden Triangle. The company is engaged primarily in the mining sector, with a focus on the exploration, development, and production of gold and silver resources. Ascot Resources aims to create value through advancing its portfolio of high-grade, past-producing mines, and by expanding its resource base through strategic exploration initiatives.

How the Company Makes Money

Ascot Resources generates revenue primarily through the exploration, development, and eventual production of gold and silver from its mining assets. The company's key revenue streams include the sale of precious metals extracted from its mining operations and potential future production from the Premier and Red Mountain projects. Revenue is largely influenced by the market prices of gold and silver, and the company's ability to efficiently extract and process these resources. Ascot Resources may also engage in strategic partnerships and joint ventures to enhance its operational capabilities and financial standing. Additionally, funding for exploration and development activities may be raised through equity financing or other financial instruments, although this does not directly constitute revenue.

Ascot Resources Financial Statement Overview

Summary

Ascot Resources is in the initial stages of revenue generation with $14.4 million in TTM revenue. However, it faces significant challenges with negative net income of -$12.8 million and negative EBIT and EBITDA margins, indicating operational inefficiencies. The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.067 and a stable equity base at 51% equity ratio. Yet, high liabilities and negative cash flows (-$192.4 million free cash flow) highlight financial risks. Focus is needed on enhancing operational efficiency and cash flow stabilization.

Income Statement

The company's income statement indicates a challenging financial position. The TTM (Trailing-Twelve-Months) revenue of $14.4 million marks the first revenue generation, however, the net income remains negative at -$12.8 million, leading to a negative net profit margin. The EBIT and EBITDA margins are also negative, suggesting operational inefficiencies. The revenue growth is noticeable, but profitability is yet to be achieved.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 0.067, indicating moderate leverage. Stockholders' equity has improved to $404.7 million, but return on equity is negative due to net losses. The equity ratio stands at 51%, providing a stable asset base. However, the high liabilities suggest potential financial risks.

Cash Flow

The cash flow statement highlights significant challenges, with a negative free cash flow of -$192.4 million. Operating cash flow is also negative, exceeding net income losses, indicating cash flow difficulties. The free cash flow to net income and operating cash flow to net income ratios are unfavorable, suggesting liquidity issues.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
14.40M	0.00	0.00	0.00	0.00	0.00
	Gross Profit
185.00K	-1.55M	-693.00K	-859.00K	-997.00K	-1.35M
	EBIT
-6.79M	-9.07M	-12.27M	-6.10M	-7.57M	-5.95M
	EBITDA
4.86M	-4.57M	-3.16M	-1.57M	-8.03M	-6.18M
	Net Income Common Stockholders
-12.79M	-10.43M	-10.81M	-2.95M	-8.43M	-7.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.53M	26.97M	7.47M	59.13M	43.63M	4.92M
	Total Assets
124.86M	630.39M	379.10M	339.05M	249.98M	183.33M
	Total Debt
0.00	27.27M	45.22M	42.11M	43.87M	13.15M
	Net Debt
-6.53M	295.00K	37.74M	-17.02M	1.79M	8.73M
	Total Liabilities
16.89M	279.63M	70.16M	81.84M	72.33M	35.16M
	Stockholders Equity
107.97M	350.76M	308.94M	257.20M	177.65M	148.17M
Cash Flow		Free Cash Flow
-192.39M	-141.60M	-110.93M	-65.06M	-18.72M	-25.45M
	Operating Cash Flow
-4.48M	-13.25M	-5.04M	-7.64M	-5.11M	-6.86M
	Investing Cash Flow
-149.66M	-129.40M	-105.95M	-55.04M	-12.63M	-22.78M
	Financing Cash Flow
84.78M	162.13M	59.33M	79.72M	55.52M	27.53M

Ascot Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AOT, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.90 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AOT.

Ascot Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDO	78 Outperform	C$2.35B	17.37	27.15%	―	67.54%	―
NGD	73 Outperform	$3.37B	24.28	11.14%	―	18.32%	―
BTO	66 Neutral	$4.96B	―	-18.54%	5.28%	-0.18%	-2195.85%
MUX	51 Neutral	$359.74M	3.61	-8.76%	―	4.96%	-182.95%
Sector *	47 Neutral	$2.43B	-2.83	-21.77%	3.74%	4.16%	-28.83%
AOT	39 Underperform	C$98.40M	―	-8.07%	―	―	-101.02%
SEA	38 Underperform	$1.41B	―	-3.92%	―	―	1.89%

Ascot Resources Corporate Events

Ascot Resources Closes First Tranche of Private Placement and Extends Creditor Agreements

Ascot Resources Ltd. has successfully closed the first tranche of its private placement, raising approximately C$42.0 million through the issuance of charity flow-through units and hard dollar units. The proceeds will be used for Canadian development expenses and to advance the Premier Gold Project. The company has also extended waiver and forbearance conditions with its secured creditors and amended its credit agreement with Nebari, increasing the maximum number of shares issuable under its convertible facility. Additionally, Ascot relied on a financial hardship exemption from the TSX, which is under delisting review, potentially affecting its listing status.

Ascot Resources Amends Equity Financing Plan to Raise Up to C$65 Million

Ascot Resources Ltd. has announced an amendment to its previously disclosed equity financing plan, aiming to raise between C$60 million and C$65 million through a private placement offering. The offering will include hard dollar units and charity flow-through units, with the proceeds intended to support the advancement of the Premier Gold Project and other corporate purposes. The financing is contingent upon receiving necessary approvals and exemptions, and the company is currently under delisting review by the TSX due to financial hardship.

Ascot Resources Faces Delays in Premier Gold Project Development

Ascot Resources Ltd. has announced a delay in the underground development of its Premier Gold Project due to a shortage of trained labor, which has affected its timeline for restarting mill operations. The company now expects ore throughput to commence in July 2025 and is working on finalizing a revised schedule and budget. This delay is likely to result in a working capital shortfall, and Ascot is engaging with shareholders and financial institutions to address the funding gap. The company remains committed to transparent communication with its stakeholders as it seeks potential financing solutions, although there is no certainty that the necessary capital will be raised.

Ascot Resources Delays Conference Call for CEO’s Strategic Review

Ascot Resources Ltd. has announced that its newly appointed CEO, Jim Currie, is undertaking a detailed review of the company’s mining operations and business strategy. This comprehensive evaluation has led to the postponement of a previously scheduled conference call. Ascot emphasizes the importance of transparency and thoroughness in its assessment and is committed to keeping stakeholders informed. The company expects to reschedule the call once the review is complete, reflecting its commitment to maintaining open communication with its shareholders and the broader investment community.

Ascot Resources Announces Leadership Changes Amid Premier Project Development

Ascot Resources Ltd. has announced a leadership transition with Derek White stepping down as President & CEO, and James A. Currie taking over as CEO and Director. Currie brings over 40 years of experience in the mining industry, having held senior roles at various TSX and NYSE listed companies. The company also welcomes Coille Van Alphen to its Board of Directors, enhancing its strategic insights in mine development. These changes mark a pivotal moment for Ascot as it moves forward with the Premier Project’s development into commercial production, aiming to create value for shareholders.