Awale Resources Limited (ARIC) AI Stock Analysis

• Market Cap: C$64.31M
• Dividend Yield: N/A
• Average Volume (3M): 94.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.86
• Revenue Growth: N/A
• EPS Growth: 33.77%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 103,727,810
• 10 Day Avg. Volume: 87,544
• 30 Day Avg. Volume: 94,139
• PEG Ratio: -0.14
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.52
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: C$0.66 ▲(2.97% Upside)

The score is held back primarily by weak financial fundamentals (deep losses and ongoing cash burn) despite a strong, low-debt balance sheet. Technicals are moderately constructive (price above major moving averages with positive MACD), and corporate updates add upside optionality through extensive drilling programs, while valuation is constrained by negative earnings and no stated dividend yield.

Positive Factors

Exploration Expansion

The expansion of exploration activities at the Odienné Project indicates a strategic focus on resource development, potentially leading to future revenue generation and strengthening the company's market position in the gold exploration sector.

Strategic Partnership

The partnership with Newmont provides financial support and enhances Awalé's exploration capabilities, reducing financial risk and increasing the potential for successful resource discoveries, which is critical for long-term growth and stability.

Financial Robustness

Having substantial funds available for exploration activities ensures that Awalé can continue its strategic initiatives without immediate financial constraints, supporting sustained exploration efforts and potential resource development.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates operational inefficiencies and reliance on external financing, which can pose sustainability risks and limit the company's ability to fund future projects independently, affecting long-term financial health.

Lack of Revenue

The absence of revenue generation highlights the company's dependence on successful exploration outcomes and external funding, which can be risky and may deter investors seeking immediate returns, impacting long-term viability.

Operational Inefficiencies

Deeply negative EBIT and EBITDA margins reflect operational inefficiencies, suggesting that the company struggles to manage costs effectively, which can hinder profitability and growth prospects if not addressed.

Awale Resources Limited Business Overview & Revenue Model

Company Description

Awalé Resources Limited engages in the identification and exploration of precious metal projects. The company primarily explores for gold deposits. Its flagship project is the Bondoukou project that includes three permits covering 1,191.5 square kilometers in the northeast of Côte d'Ivoire. The company was formerly known as Spada Gold Limited and changed its name to Awalé Resources Limited in December 2017. Awalé Resources Limited was incorporated in 2015 and is based in Mission, Canada.

How the Company Makes Money

Awale Resources Limited primarily generates revenue through the exploration and development of mineral properties. The company aims to enhance shareholder value by discovering new mineral deposits that can be sold or developed into producing mines. Revenue is generated by selling discovered resources, partnering with larger mining companies, or through joint ventures that provide funding in exchange for a stake in the projects. Additionally, the company may raise capital through the issuance of equity or debt to fund ongoing exploration activities and project development.

Awale Resources Limited Financial Statement Overview

Summary

Awale Resources Limited faces significant financial challenges, primarily driven by its inability to generate revenue, leading to persistent losses and negative cash flows. Despite a strong equity position and no debt, the company's ongoing operational inefficiencies and reliance on financing for cash needs highlight potential sustainability concerns. Stability in equity is a positive, but overall financial health requires improvement.

Income Statement

Awale Resources Limited's income statement shows significant weaknesses. The company has not generated any revenue in the TTM (Trailing-Twelve-Months), and it has consistently recorded negative net income. The gross profit margin is negative, indicating costs exceed revenues. EBIT and EBITDA margins are also deeply negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reveals a relatively stable financial position with no debt, resulting in a debt-to-equity ratio of zero. The equity ratio is strong at approximately 93.37%, indicating a high proportion of equity financing. However, declining stockholders' equity and total assets over recent periods hint at potential balance sheet weaknesses.

Cash Flow

The cash flow statement highlights some challenges, with negative free cash flow and operating cash flow in the TTM. The company has been reliant on financing activities to manage cash needs. There is a lack of positive cash flow generation from operations, posing sustainability risks in the long term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.73K	0.00	11.70K	0.00	0.00	0.00
Gross Profit	-123.16K	0.00	11.70K	-16.09K	-28.46K	-36.27K
EBITDA	-2.30M	-2.53M	-938.00K	-8.46M	-1.55M	-711.65K
Net Income	-2.26M	-2.75M	-1.04M	-8.48M	-1.70M	-792.13K
Balance Sheet
Total Assets	27.79M	13.02M	6.92M	5.82M	12.38M	11.19M
Cash, Cash Equivalents and Short-Term Investments	15.58M	6.97M	999.60K	255.28K	57.00K	646.37K
Total Debt	0.00	0.00	0.00	29.52K	31.66K	35.70K
Total Liabilities	2.43M	856.80K	1.39M	2.26M	1.17M	1.36M
Stockholders Equity	25.27M	12.12M	5.54M	3.56M	11.21M	9.83M
Cash Flow
Free Cash Flow	-2.32M	-2.63M	-1.29M	-625.70K	-375.75K	-466.82K
Operating Cash Flow	-2.07M	-2.20M	-1.26M	-615.70K	-345.89K	-424.02K
Investing Cash Flow	-1.58M	-624.52K	72.78K	-179.36K	-3.08M	-2.66M
Financing Cash Flow	5.73M	8.64M	1.91M	999.96K	2.77M	2.45M

Awale Resources Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ARIC, the sentiment is Neutral. The current price of 0.64 is above the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.61, and above the 200-day MA of 0.56, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ARIC.

Awale Resources Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ARIC	56 Neutral	C$64.31M	-23.03	-12.97%	―	―	33.77%
ANK	51 Neutral	C$66.89M	-16.99	-351.37%	―	―	-379.07%
EDG	51 Neutral	C$68.76M	81.25	5.12%	―	―	―
VIO	51 Neutral	C$64.42M	22.22	4.26%	―	―	―
GPG	43 Neutral	C$64.51M	-53.85	-4.42%	―	―	7.14%
ROS	39 Underperform	C$67.97M	-23.85	―	―	―	22.62%

Awale Resources Limited Corporate Events

Awalé Uncovers Second High-Grade Gold Zone at Odienné’s Charger Target

Awalé Resources has identified a second shallow, high-grade gold zone, dubbed Charger 2, approximately 200 metres southwest of its original Charger 1 discovery at the Odienné Project in Côte d’Ivoire, with new diamond drill intercepts returning up to 16.3 g/t gold over 1 metre within broader mineralized intervals. The discovery, made using the same vectoring and structural targeting approach that expanded Charger 1 to more than 600 metres down plunge, validates the company’s focus on demagnetized anomalies and supports the potential for multiple Charger-style shoots across five such zones, with three still untested, as nine drill rigs advance a 100,000‑metre campaign that could significantly expand the project’s mineralized footprint and enhance Awalé’s exploration upside.

The most recent analyst rating on (TSE:ARIC) stock is a Hold with a C$0.63 price target. To see the full list of analyst forecasts on Awale Resources Limited stock, see the TSE:ARIC Stock Forecast page.

Awalé Uncovers Second High-Grade Gold Zone at Odienné’s Charger Target

Awalé Resources has reported the discovery of a second shallow, high-grade gold zone, dubbed Charger 2, located approximately 200 metres southwest of its original Charger 1 discovery at the Odienné Project in Côte d’Ivoire. Step-out diamond drilling intersected multiple high-grade intervals, including 16.3 g/t gold over 1 metre within 10 metres at 2.6 g/t, and other notable intercepts that display the same geology and mineralization style as Charger 1, suggesting the potential for a second high-grade shoot. The results validate the company’s demagnetized-target exploration strategy, with both Charger 1 and Charger 2 sitting on demagnetized anomalies and three additional such targets yet to be tested, while nine active drill rigs continue work as part of the 100,000-metre program, underscoring the project’s growing scale and the potential for further resource expansion.

The most recent analyst rating on (TSE:ARIC) stock is a Hold with a C$0.63 price target. To see the full list of analyst forecasts on Awale Resources Limited stock, see the TSE:ARIC Stock Forecast page.

Awalé Resources Launches Major Drilling Program in Côte d’Ivoire

Awalé Resources Limited has launched a 15,000-metre drilling program on its 100%-owned permits in Côte d’Ivoire, with an $8 million exploration budget allocated for 2026. This initiative is part of a broader strategy to advance the Odienné Project towards a Mineral Resource Estimate and build a robust discovery pipeline. The company’s exploration efforts are supported by detailed aerial surveys and geochemical sampling, aiming to uncover new mineralized systems within a regional-scale mineralized system. The discoveries have the potential to contribute to a district-scale camp, enhancing Awalé’s industry positioning and offering significant upside potential for stakeholders.

Awalé Resources Launches Major Drilling Program in Côte d’Ivoire

Awalé Resources Limited has commenced an extensive 88,000-metre diamond drilling program at its Odienné Project in Côte d’Ivoire, marking the largest phase of drilling in its joint venture with Newmont. The program aims to advance the BBM, Charger, and Empire targets toward initial resource estimates and a preliminary economic assessment, while also accelerating greenfield discovery across the district. With four rigs currently in operation and two more expected by December, the company anticipates initial results from the Charger target by year-end, contributing to a steady flow of results throughout 2026. This initiative is part of Awalé’s strategy to expand its resource inventory and enhance its positioning in the emerging gold and copper district.

Awalé Resources Extends High-Grade Gold Zone at Odienné Project

Awalé Resources Limited has announced significant progress in its Charger discovery at the Odienné Project in Côte d’Ivoire, extending the high-grade gold zone to 600 meters below the surface. The recent drilling results, including an intersection of 17.9 g/t gold over 6 meters, demonstrate the potential for further expansion and resource definition, with the system remaining open at depth and to the southwest. This development positions Awalé favorably in the mining industry, as it continues to explore new zones and enhance its resource base, potentially impacting stakeholders positively.

Awalé Resources Confirms Significant Mineralization at Fremen Target

Awalé Resources Limited has confirmed near-surface mineralization at its 100%-owned Fremen target within the Odienné Project in Côte d’Ivoire. The recent drilling results extend the mineralized zone to over 8 kilometers, with shallow intersections indicating promising gold mineralization. The company plans to commence follow-up diamond drilling to further explore the scale and potential of the Fremen target. With C$15 million in treasury, Awalé is well-positioned to advance its exploration activities and deliver value to shareholders.

Awalé Resources Extends Gold Mineralization at BBM Discovery

Awalé Resources Limited has announced significant progress in its exploration efforts at the BBM gold discovery within the Odienné Project in Côte d’Ivoire. The company has successfully extended gold mineralization 400 meters down-plunge, indicating potential for underground mining. The recent drilling results, including high-grade intersections, suggest that the BBM system remains open and has the potential for additional high-grade plunging shoots. Awalé is preparing for a substantial 100,000-meter drill campaign to further explore and define the resource, which could enhance its market positioning and provide new opportunities for stakeholders.