Argo Gold (ARQ) AI Stock Analysis

• Market Cap: C$5.13M
• Dividend Yield: N/A
• Average Volume (3M): 32.91K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.24
• Revenue Growth: 58.36%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 73,270,270
• 10 Day Avg. Volume: 54,405
• 30 Day Avg. Volume: 32,908
• PEG Ratio: -0.02
• Price to Book (P/B): 5.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.79
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Argo Gold's overall stock score is primarily driven by its strong financial performance and positive corporate events. The technical analysis indicates bearish sentiment, and the valuation suggests potential undervaluation. The absence of a dividend yield and the exclusion of earnings call data impact the overall score.

Argo Gold Business Overview & Revenue Model

Company Description

Argo Gold (ARQ) is a Canadian-based mineral exploration and development company primarily focused on the exploration and development of gold properties in Ontario, Canada. The company's core operations involve identifying, acquiring, and advancing high-potential gold projects, leveraging their technical expertise and strategic partnerships to maximize resource potential and shareholder value.

How the Company Makes Money

Argo Gold generates revenue primarily through the exploration and development of its gold properties. The company seeks to increase the value of its projects by advancing them through various stages of exploration and development, ultimately aiming to sell or partner with larger mining companies for further development and production. Revenue streams include proceeds from the sale of mineral properties or shares, joint venture agreements, and potential future earnings from any production activities. Key partnerships with other mining companies or investors may provide additional financial resources and operational expertise, supporting Argo Gold's exploration and development activities.

Argo Gold Financial Statement Overview

Summary

Argo Gold has shown significant progress in its financial performance, with a strong improvement in revenue and profitability. The income statement reflects robust revenue growth of 135.3% and a healthy gross profit margin. The balance sheet indicates a moderate financial position with a reasonable debt-to-equity ratio but some concern over increasing liabilities. Cash flow improvements are notable with a shift to positive free cash flow, though historical volatility should be monitored.

Income Statement

Argo Gold's income statement shows a significant improvement in revenue and profitability over the years. The gross profit margin for 2024 is healthy at 55.5%, and the net profit margin is 19.5%, indicating effective cost management. The revenue growth rate from 2023 to 2024 is an impressive 135.3%, showing strong growth trajectory. EBIT and EBITDA margins are also strong at 26.8% and 42.4%, respectively, highlighting operational efficiency. However, the company has faced challenges in previous years with negative earnings, which might pose risks if similar trends reappear.

Balance Sheet

The balance sheet of Argo Gold shows a moderate financial position with a debt-to-equity ratio of 0.75, indicating a manageable level of leverage. The return on equity stands at 29.7% for 2024, showcasing effective utilization of equity to generate income. The equity ratio is 44.7%, reflecting a stable financial structure. However, the substantial increase in liabilities over the years could potentially increase financial risk if not controlled.

Cash Flow

Argo Gold's cash flow statement reflects a positive trend in free cash flow growth, moving from a negative free cash flow in 2023 to a positive one in 2024. The operating cash flow to net income ratio is 2.18, indicating strong cash generation relative to net income. Similarly, the free cash flow to net income ratio is 0.54. Despite the improvements, the historical cash flow volatility should be monitored to ensure sustainable cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.24M	952.69K	0.00	0.00	0.00
Gross Profit	1.24M	662.99K	-3.36K	-2.14K	-1.14K
EBITDA	949.88K	-29.97K	-1.05M	-1.40M	-1.61M
Net Income	437.08K	-280.00K	-1.45M	-2.18M	-206.55K
Balance Sheet
Total Assets	3.30M	2.78M	1.09M	2.14M	4.30M
Cash, Cash Equivalents and Short-Term Investments	289.92K	74.89K	85.37K	1.15M	3.31M
Total Debt	1.11M	1.11M	0.00	0.00	0.00
Total Liabilities	1.83M	1.83M	478.43K	79.16K	345.10K
Stockholders Equity	1.47M	949.13K	613.73K	2.06M	3.96M
Cash Flow
Free Cash Flow	238.17K	-1.67M	-815.06K	-1.98M	-1.52M
Operating Cash Flow	952.43K	122.01K	-807.70K	-1.98M	-1.39M
Investing Cash Flow	-714.26K	-1.73M	-6.92K	673.68K	311.89K
Financing Cash Flow	-23.14K	1.68M	0.00	322.00K	2.76M

Argo Gold Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ARQ, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.69 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ARQ.

Argo Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARQ	63 Neutral	C$5.13M	9.72	40.64%	―	58.36%	―
BTU	51 Neutral	$6.67M	―	-3.77%	―	―	92.48%
OPW	48 Neutral	C$4.33M	―	-48.36%	―	―	22.73%
Sector *	44 Neutral	C$964.86M	-6.72	-13.73%	2.52%	17.53%	-32.55%
CANX	39 Underperform	C$9.22M	―	-6.14%	―	―	20.83%
RISE	28 Underperform	C$18.94M	―	-97.97%	―	―	34.69%

Argo Gold Corporate Events

Argo Gold Reports March 2025 Oil Production and Revenue

Argo Gold reported its March 2025 oil production at 3,249 barrels, averaging 105 barrels per day, with a revenue of $211,595 and a net operating cash flow of $112,770. This production performance reflects Argo’s strategic interests in various projects, contributing to its financial health and operational stability, despite the recent tax payment on its 2024 oil production.

Argo Gold Releases Year-End 2024 Oil Reserves Report

Argo Gold Inc. has released its Year-End 2024 Oil Reserves Report, which was evaluated by Petrotech and Associates. The report highlights Argo’s interests in five producing oil wells and five undeveloped well locations in Alberta. The total proved and probable reserves amount to 2,170.3 Mbbl of heavy crude oil, with a net present value of up to $24 million. This report underscores Argo’s ongoing commitment to its oil production operations and provides stakeholders with a detailed view of its current and future potential in the oil sector.

Argo Gold Reports February 2025 Oil Production Results

In February 2025, Argo Gold Inc. reported an oil production of 2,975 barrels, averaging 106 barrels per day, with oil prices at CDN$73 per barrel. The company generated a total oil revenue of $218,586 and a net operating cash flow of $131,564. This production performance reflects Argo’s ongoing operations in the oil sector, contributing to its financial stability and market presence.

Argo Gold Expands Exploration Footprint with Dreaver Lake Acquisition

Argo Gold Inc. has entered into a mineral claim option agreement to acquire a 100% interest in the Dreaver Lake property in Saskatchewan’s Rottenstone Belt. This acquisition positions Argo Gold to enhance its exploration activities in a region ranked third globally for mining investment attractiveness, with the potential to capitalize on significant gold and silver anomalies identified in the area.