Argo Gold (ARQ) AI Stock Analysis

• Market Cap: C$4.71M
• Dividend Yield: N/A
• Average Volume (3M): 33.65K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.63
• Revenue Growth: -15.28%
• EPS Growth: -122.22%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): <0.01
• Shares Outstanding: 73,007,774
• 10 Day Avg. Volume: 31,354
• 30 Day Avg. Volume: 33,653
• PEG Ratio: -0.05
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 2.62
• P/FCF Ratio: 24.62
• 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: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: C$0.06 ▼(-8.33% Downside)

Argo Gold's overall stock score is primarily influenced by its financial performance, which shows potential for growth despite past challenges. However, technical analysis indicates bearish trends, and the valuation is weak due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a moderate overall score.

Positive Factors

Revenue Growth

The substantial revenue growth indicates a strong market position and effective execution of business strategy, enhancing long-term prospects.

Profitability

High profit margins suggest effective cost management and operational efficiency, supporting sustainable profitability and competitive advantage.

Cash Flow Generation

Improved cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and reducing reliance on external financing.

Negative Factors

Rising Liabilities

Increasing liabilities can elevate financial risk, potentially impacting the company's ability to sustain operations and invest in future growth.

Negative Earnings History

A history of negative earnings may indicate underlying operational issues, posing risks to future profitability and investor confidence.

Revenue Decline

A decline in revenue growth can signal market challenges or operational inefficiencies, potentially affecting long-term business sustainability.

Argo Gold Business Overview & Revenue Model

Company Description

Argo Gold (ARQ) is a Canadian-based mineral exploration company focused on the acquisition, exploration, and development of gold properties in North America. The company primarily operates in the mining sector, with a portfolio of projects that are rich in gold resources. Argo Gold aims to enhance shareholder value through strategic exploration initiatives and by leveraging its geological expertise to discover and develop economically viable gold deposits.

How the Company Makes Money

Argo Gold generates revenue primarily through the exploration and potential development of its gold properties. The company focuses on advancing its projects through systematic exploration, which may lead to the discovery of economically viable mineral resources. Key revenue streams include any future sales or royalties from mined gold, joint venture agreements, and potential partnerships with larger mining firms that may provide funding or resources in exchange for a stake in the projects. Additionally, the company may benefit from favorable market conditions for gold, which can increase the value of its assets and attract investment.

Argo Gold Financial Statement Overview

Summary

Argo Gold has shown strong revenue growth and improved profitability, with a healthy gross profit margin of 55.5% and net profit margin of 19.5%. The balance sheet is stable with a manageable debt-to-equity ratio of 0.75, but the increase in liabilities poses a potential risk. Cash flow has improved, but historical volatility remains a concern.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.84M	2.24M	952.69K	0.00	0.00	0.00
Gross Profit	802.39K	1.24M	662.99K	-3.36K	-2.14K	-1.14K
EBITDA	384.89K	949.88K	-25.43K	-1.44M	-2.17M	-1.61M
Net Income	-91.15K	437.08K	-280.00K	-1.45M	-2.18M	-206.55K
Balance Sheet
Total Assets	3.18M	3.30M	2.78M	1.09M	2.14M	4.30M
Cash, Cash Equivalents and Short-Term Investments	282.33K	289.92K	74.89K	85.37K	1.15M	3.31M
Total Debt	1.11M	1.11M	1.11M	0.00	0.00	0.00
Total Liabilities	1.76M	1.83M	1.83M	478.43K	79.16K	345.10K
Stockholders Equity	1.42M	1.47M	949.13K	613.73K	2.06M	3.96M
Cash Flow
Free Cash Flow	399.58K	238.17K	-1.67M	-815.06K	-1.98M	-1.52M
Operating Cash Flow	763.05K	952.43K	122.01K	-807.70K	-1.98M	-1.39M
Investing Cash Flow	-374.03K	-714.26K	-1.73M	-6.92K	673.68K	311.89K
Financing Cash Flow	-115.66K	-23.14K	1.68M	0.00	322.00K	2.76M

Argo Gold Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 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 0.06 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.22 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
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HVG	52 Neutral	C$4.85M	-1.20	-93.08%	―	―	-230.94%
ARQ	51 Neutral	C$4.71M	-54.17	-6.09%	―	-15.28%	-122.22%
KGC	42 Neutral	C$4.80M	―	-22.19%	―	―	-4.55%
EDGM	42 Neutral	C$4.97M	-13.64	-13.58%	―	―	-50.00%
VGD	27 Underperform	C$5.01M	-10.98	―	―	―	38.50%
GCN	27 Underperform	$4.61M	―	-75.44%	―	―	-64.52%

Argo Gold Corporate Events

Argo Gold Reports 2025 Oil Production Amid Market Challenges

Argo Gold reported its oil production for the first nine months of 2025, totaling 24,003 barrels, with an average of 88 barrels per day. The company faced challenges with the collapse of its Lloyd 2 well and did not proceed with planned drilling due to low oil prices. Despite these setbacks, Argo Gold generated CAD$1,631,714 in oil revenue and maintained a net operating cash flow of $913,157, reflecting its resilience in a challenging market environment.

Argo Gold Expands Uranium Claims in Saskatchewan’s Athabasca Basin

Argo Gold Inc. has expanded its uranium mineral claim position in the Athabasca Basin, Saskatchewan, by acquiring a 100% interest in Thunderclap, covering 264 hectares. This strategic move enhances Argo’s portfolio, which includes other prospective uranium areas in the region. The Thunderclap property is located near several significant uranium mines and deposits, making it a highly promising site for future exploration. The company’s expansion in a mining-friendly jurisdiction like Saskatchewan positions it well for advancing mineral exploration, potentially benefiting stakeholders by increasing resource potential and market competitiveness.

Argo Gold Secures Key Exploration Permits in Saskatchewan

Argo Gold has secured mineral exploration permits from the Saskatchewan Ministry of Environment for its projects in the Rottenstone Belt and Dreaver Lake, covering a total of 27,816 hectares. These permits allow Argo to conduct various exploration activities, including prospecting and geological mapping, which could enhance its position in the mineral exploration industry. The Dreaver Lake Gold Project, notable for its historical gold and silver anomalies, is strategically located near other significant mining operations, while the Rottenstone Project benefits from a comprehensive compilation of historical data, indicating promising exploration potential. With Saskatchewan ranked highly for mining investment attractiveness, Argo is well-positioned to advance its exploration efforts in this mining-friendly jurisdiction.