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Argo Gold Inc (TSE:ARQ)
:ARQ
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Argo Gold (ARQ) AI Stock Analysis

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TSE:ARQ

Argo Gold

(ARQ)

Rating:63Neutral
Price Target:
C$0.00
▼(-100.00% Downside)
Argo Gold's overall score reflects strong financial performance with significant revenue growth and profitability improvements. However, technical indicators suggest a bearish trend, and the lack of dividend yield limits valuation appeal. The absence of earnings call and corporate events data means these factors did not influence the score.

Argo Gold (ARQ) vs. iShares MSCI Canada ETF (EWC)

Argo Gold Business Overview & Revenue Model

Company DescriptionArgo Gold Inc., a development stage company, focuses on the exploration and development of mineral properties in northwestern Ontario. The company explores for gold, silver, cobalt, and zinc deposits. Its flagship project is the 100% owned Uchi gold project covering 22 square kilometers located to the west of Uchi Lake in the Birch-Uchi Greenstone Belt, Ontario; and the 100% owned Talbot Lake gold project covering 760 hectares located in the Uchi geological sub-province. The company was formerly known as Arbitrage Exploration Inc. and changed its name to Argo Gold Inc. in September 2016. Argo Gold Inc. was incorporated in 1995 and is based in Toronto, Canada.
How the Company Makes MoneyArgo Gold generates revenue primarily through the exploration and eventual development of its mineral properties. The company's revenue model is largely based on the potential future sale of mineral rights, royalties, or joint venture agreements with larger mining companies. Key revenue streams may include the sale of property interests, collaborations with strategic partners who provide funding in exchange for a share in the project, and potential future production from its developed sites. The company may also benefit from increases in gold prices, which can enhance the value of its exploration assets and attract investment or partnerships.

Argo Gold Financial Statement Overview

Summary
Argo Gold has shown significant improvement in financial performance, with strong revenue growth and enhanced profitability. The income statement is particularly strong with impressive growth rates and margins. However, past financial challenges and increased liabilities pose potential risks.
Income Statement
75
Positive
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
60
Neutral
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.24M952.69K0.000.000.00
Gross Profit1.24M662.99K-3.36K-2.14K-1.14K
EBITDA949.88K-29.97K-1.05M-1.40M-1.61M
Net Income437.08K-280.00K-1.45M-2.18M-206.55K
Balance Sheet
Total Assets3.30M2.78M1.09M2.14M4.30M
Cash, Cash Equivalents and Short-Term Investments289.92K74.89K85.37K1.15M3.31M
Total Debt1.11M1.11M0.000.000.00
Total Liabilities1.83M1.83M478.43K79.16K345.10K
Stockholders Equity1.47M949.13K613.73K2.06M3.96M
Cash Flow
Free Cash Flow238.17K-1.67M-815.06K-1.98M-1.52M
Operating Cash Flow952.43K122.01K-807.70K-1.98M-1.39M
Investing Cash Flow-714.26K-1.73M-6.92K673.68K311.89K
Financing Cash Flow-23.14K1.68M0.00322.00K2.76M

Argo Gold Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.06
Price Trends
50DMA
0.07
Negative
100DMA
0.08
Negative
200DMA
0.08
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
44.46
Neutral
STOCH
38.89
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 0.07, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
C$4.76M9.0340.64%58.36%
61
Neutral
$10.31B6.290.71%2.95%3.36%-36.41%
48
Neutral
C$2.75M-52.82%32.88%
$7.44M-6.14%
$12.40M-97.97%
$5.37M-17.08%
$6.43M-15.47%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ARQ
Argo Gold
0.06
-0.01
-14.29%
TSE:OPW
Opawica Explorations
0.06
-0.07
-53.85%
NOMNF
CANEX Metals
0.05
0.01
25.00%
RYES
Rise Gold
0.14
0.02
16.67%
BTUMF
BTU Metals Corp
0.03
-0.01
-25.00%
NFLDF
Exploits Discovery
0.03
-0.02
-40.00%

Argo Gold Corporate Events

Business Operations and StrategyFinancial Disclosures
Argo Gold Reports March 2025 Oil Production and Revenue
Positive
May 12, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 21, 2025