Argo Gold (ARQ) AI Stock Analysis

• Market Cap: C$4.75M
• Dividend Yield: N/A
• Average Volume (3M): 33.65K
• Price to Earnings (P/E): 65.0
• Beta (1Y): -0.14
• Revenue Growth: 11.59%
• EPS Growth: -54.55%
• 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

• Rating: 54 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Argo Gold's overall score is primarily driven by its strong financial performance, with significant revenue growth and improved profitability. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates overvaluation. The lack of earnings call data and corporate events limits additional insights.

Argo Gold Business Overview & Revenue Model

Company Description

Argo 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 Money

Argo 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 shows strong revenue growth and improved profitability, with a healthy gross profit margin and effective cost management. However, past financial challenges and increased liabilities pose potential risks.

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	2.08M	2.24M	952.69K	0.00	0.00	0.00
Gross Profit	1.03M	1.24M	662.99K	-3.36K	-2.14K	-1.14K
EBITDA	586.08K	949.88K	-25.43K	-1.44M	-2.17M	-1.61M
Net Income	74.81K	437.08K	-280.00K	-1.45M	-2.18M	-206.55K
Balance Sheet
Total Assets	3.22M	3.30M	2.78M	1.09M	2.14M	4.30M
Cash, Cash Equivalents and Short-Term Investments	280.49K	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	1.83M	1.83M	1.83M	478.43K	79.16K	345.10K
Stockholders Equity	1.38M	1.47M	949.13K	613.73K	2.06M	3.96M
Cash Flow
Free Cash Flow	113.16K	238.17K	-1.67M	-815.06K	-1.98M	-1.52M
Operating Cash Flow	785.09K	952.43K	122.01K	-807.70K	-1.98M	-1.39M
Investing Cash Flow	-680.03K	-714.26K	-1.73M	-6.92K	673.68K	311.89K
Financing Cash Flow	-88.65K	-23.14K	1.68M	0.00	322.00K	2.76M

Argo Gold Technical Analysis

• Technical Analysis Sentiment: Neutral
• 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 Neutral. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ARQ.

Argo Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ARQ	―	C$4.75M	65.00	5.62%	―	11.59%	-54.55%
BTU	―	C$8.89M	―	-17.53%	―	―	-350.00%
OPW	―	C$3.93M	―	-52.82%	―	―	32.88%
CANX	―	C$15.43M	―	-5.39%	―	―	8.82%
RISE	―	$23.09M	-3.61	-115.60%	―	―	34.95%

Argo Gold Corporate Events

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.

Argo Gold Enhances Governance with New Advance Notice Bylaw

Argo Gold Inc. has implemented an advance notice bylaw to streamline the process of nominating directors, ensuring transparency and efficiency in shareholder meetings. This move aims to provide shareholders with adequate notice and information about director nominations, thereby facilitating informed voting and enhancing the company’s governance framework.