Ares Strategic Mining (ARS) AI Stock Analysis

• Market Cap: C$94.30M
• Dividend Yield: N/A
• Average Volume (3M): 562.98K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.94
• Revenue Growth: N/A
• EPS Growth: -24.16%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 202,785,740
• 10 Day Avg. Volume: 240,895
• 30 Day Avg. Volume: 562,983
• PEG Ratio: 0.22
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.63
• 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): 479.19
• Revenue Forecast (FY): C$99.37M

• Rating: 35 Underperform
• Price Target: ―

Ares Strategic Mining's overall stock score reflects substantial financial risks due to no revenue and high debt. Despite positive corporate developments and some technical momentum, the current financial instability poses significant challenges. Valuation metrics further underscore these risks, suggesting a cautious approach.

Ares Strategic Mining Business Overview & Revenue Model

Company Description

Ares Strategic Mining Inc., a junior natural resource mining company, acquires and explores for fluorspar properties. It focuses on the exploitation, production, and supply of metspar and acidspar. The company holds 100% interest in the Lost Sheep Fluoride Mine that consists of 67 claims covering an area of approximately 1,447 acres located in western Utah, the United States; and the Liard Fluorspar property, which includes 14 claims located in British Columbia. It also holds interest in the Jackpot Lake property that comprises 140 mineral claims covering an area of 2,800 acres located in Clark County, Nevada; and a 20% interest in the Vanadium Ridge property, which consists of 20 mining claims covering an area of approximately 5,200 acres located in the Kamloops, British Columbia. In addition, the company holds interest in the Campbell-Croster fluorspar project in Kentucky. Ares Strategic Mining Inc. was incorporated in 2009 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Ares Strategic Mining generates revenue primarily through the extraction, processing, and sale of fluorspar. The company operates mining projects where it extracts fluorspar ore, which is then processed and sold to industries that use it in manufacturing products such as aluminum, steel, and hydrofluoric acid. Key revenue streams include direct sales of fluorspar to industrial clients and potentially entering into off-take agreements, which secure long-term purchase commitments from customers. Ares Strategic Mining's earnings are influenced by the market demand for fluorspar, prevailing commodity prices, and its operational efficiency in mining and processing activities.

Ares Strategic Mining Financial Statement Overview

Summary

Ares Strategic Mining faces significant financial challenges, with no revenue, escalating debt, and negative cash flows. The inability to generate income and reliance on financing pose substantial risks to financial stability.

Income Statement

Ares Strategic Mining has consistently reported no revenue across all periods, resulting in negative profit margins. The latest TTM data shows a net loss with a deteriorating EBIT and EBITDA, indicating ongoing operational challenges. The absence of revenue growth presents a substantial risk to the company's financial health.

Balance Sheet

The company's balance sheet reveals high leverage with a rising debt-to-equity ratio, increasing from earlier periods. Stockholders' equity has been declining, and the equity ratio has worsened. The total assets have increased, but largely due to debt, which poses financial stability concerns.

Cash Flow

The cash flow analysis indicates negative free cash flow growth, with a high capital expenditure that exceeds operating cash flow. While there have been inflows from financing activities, these have not been sufficient to cover operational losses, highlighting liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-31.90K	-39.90K	-41.12K	-40.71K	-29.34K	-11.62K
EBITDA	-1.61M	-876.00K	-2.66M	-4.12M	-3.62M	-2.21M
Net Income	-3.41M	-2.93M	-4.44M	-4.96M	-3.65M	-2.22M
Balance Sheet
Total Assets	55.19M	36.46M	17.48M	16.13M	13.41M	5.25M
Cash, Cash Equivalents and Short-Term Investments	47.42K	93.46K	637.93K	430.10K	1.05M	219.77K
Total Debt	35.36M	20.09M	6.60M	296.50K	2.20M	63.35K
Total Liabilities	39.52M	23.88M	7.26M	1.06M	2.65M	681.05K
Stockholders Equity	16.89M	13.80M	11.44M	16.30M	11.98M	5.79M
Cash Flow
Free Cash Flow	-6.13M	-15.21M	-4.95M	-2.72M	-2.11M	-1.51M
Operating Cash Flow	16.65M	405.46K	-1.73M	-1.81M	-1.87M	-1.35M
Investing Cash Flow	-23.06M	-16.03M	-3.55M	-3.12M	-2.31M	-1.25M
Financing Cash Flow	17.35M	16.16M	6.76M	3.81M	5.07M	2.85M

Ares Strategic Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ARS, the sentiment is Positive. The current price of 0.46 is below the 20-day moving average (MA) of 0.46, above the 50-day MA of 0.46, and above the 200-day MA of 0.33, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 78.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ARS.

Ares Strategic Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAM	62 Neutral	C$96.15M	33.02	1.79%	―	26.16%	-8.73%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RUA	55 Neutral	C$101.20M	-2.37	-294.20%	―	―	-97.52%
OCO	51 Neutral	C$92.72M	-28.29	-3.75%	―	―	29.51%
NKG	50 Neutral	C$89.06M	-5.72	-74.18%	―	―	42.92%
MSR	43 Neutral	C$100.14M	-73.17	-9.76%	―	―	-127.89%
ARS	35 Underperform	C$94.30M	-25.14	-22.39%	―	―	-24.16%

Ares Strategic Mining Corporate Events

Ares Strategic Mining Advances Fluorspar Project and Secures Funding

Ares Strategic Mining has made significant advancements in its Lost Sheep Fluorspar Project in Utah, achieving critical infrastructure milestones both underground and at its processing plant. These developments are crucial for commencing industrial-scale production, enhancing the company’s ability to supply high-purity fluorspar to U.S. industries. Additionally, Ares has secured a substantial non-dilutive funding boost from Sorbie Bornholm, which will accelerate the construction of its second processing facility, the Acidspar Flotation Plant, further strengthening its production capabilities.

Ares Strategic Mining Advances to Industrial-Scale Operations with New Ventilation System

Ares Strategic Mining has completed the installation of a secondary ventilation system at its Lost Sheep Fluorspar Mine, marking the final regulatory milestone needed to begin industrial-scale mining operations. This development allows Ares to ramp up to full-scale production, positioning the company to generate consistent revenue as the sole U.S. fluorspar producer, which is critical for industries such as aluminum, steel, and lithium-ion batteries.

Ares Strategic Mining Completes $10.5 Million Fundraising to Boost Operations

Ares Strategic Mining Inc. has successfully closed the second and final tranche of its LIFE Offering, raising $5,499,850 through the issuance of 12,221,889 units. This brings the total funds raised under the LIFE Offering to approximately $10.5 million. The offering included common shares and warrants, with the proceeds being used to secure hedging arrangements with Sorbie Bornholm LP. These arrangements involve acquiring UK government bonds to manage potential financial exposure, with settlement payments based on the company’s share price performance. The successful fundraising and strategic financial management position Ares to enhance its operational capabilities and market presence.

Ares Strategic Mining Secures $5 Million in First Tranche of LIFE Offering

Ares Strategic Mining Inc. has successfully closed the first tranche of its LIFE offering, raising $5 million through the issuance of 11,111,112 units. Each unit includes a common share and a half warrant, with the funds intended for the development of their fluorspar facility, corporate purposes, and debt repayment. Additionally, the company has amended its offering document to increase the total offering to 12,222,220 units, potentially raising up to $5.5 million. This move is expected to bolster Ares’ operational capabilities and financial stability, enhancing its position within the mining sector.

Ares Strategic Mining Launches $10 Million Private Placement

Ares Strategic Mining Inc. announced a non-brokered private placement offering to raise up to $10 million through the sale of units consisting of common shares and warrants. The proceeds from this offering are intended for corporate working capital and debt repayment, with the offering available to investors in most Canadian provinces. The closing of the offering is subject to regulatory approvals and is expected to occur in multiple tranches within 45 days.