Arizona Sonoran Copper Co. (ASCU) AI Stock Analysis

• Market Cap: C$306.21M
• Dividend Yield: N/A
• Average Volume (3M): 130.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: N/A
• EPS Growth: 1.26%
• Country: CA
• Employees: 17
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Copper
• EPS (TTM): -0.01
• Shares Outstanding: 148,645,740
• 10 Day Avg. Volume: 284,598
• 30 Day Avg. Volume: 130,494
• PEG Ratio: 3.16
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.05
• 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: C$3.53
• Price Target Upside: 61.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 53 Neutral
• Price Target: ―

Arizona Sonoran Copper Co., Inc. has promising project developments and strategic investments supporting its future potential, reflected in a strong corporate events score. However, the lack of revenue, persistent losses, and negative cash flows weigh heavily on its financial performance score. Technical indicators show positive momentum, but valuation concerns remain due to ongoing losses and no dividend yield.

Arizona Sonoran Copper Co. Business Overview & Revenue Model

Company Description

Arizona Sonoran Copper Company Inc. engages in the identification, acquisition, exploration, development, and production of base metal properties. The company's principal asset is the 100% interest in the Cactus Project located in Pinal County, Arizona. The company was formerly known as Elim Mining Incorporated and changed its name to Arizona Sonoran Copper Company Inc. in July 2021. Arizona Sonoran Copper Company Inc. was incorporated in 2019 and is based in Tempe, Arizona.

How the Company Makes Money

Arizona Sonoran Copper Co., Inc. generates revenue primarily through the development and eventual sale of copper extracted from its mining operations. The company focuses on identifying and developing copper deposits, with the potential for future income derived from the sale of copper concentrate to smelters and other industrial customers. ASCU's revenue model is highly dependent on the successful development and production from its mining projects, particularly the Cactus Mine Project. The company may also enter into strategic partnerships or joint ventures with other mining companies or investors to facilitate capital investment and share operational risks, which can contribute to its financial performance.

Arizona Sonoran Copper Co. Financial Statement Overview

Summary

Arizona Sonoran Copper Co., Inc. faces significant financial challenges, primarily due to non-existent revenue and consistent losses affecting profitability and cash flows. While the balance sheet indicates low leverage, the company's persistent negative earnings and cash flows pose risks to financial stability.

Income Statement

The company has consistently reported zero revenue over the past periods, indicating no sales activities. The net income and EBIT margins are negative, reflecting ongoing losses. There is no revenue growth, as there has been no revenue to report.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio, which indicates conservative leverage. However, the return on equity is negative due to ongoing losses, and the equity ratio is strong, indicating a solid equity base relative to assets.

Cash Flow

The company has negative free cash flow and operating cash flow, reflecting cash outflows that are not offset by earnings. The operating cash flow to net income ratio is not favorable, indicating inefficiency in cash generation from operations.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-65.00K	0.00	-84.00K	-75.00K	-17.00K	0.00
	EBIT
-6.50M	6.34M	-6.96M	-8.40M	-2.74M	-2.22M
	EBITDA
-5.50M	-6.34M	-7.00M	-8.38M	-2.73M	0.00
	Net Income Common Stockholders
-6.96M	-6.99M	-7.14M	-17.05M	-7.46M	-2.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
47.00K	10.49M	19.86M	27.31M	7.25M	47.00K
	Total Assets
0.00	114.08M	69.58M	54.42M	17.99M	12.12M
	Total Debt
0.00	67.00K	115.00K	6.88M	6.34M	0.00
	Net Debt
47.00K	-10.43M	-19.75M	-20.43M	-903.00K	-47.00K
	Total Liabilities
0.00	29.53M	3.60M	10.35M	11.00M	10.30M
	Stockholders Equity
1.82M	84.55M	65.98M	44.08M	6.99M	1.82M
Cash Flow		Free Cash Flow
-30.43M	-38.82M	-4.33M	-24.89M	-14.79M	―
	Operating Cash Flow
-10.57M	-11.52M	-3.55M	-6.29M	-1.48M	-732.00
	Investing Cash Flow
-19.86M	-27.30M	-29.80M	-18.60M	-8.30M	―
	Financing Cash Flow
26.99M	29.53M	26.09M	44.95M	16.97M	―

Arizona Sonoran Copper Co. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.18
• 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:ASCU, the sentiment is Positive. The current price of 2.18 is above the 20-day moving average (MA) of 2.05, above the 50-day MA of 2.07, and above the 200-day MA of 1.74, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.85 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ASCU.

Arizona Sonoran Copper Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASCU	53 Neutral	C$306.21M	―	-7.46%	―	―	1.26%
Sector *	51 Neutral	$2.04B	-1.15	-21.37%	3.64%	2.88%	-30.57%
ARREF		$226.19M	12.56	17.43%	8.34%	―	―
FDY	48 Neutral	C$158.25M	―	-85.57%	―	―	5.34%
MARI	43 Neutral	C$577.67M	―	-13.43%	―	―	-83.79%
CUU	39 Underperform	C$149.53M	―	-0.74%	―	―	42.11%
LA	39 Underperform	C$175.74M	28.97	7.53%	―	―	―

Arizona Sonoran Copper Co. Corporate Events

Arizona Sonoran Extends High-Grade Copper Core at Cactus Project

Arizona Sonoran Copper Company Inc. has announced successful infill drilling results at the Parks/Salyer copper deposit, which confirm the continuity of mineralization and extend the high-grade core onto the MainSpring property at the Cactus Project in Arizona. This development is part of the company’s broader strategy to advance technical studies, with a Pre-Feasibility Study expected in the latter half of 2025. Additionally, there is a leadership change with Christopher White stepping in as Manager of Geology, following Doug Bowden’s departure.

Arizona Sonoran Copper Company Secures Royal Gold’s Investment in Cactus Project NSR

Arizona Sonoran Copper Company announced that RG Royalties LLC, a subsidiary of Royal Gold Inc., has acquired a 2.5% net smelter royalty on a portion of its Cactus Project for $55 million. This transaction is seen as a strong endorsement of the project’s future by a reputable mining financier. ASCU retains the option to repurchase a portion of the royalty, which could reduce the overall burden and enhance its project economics. The company is considering its options regarding these buyback opportunities as it continues to advance the Cactus Project through various stages of feasibility.