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Arizona Sonoran Copper Co., Inc. (TSE:ASCU)
:ASCU

Arizona Sonoran Copper Co. (ASCU) AI Stock Analysis

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Arizona Sonoran Copper Co.

(TSX:ASCU)

Rating:53Neutral
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. (ASCU) vs. iShares MSCI Canada ETF (EWC)

Arizona Sonoran Copper Co. Business Overview & Revenue Model

Company DescriptionArizona Sonoran Copper Co., Inc. (ASCU) is a mineral exploration and development company focused on the acquisition, exploration, and development of copper properties in North America. The company primarily operates within the mining sector, aiming to supply high-quality copper resources through sustainable and responsible mining practices. ASCU's flagship project is the Cactus Mine Project, located in Arizona, which is in the advanced stages of development.
How the Company Makes MoneyArizona 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
10
Very Negative
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
45
Neutral
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
30
Negative
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
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
-65.00K0.00-84.00K-75.00K-17.00K0.00
EBIT
-6.50M6.34M-6.96M-8.40M-2.74M-2.22M
EBITDA
-5.50M-6.34M-7.00M-8.38M-2.73M0.00
Net Income Common Stockholders
-6.96M-6.99M-7.14M-17.05M-7.46M-2.40M
Balance SheetCash, Cash Equivalents and Short-Term Investments
47.00K10.49M19.86M27.31M7.25M47.00K
Total Assets
0.00114.08M69.58M54.42M17.99M12.12M
Total Debt
0.0067.00K115.00K6.88M6.34M0.00
Net Debt
47.00K-10.43M-19.75M-20.43M-903.00K-47.00K
Total Liabilities
0.0029.53M3.60M10.35M11.00M10.30M
Stockholders Equity
1.82M84.55M65.98M44.08M6.99M1.82M
Cash FlowFree 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
26.99M29.53M26.09M44.95M16.97M

Arizona Sonoran Copper Co. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.06
Price Trends
50DMA
2.07
Negative
100DMA
1.99
Positive
200DMA
1.74
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
50.48
Neutral
STOCH
32.81
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 2.06 is above the 20-day moving average (MA) of 2.04, below the 50-day MA of 2.07, and above the 200-day MA of 1.74, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 32.81 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSLUN
75
Outperform
$12.38B25.632.66%2.45%-8.36%-200.42%
TSCS
64
Neutral
$5.92B52.792.71%37.30%
TSTKO
62
Neutral
$1.32B11.15-12.40%7.36%-159.52%
53
Neutral
C$306.21M-7.46%1.26%
51
Neutral
$2.02B-1.14-21.37%3.64%2.88%-30.57%
TSECO
48
Neutral
C$234.94M-3.46%29.27%42.35%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ASCU
Arizona Sonoran Copper Co.
2.18
0.77
54.61%
TSE:CS
Capstone Copper
7.77
-1.65
-17.52%
TSE:TKO
Taseko Mines
4.23
0.89
26.65%
TSE:LUN
Lundin Mining
14.37
-0.70
-4.66%
TSE:ECO
EcoSynthetix
4.02
-0.53
-11.65%

Arizona Sonoran Copper Co. Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Arizona Sonoran Extends High-Grade Copper Core at Cactus Project
Positive
Feb 25, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Arizona Sonoran Copper Company Secures Royal Gold’s Investment in Cactus Project NSR
Positive
Feb 13, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.