Asante Gold (ASE) AI Stock Analysis

• Market Cap: C$511.11M
• Dividend Yield: N/A
• Average Volume (3M): 65.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: 14.69%
• EPS Growth: 88.10%
• Country: CA
• Employees: 1,373
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Gold
• EPS (TTM): -0.05
• Shares Outstanding: 501,086,880
• 10 Day Avg. Volume: 80,696
• 30 Day Avg. Volume: 65,249
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

The overall stock score of 41 reflects significant challenges in financial performance, with negative equity and profitability issues being major concerns. Despite positive corporate events, such as increased production at the Bibiani mine, the technical indicators are mixed, and the valuation remains unattractive due to negative earnings. The stock's future performance hinges on addressing financial and operational inefficiencies.

Asante Gold Business Overview & Revenue Model

Company Description

Asante Gold Corporation, a mineral exploration company, engages in the acquisition, exploration, and development of mineral resource properties in the Republic of Ghana. It holds 100% interest in the Fahiakoba concession situated in the Ashanti and Central regions in the Republic of Ghana; and 90% interest in the Bibiani gold mine located in the western region of Ghana. The company also has an option to acquire a 100% interest in the Betenase permit located in Ghana; 90% interest in the Kubi Mining lease located in southwest Ghana; and 100% interest in the Keyhole Gold project. Asante Gold Corporation was incorporated in 2011 and is based in Vancouver, Canada.

How the Company Makes Money

Asante Gold generates revenue primarily through the exploration, development, and eventual production of gold from its mining properties in Ghana. The company invests in acquiring and developing gold-rich sites, conducting thorough geological assessments, and utilizing advanced mining techniques to extract gold efficiently. Revenue is derived from the sale of gold produced at its mines. Key factors contributing to its earnings include fluctuating gold prices, mining efficiency, and operational scalability. Strategic partnerships with local governments and other mining companies may also play a role in facilitating operations and reducing costs, thereby impacting profitability.

Asante Gold Financial Statement Overview

Summary

Asante Gold exhibits strong revenue growth yet struggles with profitability and financial stability. The high leverage and negative equity pose significant risks. Cash flow challenges, driven by high capital expenditures, exacerbate liquidity concerns. The company must address operational inefficiencies and stabilize its financial position to improve its future outlook.

Income Statement

The company has shown significant revenue growth over the years, particularly from 2023 to TTM (Trailing-Twelve-Months). However, profitability remains a major concern, as indicated by persistent negative gross profit margins and net losses. The EBIT and EBITDA margins are negative, suggesting operational challenges and inefficiencies.

Balance Sheet

The balance sheet reflects high leverage with a negative stockholders' equity in TTM, indicating potential financial instability. The debt-to-equity ratio is not calculable due to negative equity, and the equity ratio is concerning, showing liabilities exceeding assets. This suggests a precarious financial position.

Cash Flow

The cash flow statement shows inconsistent free cash flow, with significant negative values in TTM. Although operating cash flow is positive, the high capital expenditures result in negative free cash flow, indicating potential liquidity issues. The operating cash flow to net income ratio is not favorable due to consistent net losses.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
575.18M	274.73M	0.00	0.00	0.00
	Gross Profit
-142.75M	-81.20M	-1.17M	0.00	0.00
	EBIT
-181.52M	-130.78M	-9.36M	-652.84K	-578.48K
	EBITDA
-26.05M	-56.94M	-7.32M	-58.39K	-4.87K
	Net Income Common Stockholders
-132.15M	-177.13M	-8.48M	-683.33K	-462.86K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.33M	9.02M	13.36M	479.10K	19.71K
	Total Assets
915.64M	977.63M	226.85M	6.32M	5.51M
	Total Debt
66.48M	46.99M	1.48M	2.31M	2.41M
	Net Debt
48.05M	44.18M	-4.37M	1.83M	2.39M
	Total Liabilities
858.67M	845.02M	133.02M	2.79M	3.33M
	Stockholders Equity
29.49M	97.32M	81.79M	3.53M	2.19M
Cash Flow		Free Cash Flow
-42.58M	25.57M	-33.93M	-1.55M	-293.21K
	Operating Cash Flow
65.20M	245.89M	-2.27M	-756.05K	-93.92K
	Investing Cash Flow
-119.28M	-372.02M	-75.48M	-797.91K	-199.29K
	Financing Cash Flow
52.12M	119.95M	82.34M	2.03M	307.19K

Asante Gold Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ASE, the sentiment is Negative. The current price of 1.02 is below the 20-day moving average (MA) of 1.10, below the 50-day MA of 1.14, and below the 200-day MA of 1.17, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.73 is Neutral, neither overbought nor oversold. The STOCH value of 19.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ASE.

Asante Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MND	82 Outperform	C$463.85M	6.95	22.34%	―	37.39%	516.99%
ORE	78 Outperform	C$579.14M	6.03	27.12%	―	6.15%	10.69%
Sector *	49 Neutral	$1.95B	-1.27	-21.38%	3.72%	0.83%	-29.30%
LUM	48 Neutral	C$505.82M	―	105.38%	―	―	-97.12%
ASE	41 Neutral	C$511.11M	―	2734.86%	―	14.69%	88.10%
ATX	41 Neutral	C$539.36M	―	-175.63%	―	―	-138.15%

Asante Gold Corporate Events

Asante Gold Advances Bibiani Underground Mining with Positive Feasibility Study

Asante Gold Corporation has announced the completion of a Definitive Feasibility Study (DFS) for the Bibiani Mine, highlighting the potential for a seven-year underground mining operation. The study projects the production of 831,000 ounces of gold with an all-in sustaining cost of $1,035 per ounce, aiming for an annual production exceeding 250,000 ounces by 2026. The DFS underscores the technical and financial viability of the project, with underground mining expected to commence in late 2025, supported by a new sulphide treatment plant and infrastructure improvements.

Asante Gold Strengthens Board with New Appointment

Asante Gold Corporation has announced significant changes to its board of directors with the appointment of Dr. Alireza Abbassi Monjezi, a UK national with a PhD in Chemical Engineering, bringing extensive experience in engineering and entrepreneurship. The company aims to leverage Dr. Abbassi’s expertise to enhance its operations, particularly given his background in chemical engineering and water treatment. The resignation of Mohammad Alothman from the board marks a strategic shift as Asante continues to strengthen its leadership to support its ongoing and future projects in Ghana.

Asante Gold Secures Major $500M Forward Purchase Deal

Asante Gold Corporation has secured a US$500 million gold forward purchase agreement with Fujairah Holdings, which will finance the company’s mining activities and completion of its sulphide treatment plant. The agreement involves a rotating financing of US$100 million over two years, with gold deliveries priced at a 7% discount to market rates. This strategic move is expected to boost Asante’s gold production significantly.

Asante Gold Reports Strong Quarter and Growth Initiatives

Asante Gold Corporation has reported a solid financial quarter with significant growth in adjusted EBITDA, driven by business improvements and higher gold prices. The company is making progress on key projects, including the Bibiani sulphide treatment plant and non-dilutive finance initiatives to support organic growth. Asante remains optimistic about future developments and is focused on unlocking further potential at its operations.

Asante Gold Closes $35M Private Placement Tranche

Asante Gold Corporation has successfully closed the second tranche of its US$100 million private placement, raising US$35 million by issuing shares to settle outstanding debts. This move demonstrates strong confidence from key Ghanaian partners and supports Asante’s growth plans at Bibiani and Chirano.

Asante Gold Secures $525 Million for Growth Plans

Asante Gold Corporation has announced a $525 million financing package aimed at fully funding its growth plans and addressing short-term liabilities in its Bibiani and Chirano gold projects in Ghana. This financing is expected to support Asante’s ambition to increase gold production to over 500,000 ounces annually by 2028, significantly reducing costs in light of the ongoing gold bull market. The package includes equity placements, refinancing agreements, and bonds, marking a pivotal moment in Asante’s strategic expansion.

Asante Gold Closes First Tranche of Funding

Asante Gold Corporation has successfully closed the first tranche of its US$100 million private placement, raising US$25 million through the issuance of over 22 million common shares. The funds will be used for growth and development at the Bibiani and Chirano mines, as well as potential acquisitions and liability refinancing.