Ascendant Resources Inc (ASND) AI Stock Analysis

• Market Cap: C$10.15M
• Dividend Yield: N/A
• Average Volume (3M): 75.78K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.01
• Revenue Growth: N/A
• EPS Growth: -383.68%
• Country: CA
• Employees: 14
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Mining
• EPS (TTM): -0.21
• Shares Outstanding: 184,546,360
• 10 Day Avg. Volume: 60,060
• 30 Day Avg. Volume: 75,783
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -4.00
• 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: C$0.10
• Price Target Upside: 66.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

The company's financial instability, characterized by negative equity, no revenue, and ongoing losses, is the most significant factor negatively impacting the stock score. While technical analysis shows some positive trends, they are overshadowed by the severe financial challenges and poor valuation metrics.

Positive Factors

Acquisition

The acquisition of Ascendant Resources by Cerrado Gold is expected to increase the chances for future development of Lagoa Salgada substantially.

Funding and Investment

Cerrado is providing significant funding through a private placement, and Sprott Private Resources is converting debt into common shares to support Lagoa Salgada's development.

Negative Factors

Acquisition Cost

The acquisition cost for Ascendant Resources is well below the NAV value of the company.

Ascendant Resources Inc Business Overview & Revenue Model

Company Description

Ascendant Resources Inc (ASND) is a Toronto-based mining company primarily engaged in the exploration and development of mineral properties. The company focuses on producing zinc, lead, silver, and copper concentrates. Ascendant Resources operates its flagship project, the Lagoa Salgada VMS Project located in Portugal, which is a significant source of polymetallic mineralization. The company aims to expand its resource base and enhance shareholder value through strategic exploration and development activities.

How the Company Makes Money

Ascendant Resources Inc generates revenue through the extraction, production, and sale of mineral concentrates, primarily zinc, lead, silver, and copper. The company's revenue model involves mining these resources from its projects, processing the raw materials into concentrates, and selling the concentrates to smelters and other customers in the metals industry. Key revenue streams include the sale of zinc concentrates, followed by lead, silver, and copper. The company's earnings are influenced by global commodity prices, production volumes, and operational efficiency. Strategic partnerships and joint ventures also play a role in enhancing resource development and optimizing production processes, contributing to the company's financial performance.

Ascendant Resources Inc Financial Statement Overview

Summary

Ascendant Resources Inc is facing severe financial instability with no revenue generation, persistent losses, and negative cash flows. The high leverage and negative equity highlight significant financial risks. Overall, the financial health of the company is concerning, and immediate strategic changes are necessary for improvement.

Income Statement

The company has consistently reported zero revenue in recent years, indicating a lack of operational business activity. The net income has been negative, showing significant losses with no signs of revenue growth or recovery. Margins such as gross profit, EBIT, and EBITDA are negative due to the absence of revenue, highlighting operational challenges.

Balance Sheet

The company has negative stockholders' equity, indicating that liabilities exceed assets, which is a significant risk factor. High levels of debt compared to equity suggest financial instability. The equity ratio is negative, and the company has been unable to generate equity growth, posing long-term sustainability concerns.

Cash Flow

The company has reported negative free cash flow, indicating that cash outflows exceed cash inflows. Operating cash flow is also negative, which further emphasizes liquidity issues. The company has been relying on financing activities to sustain operations, indicating potential cash flow management challenges.

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	77.82M
	Gross Profit
-89.00K	-118.77K	-104.00K	-123.00K	-105.00K	29.82M
	EBIT
-2.07M	-2.81M	-7.93M	-4.17M	-2.93M	-5.57M
	EBITDA
-5.31M	-2.89M	-2.10M	-1.98M	-2.82M	1.74M
	Net Income Common Stockholders
-26.24M	-10.47M	-11.64M	-3.19M	-11.64M	-5.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
294.00K	660.00K	3.81M	938.00K	756.00K	1.68M
	Total Assets
17.07M	18.54M	13.78M	7.91M	6.45M	75.42M
	Total Debt
18.48M	18.42M	14.29M	2.91M	206.00K	14.95M
	Net Debt
18.20M	17.79M	10.51M	1.98M	-550.00K	13.27M
	Total Liabilities
30.32M	31.29M	17.57M	4.05M	1.68M	59.50M
	Stockholders Equity
-16.78M	-16.29M	-3.79M	3.86M	4.78M	15.92M
Cash Flow		Free Cash Flow
-5.41M	-4.68M	-1.83M	-2.35M	9.52M	-7.92M
	Operating Cash Flow
-2.36M	-2.60M	-1.42M	-2.35M	9.52M	7.73M
	Investing Cash Flow
-2.81M	-7.87M	-9.04M	-3.00M	-1.86M	-19.04M
	Financing Cash Flow
6.35M	8.05M	13.53M	5.65M	-8.31M	9.24M

Ascendant Resources Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 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:ASND, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.60 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ASND.

Ascendant Resources Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBM	72 Outperform	$3.77B	35.93	3.30%	0.22%	42.67%	718.35%
LUN	70 Outperform	$10.90B	25.63	0.24%	3.08%	-2.71%	-188.94%
FM	61 Neutral	$14.39B	―	0.02%	―	-24.38%	99.06%
CS	56 Neutral	$5.76B	50.07	2.90%	―	12.21%	―
Sector *	47 Neutral	$2.64B	-3.85	-29.39%	3.32%	2.72%	-29.67%
AVL	43 Neutral	$18.25M	―	-5.00%	―	―	-1118.18%
ASND	35 Underperform	C$10.15M	―	128.65%	―	―	-383.68%

Ascendant Resources Inc Corporate Events

Ascendant Resources Advances Lagoa Salgada Project

Ascendant Resources Inc. is making strides in developing its Lagoa Salgada VMS Project in Portugal, which is poised to become a significant player in the global polymetallic market. The company plans to continue its efforts in exploration, metallurgical testing, and feasibility studies, supported by a loan from Cerrado Gold Inc.

Ascendant Resources Launches Drill Program in Portugal

Ascendant Resources Inc. has commenced a drill program at its Lagoa Salgada VMS Project in Portugal, aiming to explore new Massive and Semi-Massive Sulphide targets. The initiative is supported by new geophysical data and surveys, with expectations to expand resources in both the North and South Zones by year-end.