Ascendant Resources Inc (ASND) AI Stock Analysis

• Market Cap: C$10.15M
• Dividend Yield: N/A
• Average Volume (3M): 40.30K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.06
• Revenue Growth: N/A
• EPS Growth: 12.04%
• Country: CA
• Employees: 12
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 184,546,360
• 10 Day Avg. Volume: 27,383
• 30 Day Avg. Volume: 40,295
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -4.40
• 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

Ascendant Resources faces significant financial challenges, with no revenue and high leverage negatively impacting its overall score. The technical analysis shows some positive trends, but valuation is weak with a negative P/E ratio and no dividend. Recent corporate events, including securing funding and a merger, offer some relief but do not outweigh the financial weaknesses.

Positive Factors

Acquisition Impact

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

Financial Performance

Cerrado Gold's cash flow and profitability are seen as well-suited for generating ongoing shareholder value.

Metallurgical Advancements

Phase 1 of metallurgical test work completed with improvements in metal recoveries and concentrate grades, affirming the economic viability of the site.

Negative Factors

Acquisition Valuation

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

Debt and Equity Conversion

Sprott Private Resources is converting debt into common shares to support Lagoa Salgada's development.

Market Valuation

The revised long-term estimates for gold and silver prices are significantly higher based on macroeconomic developments, which could benefit Ascendant Resources.

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's financial position is precarious, with critical challenges in income generation, balance sheet stability, and cash flow management. The consistent absence of revenue, negative profitability metrics, and high leverage reflect significant financial distress.

Income Statement

Ascendant Resources Inc has reported no revenue in recent years, resulting in negative gross profit and net income, which reflects poorly on profitability. The lack of revenue growth and consistent net losses point to significant challenges in generating sales and managing costs effectively.

Balance Sheet

The company has a negative equity position, indicating liabilities exceed assets, which is a critical financial weakness. High debt levels relative to equity pose a risk, and the company's negative return on equity underscores ongoing unprofitability. Overall, the balance sheet strength is quite low.

Cash Flow

Cash flow analysis reveals negative free cash flow, highlighting that operating cash flows are insufficient to cover capital expenditures. The negative operating cash flow to net income ratio further illustrates the company's struggle to generate cash from its operations, indicating weak financial health.

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
-83.00K	-118.77K	-104.00K	-123.00K	-105.00K	29.82M
	EBIT
-2.04M	-2.81M	-7.93M	-4.17M	-2.93M	-5.57M
	EBITDA
-4.32M	-2.89M	-2.10M	-1.98M	-2.82M	1.74M
	Net Income Common Stockholders
-5.45M	-10.47M	-11.64M	-3.19M	-11.64M	-5.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
391.00K	660.00K	3.81M	938.00K	756.00K	1.68M
	Total Assets
16.74M	18.54M	13.78M	7.91M	6.45M	75.42M
	Total Debt
18.11M	18.42M	14.29M	2.91M	206.00K	14.95M
	Net Debt
17.73M	17.79M	10.51M	1.98M	-550.00K	13.27M
	Total Liabilities
32.84M	31.29M	17.57M	4.05M	1.68M	59.50M
	Stockholders Equity
-19.50M	-16.29M	-3.79M	3.86M	4.78M	15.92M
Cash Flow		Free Cash Flow
-3.49M	-4.68M	-1.83M	-2.35M	9.52M	-7.92M
	Operating Cash Flow
-1.69M	-2.60M	-1.42M	-2.35M	9.52M	7.73M
	Investing Cash Flow
-60.00K	-7.87M	-9.04M	-3.00M	-1.86M	-19.04M
	Financing Cash Flow
1.23M	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: Negative
• STOCH: Negative

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 below the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 78.07 is Negative, neither overbought nor oversold. The STOCH value of 84.44 is Negative, 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	66 Neutral	$3.78B	34.28	3.30%	0.20%	19.70%	9.24%
LUN	61 Neutral	$8.88B	25.63	0.24%	3.37%	-2.71%	-188.94%
FM	58 Neutral	$13.86B	―	0.02%	―	-24.38%	99.06%
CS	57 Neutral	$4.60B	39.60	2.90%	―	20.74%	―
Sector *	48 Neutral	$1.92B	-1.99	-22.85%	3.95%	0.94%	-27.31%
AVL	42 Neutral	$15.37M	―	-5.23%	―	―	-11500.00%
ASND	27 Underperform	C$10.15M	―	128.65%	―	―	12.04%

Ascendant Resources Inc Corporate Events

Ascendant Resources Announces Shareholder Meeting for Acquisition Vote

Ascendant Resources Inc. has announced a special meeting for shareholders to vote on a statutory plan of arrangement, which involves the acquisition of all outstanding common shares by Cerrado Gold Inc. The meeting is set for May 6, 2025, and the company’s special committee recommends shareholders vote in favor of the arrangement, which could significantly impact Ascendant’s operations and market positioning.

Spark’s Take on TSE:ASND Stock

According to Spark, TipRanks’ AI Analyst, TSE:ASND is a Underperform.

Ascendant Resources faces significant financial challenges, with no revenue and high leverage negatively impacting its overall score. The technical analysis shows some positive trends, but valuation is weak with a negative P/E ratio and no dividend. Recent corporate events, including securing funding and a merger, offer some relief but do not outweigh the financial weaknesses.

To see Spark’s full report on TSE:ASND stock, click here.

Ascendant Resources Secures Funding to Advance Lagoa Salgada Project

Ascendant Resources Inc. has successfully closed the first tranche of a private placement to raise funds for its Lagoa Salgada project and address short-term financial obligations. This funding round, which includes significant investment from Cerrado Gold Inc., is part of an arrangement where Cerrado plans to acquire all outstanding shares of Ascendant, potentially strengthening Ascendant’s market position and operational capabilities.

Ascendant Resources Merges with Cerrado Gold in Strategic Acquisition

Ascendant Resources Inc. has announced a definitive agreement with Cerrado Gold Inc. for a business combination, where Cerrado will acquire all outstanding shares of Ascendant. This acquisition offers Ascendant shareholders a premium on their shares and provides the combined entity with a strong cash position, reduced equity dilution, and diversified asset risk. The transaction is structured to include debt absorption and conversion, ensuring continued advancement of key projects such as the Lagoa Salgada Project. Upon completion, existing Cerrado and Ascendant shareholders will own roughly 79% and 21% of the merged entity, respectively, with the combined company continuing under the Cerrado Gold Inc. name.