Ascendant Resources Inc (ASND) AI Stock Analysis

• Market Cap: $18.58M
• Dividend Yield: N/A
• Average Volume (3M): 280.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: N/A
• EPS Growth: 12.04%
• Country: CA
• Employees: 12
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 77,692,000
• 10 Day Avg. Volume: 66,391
• 30 Day Avg. Volume: 280,856
• PEG Ratio: -0.02
• Price to Book (P/B): -0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.28
• 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: $0.10
• Price Target Upside: 25.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 31 Underperform
• Price Target: ―

Ascendant Resources Inc. faces significant financial challenges with a distressed income statement, balance sheet, and cash flow position, severely impacting its overall score. However, positive technical trends and promising corporate events, such as the strategic acquisition by Cerrado Gold Inc., offer potential upside. The company's valuation remains a concern with a negative P/E ratio, but the strategic developments could lead to improved financial health and market position in the future.

Positive Factors

Acquisition

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

Cash Flow

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

Metallurgical Test Work

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 Cost

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

Debt Conversion

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

Ascendant Resources Inc Business Overview & Revenue Model

Company Description

Ascendant Resources Inc (ASND) is a mining company primarily engaged in the exploration and development of mineral properties. The company focuses on zinc, copper, lead, silver, and gold production, operating primarily in Central and South America. Ascendant Resources aims to acquire and develop mineral assets with the potential for significant value enhancement and is committed to sustainable and responsible mining practices.

How the Company Makes Money

Ascendant Resources Inc generates revenue primarily through the extraction and sale of base and precious metals, including zinc, copper, lead, silver, and gold. The company's revenue model is based on producing these metals from its mining operations and selling them in the global commodities markets. Key revenue streams include the sale of concentrate to smelters and refiners, who process the material into finished products. The company may also engage in joint ventures or strategic partnerships to enhance operational efficiency and expand its resource base. Factors such as metal prices, production volumes, and operational costs significantly influence its earnings.

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: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 0.08 is below the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.07, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 61.93 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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
LUN	75 Outperform	$11.82B	25.63	2.66%	2.35%	-8.36%	-200.42%
HBM	71 Outperform	$5.36B	24.66	6.50%	0.15%	10.69%	79.56%
FM	67 Neutral	$17.69B	94.03	1.22%	―	-13.79%	―
CS	64 Neutral	$5.81B	52.51	2.71%	―	37.30%	―
Sector *	51 Neutral	$2.01B	-1.26	-21.11%	4.38%	2.92%	-30.46%
AVL	49 Neutral	$18.91M	―	-5.23%	―	―	-11500.00%
ASND	31 Underperform	$18.58M	―	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.