Aurion Resources (AU) AI Stock Analysis

• Market Cap: C$224.74M
• Dividend Yield: N/A
• Average Volume (3M): 74.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: N/A
• EPS Growth: -105.98%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): -0.02
• Shares Outstanding: 164,042,740
• 10 Day Avg. Volume: 46,859
• 30 Day Avg. Volume: 74,203
• PEG Ratio: 0.58
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.95
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: C$1.50 ▲(1.35% Upside)

The score is primarily held back by weak operating fundamentals (no revenue, ongoing losses, and negative cash flow), partially offset by a very strong low-debt balance sheet. Technicals are supportive with price above key moving averages and positive MACD, while valuation remains challenged by a negative P/E. A positive drilling update adds incremental upside as an exploration catalyst.

Positive Factors

Strategic Partnership

The partnership with KoBold Metals provides $12 million in exploration funding, enhancing Aurion's ability to explore and develop its Risti Property, leveraging KoBold's expertise in critical minerals. This strategic alliance could lead to significant discoveries, strengthening Aurion's market position.

Exploration Success

The extension of gold mineralization at Kaaresselkä by 40 meters and the significant gold intersection highlight the potential for a substantial gold occurrence. This enhances Aurion's exploration prospects and could attract further investment, supporting long-term growth.

Financial Stability

Aurion's strong equity position and minimal debt suggest financial stability, providing a buffer against operational losses. This financial health supports ongoing exploration activities and strategic initiatives, crucial for a pre-revenue mining company.

Negative Factors

Negative Cash Flow

The negative cash flow highlights dependency on external financing to sustain operations. This reliance poses a risk to long-term sustainability, as continued funding is necessary to support exploration activities without generating revenue.

Operational Losses

Ongoing operational losses without offsetting revenue streams indicate a high-risk profile. This pattern suggests challenges in achieving profitability, which could deter potential investors and limit financial flexibility.

Revenue Generation Risk

The absence of revenue generation poses a significant risk to future liquidity and operational sustainability. Without revenue, Aurion must rely on external funding, which may not be sustainable long-term, affecting its ability to continue exploration and development.

Aurion Resources Business Overview & Revenue Model

Company Description

Aurion Resources Ltd., an exploration company, acquires, explores for, and evaluates mineral properties in Finland, Sweden, the United States, and Mexico. The company explores precious metals, gold, iron, titanium, vanadium, and base metals deposits. Its flagship projects are the Risti project, which covers an area of 16,197 hectares located in the Central Lapland Greenstone Belt in northern Finland; and the Launi project that consists of two blocks and covers an area of approximately 144 square kilometers located to the northwest of the municipality of Sodankylä. Aurion Resources Ltd. was incorporated in 2006 and is based in St. John's, Canada.

How the Company Makes Money

Aurion Resources makes money through the exploration and development of its mineral properties, primarily targeting gold deposits. The company generates revenue by increasing the value of its properties through successful exploration and potentially selling or entering into joint ventures with larger mining companies. By advancing their exploration projects to stages where they can demonstrate significant mineral resources, Aurion can attract investments or sell stakes in projects to partners interested in further development and production. Additionally, the company may generate income through strategic partnerships and option agreements with other mining entities that can provide funding and expertise to advance exploration activities.

Aurion Resources Financial Statement Overview

Summary

Aurion Resources exhibits typical characteristics of a pre-revenue mining company, marked by negative EBIT and net income, signaling operational losses. Its balance sheet shows financial stability with low debt, but negative cash flows underscore the reliance on external financing, posing financial risks and questioning long-term sustainability.

Income Statement

Aurion Resources has not generated any revenue, which is common in exploratory mining stages. The company has consistently reported negative EBIT and net income, indicating ongoing operational losses without offsetting revenue streams. This pattern suggests a high-risk profile with no visible trend towards profitability.

Balance Sheet

The balance sheet reflects a solid equity position, with minimal debt relative to equity, suggesting financial stability. However, the lack of revenue generation presents a risk in terms of future liquidity. The company maintains a strong cash position, which supports its operations in the short term. Nonetheless, the ongoing cash burn could impact long-term sustainability.

Cash Flow

Aurion Resources has negative operating and free cash flow, highlighting the dependency on financing activities to support operations. Although cash flow from financing has been substantial, the negative free cash flow growth rate raises concerns about the company's ability to sustain operations without continued external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-69.16K	-86.66K	-1.00K	-93.84K	-127.00K	-158.00K
EBITDA	-5.32M	-3.80M	-4.07M	-4.52M	-5.28M	-4.31M
Net Income	-5.72M	-4.23M	-6.03M	-4.71M	-7.38M	-2.88M
Balance Sheet
Total Assets	82.67M	72.31M	67.42M	64.60M	65.35M	42.19M
Cash, Cash Equivalents and Short-Term Investments	13.25M	7.75M	8.15M	14.18M	25.32M	7.48M
Total Debt	58.89K	67.99K	7.11K	23.03K	34.62K	72.55K
Total Liabilities	5.95M	2.85M	3.06M	2.63M	2.02M	1.22M
Stockholders Equity	76.72M	69.45M	64.35M	61.98M	63.33M	40.96M
Cash Flow
Free Cash Flow	-2.29M	-2.74M	-3.33M	-2.83M	-1.98M	-1.86M
Operating Cash Flow	-2.25M	-2.74M	-2.46M	-2.73M	-1.97M	-1.84M
Investing Cash Flow	-5.00M	-5.09M	-4.98M	-10.58M	-5.86M	-5.21M
Financing Cash Flow	10.48M	8.37M	6.03M	-15.84K	26.43M	5.73K

Aurion Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.48
• 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:AU, the sentiment is Neutral. The current price of 1.48 is above the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.20, and above the 200-day MA of 0.95, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 53.04 is Neutral, neither overbought nor oversold. The STOCH value of 28.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:AU.

Aurion Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNG	78 Outperform	C$253.52M	11.10	13.91%	2.78%	23.58%	-21.41%
SOMA	66 Neutral	C$215.77M	19.33	58.09%	―	12.05%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AU	58 Neutral	C$224.74M	-36.15	-7.79%	―	―	-105.98%
RVG	54 Neutral	C$201.66M	-15.13	-22.63%	―	―	-6.54%
CBR	53 Neutral	C$203.04M	-16.74	-82.70%	―	―	-9300.00%
NCAU	49 Neutral	C$202.88M	-46.67	-5.92%	―	―	-7.14%

Aurion Resources Corporate Events

Aurion Resources Extends Gold Mineralization at Risti Property

Aurion Resources Ltd. has announced the initial results from its autumn drilling program at the Kaaresselkä area of the Risti property in Finland, revealing significant gold mineralization. The drill program has extended the mineralized system by approximately 100 meters at depth, with results showing intercepts of 3.72 g/t Au over 10.35 meters and 1.19 g/t Au over 15.00 meters. These findings suggest a potentially extensive gold mineralized system, with further results pending for over 20 holes. The ongoing drilling aims to explore potential extensions of the mineralized system, which could enhance Aurion’s industry positioning and provide valuable insights for stakeholders.