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Azimut Exploration (TSE:AZM)
:AZM
Canadian Market
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Azimut Exploration (AZM) AI Stock Analysis

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Azimut Exploration

(AZM)

Rating:52Neutral
Price Target:
C$0.50
▼(-16.67%Downside)
Azimut Exploration's overall stock score is driven by significant financial and valuation challenges, which are partially offset by positive corporate events. While technical indicators show some stability, the high negative P/E ratio and operational inefficiencies weigh heavily on the score.

Azimut Exploration (AZM) vs. iShares MSCI Canada ETF (EWC)

Azimut Exploration Business Overview & Revenue Model

Company DescriptionAzimut Exploration Inc. engages in the acquisition, exploration, and evaluation of mineral properties in Canada. The company explores for copper, gold, zinc, silver, cobalt, tungsten, rare earth elements, uranium, chromium, nickel, and platinum group elements. It holds interest in the Elmer property located in the James Bay region. The company was incorporated in 1986 and is based in Longueuil, Canada.
How the Company Makes MoneyAzimut Exploration makes money through the acquisition, exploration, and development of mineral properties, with a primary focus on gold and copper. The company generates revenue through partnerships and joint ventures with major mining companies, which provide funding for exploration activities in exchange for interest in the projects. Additionally, Azimut may earn income through the sale or optioning of exploration properties to other companies. Strategic alliances and partnerships are essential to Azimut's business model, enabling the company to leverage its expertise in data analytics and target identification to secure funding and share risks associated with exploration activities.

Azimut Exploration Financial Statement Overview

Summary
Azimut Exploration's financial performance is challenged by a negative net profit margin due to a net loss, declining revenue, and negative cash flow metrics. The strong gross profit margin and low debt levels provide some stability, but operational inefficiencies and liquidity concerns are significant issues.
Income Statement
45
Neutral
Azimut Exploration's income statement highlights several challenges. The TTM (Trailing-Twelve-Months) gross profit margin stands at 68.16%, which is strong, but the company has experienced a net loss in the TTM, resulting in a negative net profit margin of -86.44%. The revenue has decreased by 18.30% compared to the previous year, indicating a downward trend. The EBIT margin is also negative, reflecting operational inefficiencies.
Balance Sheet
55
Neutral
The balance sheet shows a debt-to-equity ratio of 0.0004, which is favorable as it indicates low leverage. However, the return on equity is negative in the TTM due to the net loss, which is concerning. The equity ratio is high at 89.07%, suggesting strong equity financing. Overall, the company maintains a stable financial position with low debt levels, but profitability is a concern.
Cash Flow
40
Negative
Cash flow analysis reveals negative free cash flow and declining operating cash flow in the TTM. The free cash flow to net income ratio is negative due to the net loss, and the operating cash flow to net income ratio is also negative, indicating challenges in cash generation. These factors highlight potential liquidity issues.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue443.58K139.56K107.44K314.59K180.03K
Gross Profit307.77K60.05K45.45K254.23K119.72K
EBITDA-886.00K-1.74M-1.70M-1.49M-1.87M
Net Income42.59K-1.83M1.62M-551.00K-303.17K
Balance Sheet
Total Assets57.66M46.67M54.21M51.86M18.31M
Cash, Cash Equivalents and Short-Term Investments11.77M3.32M15.94M27.64M5.83M
Total Debt50.67K105.16K73.44K118.66K364.72K
Total Liabilities7.90M3.14M7.03M7.53M3.78M
Stockholders Equity49.76M43.53M47.18M44.33M14.53M
Cash Flow
Free Cash Flow-11.48M-17.58M-15.02M-13.38M-8.91M
Operating Cash Flow-512.30K-735.88K1.77M-846.53K-837.72K
Investing Cash Flow1.08M-10.14M-15.53M-9.97M-5.98M
Financing Cash Flow7.88M158.74K158.20K32.63M9.67M

Azimut Exploration Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.60
Price Trends
50DMA
0.60
Negative
100DMA
0.57
Positive
200DMA
0.60
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
48.99
Neutral
STOCH
42.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AZM, the sentiment is Positive. The current price of 0.6 is below the 20-day moving average (MA) of 0.61, below the 50-day MA of 0.60, and above the 200-day MA of 0.60, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AZM.

Azimut Exploration Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$15.20B9.676.33%5.24%4.05%-66.98%
53
Neutral
C$76.91M-3.76%-192.50%
TSPGE
53
Neutral
C$53.61M-79.38%34.27%
TSAZM
52
Neutral
C$60.33M221.74-4.70%-371.82%
TSRTG
46
Neutral
C$57.35M-82.08%-5.00%
$78.58M-20.30%
$74.21M
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AZM
Azimut Exploration
0.60
0.05
9.09%
TSE:CCCM
C3 Metals
0.77
0.52
208.00%
TSE:PGE
Group Ten Metals
0.23
0.08
53.33%
TSE:RTG
RTG Mining
0.03
-0.01
-25.00%
EEMMF
E3 Lithium
1.05
0.14
15.38%
GENMF
Generation Mining
0.28
0.09
47.37%

Azimut Exploration Corporate Events

Business Operations and Strategy
Azimut Exploration Resumes Drilling at Wabamisk Property
Positive
Jul 9, 2025

Azimut Exploration Inc. has resumed its diamond drilling program to further explore the Fortin antimony-gold Zone on its Wabamisk Property in the James Bay region of Québec. This initiative aims to delineate the mineralized zone over a 1.5-kilometre strike and assess the potential for high-grade gold at depth. The results from the pre-drilling phase have been promising, revealing significant antimony and gold mineralization, which could enhance the company’s position in the mining sector and provide substantial benefits to stakeholders.

M&A TransactionsBusiness Operations and Strategy
Azimut Exploration Expands Elmer Project with K2 Property Acquisition
Positive
Jul 3, 2025

Azimut Exploration Inc. has expanded its Elmer Project by acquiring the K2 Property from Dios Exploration Inc. This acquisition, which includes 103 claims covering 54.3 km², strengthens Azimut’s strategic position along the Lower Eastmain Archean greenstone belt in Quebec. The K2 block, which features 25 gold and copper-gold-silver prospects, extends the Elmer Property by an additional seven kilometers of strike length. This move is expected to enhance the mineral endowment of the Elmer Property and contribute to the 2025 work program, potentially impacting the company’s operations and industry positioning positively.

Business Operations and Strategy
Azimut and KGHM Initiate Exploration at Kukamas, Confirm High-Grade PGE
Positive
May 29, 2025

Azimut Exploration Inc. has announced the launch of a partner-funded exploration campaign on the Kukamas Property in Quebec, in collaboration with KGHM International Ltd. The campaign aims to build on the discovery of the high-grade Perseus Nickel Zone, with a $3.6 million exploration program that includes detailed mapping and 4,000 meters of diamond drilling. Recent assay results confirm significant high-grade PGE content, enhancing the property’s potential value and positioning Azimut as a key player in the exploration of nickel and PGE resources. The Perseus Zone’s open potential and additional exploration targets for gold and copper-gold further underscore the property’s strategic importance.

Business Operations and Strategy
Azimut Exploration Unveils Significant Antimony-Gold Discovery at Wabamisk
Positive
May 22, 2025

Azimut Exploration Inc. has announced promising results from its diamond drilling program at the Fortin Zone of the Wabamisk Property, revealing a substantial antimony-gold discovery. The program, which expanded to 6,396 meters, confirmed significant mineralization with antimony grades exceeding 0.2% in 28 holes. The discovery is set against a backdrop of rising antimony prices due to supply shortages, potentially enhancing Azimut’s market position. The results support further drilling plans and indicate a promising extension of the mineralized zone, which could have significant implications for stakeholders and the company’s future operations.

Private Placements and FinancingBusiness Operations and Strategy
Azimut Exploration Secures $8.7 Million to Boost Mineral Exploration
Positive
May 16, 2025

Azimut Exploration Inc. has successfully closed an $8.7 million private placement, issuing 14,520,666 common shares at $0.60 per share. This funding, which includes strategic investment from Centerra Gold Inc., will support Azimut’s exploration activities on its Wabamisk and Elmer properties and other business developments. Centerra now holds a 9.9% stake in Azimut, reflecting strong support for the company’s exploration strategy and project portfolio. The proceeds will enable Azimut to advance its exploration targets, with significant activity expected in the next year, supported by partner-funded exploration and anticipated tax credits.

Private Placements and FinancingBusiness Operations and Strategy
Azimut Exploration Secures Strategic Investment from Centerra Gold
Positive
Apr 28, 2025

Azimut Exploration Inc. has entered into a subscription agreement with Centerra Gold Inc. for a private placement, raising $5,658,000 through the issuance of 9,430,000 common shares. This strategic investment by Centerra, which will acquire a 9.9% stake in Azimut, will bolster Azimut’s exploration activities in Quebec, particularly on its Wabamisk and Elmer properties. The proceeds will be used for exploration and business development, with significant activity expected in the next 12 months. This partnership strengthens Azimut’s position in the mineral exploration industry and enhances its capacity for greenfield discoveries.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025