Azimut Exploration (AZM) AI Stock Analysis

• Market Cap: C$61.22M
• Dividend Yield: N/A
• Average Volume (3M): 59.31K
• Price to Earnings (P/E): 221.7
• Beta (1Y): 0.68
• Revenue Growth: N/A
• EPS Growth: 88.31%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 51
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 100,354,310
• 10 Day Avg. Volume: 79,514
• 30 Day Avg. Volume: 59,312
• PEG Ratio: 0.57
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.54
• 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

• Rating: 55 Neutral
• Price Target: C$0.50 ▼(-18.03%Downside)

Azimut Exploration's overall score is driven by substantial corporate events that enhance future potential and strategic positioning. However, financial performance and valuation concerns, including negative profitability and cash flow issues, weigh heavily on the score. Technical analysis provides a slightly positive outlook, but overall caution is advised due to financial vulnerabilities.

Azimut Exploration Business Overview & Revenue Model

Company Description

Azimut Exploration Inc. is a Canadian mineral exploration company focused on the discovery and development of significant mineral deposits in Quebec. The company primarily operates in the gold, copper, and base metals sectors. Utilizing advanced data analytics and proprietary targeting methodologies, Azimut aims to identify and acquire high-potential exploration projects that offer substantial growth opportunities.

How the Company Makes Money

Azimut 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 faces several financial challenges. Despite a strong gross profit margin and low debt levels, the company suffers from declining revenue, negative net income, and cash flow challenges. Negative profitability and cash flow metrics suggest operational inefficiencies and potential liquidity concerns.

Income Statement

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

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

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.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	362.40K	443.58K	139.56K	107.44K	314.59K	180.03K
Gross Profit	247.00K	307.77K	60.05K	45.45K	254.23K	119.72K
EBITDA	-928.19K	-886.00K	-1.74M	-1.70M	-1.49M	-1.87M
Net Income	-312.86K	42.59K	-1.83M	1.62M	-551.00K	-303.17K
Balance Sheet
Total Assets	55.55M	57.66M	46.67M	54.21M	51.86M	18.31M
Cash, Cash Equivalents and Short-Term Investments	5.85M	11.77M	3.32M	15.94M	27.64M	5.83M
Total Debt	20.87K	50.67K	105.16K	73.44K	118.66K	364.72K
Total Liabilities	6.08M	7.90M	3.14M	7.03M	7.53M	3.78M
Stockholders Equity	49.47M	49.76M	43.53M	47.18M	44.33M	14.53M
Cash Flow
Free Cash Flow	-13.48M	-11.48M	-17.58M	-15.02M	-13.38M	-8.91M
Operating Cash Flow	-1.11M	-512.30K	-735.88K	1.77M	-846.53K	-837.72K
Investing Cash Flow	-1.69M	1.08M	-10.14M	-15.53M	-9.97M	-5.98M
Financing Cash Flow	8.16K	7.88M	158.74K	158.20K	32.63M	9.67M

Azimut Exploration Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.61
• 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:AZM, the sentiment is Positive. The current price of 0.61 is below the 20-day moving average (MA) of 0.62, above the 50-day MA of 0.59, and above the 200-day MA of 0.59, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.07 is Neutral, neither overbought nor oversold. The STOCH value of 35.79 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$14.81B	9.70	6.36%	5.32%	4.12%	-71.24%
AZM	55 Neutral	C$61.22M	221.74	-0.64%	―	―	88.31%
PGE	53 Neutral	C$46.59M	―	-79.38%	―	―	34.27%
CCCM	53 Neutral	C$69.92M	―	-3.76%	―	―	-192.50%
RTG	46 Neutral	C$57.35M	―	-82.08%	―	―	-5.00%
GENM	40 Underperform	$83.14M	―	48.03%	―	―	3.28%
ETL	39 Underperform	$60.37M	―	-20.30%	―	―	3.30%

Azimut Exploration Corporate Events

Azimut and KGHM Initiate Exploration at Kukamas, Confirm High-Grade PGE

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.

Azimut Exploration Unveils Significant Antimony-Gold Discovery at Wabamisk

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.

Azimut Exploration Secures $8.7 Million to Boost Mineral Exploration

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.

Azimut Exploration Secures Strategic Investment from Centerra Gold

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.

Azimut Exploration Advances Antimony-Gold Drilling at Wabamisk Property

Azimut Exploration Inc. has completed an expanded diamond drilling program on its Wabamisk Property, focusing on the antimony-gold Fortin Zone. The program, which concluded with 51 drill holes over 6,211 meters, revealed antimony sulphides in 33 holes, indicating a promising mineralized zone. This development comes amid rising antimony prices due to global supply shortages, positioning Azimut strategically in a market with increasing demand. The findings suggest potential for further exploration and development, with plans for an infill and expansion drilling program in the summer.

Azimut Exploration Initiates Scoping Study Amid Promising Gold Prospects

Azimut Exploration Inc. has announced the initiation of a scoping study for the Patwon Gold Zone at its Elmer Project, driven by a favorable gold market. The study aims to evaluate potential mining scenarios, leveraging the project’s exploration upside highlighted by recent prospecting results. These results have revealed significant polymetallic mineralization, suggesting the potential for expanding the resource base. The company’s recent work program has identified new copper-gold prospects and confirmed high-grade mineralization across several zones, enhancing the project’s attractiveness and potential for stakeholders.