tiprankstipranks
Trending News
More News >
Defiance Silver (TSE:DEF)
:DEF

Defiance Silver (DEF) AI Stock Analysis

Compare
18 Followers

Top Page

TS

Defiance Silver

(DEF)

45Neutral
Defiance Silver's overall stock score reflects significant financial challenges, including a lack of revenue and ongoing losses, partially offset by a strong equity position and no debt. Recent corporate events suggest a proactive approach to improving operations and financial health, though technical analysis and valuation metrics remain areas of concern. The stock's future performance hinges on addressing financial weaknesses and successfully leveraging strategic initiatives.

Defiance Silver (DEF) vs. S&P 500 (SPY)

Defiance Silver Business Overview & Revenue Model

Company DescriptionDefiance Silver Corp (DEF) is a Canada-based resource company primarily engaged in the acquisition, exploration, and development of mineral properties rich in silver and other precious metals. Operating within the mining sector, Defiance Silver focuses on advancing its projects located in Mexico, one of the world's most prolific mining regions. The company's core projects include the San Acacio Silver Deposit and the Tepal Gold/Copper Project, which are strategically positioned to leverage high-grade mineralization and existing mining infrastructure.
How the Company Makes MoneyDefiance Silver Corp generates revenue primarily through the exploration and development of its mineral properties, with a focus on silver, gold, and copper. The company aims to advance its projects to the stage where they can be sold, partnered, or taken into production. Key revenue streams include the potential sale of mineral rights, joint ventures, or extraction of resources. Significant partnerships with other mining companies or investors can also contribute to earnings by providing the capital and expertise necessary to advance project development. The company's earnings are influenced by factors such as commodity prices, exploration success, and operational efficiency.

Defiance Silver Financial Statement Overview

Summary
Defiance Silver faces significant challenges with no revenue and sustained losses impacting its financial health. Despite a strong balance sheet with no debt, continuous cash deficits and reliance on external financing represent critical risks. The company needs to achieve operational profitability to ensure long-term viability.
Income Statement
10
Very Negative
Defiance Silver's income statement reveals persistent financial challenges, characterized by zero revenue generation and consistent operating losses over the periods analyzed. There are no signs of revenue growth, and the company has been unable to generate any gross or net profit margins, indicating significant operational inefficiencies and a lack of market penetration.
Balance Sheet
75
Positive
The balance sheet of Defiance Silver is relatively strong, with no total debt, resulting in a debt-to-equity ratio of zero, which is a favorable indicator of financial stability. The company maintains a high equity ratio, reflecting solid capitalization. Despite these strengths, the lack of revenue and consistent net losses pose a risk to long-term sustainability.
Cash Flow
40
Negative
The cash flow statement indicates negative free cash flow and operating cash flow, suggesting cash burn issues. The company's free cash flow to net income ratio is negative, highlighting an inability to convert net income into cash flow due to persistent losses. While financing activities have provided some liquidity, reliance on external funding is a potential concern.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
0.000.000.000.00
EBIT
-1.59M-2.11M-3.79M-4.11M-2.95M-1.11M
EBITDA
-1.44M-2.35M0.000.000.000.00
Net Income Common Stockholders
-3.09M-2.35M-2.49M-3.86M-2.94M-1.25M
Balance SheetCash, Cash Equivalents and Short-Term Investments
78.86K265.83K4.56M11.78M20.83M569.03K
Total Assets
12.63M42.27M41.93M41.56M43.04M16.13M
Total Debt
1.21M0.000.000.000.001.22M
Net Debt
1.13M-265.83K-4.56M-11.78M-20.83M649.42K
Total Liabilities
3.09M865.71K1.33M1.44M1.31M2.12M
Stockholders Equity
9.54M41.41M40.60M40.12M41.73M14.01M
Cash FlowFree Cash Flow
-1.33M-1.46M-9.07M-9.46M-7.79M-2.94M
Operating Cash Flow
-2.02M-1.46M-2.46M-2.87M-2.96M-1.32M
Investing Cash Flow
-5.70M-5.38M-6.62M-6.59M-4.86M-1.63M
Financing Cash Flow
5.72M2.54M1.86M411.28K28.08M3.38M

Defiance Silver Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.24
Price Trends
50DMA
0.25
Negative
100DMA
0.23
Positive
200DMA
0.24
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
50.90
Neutral
STOCH
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DEF, the sentiment is Positive. The current price of 0.24 is above the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.25, and below the 200-day MA of 0.24, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DEF.

Defiance Silver Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSVML
54
Neutral
C$60.76M-23.07%23.08%
TSSM
50
Neutral
C$69.75M-9.93%95.16%
49
Neutral
$1.96B-1.15-21.28%3.71%1.17%-30.86%
TSDEF
45
Neutral
C$69.77M-6.96%-21.74%
TSSSV
44
Neutral
C$69.30M-16.16%-61.86%
41
Neutral
C$35.26M-6.12%19.69%
TSOCG
37
Underperform
C$80.12M-86.62%-11.20%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DEF
Defiance Silver
0.24
-0.06
-20.00%
TSE:SSV
Southern Silver Exploration
0.21
-0.03
-12.50%
TSE:OCG
Outcrop Gold Corp
0.21
-0.02
-8.70%
TSE:VML
Viscount Mining
0.55
0.31
129.17%
TSE:SSVR
Summa Silver Corp
0.29
-0.10
-24.68%
TSE:SM
Sierra Madre Gold & Silver Ltd.
0.62
0.20
47.62%

Defiance Silver Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Defiance Silver Appoints New VP of Operations and Issues Service Shares
Positive
May 1, 2025

Defiance Silver Corp. has appointed Armando Vazquez as Vice President of Operations, effective May 1, 2025. Vazquez, who has been a senior consultant for the company since 2020, brings over 14 years of experience in exploration geology and will oversee operational execution across Defiance’s projects. This appointment is expected to enhance the company’s exploration strategies and drive long-term value for shareholders. Additionally, Defiance has issued common shares as part of a services agreement, which is considered a related party transaction but does not affect control or create new insiders.

Spark’s Take on TSE:DEF Stock

According to Spark, TipRanks’ AI Analyst, TSE:DEF is a Neutral.

Defiance Silver faces substantial financial challenges with a lack of revenue and ongoing losses. However, its strong equity position and strategic acquisitions present potential long-term growth opportunities. Current technical indicators reflect neutral to slightly bearish sentiment, and valuation metrics remain unattractive. Recent corporate events provide positive momentum, but financial performance remains a significant concern.

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

M&A TransactionsBusiness Operations and Strategy
Defiance Silver to Acquire Green Earth Metals, Expanding Mexican Mining Portfolio
Positive
Apr 7, 2025

Defiance Silver Corp. has entered into a non-binding letter of intent to acquire Green Earth Metals Inc., a company with a portfolio of copper-gold-silver-molybdenum projects in Mexico’s Sonoran Desert. This strategic acquisition aligns with Defiance’s core strategy and aims to enhance its asset base and exploration potential, particularly in a region known for significant copper-gold deposits. The transaction is expected to strengthen Defiance’s industry positioning and commitment to unlocking shareholder value.

Spark’s Take on TSE:DEF Stock

According to Spark, TipRanks’ AI Analyst, TSE:DEF is a Neutral.

Defiance Silver’s overall stock score reflects its significant financial challenges, including a lack of revenue and consistent losses, offset partially by a strong equity position and no debt. While technical analysis shows some positive momentum, valuation metrics are unfavorable due to the lack of profitability. Recent corporate events provide a more positive outlook by strengthening its financial position and market engagement.

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

M&A TransactionsBusiness Operations and Strategy
Defiance Silver Corp. to Acquire Green Earth Metals, Expanding Mexican Mining Portfolio
Positive
Apr 7, 2025

Defiance Silver Corp. has announced a strategic acquisition of Green Earth Metals Inc., a company with a portfolio of copper-gold-silver-molybdenum projects in Mexico’s Sonoran Desert. This acquisition aligns with Defiance’s strategy to enhance its asset base and exploration potential, reinforcing its commitment to unlocking value for shareholders. The acquired projects are located in a prime mining jurisdiction near major producing mines, offering significant exploration upside with drill permits already in place.

Spark’s Take on TSE:DEF Stock

According to Spark, TipRanks’ AI Analyst, (TSE:DEF) is a Neutral.

Defiance Silver’s overall stock score reflects its significant financial challenges, including a lack of revenue and consistent losses, offset partially by a strong equity position and no debt. While technical analysis shows some positive momentum, valuation metrics are unfavorable due to the lack of profitability. Recent corporate events provide a more positive outlook by strengthening its financial position and market engagement.

To see Spark’s full report on (TSE:DEF) stock, click here.

Business Operations and Strategy
Defiance Silver Enhances Investor Relations and Announces Stock Incentives
Positive
Feb 28, 2025

Defiance Silver Corp. has entered into an agreement with Capital Analytica for investor relations and communication services, which will enhance its market engagement and visibility. Additionally, the company has announced the grant of various stock-based incentives to employees, directors, and consultants, which could align interests and potentially improve performance.

Private Placements and FinancingBusiness Operations and Strategy
Defiance Silver Completes Upsized Private Placement, Strengthening Exploration Efforts
Positive
Feb 13, 2025

Defiance Silver Corp. has successfully closed the third and final tranche of its upsized private placement, raising a total of C$3,267,800. The funds will be used for exploration and general working capital, with the offering still awaiting final approval from the TSX Venture Exchange. This strategic move supports Defiance’s ongoing exploration projects and bolsters its financial position for future development.

Private Placements and Financing
Defiance Silver Finalizes Upsized Private Placement with C$3.27M Raised
Positive
Feb 13, 2025

Defiance Silver Corp. has successfully closed the third and final tranche of its upsized non-brokered private placement, raising a total of C$3,267,800. The funds from this offering will be allocated towards exploration activities and general working capital, with the issuance of units comprising common shares and warrants, subject to a four-month hold period.

Private Placements and FinancingBusiness Operations and Strategy
Defiance Silver Progresses with Private Placement to Fund Exploration
Positive
Feb 11, 2025

Defiance Silver Corp. has successfully closed the second tranche of its non-brokered private placement, raising C$1,560,600, adding to the C$732,200 from the first tranche, with plans to conclude a third tranche for a total of C$3,300,000. The funds will support exploration and general working capital, and the offering remains subject to TSX Venture Exchange approval, marking a pivotal step in the company’s strategic growth within the mining sector.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.