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Element 29 Resources, Inc. (TSE:ECU)
:ECU

Element 29 Resources (ECU) AI Stock Analysis

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Element 29 Resources

(ECU)

Rating:42Neutral
Price Target:
Element 29 Resources' stock faces significant challenges due to its weak financial performance, characterized by zero revenue and ongoing losses. While its balance sheet shows stability, the negative cash flow and reliance on external financing are concerning. The technical analysis reflects a bearish trend, and the valuation is unattractive due to negative earnings and no dividends. However, recent corporate events aimed at improving investor relations and team motivation offer a glimmer of hope for future improvements.

Element 29 Resources (ECU) vs. iShares MSCI Canada ETF (EWC)

Element 29 Resources Business Overview & Revenue Model

Company DescriptionElement 29 Resources Inc. is a mineral exploration and development company primarily focused on advancing copper projects in Peru. The company's flagship properties include the Flor de Cobre and Elida projects, both of which are strategically located in regions known for significant mineral deposits. Element 29 is dedicated to responsible and sustainable mining practices, aiming to meet the growing global demand for copper, a critical component in renewable energy technologies and electrical infrastructure.
How the Company Makes MoneyElement 29 Resources generates revenue primarily through the exploration and development of copper mining projects. The company aims to discover and define copper deposits that can be economically extracted and sold in the global minerals market. Revenue streams include the potential sale of copper concentrate, partnerships or joint ventures with larger mining companies, and the sale of mining rights or interests in its projects. Additionally, Element 29 may raise capital through strategic investments or public offerings to fund exploration and development activities, adding value to its mineral properties and increasing its market valuation.

Element 29 Resources Financial Statement Overview

Summary
Element 29 Resources faces significant financial challenges with no revenue and consistent net losses. While the balance sheet reflects financial stability with low leverage, the cash flow analysis highlights reliance on external financing without operational cash generation. The company's financial position suggests a need for strategic shifts to achieve sustainable growth.
Income Statement
25
Negative
The company consistently reports zero revenue, indicating a lack of operational income. The TTM shows increasing net losses and negative EBIT, illustrating a challenging profitability scenario. The absence of revenue growth rates further highlights stagnant or non-existent core business growth.
Balance Sheet
60
Neutral
The company maintains a positive stockholders' equity with a strong equity ratio, indicating financial stability. Low total debt suggests minimal leverage risks. However, declining total assets and persistent negative net income may pose long-term sustainability concerns.
Cash Flow
30
Negative
The company has negative free cash flow and operating cash flow, indicating cash outflow challenges. Although the firm has been able to generate financing cash flows, the reliance on external funding is a potential risk given the lack of operational cash inflows.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.000.00
Gross Profit
-58.94K-39.67K-17.76K-5.14K0.00
EBIT
-2.00M1.93M-3.73M-2.92M-2.03M
EBITDA
-7.08M-1.36M-3.09M-2.90M-1.61M
Net Income Common Stockholders
-7.15M-1.92M-5.24M-2.91M-2.08M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.19M1.23M1.08M7.83M6.22M
Total Assets
13.30M15.93M14.54M17.80M12.50M
Total Debt
13.61K43.76K40.00K40.00K40.00K
Net Debt
-1.18M-1.18M-1.04M-7.79M-6.18M
Total Liabilities
459.39K177.01K460.74K791.34K240.94K
Stockholders Equity
12.84M15.75M14.08M17.01M12.26M
Cash FlowFree Cash Flow
-1.31M-3.26M-7.47M-5.20M-2.39M
Operating Cash Flow
-1.31M-1.86M-2.23M-2.01M-1.78M
Investing Cash Flow
-2.31M-1.38M-5.25M-3.22M-306.01K
Financing Cash Flow
3.58M3.39M720.00K6.84M7.88M

Element 29 Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.56
Price Trends
50DMA
0.41
Positive
100DMA
0.44
Positive
200DMA
0.43
Positive
Market Momentum
MACD
0.03
Negative
RSI
65.95
Neutral
STOCH
61.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ECU, the sentiment is Positive. The current price of 0.56 is above the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.41, and above the 200-day MA of 0.43, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 65.95 is Neutral, neither overbought nor oversold. The STOCH value of 61.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ECU.

Element 29 Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSLUN
75
Outperform
$12.38B25.632.66%2.45%-8.36%-200.42%
TSIVN
69
Neutral
$15.13B25.509.67%137.28%
TSFM
67
Neutral
$18.00B94.381.22%-13.79%
TSERO
64
Neutral
$2.24B76.422.54%16.82%-67.73%
TSCS
64
Neutral
$5.92B52.792.71%37.30%
57
Neutral
$7.22B3.15-4.49%5.63%0.82%-49.15%
TSECU
42
Neutral
C$69.55M-52.23%-217.22%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ECU
Element 29 Resources
0.57
0.29
103.57%
TSE:ERO
Ero Copper
21.67
-6.18
-22.19%
TSE:CS
Capstone Copper
7.92
-1.30
-14.10%
TSE:FM
First Quantum Minerals
21.51
4.51
26.53%
TSE:IVN
Ivanhoe Mines
11.25
-6.74
-37.47%
TSE:LUN
Lundin Mining
14.37
-0.25
-1.73%

Element 29 Resources Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Element 29 Resources Boosts U.S. Investor Relations and Incentivizes Team
Positive
Feb 10, 2025

Element 29 Resources Inc. has engaged Torrey Hills Capital to boost its visibility among investment professionals in the United States. This strategic move aims to enhance the company’s market position and attract potential investors. Additionally, Element 29 has granted stock options, restricted share units, and deferred share units to its team, aligning with its incentive plans to retain and motivate its workforce as it continues its exploration efforts in Perú.

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.