Element 29 Resources (ECU) AI Stock Analysis

• Market Cap: C$194.38M
• Dividend Yield: N/A
• Average Volume (3M): 67.80K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.68
• Revenue Growth: N/A
• EPS Growth: 71.30%
• Country: CA
• Employees: 1
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): >-0.01
• Shares Outstanding: 155,503,480
• 10 Day Avg. Volume: 110,413
• 30 Day Avg. Volume: 67,800
• PEG Ratio: -0.05
• Price to Book (P/B): 5.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -53.27
• 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: 55 Neutral
• Price Target: C$1.50 ▲(38.89% Upside)

The score is held back primarily by weak financial performance (no revenue, ongoing losses, and negative free cash flow despite a low-debt balance sheet). Technicals are a meaningful positive with the stock above major moving averages and a positive MACD, while valuation is constrained by negative earnings and no dividend. A positive exploration acceleration event adds modest support but does not offset the current cash-burn profile.

Positive Factors

Low leverage / balance sheet flexibility

Extremely low debt and roughly $23.4M of equity provide durable financial flexibility for multi‑month exploration programs, reducing near‑term refinancing risk and allowing management to fund drilling and technical studies without immediate leverage pressure. This supports continuity of project advancement while cash burn continues.

Exploration acceleration

Adding a third drill rig is a structural operational step that increases the pace of resource definition and geologic de‑risking over quarters, shortening the timeline to a maiden resource or upgraded estimates. That progress materially affects project valuation drivers and strategic options beyond short‑term price moves.

Improving loss trend

Net losses declining from roughly $7.1M (2024) to about $2.4M TTM suggests improving cost control or more efficient capital deployment in exploration. If sustained, this structural improvement reduces future funding needs and the pace of dilution risk while management advances project milestones.

Negative Factors

Pre‑revenue business model

Being pre‑commercial and without revenue means long lead times to monetize projects and persistent reliance on external capital. This structural model elevates execution risk: value is contingent on exploration success and permitting, not operating cash flow, making returns uncertain over the next several quarters.

Persistent negative cash flow

Consistently negative operating and free cash flow creates an enduring funding requirement; accelerating drilling likely increases cash burn. Over a multi‑month horizon this necessitates equity or debt raises, raising dilution risk and potentially constraining continuous exploration if markets tighten.

Negative returns and dilution risk

A sustained negative ROE indicates deployed capital has not generated value, increasing the likelihood management must raise additional capital to fund operations. Recurrent fund raises in a pre‑revenue miner typically dilute shareholders and can limit long‑term investor returns absent a clear resource milestone.

Element 29 Resources Business Overview & Revenue Model

Company Description

Element 29 Resources Inc. acquires, explores for, evaluates, and develops mineral properties in Peru. The company primarily explores for copper, molybdenum, gold, silver, lead, zinc, and other deposits. Its flagship property is the Flor de Cobre project comprising seven mining concessions and two concession applications covering an area of approximately 1,927 hectares located in the Southern Peru. The company also holds 100% interests in the Elida project that includes 28 mining concessions covering an area of approximately 19,210 hectares located in the province of Ocros; the Pahuay Copper Skarn project covering an area of approximately 700 hectares located to the south of Lima; and Muñaorjo copper project covering an area of 1,000 hectares located in Peru. Element 29 Resources Inc. was incorporated in 2017 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Element 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

Pre-revenue profile with persistent losses and negative gross profit, plus structurally negative operating and free cash flow indicating ongoing funding needs. The balance sheet is a key offset (very low leverage and sizable equity), but returns remain negative and cash burn is a material risk.

Income Statement

The company reports no revenue across the annual periods provided and in TTM (Trailing-Twelve-Months), indicating it is still pre-commercial. Losses are persistent (TTM net loss of about $2.4M; 2024 net loss of about $7.1M) and gross profit is negative, suggesting ongoing operating costs without an offsetting revenue base. A positive sign is that losses narrowed meaningfully from 2024 to TTM, but overall profitability remains weak and highly dependent on future project development rather than current operations.

Balance Sheet

The balance sheet is a relative strength: leverage is extremely low (TTM debt-to-equity ~0.004) and equity remains sizable (TTM equity ~$23.4M; assets ~$23.7M), which supports financial flexibility. However, returns on equity are consistently negative (TTM ROE around -15%; materially worse in 2024), reflecting ongoing losses and value dilution risk if additional capital is needed. In short, the company is lightly levered but not yet generating returns on its asset base.

Cash Flow

Cash generation is weak, with operating cash flow negative in every period shown (TTM about -$1.5M) and free cash flow also negative (TTM about -$3.0M). The latest TTM free cash flow deterioration versus the prior year (free cash flow growth deeply negative) highlights increased cash burn, likely tied to exploration/development activity. A modest positive is that free cash flow is not worse than accounting earnings (free cash flow-to-net income > 1), but the overall profile still reflects ongoing funding needs until revenues begin.

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	-56.19K	-58.94K	-39.67K	-17.76K	-5.14K	0.00
EBITDA	-2.47M	-7.08M	-1.36M	-3.09M	-2.90M	-1.61M
Net Income	-2.38M	-7.15M	-1.92M	-5.24M	-2.91M	-2.08M
Balance Sheet
Total Assets	23.67M	13.30M	15.93M	14.54M	17.80M	12.50M
Cash, Cash Equivalents and Short-Term Investments	9.65M	1.19M	1.23M	1.10M	7.83M	6.22M
Total Debt	82.48K	13.61K	43.76K	40.00K	40.00K	40.00K
Total Liabilities	251.45K	459.39K	177.01K	460.74K	791.34K	240.94K
Stockholders Equity	23.41M	12.84M	15.75M	14.08M	17.01M	12.26M
Cash Flow
Free Cash Flow	-3.01M	-1.31M	-3.26M	-7.47M	-5.20M	-2.39M
Operating Cash Flow	-1.51M	-1.31M	-1.86M	-2.23M	-2.01M	-1.78M
Investing Cash Flow	-3.27M	-2.31M	-1.38M	-5.25M	-3.22M	-306.01K
Financing Cash Flow	11.85M	3.58M	3.39M	720.00K	6.84M	7.88M

Element 29 Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.08 is below the 20-day moving average (MA) of 1.21, below the 50-day MA of 1.10, and above the 200-day MA of 0.74, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 53.13 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ECU	55 Neutral	C$194.38M	-64.74	-13.14%	―	―	71.30%
LA	52 Neutral	C$516.58M	-115.20	4.21%	―	―	-41.70%
ATCU	51 Neutral	C$124.36M	-85.81	-1.45%	―	―	―
GCU	49 Neutral	C$233.66M	29.79	―	―	128.86%	―
HI	34 Underperform	C$147.57M	-7.96	-33.08%	―	―	22.47%

Element 29 Resources Corporate Events

Element 29 Extends High-Grade Copper Mineralization at Elida with Record Drill Intercepts

Element 29 Resources has reported its longest and highest-grade drill intercepts to date at the Elida porphyry copper-molybdenum-silver deposit in central Peru, with hole ELID037 returning 1,489 metres grading 0.58% CuEq from surface, including 1,152 metres at 0.64% CuEq and several higher-grade sub-intervals that demonstrate increasing copper grades at depth. These results, which validate a large low-resistivity geophysical anomaly and materially expand the interpreted mineralized footprint, support the potential for significant resource growth and a deeper high-grade copper core, as the company advances a 7,000-metre drilling program in 2025–2026 aimed at expanding and upgrading the mineral resource, with an updated resource estimate planned upon completion and additional drilling already envisioned for early 2026.

The most recent analyst rating on (TSE:ECU) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Element 29 Resources stock, see the TSE:ECU Stock Forecast page.

Element 29 Secures Key Environmental Certification to Expand Drilling at Elida Copper Project in Peru

Element 29 Resources has received Declaración de Impacto Ambiental (DIA) environmental certification from Peru’s Ministry of Energy and Mines for its Elida porphyry Cu-Mo-Ag deposit, a key step toward obtaining a new drilling permit that would significantly expand the number of authorized drill platforms from 20 to 40 and extend the timeframe for exploration. Together with a recently signed five-year access agreement with the host community and ongoing drilling under its existing permit, the approval advances the company’s ability to continue exploring beyond its current pit-constrained mineral resource estimate and systematically evaluate the larger hydrothermal alteration footprint at Elida, reinforcing the project’s development potential and the company’s longer-term growth prospects in a strong market for copper, molybdenum and silver.

The most recent analyst rating on (TSE:ECU) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on Element 29 Resources stock, see the TSE:ECU Stock Forecast page.