Element 29 Resources (ECU) AI Stock Analysis

• Market Cap: C$64.73M
• Dividend Yield: N/A
• Average Volume (3M): 72.60K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.03
• Revenue Growth: N/A
• EPS Growth: -217.22%
• Country: CA
• Employees: 1
• Sector: Energy
• Sector Strength: 55
• Industry: Copper
• EPS (TTM): >-0.01
• Shares Outstanding: 119,872,680
• 10 Day Avg. Volume: 77,661
• 30 Day Avg. Volume: 72,598
• PEG Ratio: 2.03
• Price to Book (P/B): 4.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.02
• 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: 42 Neutral
• 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 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

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

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

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

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	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	-71.51K	-58.94K	-39.67K	-17.76K	-5.14K	0.00
EBITDA	-2.41M	-7.08M	-1.36M	-3.09M	-2.90M	-1.61M
Net Income	-7.55M	-7.15M	-1.92M	-5.24M	-2.91M	-2.08M
Balance Sheet
Total Assets	13.76M	13.30M	15.93M	14.54M	17.80M	12.50M
Cash, Cash Equivalents and Short-Term Investments	1.29M	1.19M	1.23M	1.08M	7.83M	6.22M
Total Debt	4.67K	13.61K	43.76K	40.00K	40.00K	40.00K
Total Liabilities	292.69K	459.39K	177.01K	460.74K	791.34K	240.94K
Stockholders Equity	13.47M	12.84M	15.75M	14.08M	17.01M	12.26M
Cash Flow
Free Cash Flow	-2.68M	-1.31M	-3.26M	-7.47M	-5.20M	-2.39M
Operating Cash Flow	-1.57M	-1.31M	-1.86M	-2.23M	-2.01M	-1.78M
Investing Cash Flow	-2.37M	-2.31M	-1.38M	-5.25M	-3.22M	-306.01K
Financing Cash Flow	4.40M	3.58M	3.39M	720.00K	6.84M	7.88M

Element 29 Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.54
• 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 0.54 is above the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.50, and above the 200-day MA of 0.46, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.79 is Neutral, neither overbought nor oversold. The STOCH value of 69.23 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 *	52 Neutral	C$2.90B	-1.06	-3.46%	5.87%	3.01%	-47.13%
ECU	42 Neutral	C$64.73M	―	-52.23%	―	―	-217.22%
CCI	42 Neutral	C$17.46M	―	-48.32%	―	―	-50.88%
TM	39 Underperform	C$17.97M	―	-81.80%	―	―	―
HI	34 Underperform	C$77.32M	―	-33.38%	―	―	-159.13%
QCCUF		$19.84M	―	-229.96%	―	―	―
VCUFF		$30.82M	―	-49.06%	―	―	―

Element 29 Resources Corporate Events

Element 29 Resources Boosts U.S. Investor Relations and Incentivizes Team

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.