Element 29 Resources (ECU) AI Stock Analysis

• Market Cap: C$185.05M
• Dividend Yield: N/A
• Average Volume (3M): 67.80K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.87
• 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$1.00 ▼(-7.41% Downside)

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

Strategic Investor Engagement

Engaging with Torrey Hills Capital to enhance U.S. investor relations can improve market position and attract potential investors, supporting long-term growth.

Team Incentivization

Aligning incentives with team performance can improve motivation and retention, crucial for sustaining exploration efforts and achieving strategic goals.

Balance Sheet Stability

A strong equity ratio and positive stockholders' equity suggest financial stability, providing a solid foundation for future growth and investment.

Negative Factors

Zero Revenue

Consistent zero revenue highlights a lack of operational income, posing significant challenges to achieving profitability and sustainable business growth.

Negative Cash Flow

Negative cash flow indicates reliance on external funding, which can be risky if operational cash inflows do not improve, threatening long-term viability.

Increasing Net Losses

Rising net losses and negative EBIT reflect ongoing profitability challenges, necessitating strategic shifts to achieve financial sustainability.

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	-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 1.09, above the 50-day MA of 1.04, and above the 200-day MA of 0.67, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 59.37 is Neutral, neither overbought nor oversold. The STOCH value of 44.47 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$185.05M	-61.58	-13.14%	―	―	71.30%
TM	52 Neutral	C$21.09M	-5.89	―	―	-100.00%	35.19%
CCI	42 Neutral	C$54.62M	-21.09	-78.57%	―	―	-164.42%
HI	34 Underperform	C$106.99M	-6.33	-33.08%	―	―	22.47%

Element 29 Resources Corporate Events

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.

Element 29 Accelerates Exploration at Elida Deposit with Third Drill Rig

Element 29 Resources has mobilized a third drill rig to its Elida Porphyry Cu-Mo-Ag Deposit in Perú, significantly accelerating its exploration efforts. This move aims to expand the current drill program, potentially enhancing the mineral resource and advancing the project towards a major copper discovery. The ongoing drilling campaign seeks to unlock significant resource growth by testing high-priority targets and exploring beyond the current mineral resource boundaries, with the potential to meaningfully expand resources and deliver value to shareholders.