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Secova Metals Corp (TSE:ESAU)
:ESAU

Secova Metals (ESAU) AI Stock Analysis

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Secova Metals

(ESAU)

Rating:46Neutral
Price Target:
Secova Metals faces significant financial challenges, including no revenue and ongoing losses, which are critical risks. However, recent corporate developments like the OTCQB listing offer some potential for improved market exposure and investor interest. The technical analysis shows some positive trends, but the lack of profitability and dividend yield are notable concerns.

Secova Metals (ESAU) vs. iShares MSCI Canada ETF (EWC)

Secova Metals Business Overview & Revenue Model

Company DescriptionESGold Corp., an exploration stage company, engages in the acquisition, exploration, and evaluation of mineral properties in Canada. The company primarily explores for gold and silver deposits. It primarily holds a 100% interest in the Eagle River project that includes 77 claims or 4,354 contiguous hectares located in the Windfall Lake gold district, Quebec. The company also holds interest in the Montauban project, which comprises 65 mining claims and 1 mining concession covering an area of approximately 1,846 hectares situated in the Montauban and Chavigny townships, Quebec. In addition, it holds an option to acquire 50% interests in the Ottawa River project located in Ontario. The company was formerly known as Secova Metals Corp. and changed its name to ESGold Corp. in July 2022. ESGold Corp. was incorporated in 2004 and is headquartered in Vancouver, Canada.
How the Company Makes MoneySecova Metals makes money through the acquisition and exploration of mineral properties, with a primary focus on gold and other precious metals. The company's revenue model is based on increasing the value of its mineral assets through exploration activities, which can lead to potential sales of these assets, joint ventures, or partnerships with larger mining companies. Secova Metals may also generate revenue by selling shares or securing financing from investors to fund its exploration and development projects. The company's earnings are influenced by factors such as mineral discoveries, market demand for precious metals, and successful collaborations with industry partners.

Secova Metals Financial Statement Overview

Summary
Secova Metals faces significant financial challenges with no revenue, ongoing losses, and liquidity constraints. The high leverage and declining equity position pose substantial risks requiring strategic improvements.
Income Statement
20
Very Negative
Secova Metals shows no revenue generation over multiple periods, which is a significant concern for sustainability. Consistent negative EBIT and net income indicate ongoing losses, and the absence of gross profit margins reflects operational challenges.
Balance Sheet
45
Neutral
The company has a moderate equity position relative to its total assets, but the high debt-to-equity ratio suggests potential financial instability. The stockholders' equity has been decreasing, indicating weakening financial strength.
Cash Flow
30
Negative
Negative operating cash flow and free cash flow indicate liquidity challenges. Although the company secures financing, it is not generating enough internal cash flow to sustain operations, highlighting cash flow management issues.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
0.000.000.000.000.000.00
EBIT
-1.30M-1.45M-3.53M-4.48M-1.69M-576.65K
EBITDA
-4.25M-3.67M0.000.000.00-576.65K
Net Income Common Stockholders
-4.28M-3.69M-3.71M-4.90M-1.13M-606.65K
Balance SheetCash, Cash Equivalents and Short-Term Investments
35.20K137.01K80.35K210.58K19.95K2.73K
Total Assets
7.05M7.11M9.10M8.77M3.16M2.50M
Total Debt
191.25K201.25K40.00K40.00K1.07M179.34K
Net Debt
156.05K64.24K-40.35K-170.58K1.05M176.61K
Total Liabilities
3.82M3.69M3.39M2.58M2.92M760.02K
Stockholders Equity
3.24M3.43M5.71M6.18M239.49K1.74M
Cash FlowFree Cash Flow
-1.09M-407.30K-2.10M-5.05M-1.09M-642.18K
Operating Cash Flow
-1.05M-303.93K-985.04K-2.60M-859.64K-642.18K
Investing Cash Flow
-137.76K-103.37K-1.11M-2.46M-227.00K0.00
Financing Cash Flow
1.23M463.96K1.97M5.25M1.10M562.24K

Secova Metals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.69
Price Trends
50DMA
0.49
Positive
100DMA
0.37
Positive
200DMA
0.28
Positive
Market Momentum
MACD
0.07
Negative
RSI
82.50
Negative
STOCH
98.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ESAU, the sentiment is Positive. The current price of 0.69 is above the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.49, and above the 200-day MA of 0.28, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 82.50 is Negative, neither overbought nor oversold. The STOCH value of 98.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ESAU.

Secova Metals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$2.04B-1.15-21.37%3.64%2.88%-30.57%
TSELR
48
Neutral
C$61.76M27.27-24.70%-36.80%-253.47%
46
Neutral
C$49.07M-84.29%5.97%
TSPAU
46
Neutral
C$33.33M-36.72%2.82%
TSCTM
40
Underperform
C$29.18M-15.64%-66.67%
TSBBB
36
Underperform
C$31.99M-65.33%26.55%
$23.01M-27.63%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ESAU
Secova Metals
0.89
0.79
790.00%
TSE:BBB
Brixton Metals
0.06
-0.04
-40.00%
TSE:CTM
Canterra Minerals
0.09
0.03
50.00%
TSE:ELR
Eastern Platinum
0.32
0.08
33.33%
AUCUF
Inflection Resources
0.20
0.07
53.85%
TSE:PAU
Provenance Gold Corp.
0.24
0.16
200.00%

Secova Metals Corporate Events

Regulatory Filings and Compliance
ESGold Corp. Retracts Non-Compliant Reporting and Plans Updated Assessment
Neutral
Feb 13, 2025

ESGold Corp. has retracted non-compliant reporting following a review by the British Columbia Securities Commission, which found that previous reports did not comply with NI 43-101 standards. The company has removed non-compliant disclosures and plans to release an updated Preliminary Economic Assessment that reflects current market conditions, aiming to provide accurate and compliant information to shareholders.

Delistings and Listing ChangesBusiness Operations and Strategy
ESGold Corp. Begins Trading on OTCQB, Expanding U.S. Market Reach
Positive
Feb 7, 2025

ESGold Corp. has announced that its common shares will commence trading on the OTCQB Venture Market in the United States, under the symbol SEKZF, which marks a significant milestone in its expansion strategy. This uplisting is expected to enhance liquidity, broaden exposure to U.S. investors, and ease trading through electronic settlement, thereby strengthening ESGold’s market presence and providing new opportunities for engagement and funding.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.