Secova Metals (ESAU) AI Stock Analysis

• Market Cap: C$69.32M
• Dividend Yield: N/A
• Average Volume (3M): 502.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.87
• Revenue Growth: N/A
• EPS Growth: 5.05%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): N/A
• Shares Outstanding: 93,675,000
• 10 Day Avg. Volume: 321,710
• 30 Day Avg. Volume: 502,000
• PEG Ratio: 0.47
• Price to Book (P/B): 6.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.88
• 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: 42 Neutral
• Price Target: C$0.70 ▲(0.14% Upside)

The score is primarily driven by weak financial performance (no revenue, widening losses, and ongoing cash burn) and bearish technical positioning (below major moving averages with negative MACD). Valuation provides limited support because the company is loss-making (negative P/E) and there is no dividend yield data.

Positive Factors

Very low leverage

Extremely low debt reduces solvency risk and interest burden, giving management structural flexibility to pursue exploration or development without immediate debt servicing pressure. This durability supports runway and financing optionality over the next several months.

Expanded equity base

A materially larger equity base strengthens the company’s balance sheet, providing a buffer against write-downs and a foundation for capital-intensive exploration. It improves ability to raise additional capital via equity and underpins medium-term project funding capacity.

Business-stage context (exploration)

Operating as an early-stage precious-metals explorer explains pre-revenue losses as part of a capital-investment phase. Structurally, this business model prioritizes resource definition over near-term margins, so persistent losses are intrinsic until commercial production is established.

Negative Factors

Widening net losses

Net losses have more than doubled on a TTM basis, reflecting rising cost intensity without offsetting revenue. Over months this erodes cash reserves and increases the probability and size of future funding rounds, raising dilution and execution risk for shareholders.

Consistent negative cash flow

Sustained negative OCF and FCF indicate the company cannot self-fund operations or exploration, creating structural reliance on external financing. This reduces strategic optionality, increases dilution risk, and pressures project timelines absent new capital injections.

Negative returns on equity

Consistently negative ROE signals the balance sheet is not compounding shareholder value; this structural underperformance makes future capital raises less accretive and raises scrutiny over management’s ability to convert invested capital into profitable operations.

Secova Metals Business Overview & Revenue Model

Company Description

ESGold 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 Money

Secova 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' financials reflect significant challenges, with no revenue, ongoing losses, and liquidity constraints. The high leverage and declining equity position pose risks, requiring strategic improvements for long-term viability.

Income Statement

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

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

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-1.02K	-390.00	0.00	0.00	0.00	0.00
EBITDA	-7.08M	-3.61M	-1.42M	-2.39M	-4.56M	-1.70M
Net Income	-7.12M	-3.64M	-3.69M	-3.71M	-4.83M	-1.72M
Balance Sheet
Total Assets	19.74M	13.35M	7.11M	9.10M	8.77M	3.16M
Cash, Cash Equivalents and Short-Term Investments	10.25M	4.91M	137.01K	80.35K	210.58K	19.95K
Total Debt	40.00K	191.25K	201.25K	40.00K	40.00K	1.07M
Total Liabilities	2.76M	3.14M	3.69M	3.39M	2.58M	2.92M
Stockholders Equity	16.99M	10.21M	3.43M	5.71M	6.18M	239.49K
Cash Flow
Free Cash Flow	-5.64M	-3.68M	-407.30K	-2.10M	-5.05M	-1.09M
Operating Cash Flow	-4.29M	-3.17M	-303.93K	-985.04K	-2.60M	-859.64K
Investing Cash Flow	-1.79M	-946.58K	-103.37K	-1.11M	-2.46M	-227.00K
Financing Cash Flow	15.71M	8.89M	463.96K	1.97M	5.25M	1.10M

Secova Metals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.7 is above the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.68, and below the 200-day MA of 0.75, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 62.23 is Neutral, neither overbought nor oversold. The STOCH value of 81.82 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

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%
RK	61 Neutral	C$58.56M	-117.65	-1.08%	―	―	-142.86%
PNTR	54 Neutral	C$59.68M	-45.05	-72.41%	―	―	-14.77%
PAU	51 Neutral	C$44.75M	-19.08	-30.96%	―	―	5.07%
MRZ	50 Neutral	C$49.58M	-4.43	-1572.16%	―	―	1.38%
EMPS	48 Neutral	C$78.10M	-17.89	-14.82%	―	―	-39.00%
ESAU	42 Neutral	C$69.32M	-6.58	-68.71%	―	―	5.05%