Gold Reserve (GRZ) AI Stock Analysis

• Market Cap: $238.51M
• Dividend Yield: N/A
• Average Volume (3M): 6.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: N/A
• EPS Growth: 55.93%
• Country: CA
• Employees: 5
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 113,037,415
• 10 Day Avg. Volume: 4,821
• 30 Day Avg. Volume: 6,715
• PEG Ratio: -0.23
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.75
• 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

Gold Reserve's overall score is significantly impacted by its weak financial performance, particularly its profitability challenges and negative cash flows. Although technically the stock shows some short-term upward momentum, the valuation is unattractive due to negative earnings. Recent corporate events introduce both potential risks and strategic benefits, but the overall outlook remains cautious.

Gold Reserve Business Overview & Revenue Model

Company Description

Gold Reserve Inc. is a mining company engaged in the exploration and development of mineral properties. The company is primarily focused on its significant gold and copper project, the Brisas Project, located in Venezuela. Gold Reserve leverages its expertise in mining and geological exploration to identify and develop high-value mineral resources, aiming to create shareholder value through strategic extraction and processing of these minerals.

How the Company Makes Money

Gold Reserve Inc. generates revenue through activities associated with the exploration and development of its mineral properties, particularly the Brisas Project. The company's revenue model is primarily based on the extraction and sale of gold, copper, and other minerals. As a mining entity, its earnings are influenced by factors such as commodity prices, mining efficiency, and operational costs. Additionally, Gold Reserve may engage in partnerships or joint ventures with other mining companies to optimize resource extraction and share technological or financial resources. Any potential legal settlements or arbitration outcomes related to its Venezuelan assets might also contribute to the company's revenue streams.

Gold Reserve Financial Statement Overview

Summary

Gold Reserve faces significant financial challenges, primarily highlighted by its income statement showing substantial profitability issues with a net loss and operational inefficiencies. While the balance sheet is stable with no debt, poor returns on equity due to negative net income are concerning. Cash flow issues persist, indicating struggles in generating cash from operations, despite some positive trends in financing cash flow.

Income Statement

The company shows significant challenges in its income statement. With a net income of -$10.87 million for TTM and no revenue in previous periods, the company faces critical profitability issues. The negative EBIT and EBITDA margins highlight operational inefficiencies, and while there's revenue in the TTM, the growth trajectory is unclear due to lack of prior revenue.

Balance Sheet

The balance sheet is relatively stable with no debt, indicating low financial risk. The equity ratio is strong, reflecting a high proportion of equity. However, negative net income affects ROE, signaling poor returns on shareholder equity.

Cash Flow

The cash flow statement reveals challenges, including negative operating cash flows and free cash flows, indicating the company struggles to generate cash from its operations. However, a positive trend in financing cash flow suggests external funding support.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
287.99K	0.00	0.00	0.00	0.00	0.00
	Gross Profit
287.99K	0.00	0.00	0.00	0.00	0.00
	EBIT
-10.01M	-6.14M	-5.71M	-7.81M	-2.55M	-5.49M
	EBITDA
-10.05M	-6.22M	-6.70M	-7.99M	-6.27M	-7.04M
	Net Income Common Stockholders
-10.87M	-23.12M	-11.48M	-11.82M	-11.52M	-13.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
71.74M	39.07M	42.98M	49.22M	57.50M	62.00M
	Total Assets
116.43M	39.74M	52.94M	60.64M	69.44M	80.27M
	Total Debt
94.49M	0.00	0.00	77.09K	169.91K	255.43K
	Net Debt
33.50M	-8.53M	-15.38M	-49.04M	-57.25M	-61.57M
	Total Liabilities
98.95M	11.16M	1.35M	610.56K	1.01M	984.22K
	Stockholders Equity
15.20M	28.58M	51.59M	60.03M	68.42M	79.28M
Cash Flow		Free Cash Flow
-10.69M	-7.43M	-6.36M	-8.61M	-4.61M	-10.28M
	Operating Cash Flow
-10.69M	-7.43M	-6.36M	-8.61M	-4.56M	-10.27M
	Investing Cash Flow
12.12M	576.09K	-27.37M	313.01K	152.02K	-10.01K
	Financing Cash Flow
49.84M	1.08K	0.00	0.00	0.00	-75.54M

Gold Reserve Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GRZ, the sentiment is Negative. The current price of 2.11 is below the 20-day moving average (MA) of 2.18, below the 50-day MA of 2.55, and below the 200-day MA of 3.05, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 66.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GRZ.

Gold Reserve Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDO	79 Outperform	C$2.52B	13.45	34.73%	―	80.44%	3757.72%
KNT	75 Outperform	C$3.04B	12.09	39.28%	―	105.06%	481.75%
OR	74 Outperform	$6.12B	137.62	2.50%	0.80%	12.78%	―
EDR	51 Neutral	$1.32B	―	-14.41%	―	4.45%	-3193.40%
Sector *	50 Neutral	$1.98B	-1.06	-21.29%	3.61%	1.95%	-30.60%
MUX	49 Neutral	$384.93M	3.61	-6.15%	―	-2.18%	-137.21%
GRZ	41 Neutral	$238.51M	―	-32.43%	―	―	55.93%

Gold Reserve Corporate Events

Gold Reserve Challenges CRA’s Tax Reassessment Proposal

Gold Reserve Ltd. has challenged a proposal from the Canada Revenue Agency (CRA) to reassess its tax filings for the years 2014, 2016, 2017, and 2018. The company disputes the inclusion of a 2014 arbitral award and related payments in its income, arguing that the proposed adjustments are incorrect and were made beyond the legal reassessment period. Gold Reserve asserts that its tax returns comply with Canadian law and plans to rigorously defend its position, which may have significant implications for its financial standing and stakeholder interests.

Gold Reserve Streamlines Operations by Deregistering with SEC

Gold Reserve Ltd. has decided to deregister its Class A common shares from the SEC, effective January 1, 2025, to streamline reporting requirements and cut costs. This decision will not affect its listing on Canadian and OTC markets, as it will continue to comply with Canadian disclosure regulations, potentially impacting its administrative operations and market presence positively.

Gold Reserve Ltd. Announces New Directors and Shareholder Approvals

Gold Reserve Ltd. recently held its annual general meeting where shareholders elected new board members and approved several key resolutions, including an increase in shares issuable under the company’s equity incentive plan. Additionally, the company appointed two new Bermuda-resident directors and granted stock options to several directors.

Gold Reserve Faces Major CRA Reassessment Proposal

Gold Reserve Ltd. has received a proposal from the Canada Revenue Agency to reassess its income, which could significantly impact the company’s financial status. The proposal involves potential income inclusions of up to US$740.3 million related to past arbitral awards and other financial dealings. Gold Reserve is preparing to contest the proposal, which could take years to resolve and might threaten its financial stability.