tiprankstipranks
Trending News
More News >
Gold Reserve (TSE:GRZ)
:GRZ
Advertisement

Gold Reserve (GRZ) AI Stock Analysis

Compare
15 Followers

Top Page

TS

Gold Reserve

(OTC:GRZ)

Rating:41Neutral
Price Target:
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 (GRZ) vs. iShares MSCI Canada ETF (EWC)

Gold Reserve Business Overview & Revenue Model

Company DescriptionGold 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 MoneyGold 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
15
Very Negative
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
50
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.17M0.000.000.000.00
Gross Profit3.17M0.000.000.000.00
EBITDA-8.80M-6.22M-6.70M-7.99M-6.27M
Net Income-15.19M-23.12M-8.60M-10.60M-11.52M
Balance Sheet
Total Assets79.04M39.74M52.94M60.64M69.44M
Cash, Cash Equivalents and Short-Term Investments78.42M39.07M42.98M49.22M57.50M
Total Debt0.000.000.0077.09K169.91K
Total Liabilities13.94M11.16M1.35M610.56K1.01M
Stockholders Equity65.10M28.58M51.59M60.03M68.42M
Cash Flow
Free Cash Flow-12.05M-7.43M-6.36M-8.61M-4.61M
Operating Cash Flow-12.05M-7.43M-6.36M-8.61M-4.56M
Investing Cash Flow-3.50M576.09K-27.37M313.01K152.02K
Financing Cash Flow49.84M1.08K0.000.000.00

Gold Reserve Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.64
Price Trends
50DMA
2.96
Positive
100DMA
2.78
Positive
200DMA
2.67
Positive
Market Momentum
MACD
0.59
Negative
RSI
74.89
Negative
STOCH
70.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GRZ, the sentiment is Positive. The current price of 4.64 is above the 20-day moving average (MA) of 3.86, above the 50-day MA of 2.96, and above the 200-day MA of 2.67, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 74.89 is Negative, neither overbought nor oversold. The STOCH value of 70.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GRZ.

Gold Reserve Risk Analysis

Gold Reserve disclosed 18 risk factors in its most recent earnings report. Gold Reserve reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Gold Reserve Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSKNT
77
Outperform
C$3.63B14.1439.28%105.06%481.75%
TSOR
72
Outperform
$7.07B160.762.50%0.79%12.78%
TSWDO
72
Outperform
C$2.60B14.0034.73%80.44%3757.72%
TSEDR
61
Neutral
$2.28B-14.41%4.45%-3193.40%
MUMUX
60
Neutral
$587.93M3.61-6.15%-2.18%-137.21%
44
Neutral
C$972.32M-6.68-13.73%2.45%17.55%-32.57%
TSGRZ
41
Neutral
C$524.49M-53.17%55.93%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:GRZ
Gold Reserve
4.88
-0.62
-11.27%
MUX
McEwen Mining
11.02
1.49
15.63%
TSE:OR
Osisko Gold Royalties
37.75
13.14
53.41%
TSE:EDR
Endeavour Silver
7.67
1.38
21.94%
TSE:KNT
K92 Mining
14.65
6.47
79.10%
TSE:WDO
Wesdome Gold Mines
17.33
4.06
30.60%

Gold Reserve Corporate Events

Legal Proceedings
Gold Reserve Challenges CRA’s Tax Reassessment Proposal
Negative
Jan 31, 2025

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.

Delistings and Listing ChangesBusiness Operations and StrategyRegulatory Filings and Compliance
Gold Reserve Streamlines Operations by Deregistering with SEC
Positive
Jan 31, 2025

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
Dec 13, 2024

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
Nov 26, 2024

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.

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.Date of analysis: Feb 01, 2025