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Royalty North (TSE:HCU)
:HCU
Canadian Market
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Royalty North (HCU) AI Stock Analysis

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TSE:HCU

Royalty North

(HCU)

Rating:60Neutral
Price Target:
C$2.00
▲(3.09%Upside)
The overall score is driven by strong technical indicators and positive corporate events, which are offset by weak financial performance and valuation metrics. The strategic acquisition and promising exploration results provide a positive outlook, but financial instability and lack of profitability remain significant risks.

Royalty North (HCU) vs. iShares MSCI Canada ETF (EWC)

Royalty North Business Overview & Revenue Model

Company DescriptionRoyalty North (HCU) is a diversified company operating primarily in the resource sector, focusing on the acquisition and management of royalty and streaming interests in mining and energy projects. The company specializes in securing revenue-generating agreements that allow it to benefit from the production of precious metals, base metals, and energy resources without the direct operational risks associated with mining and extraction. Royalty North aims to provide investors with a stable income stream while participating in the growth of the natural resource sector.
How the Company Makes MoneyRoyalty North generates revenue through its royalty and streaming agreements, which provide it with a percentage of the revenue or production from the mines and projects in which it has invested. The primary revenue streams include upfront cash payments for acquiring royalties, ongoing royalty payments based on production levels, and potential buyouts or resales of royalty interests. The company may also engage in strategic partnerships with mining companies, allowing it to secure favorable terms and access to lucrative projects. Additionally, fluctuations in commodity prices can significantly impact revenue, as higher prices typically lead to increased production and, consequently, higher royalty payments.

Royalty North Financial Statement Overview

Summary
Royalty North faces significant financial challenges with negative net income and high leverage. Despite revenue growth, profitability is weak, and liabilities exceed assets, resulting in negative equity. Cash flow is positive but overshadowed by negative net income and lack of growth.
Income Statement
35
Negative
Royalty North's income statement reveals significant challenges. The company's net income and EBITDA are negative, indicating operational struggles. Despite a revenue increase to $12.78M in 2024 from $4.05M in 2023, the net profit margin remains negative, highlighting ongoing profitability issues. The gross profit margin improved to 39.77% in 2024, but overall profitability is weak, with significant losses impacting the financial health.
Balance Sheet
30
Negative
The balance sheet shows a concerning financial position, with substantial liabilities outweighing assets, leading to negative stockholders' equity of -$51.28M in 2024. The debt-to-equity ratio is not meaningful due to negative equity, indicating high leverage and financial risk. The equity ratio is negative, further emphasizing the company's precarious position. This weak balance sheet reflects financial instability and potential solvency risks.
Cash Flow
45
Neutral
Cash flow analysis indicates some resilience, with positive operating cash flow of $13.20M in 2024. However, free cash flow growth is stagnant, and the free cash flow to net income ratio is not calculable due to negative net income. The company's ability to generate cash from operations is a positive sign, but overall cash flow health is overshadowed by the negative net income and lack of growth in free cash flow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue12.78M4.05M-355.00K2.96M246.03K
Gross Profit5.08M-482.00K-397.00K2.96M246.03K
EBITDA-37.85M-10.42M-2.54M2.81M
Net Income-57.18M-23.68M-15.82M2.81M
Balance Sheet
Total Assets513.41M520.25M300.71M9.04M6.47M
Cash, Cash Equivalents and Short-Term Investments12.22M18.27M32.70M3.60M40.00K
Total Debt191.64M187.74M71.16M0.00240.00K
Total Liabilities564.69M514.87M273.52M96.00K314.00K
Stockholders Equity-51.28M5.38M27.18M8.95M6.15M
Cash Flow
Free Cash Flow13.20M3.96M-172.00K882.00K666.43K
Operating Cash Flow13.20M3.96M-172.00K882.00K666.43K
Investing Cash Flow-9.44M-15.86M14.02M2.95M0.00
Financing Cash Flow-9.76M-2.47M15.93M-247.00K-718.71K

Royalty North Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.94
Price Trends
50DMA
1.43
Positive
100DMA
1.28
Positive
200DMA
1.16
Positive
Market Momentum
MACD
0.17
Positive
RSI
77.74
Negative
STOCH
>-0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HCU, the sentiment is Positive. The current price of 1.94 is above the 20-day moving average (MA) of 1.82, above the 50-day MA of 1.43, and above the 200-day MA of 1.16, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 77.74 is Negative, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HCU.

Royalty North Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
C$176.48M178.91%11.35%-49.36%
56
Neutral
C$4.06B-0.400.29%6.55%8.42%-64.58%
42
Neutral
C$62.93M-52.23%-217.22%
42
Neutral
C$17.46M-48.32%-50.88%
34
Underperform
C$81.00M-33.38%-159.13%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:HCU
Royalty North
1.95
1.33
214.52%
TSE:HI
Highland Copper
0.11
<0.01
10.00%
TSE:ECU
Element 29 Resources
0.52
0.20
62.50%
TSE:CCI
Canadian Copper, Inc.
0.17
0.09
112.50%

Royalty North Corporate Events

M&A TransactionsBusiness Operations and Strategy
Royal Gold Acquires Horizon Copper in Strategic Expansion
Positive
Jul 7, 2025

Royal Gold, Inc. has announced its acquisition of Horizon Copper Corp for C$2.00 per share, representing a significant premium to Horizon’s recent stock prices. This all-cash transaction, valued at approximately US$196 million, is part of Royal Gold’s strategic expansion, which also includes acquiring Sandstorm Gold Ltd. The deal offers Horizon shareholders immediate liquidity and a substantial premium, reflecting the underlying value of Horizon’s assets. The acquisition is expected to enhance Royal Gold’s portfolio with high-quality, long-life royalty and streaming interests, contributing to its global asset diversification and growth potential.

Business Operations and Strategy
Horizon Copper Reports Promising Drill Results at Oyu Tolgoi
Positive
May 15, 2025

Horizon Copper Corp. announced impressive high-grade drill results from the Hugo North Extension at the Oyu Tolgoi mine in Mongolia, highlighting the long-term potential of the project. The results, released by Entrée Resources Ltd., include significant copper and gold mineralization, reinforcing the value of Horizon’s investment in Entrée and the potential for robust cash flows and shareholder value. The ongoing development at the Oyu Tolgoi mine, operated by Rio Tinto Group, remains on schedule, with underground production expected in 2027.

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: Jul 28, 2025