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Royalty North (TSE:HCU)
:HCU
Canadian Market

Royalty North (HCU) AI Stock Analysis

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Royalty North

(HCU)

Rating:53Neutral
Price Target:
C$2.00
▲(3.09%Upside)
The overall score reflects significant financial challenges and weak valuation, partially offset by positive corporate events and mixed technical signals. The acquisition at a premium and promising drill results are notable positives, but high leverage and negative profitability pose risks.

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

Royalty North Business Overview & Revenue Model

Company DescriptionHorizon Copper Corp., together with its subsidiaries, engages in the copper mining operations. The company has a 30% interest in the Hod Maden copper-gold project located in Turkey; and a 55% interest in the Peninsula gold project situated in Michigan on the southern edge of the Superior Province in Archean aged rocks of the Ishpeming Greenstone Belt. It holds a 20% interest in the Oyu Tolgoi copper project, which includes the Hugo North Extension and Heruga deposits located in the South Gobi Desert of Mongolia, as well as a 1.66% net profits interest in the Antamina copper mine located in Peru. The company is headquartered in Vancouver, Canada.
How the Company Makes MoneyRoyalty North makes money through its royalty financing model, where it provides businesses with capital in exchange for a percentage of future revenues or sales. This model allows Royalty North to earn a steady stream of income based on the performance of its client companies. Key revenue streams include royalties from healthcare, technology, and consumer goods companies. Significant partnerships with industry leaders and strategic alliances further enhance its earnings potential by expanding its client base and investment opportunities.

Royalty North Financial Statement Overview

Summary
The financial performance of Royalty North is concerning, with negative net income, a weak balance sheet characterized by negative equity, and limited cash flow growth. Despite some revenue growth, overall profitability is poor due to high leverage and ongoing losses, indicating financial instability.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.03M12.78M4.05M-355.00K2.96M246.03K
Gross Profit6.83M5.08M-482.00K-397.00K2.96M246.03K
EBITDA-35.34M-37.85M-10.42M-2.54M2.81M
Net Income-57.97M-57.18M-23.68M-15.82M2.81M
Balance Sheet
Total Assets512.51M513.41M520.25M300.71M9.04M6.47M
Cash, Cash Equivalents and Short-Term Investments6.00M12.22M18.27M32.70M3.60M40.00K
Total Debt192.19M191.64M187.74M71.16M0.00240.00K
Total Liabilities579.53M564.69M514.87M273.52M96.00K314.00K
Stockholders Equity-67.02M-51.28M5.38M27.18M8.95M6.15M
Cash Flow
Free Cash Flow12.97M13.20M3.96M-172.00K882.00K666.43K
Operating Cash Flow12.97M13.20M3.96M-172.00K882.00K666.43K
Investing Cash Flow-14.01M-9.44M-15.86M14.02M2.95M0.00
Financing Cash Flow-9.35M-9.76M-2.47M15.93M-247.00K-718.71K

Royalty North Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.94
Price Trends
50DMA
1.19
Positive
100DMA
1.18
Positive
200DMA
1.09
Positive
Market Momentum
MACD
0.15
Negative
RSI
83.31
Negative
STOCH
99.25
Negative
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 1.25, above the 50-day MA of 1.19, and above the 200-day MA of 1.09, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 83.31 is Negative, neither overbought nor oversold. The STOCH value of 99.25 is Negative, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
€3.19B4.22-3.86%3.72%-3.18%17.24%
TSHCU
53
Neutral
C$168.09M178.91%148.24%-70.27%
TSECU
42
Neutral
C$64.73M-52.23%-217.22%
TSCCI
42
Neutral
C$17.46M-48.32%-50.88%
TSHI
34
Underperform
C$73.64M-33.38%-159.13%
$19.84M-229.96%
$30.82M-49.06%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:HCU
Royalty North
1.94
1.26
185.29%
TSE:HI
Highland Copper
0.10
>-0.01
-9.09%
QCCUF
QC Copper and Gold
0.08
>-0.01
-11.11%
TSE:ECU
Element 29 Resources
0.54
0.24
80.00%
VCUFF
Vizsla Copper
0.09
0.02
28.57%
TSE:CCI
Canadian Copper, Inc.
0.16
0.07
77.78%

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 08, 2025