Highland Copper (HI) AI Stock Analysis

• Market Cap: C$106.99M
• Dividend Yield: N/A
• Average Volume (3M): 136.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: N/A
• EPS Growth: 22.47%
• Country: CA
• Employees: 14
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): N/A
• Shares Outstanding: 737,856,100
• 10 Day Avg. Volume: 101,964
• 30 Day Avg. Volume: 136,697
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.61
• 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: 34 Underperform
• Price Target: ―

Highland Copper's stock faces significant challenges, primarily due to its poor financial performance, including no revenue generation and negative cash flows. While technical indicators suggest potential stabilization, the valuation remains unattractive due to ongoing losses. Positive corporate events offer some optimism, indicating potential future improvements, but substantial risks remain.

Positive Factors

Regulatory Approval

The approval of the updated air permit for the Copperwood Project ensures compliance with environmental standards, supporting long-term project viability and operational readiness.

Community Support

Strong community support for the Copperwood Mine project enhances social license to operate, potentially easing future project expansions and fostering local economic growth.

Job Creation

The creation of over 700 jobs from the Copperwood Mine project can stimulate local economies and provide a stable workforce, supporting long-term operational success.

Negative Factors

Negative Cash Flow

Persistent negative cash flows highlight liquidity challenges, which can hinder the company's ability to fund operations and invest in growth, impacting long-term financial stability.

Operational Inefficiencies

Ongoing operational inefficiencies, as indicated by negative EBIT and EBITDA, suggest challenges in achieving profitability, which could affect long-term competitiveness and viability.

No Revenue Generation

The lack of revenue generation underscores stagnation in business growth, raising concerns about the company's ability to transition projects from development to production and achieve financial sustainability.

Highland Copper Business Overview & Revenue Model

Company Description

Highland Copper Company Inc., together with its subsidiaries, engages in the acquisition, exploration, and development of mineral properties in the United States. The company explores for copper deposits. Its primary properties include the Copperwood copper project; and the White Pine North copper project located in the Upper Peninsula of Michigan. The company was formerly known as Highland Resources Inc. and changed its name to Highland Copper Company Inc. in October 2012. Highland Copper Company Inc. is based in Longueuil, Canada.

How the Company Makes Money

Highland Copper makes money through the exploration and development of copper mining projects. The company's revenue model is primarily based on the extraction and sale of copper once their projects are operational. Key revenue streams include the potential sales of copper concentrates and other by-products extracted during the mining process. Significant partnerships with stakeholders, including local governments and investment entities, contribute to the advancement and financing of their projects. Until the projects are in production, Highland Copper may also rely on strategic investments and capital raises to fund their operations and development activities.

Highland Copper Financial Statement Overview

Summary

Highland Copper is experiencing significant financial challenges. The income statement reflects operational inefficiencies with no revenue and persistent losses. While the balance sheet shows some stability with positive equity, liquidity issues due to negative cash flows pose substantial risks.

Income Statement

Highland Copper's income statement reflects significant challenges, with persistent negative EBIT and EBITDA indicating operational inefficiencies. The company has not generated any revenue over several periods, highlighting stagnation in business growth.

Balance Sheet

Highland Copper's balance sheet shows moderate strength with a positive stockholders' equity and a manageable level of debt. However, the company's equity ratio suggests some degree of financial health, albeit offset by high debt levels in previous years.

Cash Flow

The cash flow statement reveals ongoing negative operating cash flows, indicating liquidity issues. While the company has managed to secure some cash through financing activities in the past, free cash flow remains negative, posing a risk to financial sustainability.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	-17.03K	-7.42K	-21.82K	-81.60K
EBITDA	-9.28M	-13.42M	-7.71M	-4.73M	16.22M	-1.80M
Net Income	-9.93M	24.20M	-6.80M	-2.06M	17.68M	-4.37M
Balance Sheet
Total Assets	47.13M	58.63M	31.92M	37.61M	41.79M	20.89M
Cash, Cash Equivalents and Short-Term Investments	7.52M	20.26M	7.03M	12.93M	2.98M	-9.45K
Total Debt	10.38M	2.38M	0.00	0.00	23.97M	21.61M
Total Liabilities	13.38M	5.92M	3.94M	3.36M	26.48M	22.79M
Stockholders Equity	33.75M	52.71M	27.98M	34.26M	15.31M	-1.90M
Cash Flow
Free Cash Flow	-7.52M	-12.09M	-6.70M	-5.69M	-643.62K	-1.99M
Operating Cash Flow	-7.17M	-11.82M	-6.42M	-5.37M	-386.34K	-1.81M
Investing Cash Flow	-343.25K	25.10M	613.73K	1.01M	2.74M	-172.74K
Financing Cash Flow	-30.82K	0.00	0.00	14.33M	432.46K	1.58M

Highland Copper Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HI, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.14, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HI.

Highland Copper 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%
GCU	56 Neutral	C$176.45M	25.27	―	―	128.86%	―
ECU	55 Neutral	C$185.05M	-61.58	-13.14%	―	―	71.30%
TM	52 Neutral	C$21.09M	-5.89	―	―	-100.00%	35.19%
ATCU	51 Neutral	C$130.33M	-89.03	-1.45%	―	―	―
USCU	50 Neutral	C$26.24M	-22.50	-162.83%	―	―	1.23%
HI	34 Underperform	C$106.99M	-6.33	-33.08%	―	―	22.47%

Highland Copper Corporate Events

Highland Copper to Sell 34% Stake in White Pine North for $30 Million

Highland Copper Company Inc. has signed a binding offer to sell its 34% interest in the White Pine North Project to Kinterra Copper USA LLC for approximately US$30 million. This transaction is a strategic move to optimize Highland Copper’s corporate strategy, strengthen its financial position, and focus on its fully owned Copperwood Project. The sale will provide the company with non-dilutive funding to advance the Copperwood Project, eliminate existing debt, and simplify its corporate structure, positioning it for future growth and enhancing its ability to become a domestic U.S. copper producer.

Highland Copper Advances Copperwood Project with Successful Phase 1 Completion

Highland Copper has completed Phase 1 of detailed engineering for its Copperwood Project, resulting in improvements to the process plant and mine. These enhancements include higher copper recoveries, reduced costs, and a smaller environmental footprint. The company is advancing towards Phase 2, which will support a construction decision and update costs in line with inflation. The project aims to increase mine recoveries and extend mine life through a potential shift in mining methods, which could also improve economic returns and reduce environmental impact.

Highland Copper Advances Copperwood Project with Positive Engineering Results

Highland Copper has completed Phase 1 of its engineering for the Copperwood Project, resulting in significant improvements in the project’s process plant and mine design. These enhancements include higher copper recoveries, reduced costs, and a smaller environmental footprint. The company is advancing to Phase 2, which will further refine engineering details and support a construction decision in 2026. The redesign of the process plant and mine engineering, including a potential shift to a hybrid mining method, aims to improve economic returns and operational efficiency, positioning Highland Copper favorably in the market.