Kermode Resources (KLM) AI Stock Analysis

• Market Cap: C$456.21K
• Dividend Yield: N/A
• Average Volume (3M): 642.33K
• Price to Earnings (P/E): ―
• Beta (1Y): -2.26
• Revenue Growth: N/A
• EPS Growth: 13.78%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 91,242,966
• 10 Day Avg. Volume: 241,266
• 30 Day Avg. Volume: 642,327
• PEG Ratio: -0.02
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.42
• 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: 31 Underperform
• Price Target: ―

Kermode Resources exhibits high financial risk with consistent losses and no revenue, reflected in a low financial performance score. While recent corporate events show potential for strategic growth, they are overshadowed by governance issues and financial constraints. Technical analysis indicates limited momentum, and the valuation metrics suggest overvaluation. These factors collectively contribute to a low overall stock score.

Positive Factors

Exploration Permit

Securing an exploration permit for the Mount Sicker project enhances Kermode's ability to develop high-grade copper resources, potentially boosting long-term growth and market positioning.

Strategic Acquisition

The acquisition of mining claims in Ontario strengthens Kermode's exploration prospects and positions it strategically near valuable lithium and gold properties, enhancing its competitive edge.

Leadership Change

The appointment of a new CFO aims to bolster Kermode's leadership and improve regulatory compliance, potentially enhancing financial management and strategic execution.

Negative Factors

Financial Instability

Persistent negative cash flows and reliance on external financing highlight financial instability, posing a risk to Kermode's long-term sustainability and operational viability.

Governance Issues

Disclosure omissions and governance issues undermine investor confidence and could impact Kermode's ability to attract future investment, affecting its long-term growth prospects.

Property Option Termination

Terminating property options due to financial constraints limits Kermode's asset base expansion and exploration potential, affecting its ability to capitalize on future opportunities.

Kermode Resources Business Overview & Revenue Model

Company Description

Kermode Resources Ltd. engages in the acquisition, exploration, and development of natural resource properties in Canada. It holds 15% interests in the Eastgate Gold property located northeast of the Rawhide Mine, and east of Fallon in Churchill, County, Nevada. The company also has an option agreement to acquire a 100% interest in the Vidette Lake gold project situated in British Columbia. Kermode Resources Ltd. was incorporated in 1999 and is headquartered in Victoria, Canada.

How the Company Makes Money

Kermode Resources generates revenue through the discovery and development of mineral resources, which can then be sold or leased to larger mining companies. The primary revenue streams include proceeds from the sale of mineral properties, joint venture agreements, and royalty payments. The company may also engage in strategic partnerships with other mining firms to co-develop certain projects, sharing both the risks and profits. Kermode's earnings are significantly influenced by the market prices of the minerals they explore, as well as the successful acquisition and development of new mining claims.

Kermode Resources Financial Statement Overview

Summary

Kermode Resources is facing severe financial challenges with no revenue generation and consistent losses. The balance sheet shows no debt but fluctuating and sometimes negative shareholder equity, indicating financial instability. Cash flows are negative and reliant on external financing, which is unsustainable.

Income Statement

Kermode Resources has reported no revenue over the analyzed periods, indicating a lack of sales activity or monetization of its operations. The company shows consistent operating losses with negative EBIT, and net income across all periods, which highlights ongoing operational challenges and lack of profitability.

Balance Sheet

The balance sheet reveals a mixed picture. The company has no debt, which reduces financial risk. However, shareholder equity has been fluctuating, and at times negative, indicating financial instability and potential solvency issues. The equity ratio is relatively low, and the company relies on equity financing, posing a risk to long-term financial health.

Cash Flow

Cash flow metrics are concerning, with negative free cash flow persisting over the periods. Although there was occasional positive operating cash flow, it is insufficient to cover capital expenditures. Reliance on financing activities for cash is evident, indicating an unsustainable cash management strategy.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-962.00	―	-3.89K	0.00	0.00	0.00
EBITDA	-317.97K	-231.75K	-251.00K	-51.83K	-301.00K	-97.74K
Net Income	-1.11M	-490.00	-595.00K	-550.00K	-170.00K	-97.74K
Balance Sheet
Total Assets	793.06K	1.20M	1.09M	277.14K	270.69K	109.32K
Cash, Cash Equivalents and Short-Term Investments	16.20K	5.06K	3.90K	30.04K	93.66K	58.93K
Total Debt	45.00K	0.00	0.00	0.00	0.00	0.00
Total Liabilities	532.56K	347.12K	283.12K	276.79K	462.42K	482.23K
Stockholders Equity	260.50K	851.06K	807.39K	350.00	-191.73K	-372.90K
Cash Flow
Free Cash Flow	-68.53K	-37.35K	-101.07K	-298.88K	-77.86K	-73.62K
Operating Cash Flow	5.72K	-34.64K	-86.04K	-223.04K	-25.80K	-73.62K
Investing Cash Flow	-77.60K	-2.71K	-15.03K	-75.84K	-52.06K	0.00
Financing Cash Flow	83.00K	38.50K	74.93K	235.26K	112.59K	132.50K

Kermode Resources 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%
FWM	45 Neutral	C$1.00M	-3.95	-82.62%	―	―	42.77%
GRHK	44 Neutral	C$2.59M	-1.06	-213.10%	―	―	-110.45%
GRAY	41 Neutral	C$660.37K	-4.64	―	―	―	44.88%
KLM	31 Underperform	C$456.21K	-0.59	-175.80%	―	―	13.78%

Kermode Resources Corporate Events

Kermode Resources Announces Debt Settlement via Share Issuance

Kermode Resources Ltd. has announced a debt settlement agreement involving the issuance of 4,977,697 common shares at $0.01 per share to settle a debt of $49,776.97, pending approval from the TSX Venture Exchange. This move is part of the company’s strategy to manage its financial obligations, potentially impacting its financial stability and market perception.

Kermode Resources Terminates Mineral Exploration Agreements Amid Strategic Review

Kermode Resources Ltd. has announced the termination of its property option agreements for its mineral exploration assets, including the Beaton Gold, Mt. Sicker, and Tamahi projects in British Columbia, as part of a strategic review. The decision, which also includes not advancing the Lucky Strike project and allowing mining concessions in Thunder Bay, Ontario to lapse, aims to settle approximately $45,000 in accounts payable and reduce future exploration and maintenance expenses, reflecting the company’s current financial position.