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Lavras Gold Corp (TSE:LGC)
:LGC
Canadian Market

Lavras Gold Corp (LGC) AI Stock Analysis

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Lavras Gold Corp

(LGC)

Rating:44Neutral
Price Target:
Lavras Gold Corp's stock score reflects significant financial challenges, with a lack of revenue and ongoing losses being major concerns. However, positive corporate events such as significant gold intersections and successful capital raising provide some optimism for future potential. Technical analysis suggests neutral market sentiment, while valuation metrics are unfavorable due to negative earnings.

Lavras Gold Corp (LGC) vs. iShares MSCI Canada ETF (EWC)

Lavras Gold Corp Business Overview & Revenue Model

Company DescriptionLavras Gold Corp (LGC) is a mining company focused on the exploration and development of gold properties. The company operates in the mining sector, primarily engaged in the identification, acquisition, and advancement of gold mining projects. Its core activities involve the exploration of potential gold deposits, assessment of their economic viability, and eventual development into operational mining sites.
How the Company Makes MoneyLavras Gold Corp makes money through the exploration and eventual extraction and sale of gold from its mining properties. The company's revenue model is primarily based on discovering economically viable gold deposits that can be developed into productive mining operations. Once a mining site is operational, LGC generates revenue from the sale of extracted gold in the commodities market. Additionally, the company may engage in strategic partnerships and joint ventures with other mining firms to leverage expertise, share financial risk, and expedite project development, contributing to its earnings.

Lavras Gold Corp Financial Statement Overview

Summary
Lavras Gold Corp faces substantial financial challenges, primarily due to a complete lack of revenue generation and consistent operating losses. Although the company has low leverage, the declining equity and significant cash deficits pose concerns about sustainability and financial health.
Income Statement
5
Very Negative
Lavras Gold Corp has not generated any revenue over the analyzed periods, which is a significant concern for financial health. The company has consistently reported losses with increasing negative EBIT, EBITDA, and net income figures. The lack of revenue growth and persistent losses suggest an unsustainable business model under current conditions.
Balance Sheet
40
Negative
The company maintains a relatively low level of debt compared to equity, which is a positive aspect. The debt-to-equity ratio is minimal, indicating low leverage. However, the declining stockholders' equity and total assets over time signal potential financial instability. The most recent TTM data shows a reduction in equity, which could impact future financial flexibility.
Cash Flow
20
Very Negative
Cash flows are significantly negative, with substantial free cash flow deficits in recent years. The company's operating cash flow is also negative, reflecting difficulty in generating cash from core operations. The free cash flow to net income ratio is unavailable due to negative figures, pointing to challenges in cash management and investment funding.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.000.00
Gross Profit
0.00-32.17K-24.13K0.000.00
EBIT
-3.97M-2.08M-1.87M-258.96K-79.86K
EBITDA
-3.97M-1.92M-1.86M0.000.00
Net Income Common Stockholders
-3.67M-2.04M-1.93M-201.15K-56.23K
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.65M11.05M4.79M0.00334.63K
Total Assets
25.94M27.53M15.89M0.0017.58M
Total Debt
163.08K203.81K310.66K0.000.00
Net Debt
-1.49M-10.85M-4.48M0.00-334.63K
Total Liabilities
1.27M773.91K890.41K0.00108.20K
Stockholders Equity
24.67M26.75M15.00M0.0017.47M
Cash FlowFree Cash Flow
-9.33M-7.08M-5.23M
Operating Cash Flow
-2.14M-1.73M-1.30M
Investing Cash Flow
-7.19M-5.35M6.16M
Financing Cash Flow
-69.66K13.34M-71.60K

Lavras Gold Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.45
Price Trends
50DMA
2.22
Positive
100DMA
2.21
Positive
200DMA
2.32
Positive
Market Momentum
MACD
0.05
Positive
RSI
62.07
Neutral
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LGC, the sentiment is Positive. The current price of 2.45 is above the 20-day moving average (MA) of 2.41, above the 50-day MA of 2.22, and above the 200-day MA of 2.32, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 62.07 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LGC.

Lavras Gold Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSAEM
80
Outperform
$85.50B25.6811.45%1.28%32.68%419.46%
TSBTO
76
Outperform
C$6.75B-17.61%2.15%5.97%-1677.31%
51
Neutral
$2.03B-1.27-21.09%3.98%2.91%-30.50%
TSLGC
44
Neutral
-12.30%-50.95%
TSELO
36
Underperform
C$116.54M-17.56%13.39%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LGC
Lavras Gold Corp
2.45
0.86
54.09%
TSE:BTO
B2Gold
5.11
1.76
52.72%
TSE:AEM
Agnico Eagle
169.13
82.40
95.01%
TSE:ELO
Eloro Resources
1.24
-0.14
-10.14%

Lavras Gold Corp Corporate Events

Business Operations and Strategy
Lavras Gold Corp Reports Significant Gold Intersections at Fazenda do Posto
Positive
Apr 2, 2025

Lavras Gold Corp announced promising results from its latest drilling at the Fazenda do Posto Gold Target in southern Brazil, intersecting significant gold mineralization in 11 out of 12 new drill holes. These findings, including a notable intersection of 1.2 g/t gold over 251 metres, enhance the company’s understanding of the mineralization patterns and support its goal of defining an economically viable gold resource in the region. The company is also conducting a comprehensive metallurgical test program to further de-risk the project, indicating a strategic move towards establishing a feasible gold mine on the LDS Project.

Business Operations and Strategy
Lavras Gold Corp. Reports Promising Drilling Results at Butiá Gold Deposit
Positive
Mar 3, 2025

Lavras Gold Corp. announced significant drilling results from the Butiá Gold Deposit at its LDS Project in southern Brazil, with intersections showing promising gold mineralization. These results are part of the company’s efforts to define an economically feasible gold resource, enhancing confidence in the Butiá gold resource and potentially increasing its gold endowment. The company is also conducting a comprehensive metallurgical test program to further its short-term goal of establishing a viable gold mine in this highly prospective district.

Business Operations and Strategy
Lavras Gold Corp. to Showcase LDS Project at PDAC Conference
Positive
Feb 25, 2025

Lavras Gold Corp. will present at the Prospectors and Developers conference, showcasing its LDS Project in southern Brazil. The company aims to engage with stakeholders by highlighting its discoveries at the Fazenda do Posto and Butiá deposits, potentially enhancing its market position and investor interest.

Private Placements and Financing
Lavras Gold Corp. Completes C$15 Million Public Offering
Positive
Feb 6, 2025

Lavras Gold Corp. has successfully closed a public offering, raising C$15 million through the sale of 6,819,500 common shares at C$2.20 each. The offering, managed by Paradigm Capital Inc. and Canaccord Genuity among others, was conducted in Canada and via private placements in the U.S. and offshore. This influx of capital is expected to support the company’s ongoing exploration efforts in Brazil and potentially bolster its market position in the gold exploration sector.

Private Placements and FinancingBusiness Operations and Strategy
Lahontan Gold Corp. Closes Financing and Share Sale to Strengthen Shareholder Alignment
Positive
Feb 5, 2025

Lahontan Gold Corp. announced the closing of a non-brokered private placement financing, raising CAD $720,000 through the issuance of 36,000,000 common shares. Victoria Gold Corp. completed the sale of 42,132,139 Common Shares, representing 17.4% of Lahontan’s outstanding shares, to existing shareholders. This move aligns management with key shareholders and removes a share overhang that has negatively impacted the company’s share price. The proceeds will primarily support working capital, exploration, and development activities at the Santa Fe Mine project, enhancing the company’s future economic assessments.

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.