Newlox Gold Ventures (LUX) AI Stock Analysis

• Market Cap: C$9.37M
• Dividend Yield: N/A
• Average Volume (3M): 136.65K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.57
• Revenue Growth: -58.04%
• EPS Growth: -71.29%
• Country: CA
• Employees: N/A
• Sector: Industrials
• Sector Strength: 89
• Industry: Waste Management
• EPS (TTM): -0.03
• Shares Outstanding: 156,149,610
• 10 Day Avg. Volume: 135,857
• 30 Day Avg. Volume: 136,654
• PEG Ratio: -0.39
• Price to Book (P/B): -22.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.07
• 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

• Rating: 36 Underperform
• Price Target: ―

Newlox Gold Ventures is struggling financially, reflected in its low financial performance score due to ongoing losses and liquidity issues. Technical analysis indicates a lack of momentum and an oversold condition, while poor valuation metrics further constrain its appeal. The recent corporate event of debt reduction is a positive step towards stability, but overall, the company needs substantial strategic changes to improve its financial health and investor confidence.

Newlox Gold Ventures Business Overview & Revenue Model

Company Description

Newlox Gold Ventures Corp. operates as an environmental remediation and precious metals recovery company. The company undertakes tailings remediation and gold recovery projects in Costa Rica. It produces gold through environmental remediation by recovering residual precious metals and contaminants from historical tailings. The company was incorporated in 2011 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Newlox Gold Ventures makes money primarily through the recovery and sale of gold and other precious metals extracted from historical mining waste. The company's revenue streams include the production and sale of refined gold, which is achieved through its proprietary extraction process. Key factors contributing to its earnings include its ability to efficiently extract metals from waste materials, strategic partnerships with local mining operators, and its commitment to sustainable and responsible mining practices. By focusing on low-cost, high-margin recovery operations, Newlox maximizes its profitability while contributing to environmental cleanup efforts.

Newlox Gold Ventures Financial Statement Overview

Summary

Newlox Gold Ventures is facing significant financial challenges across all verticals. The income statement reveals ongoing operational losses and declining revenues. The balance sheet reflects a highly leveraged position with negative equity, which poses a risk to financial stability. The cash flow position is weak, with negative free cash flow, indicating liquidity concerns. The company needs to implement strategic measures to stabilize its financial health and improve operational efficiency.

Income Statement

Newlox Gold Ventures has faced significant challenges in maintaining profitability. The TTM data shows negative gross and net profit margins, indicating losses. Revenue has decreased significantly from the previous year, with a negative growth rate, highlighting operational struggles and declining sales. The company's EBIT and EBITDA margins are also negative, which points to ongoing difficulties in core business operations.

Balance Sheet

The company has a negative stockholders' equity and a high debt-to-equity ratio, indicating financial instability and high leverage. With liabilities exceeding assets, the equity ratio is negative, which is a significant risk factor. The return on equity is also negative due to consistent net losses, suggesting that the company is not generating returns for its shareholders.

Cash Flow

Newlox Gold Ventures is experiencing negative free and operating cash flows, which reflects liquidity issues. The TTM data shows a negative free cash flow to net income ratio, indicating that the company is not generating sufficient cash to cover its losses. Although there is some financing inflow, it is not enough to offset the operational cash burn, raising concerns about sustainability.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	2.79M	3.47M	2.08M	242.73K	486.60K
Gross Profit	930.95K	1.75M	1.34M	-69.75K	-49.76K
EBITDA	-2.23M	-944.75K	-1.01M	-2.99M	-589.80K
Net Income	-4.20M	-2.27M	-1.86M	-3.46M	-894.12K
Balance Sheet
Total Assets	8.16M	7.24M	6.16M	3.58M	213.02K
Cash, Cash Equivalents and Short-Term Investments	283.98K	698.83K	3.51M	2.95M	5.88K
Total Debt	3.68M	2.43M	2.43M	3.34M	0.00
Total Liabilities	6.32M	3.44M	3.08M	3.92M	1.47M
Stockholders Equity	1.85M	3.80M	3.08M	-336.10K	-1.25M
Cash Flow
Free Cash Flow	-2.20M	-2.91M	-3.24M	-1.81M	-238.88K
Operating Cash Flow	-222.77K	-302.87K	-841.41K	-1.27M	-88.66K
Investing Cash Flow	-2.62M	-2.90M	-2.47M	-580.77K	-150.22K
Financing Cash Flow	2.43M	364.32K	3.89M	4.80M	231.24K

Newlox Gold Ventures Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LUX, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LUX.

Newlox Gold Ventures Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCI	81 Outperform	C$39.09M	15.89	58.40%	3.89%	17.69%	4.44%
Sector *	65 Neutral	$10.81B	15.25	5.26%	1.93%	3.11%	-26.99%
BLM	56 Neutral	C$50.18M	2,271.43	0.16%	―	49.38%	-93.75%
LUX	36 Underperform	C$9.37M	―	-336.15%	―	-58.04%	-71.29%
BAC	22 Underperform	C$7.72M	―	55.19%	―	―	35.14%
BQE	―	C$71.44M	10.07	38.06%	―	―	―
EWK	―	C$4.50M	4.00	-9999.00%	―	―	―

Newlox Gold Ventures Corporate Events

Newlox Gold Ventures Reports Operational Update and Strategic Focus

Newlox Gold Ventures Corp has reported stable gold recovery operations in Costa Rica, with a recent cycle producing 943.04 grams of pure gold. Despite operational success, the company faces a working capital deficiency due to a revoked cease trade order, limiting its ability to finance and expand throughput. Management plans to focus on improving production in Costa Rica, leveraging strong gold prices to enhance productivity. The company’s long-term strategy involves expanding its environmentally and socially responsible business model across Latin America, aiming to deliver economic benefits while contributing to environmental clean-up efforts.

Spark’s Take on TSE:LUX Stock

According to Spark, TipRanks’ AI Analyst, TSE:LUX is a Underperform.

Newlox Gold Ventures is struggling financially, with significant losses and liquidity issues that heavily influence its stock score. The company’s technical indicators show a lack of clear momentum, and its poor valuation metrics, including a negative P/E ratio and absence of dividend yield, further constrain its appeal. Strategic measures are necessary to improve financial stability and investor confidence.

To see Spark’s full report on TSE:LUX stock, click here.

Newlox Gold Ventures Resumes Trading and Reduces Debt

Newlox Gold Ventures Corp. has announced the resumption of trading on the Canadian Securities Exchange and a significant debt reduction by converting debentures into common shares, which will decrease interest costs by nearly $211,000 annually. This strategic move not only restores liquidity for shareholders but also positions the company to pursue further development initiatives, enhancing its operational and financial stability.

Spark’s Take on TSE:LUX Stock

According to Spark, TipRanks’ AI Analyst, TSE:LUX is a Underperform.

Newlox Gold Ventures is struggling financially, with significant losses and liquidity issues that heavily influence its stock score. The company’s technical indicators show a lack of clear momentum, and its poor valuation metrics, including a negative P/E ratio and absence of dividend yield, further constrain its appeal. Strategic measures are necessary to improve financial stability and investor confidence.

To see Spark’s full report on TSE:LUX stock, click here.