Marimaca Copper (MARI) AI Stock Analysis

• Market Cap: C$458.29M
• Dividend Yield: N/A
• Average Volume (3M): 13.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: N/A
• EPS Growth: -83.79%
• Country: CA
• Employees: 23
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): -0.20
• Shares Outstanding: 101,167,690
• 10 Day Avg. Volume: 16,215
• 30 Day Avg. Volume: 13,345
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 135.40
• Price to Cash Flow (P/CF): -44.70
• P/FCF Ratio: 0.00
• 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: C$6.75
• Price Target Upside: 49.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

The overall stock score is low, primarily due to significant financial challenges, including negative income, cash flow difficulties, and operational inefficiencies. While recent corporate events provide a positive outlook, technical and valuation metrics suggest the need for caution as these improvements have yet to translate into financial stability and stock performance.

Positive Factors

Copper Production

The Pampa Medina project is likely to increase the scale of copper production at the integrated project in the range of 20-25ktpa.

Leadership and Management

Recent leadership hires have been made in project design and execution positions to support Marimaca advancement.

Project Development

The upcoming DFS has the potential to be scaled in the future through the integration of prospective exploration targets in close proximity.

Negative Factors

Project Scope

The tour provided an on-the-ground experience with senior management that highlighted subtle changes in project scope and design.

Project Timeline

The upcoming DFS is seen as an initial snapshot in time with a base-case project at an attractive capital intensity that has the potential to be scaled in the future.

Marimaca Copper Business Overview & Revenue Model

Company Description

Marimaca Copper Corp (MARI) is a mining company focused on the exploration and development of copper assets in Chile. The company's flagship project is the Marimaca Copper Project, located in the Antofagasta region, which is renowned for its rich mineral deposits. Marimaca Copper is committed to advancing its project through various stages of development, with an emphasis on sustainable and responsible mining practices.

How the Company Makes Money

Marimaca Copper makes money primarily through the exploration and potential extraction of copper resources from its Marimaca Copper Project. As the project advances, the company aims to generate revenue by producing and selling copper concentrate. This process typically involves extracting copper ore, processing it to produce a concentrate, and then selling it on the global commodities market. The company may also engage in strategic partnerships or joint ventures to aid in project development and financing, thereby contributing to its revenue streams. Additionally, Marimaca Copper might seek investment and funding opportunities to support its operational and development activities.

Marimaca Copper Financial Statement Overview

Summary

Marimaca Copper faces significant financial challenges with consistent net losses and negative cash flows. While the balance sheet is strong with a high equity ratio and low leverage, the overall financial health is undermined by poor income and cash flow performance.

Income Statement

Marimaca Copper has consistently reported zero revenue, with negative gross profit and net income, indicating ongoing financial challenges. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and losses in the TTM period. These factors contribute to a low score in the income statement analysis.

Balance Sheet

The company maintains a strong equity position, with a high equity ratio of approximately 99% in the TTM period, indicating financial stability. The debt-to-equity ratio is low due to minimal total debt, which reduces financial risk. The return on equity is negative due to net losses, which detracts from the overall financial health.

Cash Flow

Marimaca Copper reports negative operating and free cash flows, highlighting liquidity challenges. The free cash flow growth rate is negative, and both the operating cash flow to net income and free cash flow to net income ratios are unfavorable, emphasizing significant cash flow issues.

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
-147.00K	0.00	-46.00K	-48.00K	-153.00K	-234.00K
	EBIT
-6.80M	-5.89M	-6.82M	-17.23M	-8.33M	-10.61M
	EBITDA
-8.99M	-5.84M	-8.53M	-17.19M	-6.75M	-10.22M
	Net Income Common Stockholders
-10.25M	-7.11M	1.57M	-19.25M	-558.00K	-16.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.50M	16.69M	14.64M	26.79M	13.85M	9.87M
	Total Assets
63.70M	95.60M	84.83M	92.80M	69.96M	58.06M
	Total Debt
20.15M	128.00K	0.00	3.00M	5.62M	18.47M
	Net Debt
5.65M	-16.56M	-14.64M	-23.79M	-8.23M	8.61M
	Total Liabilities
30.70M	1.20M	561.00K	9.49M	12.77M	26.53M
	Stockholders Equity
33.00M	94.39M	84.26M	83.31M	57.19M	31.53M
Cash Flow		Free Cash Flow
-14.43M	-12.97M	-24.78M	-20.48M	-16.84M	-20.86M
	Operating Cash Flow
-4.89M	-3.13M	-3.01M	-10.74M	-5.52M	-10.65M
	Investing Cash Flow
-9.54M	-9.85M	-5.78M	-9.74M	-11.48M	-2.71M
	Financing Cash Flow
23.84M	15.10M	-3.04M	33.41M	21.25M	8.74M

Marimaca Copper Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.53
• 50DMA: Negative
• 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:MARI, the sentiment is Negative. The current price of 4.53 is below the 20-day moving average (MA) of 4.78, below the 50-day MA of 5.22, and below the 200-day MA of 4.63, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 35.26 is Neutral, neither overbought nor oversold. The STOCH value of 66.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MARI.

Marimaca Copper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUN	64 Neutral	$8.88B	25.63	0.24%	3.25%	-2.71%	-188.94%
FM	58 Neutral	$13.90B	―	0.02%	―	-24.38%	99.06%
CS	56 Neutral	C$4.62B	43.58	2.90%	―	20.74%	―
Sector *	49 Neutral	$1.92B	-1.52	-22.04%	3.84%	0.67%	-27.41%
IVN	47 Neutral	$16.27B	51.45	5.25%	―	―	-33.54%
ERO	44 Neutral	$1.61B	67.52	-9.84%	―	11.68%	-169.49%
MARI	39 Underperform	C$458.29M	―	-13.43%	―	―	-83.79%

Marimaca Copper Corporate Events

Marimaca Copper Unveils Major Copper System at Pampa Medina

Marimaca Copper Corp. has announced significant findings from its exploration in the Pampa Medina Project Area, revealing a large sediment and volcanic hosted manto copper system. The reinterpretation of data and new drilling results suggest that Pampa Medina may be the central part of a larger mineralized system, with potential for further extensions. The company plans to expand its exploration program to include both reverse circulation and diamond drilling to delineate the limits of the system and explore deeper units for copper mineralization. This development could enhance Marimaca’s resource growth potential and strengthen its position in the copper mining industry.

Spark’s Take on TSE:MARI Stock

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

The overall score reflects significant financial and operational challenges, compounded by negative income and reliance on external financing. However, positive corporate developments, such as the ASX listing and progress in environmental permitting, offer potential for future improvement. Nevertheless, technical indicators and valuation metrics suggest caution as the company navigates these challenges.

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

Marimaca Copper Corp. Begins Trading on ASX, Expanding Capital Access

Marimaca Copper Corp. has commenced trading on the Australian Securities Exchange (ASX) as a Foreign Exempt Listing, marking a significant milestone in its development. This dual listing on the ASX and TSX is expected to broaden the company’s access to institutional capital, which is crucial for its development objectives, including becoming construction-ready by mid-2026. Additionally, Marimaca is pursuing an aggressive exploration program to support its growth ambitions and establish itself as a significant source of copper supply.

Marimaca Advances Environmental Permitting for Copper Project

Marimaca Copper Corp. has made significant progress in its environmental permitting process by receiving the ICSARA, a crucial milestone for its Marimaca Oxide Deposit project in Chile. This development underscores the company’s commitment to sustainability and positions it to potentially receive its Environmental Qualification Resolution by late 2025, indicating forward momentum in its copper development project.

Marimaca Copper Advances Strategic Integration with Pampa Medina Project Assessment

Marimaca Copper has appointed Stantec to conduct a Preliminary Economic Assessment (PEA) for the Pampa Medina Project Area, enhancing its strategic development plans. This integration aims to leverage existing infrastructure from the Marimaca Oxide Deposit, potentially increasing production scale and capturing significant cost benefits by developing the Pampa Medina and Madrugador deposits synergistically.

Marimaca Copper Plans Australian Securities Exchange Listing

Marimaca Copper Corp. announced its intention to list on the Australian Securities Exchange by lodging a prospectus with the Australian Securities and Investments Commission. The offering involves the issuance of CHESS Depository Interests, representing common shares to raise funds for general working capital. The listing is subject to regulatory approvals and is only available to invited investors in Australia, with trading expected to commence in March 2025.