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Majestic Gold Corp (TSE:MJS)
:MJS

Majestic Gold (MJS) AI Stock Analysis

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TS

Majestic Gold

(MJS)

79Outperform
Majestic Gold's strong financial performance, positive technical trends, and strategic growth initiatives contribute to a robust stock evaluation. While the company shows potential undervaluation, the absence of a dividend yield may limit its appeal to certain investors. Overall, the company is well-positioned for future growth.

Majestic Gold (MJS) vs. S&P 500 (SPY)

Majestic Gold Business Overview & Revenue Model

Company DescriptionMajestic Gold (MJS) is a mining company that operates within the precious metals sector, primarily focusing on the extraction, development, and production of gold. The company owns and manages multiple mining sites, utilizing advanced technology and sustainable practices to optimize gold recovery and ensure environmental responsibility. Majestic Gold is committed to delivering high-quality gold products to meet the demands of global markets.
How the Company Makes MoneyMajestic Gold makes money through the exploration, extraction, and sale of gold. Its primary revenue stream comes from selling the gold produced at its mining sites to refineries, gold dealers, and through direct sales to jewelry manufacturers and investors. The company may also engage in hedging strategies, entering into forward contracts to stabilize revenue against gold price fluctuations. Additionally, partnerships with other mining firms and investments in joint ventures can contribute to its earnings by expanding its operational capabilities and reducing costs through shared resources.

Majestic Gold Financial Statement Overview

Summary
Majestic Gold demonstrates a solid financial foundation with strong operational margins and a stable balance sheet. Revenue growth is promising, yet net income has not followed the same trajectory, indicating potential profitability issues. The company maintains low leverage and a robust equity position, supporting long-term financial health. Cash flow performance is satisfactory with opportunities for improvement.
Income Statement
72
Positive
Majestic Gold shows consistent revenue growth with a notable increase from $55 million to $66 million in the TTM. The gross profit margin is strong at 56.7%, although the net profit margin remains modest at 14.2%. EBIT and EBITDA margins are robust, indicating efficient operations. However, net income has decreased compared to the previous year, pointing to potential profitability challenges.
Balance Sheet
78
Positive
The balance sheet is solid with a very low debt-to-equity ratio due to minimal debt levels, enhancing financial stability. The equity ratio is strong at 59.2%, reflecting a healthy capital structure. Return on equity is modest at 8.2%, indicating room for improving shareholder returns. Overall, the company maintains a stable financial position.
Cash Flow
65
Positive
The operating cash flow to net income ratio is strong, suggesting effective cash generation from operations. Free cash flow growth is positive at 11.1%, indicating good cash management, but it could be higher. The free cash flow to net income ratio shows efficient conversion of profits into cash, though there's potential to enhance cash flow dynamics further.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
55.03M63.47M38.45M52.36M32.30M
Gross Profit
34.75M33.88M21.71M28.18M17.33M
EBIT
18.83M27.86M12.68M24.09M13.67M
EBITDA
26.35M35.19M18.21M30.10M12.03M
Net Income Common Stockholders
7.56M17.42M7.72M15.06M1.89M
Balance SheetCash, Cash Equivalents and Short-Term Investments
15.21M12.31M6.35M33.77M23.92M
Total Assets
187.23M139.61M128.04M126.72M98.68M
Total Debt
4.29M4.38M4.81M4.60M12.92M
Net Debt
-10.92M-546.99K-1.54M-29.18M-11.00M
Total Liabilities
34.93M30.27M35.23M36.62M28.93M
Stockholders Equity
105.75M87.05M82.40M76.72M64.58M
Cash FlowFree Cash Flow
13.67M22.85M6.51M19.36M5.53M
Operating Cash Flow
24.49M30.29M15.46M36.82M6.46M
Investing Cash Flow
-3.67M-15.10M-8.04M-19.93M-814.59K
Financing Cash Flow
32.04M-1.48M-6.95M-8.88M-1.33M

Majestic Gold Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.14
Price Trends
50DMA
0.10
Positive
100DMA
0.09
Positive
200DMA
0.08
Positive
Market Momentum
MACD
<0.01
Negative
RSI
67.55
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MJS, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.10, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.55 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MJS.

Majestic Gold Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSMJS
79
Outperform
C$125.12M10.389.20%30.95%32.65%
51
Neutral
C$126.54M-9.73%60.14%
51
Neutral
C$131.38M-23.54%26.82%
49
Neutral
$1.95B-1.21-21.28%3.72%1.18%-30.47%
TSAMX
46
Neutral
C$139.05M118.75-0.73%-169.35%
TSTUD
39
Underperform
C$137.29M-5.21%36.41%
38
Underperform
C$165.52M-10.99%-64.81%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:MJS
Majestic Gold
0.14
0.08
133.33%
TSE:TUD
Tudor Gold
0.62
-0.14
-18.42%
TSE:AMX
Amex Exploration
1.12
-0.59
-34.50%
TSE:NCAU
Newcore Gold
0.63
0.32
103.23%
TSE:STLR
Moneta Gold
1.08
-0.29
-21.17%
TSE:SANU
Sanu Gold Corp.
0.32
0.22
220.00%

Majestic Gold Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Majestic Gold Corp. Reports Strong 2024 Financial Results and Strategic Expansion
Positive
Mar 28, 2025

Majestic Gold Corp. reported a significant financial performance for the year ending December 31, 2024, with a net income of $20.5 million, marking a 68% increase from the previous year. The company’s revenue rose to $71 million, driven by a 23.3% increase in the average realized gold sales price. Despite challenges from ongoing expansion work at the SJG open pit, gold production increased by 3.6% to 31,949 ounces. The company maintained a strong financial position with cash reserves of $100.7 million and working capital of $86.3 million. Majestic also expanded its operations by acquiring a 52% equity stake in Yantai City Mujin Mining Company Limited and the Muping Gold Project, indicating strategic growth and investment in new projects.

M&A TransactionsBusiness Operations and Strategy
Majestic Gold Completes Strategic Acquisition of Muping Gold Project
Positive
Feb 24, 2025

Majestic Gold Corp. has completed the acquisition of a 52% interest in the Target Company and the Muping Gold Project through its subsidiary, Persistence Resources Group Ltd. This acquisition makes Majestic the controlling shareholder, allowing it to consolidate the Target Company’s financial results into its own statements, potentially enhancing its market position and operational scale.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.