NGEx Minerals (NGEX) AI Stock Analysis

• Market Cap: $2.40B
• Dividend Yield: N/A
• Average Volume (3M): 207.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: N/A
• EPS Growth: -53.13%
• Country: CA
• Employees: 46
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.33
• Shares Outstanding: 207,017,100
• 10 Day Avg. Volume: 267,301
• 30 Day Avg. Volume: 207,166
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -83.90
• 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$17.71
• Price Target Upside: 52.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

NGEx Minerals is facing significant financial challenges with zero revenue and high net losses, heavily relying on external financing. Despite this, recent positive developments in their Lunahuasi project provide some growth potential. The stock's technical indicators suggest a bearish trend, and the valuation remains unattractive due to negative earnings. These factors culminate in an overall low stock score.

Positive Factors

Drilling Results

The highlight of this morning's release is hole DPDH032 which returned 25.19% CuEq.

Exploration Program

NGEx is planning to add two additional rigs, and increasing its planned drilling program.

Funding and Support

Strong demand led to an increase in the private placement to 15.9M shares for gross proceeds of C$175M.

Negative Factors

Market Strategy

NGEx is targeting an increase in trading liquidity and looking to expand its shareholder base.

Resource Allocation

The proceeds will be primarily used towards exploration at Lunahuasi, as well as continued exploration and maintenance at Los Helados.

NGEx Minerals Business Overview & Revenue Model

Company Description

NGEx Minerals Ltd. (NGEX) is a Canadian mineral exploration company focused on the acquisition, exploration, and development of precious and base metal properties in South America. The company is primarily engaged in identifying and advancing high-potential mineral projects, with a strong emphasis on copper and gold. NGEx Minerals operates within the mining and resources sector, leveraging its experienced management team and strategic partnerships to enhance its exploration activities.

How the Company Makes Money

NGEx Minerals generates revenue primarily through the exploration and development of mineral properties. The company's revenue model involves advancing its exploration projects to the point where they attract investment or can be sold to larger mining companies. Key revenue streams include the sale or optioning of mineral assets, joint ventures with other mining companies, and raising capital through equity financing to fund exploration activities. Significant partnerships with industry peers and investment firms contribute to its earnings by providing financial and technical support for project development. As exploration projects progress, the potential discovery of economically viable mineral resources can significantly increase the company's asset value and attract further investment.

NGEx Minerals Financial Statement Overview

Summary

NGEx Minerals is struggling financially, with no revenue generation and persistent losses impacting all financial statements. The company relies heavily on financing to maintain operations, which poses a risk without a clear path to profitability. Despite no debt, the financial health is fragile due to negative cash flows and equity returns.

Income Statement

NGEx Minerals shows a consistent lack of revenue generation with persistent negative EBIT and net income over the years. The company has consistently reported zero revenue, leading to negative profit margins. The EBIT and EBITDA margins are negative, reflecting operational inefficiency and high expenses relative to nonexistent revenue.

Balance Sheet

The balance sheet reflects a company with no debt, which is a positive aspect, reducing financial risk. However, the equity ratio shows a decreasing trend, indicating a potential decline in asset ownership. Return on equity is negative due to persistent losses, suggesting poor returns for shareholders. Overall, the stability of the balance sheet is undermined by the lack of revenue.

Cash Flow

Operating and free cash flows are consistently negative and show no signs of improvement, indicating cash burn without revenue support. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting net income into cash. Financing activities are primarily sustaining the company, which is not sustainable long-term without revenue generation.

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
0.00	0.00	0.00	0.00	0.00	0.00
	EBIT
-9.38M	-48.99M	-34.42M	-7.72M	-6.09M	-5.30M
	EBITDA
-49.48M	-48.97M	-34.44M	-7.76M	-5.31M	-5.30M
	Net Income Common Stockholders
-45.78M	-37.72M	-32.42M	-5.46M	-5.89M	-5.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.25M	74.73M	23.25M	21.00M	898.82K	5.56M
	Total Assets
32.31M	81.29M	32.31M	25.73M	5.38M	10.84M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-23.25M	-59.50M	-23.25M	-21.00M	-898.82K	-5.56M
	Total Liabilities
7.33M	7.82M	8.30M	2.35M	936.49K	718.07K
	Stockholders Equity
24.01M	73.47M	24.01M	23.38M	4.44M	9.81M
Cash Flow		Free Cash Flow
-33.98M	-27.41M	-27.28M	-4.15M	-4.42M	―
	Operating Cash Flow
-30.88M	-27.09M	-27.16M	-4.03M	-4.29M	―
	Investing Cash Flow
12.52M	-15.32M	-126.22K	-125.76K	-133.56K	―
	Financing Cash Flow
3.18M	84.71M	29.83M	24.36M	-5.96K	10.83K

NGEx Minerals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NGEX, the sentiment is Negative. The current price of 11.58 is below the 20-day moving average (MA) of 12.85, below the 50-day MA of 13.31, and below the 200-day MA of 11.78, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.15 is Neutral, neither overbought nor oversold. The STOCH value of 15.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NGEX.

NGEx Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUN	61 Neutral	$8.88B	25.63	0.24%	3.51%	-2.71%	-188.94%
FM	58 Neutral	$13.43B	―	0.02%	―	-24.38%	99.06%
CS	57 Neutral	$4.46B	38.81	2.90%	―	20.74%	―
IVN	48 Neutral	$15.93B	50.38	5.25%	―	―	-33.54%
Sector *	47 Neutral	$2.49B	-2.97	-22.82%	3.51%	4.13%	-28.53%
ERO	42 Neutral	$1.51B	67.52	-9.84%	―	11.68%	-169.49%
NGEX	38 Underperform	$2.40B	―	-48.40%	―	―	-53.13%

NGEx Minerals Corporate Events

NGEx Minerals Expands High-Grade Copper-Gold Resource at Lunahuasi

NGEx Minerals Ltd. has announced a successful update on its Phase 3 drill program at the Lunahuasi project in Argentina, revealing high-grade copper and gold intersections. The drilling results have expanded the known boundaries of the deposit and confirmed the site’s potential as a major gold and copper resource, enhancing the company’s position in the mining sector.

NGEx Minerals Extends High-Grade Mineralization at Lunahuasi Project

NGEx Minerals has announced significant progress in its Phase 3 drilling program at the Lunahuasi project in Argentina, with new results indicating substantial mineralization over a north-south extent of over 1,000 meters. The latest drill results have extended the mineralized system, showcasing high-grade copper-gold-silver intersections, and suggesting a large size potential for the Lunahuasi deposit, which remains open in all directions, signaling strong growth potential.

NGEx Minerals Expands Drill Program at Lunahuasi with Promising Results

NGEx Minerals Ltd. announced significant progress in its Phase 3 drill program at the Lunahuasi project, with standout results from drillhole DPDH028 revealing a high-grade copper-gold intercept, which is the widest to date. The program’s expansion to 25,000 meters with additional rigs underscores the project’s potential, enhancing NGEx’s positioning as a significant player in the global copper-gold market.