NGEx Minerals (NGEX) AI Stock Analysis

• Market Cap: $3.65B
• Dividend Yield: N/A
• Average Volume (3M): 229.75K
• 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: 67
• Industry: Industrial Materials
• EPS (TTM): -0.17
• Shares Outstanding: 207,208,110
• 10 Day Avg. Volume: 289,704
• 30 Day Avg. Volume: 229,749
• PEG Ratio: 2.55
• Price to Book (P/B): 21.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -54.01
• 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: $19.25
• Price Target Upside: 9.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 34 Underperform
• Price Target: ―

NGEx Minerals faces significant financial challenges with persistent losses and negative cash flows, heavily impacting its overall score. While recent corporate events suggest potential growth in resource value, they do not sufficiently counterbalance the financial weaknesses. Technical indicators and valuation also show weaknesses, contributing to the overall cautious outlook.

Positive Factors

Drilling Results

The highlight of the release is hole DPDH032 which returned 25.19% CuEq, showcasing very thick, high-grade copper values at Lunahuasi in addition to impressive gold grades.

Expansion Plans

NGEx is planning to add two additional rigs, increasing its planned drilling program, and expanding the campaign from 20,000m to 25,000m.

Financial Position

NGEx remains well-funded to execute on its objectives, supporting future exploration and development initiatives.

Negative Factors

Market Uncertainty

Potential market uncertainties could affect the timing and success of developing the Lunahuasi and Los Helados projects.

Operational Challenges

The complexity of managing large-scale drilling expansions could pose operational challenges for NGEx.

NGEx Minerals Business Overview & Revenue Model

Company Description

NGEx Minerals Ltd. engages in the acquisition, exploration, and development of mineral properties in South America. The company holds interest in the Los Helados project, a porphyry copper, gold, and silver deposit located in the Andes Mountains of the Atacama Region, Chile. It holds interest in the Valle Ancho and Interceptor properties located in Catamarca, Argentina; and the Potro Cliffs project located in San Juan Province, Argentina. NGEx Minerals Ltd. was incorporated in 2019 and is headquartered in Vancouver, Canada.

How the Company Makes Money

NGEx Minerals makes money primarily through the exploration and development of mineral resources, specifically copper and gold. The company's revenue model involves the discovery of mineral deposits, which are then developed into viable mining projects. NGEx Minerals may generate income by selling or partnering on these projects with larger mining companies, or by advancing the projects to a stage where they can be sold or leased to generate revenues. Key revenue streams include the sale of mineral rights, joint ventures, and strategic partnerships with other mining companies. The company's earnings are heavily influenced by the global demand and pricing for copper and gold, as well as the successful advancement and commercialization of its exploration projects.

NGEx Minerals Financial Statement Overview

Summary

NGEx Minerals shows a concerning financial performance with zero revenue and increasing net losses, indicating poor profitability. Despite a debt-free position, the company's reliance on external equity financing and negative cash flows highlight sustainability issues.

Income Statement

NGEx Minerals has consistently reported zero revenue, highlighting a lack of operational income generation. The company shows a significant and increasing net loss, with a TTM net income of -$63.60 million. This trend indicates poor profitability and raises concerns about the company's ability to achieve positive earnings in the near future.

Balance Sheet

The balance sheet of NGEx Minerals shows a solid equity base with a debt-free position, which is a positive sign of financial stability. However, the company has a low equity ratio and Return on Equity (ROE) due to continuous net losses. The increasing stockholders' equity reflects external funding rather than operational success.

Cash Flow

The company has a negative operating cash flow and free cash flow, indicating a reliance on external financing to sustain operations. Despite a substantial increase in financing cash flow, the free cash flow remains negative, pointing to challenges in generating cash from core activities.

Breakdown	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00
EBITDA	-48.97M	-34.44M	-7.76M	-5.31M	-5.30M
Net Income	-37.72M	-32.42M	-5.46M	-5.89M	-5.31M
Balance Sheet
Total Assets	81.29M	32.31M	25.73M	5.38M	10.84M
Cash, Cash Equivalents and Short-Term Investments	74.73M	23.25M	21.00M	898.82K	5.56M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	7.82M	8.30M	2.35M	936.49K	718.07K
Stockholders Equity	73.47M	24.01M	23.38M	4.44M	9.81M
Cash Flow
Free Cash Flow	-27.41M	-27.28M	-4.15M	-4.42M	―
Operating Cash Flow	-27.09M	-27.16M	-4.03M	-4.29M	―
Investing Cash Flow	-15.32M	-126.22K	-125.76K	―	―
Financing Cash Flow	84.71M	29.83M	24.36M	-5.96K	10.83K

NGEx Minerals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NGEX, the sentiment is Positive. The current price of 17.62 is above the 20-day moving average (MA) of 16.22, above the 50-day MA of 15.19, and above the 200-day MA of 13.43, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 70.39 is Negative, neither overbought nor oversold. The STOCH value of 96.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NGEX.

NGEx Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFM	82 Outperform	C$1.25B	8.68	29.84%	6.12%	76.60%	107.92%
ALS	77 Outperform	C$1.27B	12.40	19.46%	1.64%	-16.14%	1038.04%
Sector *	57 Neutral	£2.55B	5.03	-9.48%	49.69%	5.28%	-6.27%
SKE	52 Neutral	C$2.57B	―	-137.38%	―	―	-19.29%
FOM	46 Neutral	C$1.48B	―	-2.81%	―	―	8.92%
NGEX	34 Underperform	$3.65B	―	-72.17%	―	―	-53.13%
SGML	―	$733.37M	―	-30.69%	―	―	―

NGEx Minerals Corporate Events

NGEx Minerals Advances Lunahuasi Project with High-Grade Drill Results

NGEx Minerals Ltd. announced significant progress in its Phase 3 drill program at the Lunahuasi project in Argentina, with notable high-grade copper equivalent intersections. The results enhance the geological understanding of the site, suggesting a substantial network of high-sulfidation mineralization associated with a porphyry copper-gold system. This development could potentially increase the project’s value and attract investor interest, particularly with the underappreciated gold mineralization aspect.

Spark’s Take on TSE:NGEX Stock

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

NGEx Minerals’ overall score is severely impacted by its financial performance, with persistent losses and negative cash flows raising sustainability concerns. While technical indicators and valuation show weaknesses, recent positive corporate events offer some optimism in resource development, but not enough to offset financial challenges.

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

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.