Magna Mining (NICU) AI Stock Analysis

• Market Cap: C$257.60M
• Dividend Yield: N/A
• Average Volume (3M): 293.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.13
• Revenue Growth: N/A
• EPS Growth: 57.11%
• Country: CA
• Employees: 179,446
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Industrial Materials
• EPS (TTM): -0.09
• Shares Outstanding: 175,239,180
• 10 Day Avg. Volume: 293,025
• 30 Day Avg. Volume: 293,657
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -18.40
• P/FCF Ratio: 2327.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The overall stock score is driven by severe financial challenges, including zero revenue and ongoing losses, which are significant risks. Positive technical momentum and a strategic acquisition provide some optimism, but valuation concerns and high volatility remain key risks.

Magna Mining Business Overview & Revenue Model

Company Description

Magna Mining (NICU) is a Canadian exploration and development company focused on the advancement of its base metal projects, particularly nickel, in the Sudbury Basin of Ontario, Canada. The company is engaged in the acquisition, exploration, and development of mineral properties, with an emphasis on nickel, copper, and platinum group metals, aiming to enhance the value of its properties through strategic exploration and development activities.

How the Company Makes Money

Magna Mining generates revenue primarily through the exploration and development of its mineral properties, leveraging the rich geology of the Sudbury Basin. The company's revenue model is based on the discovery and extraction of nickel, copper, and platinum group metals, which are essential inputs for various industries including the automotive sector, particularly for electric vehicle batteries, and electronics. Revenue streams are expected to be realized through the sale of extracted ores and potentially through joint ventures or strategic partnerships with larger mining companies or manufacturers looking to secure a stable supply of these critical metals. Additionally, the company may engage in partnerships or agreements that provide funding for exploration activities in exchange for future royalties or a share in the production output.

Magna Mining Financial Statement Overview

Summary

Magna Mining is facing severe financial difficulties with zero revenue generation and consistent losses. While the balance sheet shows low leverage, the lack of revenue and negative cash flows pose significant risks. The company needs to improve its operational performance to achieve financial sustainability.

Income Statement

The company has consistently reported zero revenue over the periods, indicating a lack of sales or production. Net income has been negative, reflecting ongoing losses. The absence of revenue growth and negative profit margins highlight significant financial challenges.

Balance Sheet

The company's debt-to-equity ratio is relatively low due to minimal debt levels, providing some financial stability. However, the negative net income has severely impacted return on equity, and the equity ratio indicates that a substantial portion of assets is financed by equity.

Cash Flow

Operating cash flow is consistently negative, demonstrating cash burn issues. The company has relied on financing activities to support operations, as indicated by positive financing cash flow. Free cash flow remains negative, reflecting ongoing operational challenges.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-117.43K	-504.18K	-19.85M	-15.82K	-2.62K	0.00
	EBIT
-11.63M	-12.67M	-21.88M	-6.83M	-1.22M	-45.97K
	EBITDA
-13.73M	-12.60M	-21.85M	-6.73M	-1.22M	-45.97K
	Net Income Common Stockholders
-14.16M	-9.86M	-22.00M	-6.76M	-1.08M	-46.75K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.52M	10.93M	6.18M	5.68M	1.52M	1.85K
	Total Assets
2.74M	12.77M	7.70M	6.99M	2.74M	1.85K
	Total Debt
27.47K	42.05K	60.87K	78.17K	27.47K	0.00
	Net Debt
-1.49M	-10.85M	-6.11M	-5.60M	-1.49M	-1.85K
	Total Liabilities
1.58M	5.43M	5.07M	2.24M	1.58M	55.66K
	Stockholders Equity
1.17M	7.33M	2.62M	4.75M	1.17M	-53.81K
Cash Flow		Free Cash Flow
-12.52M	-10.62M	-18.48M	-5.81M	-396.44K	-29.51K
	Operating Cash Flow
-12.51M	-10.58M	-18.17M	-5.77M	-395.06K	-29.51K
	Investing Cash Flow
-185.87K	-74.55K	-307.01K	320.00K	-1.38K	0.00
	Financing Cash Flow
1.05M	15.37M	18.97M	9.61M	1.75M	29.00K

Magna Mining Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NICU, the sentiment is Negative. The current price of 1.55 is below the 20-day moving average (MA) of 1.64, below the 50-day MA of 1.65, and above the 200-day MA of 1.24, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.00 is Neutral, neither overbought nor oversold. The STOCH value of 15.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NICU.

Magna Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLO	52 Neutral	C$102.82M	―	-0.96%	―	―	7.41%
PGE	48 Neutral	C$38.43M	―	-79.38%	―	―	34.27%
Sector *	47 Neutral	$2.64B	-3.21	-21.68%	3.30%	4.19%	-30.23%
NICU	45 Neutral	C$257.60M	―	-102.96%	―	―	57.11%
WLF	39 Underperform	C$11.54M	―	-177.36%	―	―	50.80%
FPX	37 Underperform	C$74.03M	―	-4.25%	―	―	48.82%

Magna Mining Corporate Events

Magna Mining Advances Toward Key Acquisition in Sudbury Basin

Magna Mining Inc. is making significant strides in its acquisition of base metal assets from KGHM International Ltd. in the Sudbury Basin. The company has been actively working with KGHM and advisors to meet all prerequisites for the transaction, aiming to complete the deal by the end of February 2025. This acquisition is expected to enhance Magna’s operational capabilities and solidify its position in the base metals market, benefiting stakeholders by potentially increasing production and expanding resource bases.

Magna Mining Advances Acquisition of Sudbury Copper Mine

Magna Mining Inc. announced progress on its acquisition of base metals assets in the Sudbury Basin from KGHM International Ltd., aiming to finalize the deal by January 31, 2025. This transaction is expected to enhance Magna’s portfolio, strengthening its position within the mining industry and potentially benefiting stakeholders by expanding its operational base.

Magna Mining Expands Exploration in Sudbury Basin

Magna Mining has announced its acquisition of a new portfolio of base metal exploration assets in the Sudbury Basin, enhancing its growth strategy with minimal shareholder dilution. The newly acquired properties are believed to have significant potential for discovery, bolstering Magna’s existing and pending assets in this highly prospective geological area.

Magna Mining Raises $21.85 Million for Growth

Magna Mining Inc. successfully closed a private placement, raising approximately $21.85 million through the sale of over 20 million common shares. The funds will be used to advance their Sudbury projects and for general corporate purposes, marking a significant step in the company’s growth strategy.

Magna Mining Unveils New Copper Zone Discovery

Magna Mining has announced the discovery of a promising new copper zone at its Shakespeare Project in Sudbury, Ontario. The first drillhole intersected significant copper mineralization, highlighting the potential for further exploration and expansion in this previously untested area. This development could enhance the project’s value, drawing interest from investors in the mining sector.