Nicola Mining (NIM) AI Stock Analysis

• Market Cap: C$87.65M
• Dividend Yield: N/A
• Average Volume (3M): 140.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: N/A
• EPS Growth: -370.49%
• Country: CA
• Employees: 40
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 177,071,370
• 10 Day Avg. Volume: 97,241
• 30 Day Avg. Volume: 140,051
• PEG Ratio: 6.19
• Price to Book (P/B): 15.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.23
• 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$0.60
• Price Target Upside: 20.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: C$0.50 ▲(0.00%Upside)

Nicola Mining's overall score is primarily impacted by its poor financial performance, which poses significant risks. However, the stock's technical indicators show a strong upward trend, and recent corporate events suggest potential for future growth. The valuation remains a concern due to a negative P/E ratio and lack of dividend yield.

Positive Factors

Exploration Success

Nicola announced drill results from its 14-hole, 4,874m drill program at its New Craigmont Copper Project, highlighting significant copper mineralization found and key targets derived for its 2025 program.

Milling Operations

Nicola’s Merritt Milling Facility, which is expected to begin processing gold from its partners, is on the same property as New Craigmont.

Negative Factors

Funding

NIM announced the closing of its non-brokered private placement, raising $1.1M through the issuance of 4.0M units, less than originally planned for the placement, given its strong cash position.

Project Permits

Nicola announced that it received a draft permit for the 10,000t bulk sample at the Dominion Creek Mineral Project.

Nicola Mining Business Overview & Revenue Model

Company Description

Nicola Mining Inc., a junior exploration and custom milling company, engages in the identification, acquisition, and exploration of mineral property interests in Canada. The company primarily explores for gold, silver, lead, zinc, and copper deposits. It holds a 100% interest in the Treasure Mountain project comprising 30 mineral claims covering 2,850 hectares, and 1 mineral lease located to the northeast of Hope, British Columbia; and the New Craigmont project consisting of 22 contiguous mineral claims covering approximately 10,913 hectares, and 10 mineral leases covering an area of approximately 347 hectares located in the Merritt, British Columbia. It also has interests in the sand and gravel Merritt Mill property located to the northwest of Merritt, British Columbia. In addition, it engages in residential property business, which covers 5 residential lots totaling approximately 488.70 acres; and the sale of gold and silver concentrates. The company was formerly known as Huldra Silver Inc. and changed its name to Nicola Mining Inc. in June 2015. Nicola Mining Inc. was incorporated in 1980 and is headquartered in Lower Nicola, Canada.

How the Company Makes Money

Nicola Mining generates revenue primarily through the exploration and development of its mineral properties, which can lead to the extraction and sale of precious and base metals. The company may also earn income through strategic partnerships, joint ventures, and agreements with other mining companies that allow for shared exploration and development costs. Additionally, Nicola Mining could potentially receive royalties or other financial compensations from the development of its properties by partners. The company's focus on sustainable practices may also enhance its attractiveness to investors and partners, contributing to its financial performance.

Nicola Mining Financial Statement Overview

Summary

Nicola Mining is experiencing significant financial challenges. The income statement indicates declining revenues and persistent losses. The balance sheet highlights high leverage and insolvency risks with negative equity. Cash flow statements show deteriorating cash generation and reliance on external financing. These issues collectively indicate a company under financial strain.

Income Statement

The income statement reveals a challenging financial period for Nicola Mining. The company has experienced declining revenues, from $1,618,000 in 2023 to $818,157 in 2024, reflecting a significant revenue contraction. Gross profit margins are negative due to higher costs of goods sold than revenues. The net profit margin is also negative, demonstrating operating losses. EBIT and EBITDA margins are similarly negative, indicating inefficiencies in operations. Overall, the company faces substantial profitability challenges.

Balance Sheet

Nicola Mining's balance sheet shows high financial risk. The company's stockholders' equity has turned negative at -$9,814,620 in 2024, indicating insolvency. The debt-to-equity ratio is not calculable due to negative equity, but the presence of substantial total debt ($4,535,667) against minimal equity highlights high leverage. The equity ratio is also negative, further underscoring financial instability. These figures suggest a precarious financial position with significant risk of financial distress.

Cash Flow

The cash flow statement for Nicola Mining indicates negative operating cash flows and a negative free cash flow of -$3,764,284 in 2024. This decline from positive cash flows in the previous year signals weakening cash-generating capabilities. The operating cash flow to net income ratio and free cash flow to net income ratio are unfavorable, highlighting inefficiencies in converting income into cash. Despite these issues, the company has managed to secure some financing, which provides limited liquidity support.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	818.16K	1.62M	0.00	0.00	0.00
Gross Profit	-1.44M	-1.52M	-975.00K	-1.48M	-1.04M
EBITDA	-4.40M	-1.75M	1.53M	-1.77M	-1.35M
Net Income	-5.23M	-3.33M	-52.83K	-3.40M	-2.89M
Balance Sheet
Total Assets	10.66M	25.72M	18.58M	12.36M	11.35M
Cash, Cash Equivalents and Short-Term Investments	2.54M	4.76M	895.77K	916.29K	824.71K
Total Debt	4.54M	4.25M	5.73M	7.04M	6.55M
Total Liabilities	20.47M	19.44M	16.51M	11.52M	11.15M
Stockholders Equity	-9.81M	6.28M	2.08M	841.42K	198.84K
Cash Flow
Free Cash Flow	-3.76M	3.82M	1.67M	-2.74M	-1.13M
Operating Cash Flow	-3.31M	3.87M	1.73M	-2.22M	-1.12M
Investing Cash Flow	-1.59M	-88.70K	-75.65K	-336.87K	-11.50K
Financing Cash Flow	1.60M	78.24K	-1.68M	2.65M	1.46M

Nicola Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NIM, the sentiment is Positive. The current price of 0.5 is above the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.42, and above the 200-day MA of 0.34, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 71.20 is Negative, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NIM.

Nicola Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NIM	55 Neutral	C$87.65M	―	-122.83%	―	―	-370.49%
Sector *	44 Neutral	C$979.74M	-6.70	-13.35%	2.68%	17.20%	-32.62%
SYH	42 Neutral	C$65.43M	―	-5.97%	―	―	55.15%
LCE	40 Underperform	C$42.61M	―	-4.74%	―	―	30.08%
WM	39 Underperform	C$65.99M	―	-3.20%	―	―	9.09%
CDB	32 Underperform	C$67.99M	―	-213.92%	―	―	29.90%
HPQ	26 Underperform	C$68.70M	―	-399.98%	―	―	7.43%

Nicola Mining Corporate Events

Nicola Mining Launches $2M Private Placement for Exploration

Nicola Mining Inc. has announced a non-brokered private placement of up to 4,000,000 units at $0.50 per unit, aiming to raise $2,000,000. The proceeds will be used for further exploration of the New Craigmont Project. The offering includes flow-through common shares and warrants, with insider participation possible. This move is expected to bolster Nicola’s exploration efforts and strengthen its position in the mining industry.

The most recent analyst rating on (TSE:NIM) stock is a Buy with a C$0.60 price target. To see the full list of analyst forecasts on Nicola Mining stock, see the TSE:NIM Stock Forecast page.

Nicola Mining Launches 2025 Drilling Program at New Craigmont

Nicola Mining has commenced its 2025 Exploration Diamond Drilling Program at the New Craigmont Copper Project, targeting potential porphyry copper systems. The program involves drilling 4,000-5,000 meters across several high-priority targets identified through AI-based analysis in collaboration with GoldSpot Discoveries. The initiative aims to expand mineralization at existing targets and test new ones, with an estimated budget of $1.5-2 million. The results could significantly impact Nicola’s operations by enhancing its understanding of the property’s mineral potential and guiding future exploration efforts.

The most recent analyst rating on (TSE:NIM) stock is a Buy with a C$0.60 price target. To see the full list of analyst forecasts on Nicola Mining stock, see the TSE:NIM Stock Forecast page.

Nicola Mining Secures Multi-Year Exploration Permit for Treasure Mountain

Nicola Mining Inc. has received a multi-year area-based exploration permit for its Treasure Mountain Silver Project, allowing extensive exploration activities over the next five years. This development, along with a recent ten-year mining lease extension, enhances the company’s exploration and mining potential, positioning it favorably in the market amid strong silver prices.

The most recent analyst rating on (TSE:NIM) stock is a Buy with a C$0.60 price target. To see the full list of analyst forecasts on Nicola Mining stock, see the TSE:NIM Stock Forecast page.

Nicola Mining Strengthens Exploration Team with New Senior Geologist

Nicola Mining Inc. has appointed Vicente García as Senior Geologist to enhance its copper porphyry expertise as it embarks on an aggressive 2025 exploration program. García’s extensive experience in various mineral exploration projects, including copper and lithium, is expected to significantly contribute to Nicola’s exploration efforts, particularly at the New Craigmont Project and Treasure Mountain Silver Mine. The company aims to capitalize on copper exploration opportunities while continuing its gold and silver production, strengthening its position in the mining industry.

The most recent analyst rating on (TSE:NIM) stock is a Buy with a C$0.60 price target. To see the full list of analyst forecasts on Nicola Mining stock, see the TSE:NIM Stock Forecast page.

Nicola Mining Begins Gold and Silver Production, Expands Operations

Nicola Mining Inc. has commenced gold and silver production at its upgraded facility in Merritt, British Columbia, receiving ore from Talisker Resources Inc. and working with Ocean Partners UK Limited on concentrate sales. The company is ramping up production to reach full capacity by Q3 and is applying for a permit amendment to increase mill throughput. Nicola is also preparing for copper exploration at its New Craigmont Copper Project and has strengthened its geological team. The company is involved with Blue Lagoon Resources and is preparing to accept ore from Dome Mountain Mine, while also initiating mining activities at its Dominion Creek Mineral Project.

The most recent analyst rating on (TSE:NIM) stock is a Buy with a C$0.60 price target. To see the full list of analyst forecasts on Nicola Mining stock, see the TSE:NIM Stock Forecast page.