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Chakana Copper Corp (TSE:PERU)
:PERU

Chakana Copper (PERU) AI Stock Analysis

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Chakana Copper

(OTC:PERU)

Rating:36Underperform
Price Target:
Chakana Copper faces severe financial challenges with continuous losses, negative cash flows, and no revenue generation, reflecting a high-risk financial position. The technical analysis also shows weak performance with bearish trends and oversold conditions. The valuation is hindered by a negative P/E ratio and lack of dividends. Despite a positive strategic shift towards high-grade silver discovery, the immediate impact on financial health and stock performance remains limited.

Chakana Copper (PERU) vs. iShares MSCI Canada ETF (EWC)

Chakana Copper Business Overview & Revenue Model

Company DescriptionChakana Copper Corp is a mineral exploration company focused on the discovery and development of copper and precious metal deposits in Peru. The company's principal asset is the Soledad Project, located in the prolific Ancash region, known for its rich mineral resources. Chakana Copper leverages advanced geological techniques to explore and assess the potential of its mining properties, aiming to expand its resource base and enhance shareholder value.
How the Company Makes MoneyChakana Copper generates revenue primarily through the exploration and potential development of its mining projects, with a focus on copper and other precious metals. The company seeks to increase its value by identifying and expanding viable mineral resources, which can attract investment or acquisition interest. Key revenue streams include joint ventures, partnerships, and potential sales of discovered resources or mineral rights. Chakana Copper may also benefit from strategic partnerships with larger mining companies that have the capacity to further develop and operate significant mining projects.

Chakana Copper Financial Statement Overview

Summary
Chakana Copper is experiencing severe financial distress characterized by continuous losses and cash flow challenges against a backdrop of no revenue generation. While the balance sheet shows low leverage, the lack of positive cash flow and profitability presents a significant risk to financial sustainability. Immediate strategic interventions are necessary to address the ongoing financial issues.
Income Statement
20
Very Negative
The income statement reveals significant losses with no revenue generation. The company has consistently reported negative EBIT and EBITDA, indicating operational inefficiencies. Net income remains deeply negative, showing no signs of improvement. This trajectory reflects a challenging financial position with persistent profitability issues.
Balance Sheet
40
Negative
The balance sheet shows a relatively low level of debt compared to equity, with a Debt-to-Equity ratio of approximately 0.1 in the latest reports, indicating low leverage. However, the diminishing asset base and declining stockholders' equity signal potential financial instability, requiring cautious monitoring.
Cash Flow
25
Negative
The cash flow statement highlights negative operating and free cash flows, suggesting cash constraints and challenges in financing operations internally. Despite positive financing cash flows indicating external funding, the company's reliance on such financing is unsustainable long-term without operational improvements.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-95.27K-96.52K-108.71K-127.86K-101.72K-102.52K
EBITDA-2.68M-2.49M-3.37M-7.56M-8.41M-5.51M
Net Income-10.86M-2.59M-3.48M-7.69M-8.51M-5.61M
Balance Sheet
Total Assets1.65M10.83M9.24M10.89M13.19M10.79M
Cash, Cash Equivalents and Short-Term Investments266.72K2.28M2.25M5.56M8.68M6.68M
Total Debt343.37K111.44K178.15K215.11K236.77K0.00
Total Liabilities955.21K750.90K562.02K857.49K1.48M339.07K
Stockholders Equity697.45K10.08M8.68M10.03M11.71M10.46M
Cash Flow
Free Cash Flow-2.48M-3.61M-4.32M-7.99M-6.44M-5.60M
Operating Cash Flow-2.29M-1.98M-3.05M-6.90M-5.76M-5.11M
Investing Cash Flow-376.93K-1.63M-1.27M-1.06M-687.41K-483.03K
Financing Cash Flow736.59K3.63M983.15K4.85M8.71M0.00

Chakana Copper Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.08
Price Trends
50DMA
0.08
Positive
100DMA
0.10
Negative
200DMA
0.17
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
51.58
Neutral
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PERU, the sentiment is Positive. The current price of 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.08, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.58 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PERU.

Chakana Copper Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSLUN
75
Outperform
$12.41B25.632.66%2.27%-8.36%-200.42%
TSIVN
69
Neutral
$14.34B24.269.67%137.28%
TSCS
66
Neutral
$6.38B54.892.71%37.30%
TSHCU
53
Neutral
C$168.95M178.91%148.24%-70.27%
44
Neutral
C$964.86M-6.72-13.73%2.52%17.53%-32.55%
TSREG
37
Underperform
C$297.93M-5.29%-43.69%
36
Underperform
C$2.14M-195.89%-155.79%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PERU
Chakana Copper
0.08
-0.37
-82.22%
TSE:CS
Capstone Copper
8.08
-1.87
-18.79%
TSE:IVN
Ivanhoe Mines
10.70
-8.74
-44.96%
TSE:LUN
Lundin Mining
14.11
-1.29
-8.35%
TSE:REG
Regulus Resources
2.34
0.44
23.16%
TSE:HCU
Royalty North
1.94
1.26
185.29%

Chakana Copper Corporate Events

Stock Split
Chakana Copper Announces Share Consolidation Effective February 28, 2025
Neutral
Feb 25, 2025

Chakana Copper Corp. has announced a share consolidation effective February 28, 2025, where every ten pre-consolidation shares will be consolidated into one post-consolidation share. This move reduces the total number of outstanding shares from 267,008,571 to approximately 26,700,857, with no changes to the company’s name or trading symbol. The consolidation aims to streamline the company’s share structure, potentially enhancing its market position and attractiveness to investors.

Business Operations and Strategy
Chakana Copper Shifts Focus to High-Grade Silver Discovery at La Joya
Positive
Feb 11, 2025

Chakana Copper Corp. is shifting its focus to the La Joya high-grade silver discovery as part of its 2025 exploration strategy, following successful drilling results in 2024. This pivot includes relinquishing interests in less promising options to eliminate financial obligations, while planning further exploration activities at La Joya and other promising targets, positioning the company to potentially enhance its resource base and market position.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Apr 29, 2025