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Regulus Resources (TSE:REG)
:REG

Regulus Resources (REG) AI Stock Analysis

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Regulus Resources

(REG)

Rating:37Underperform
Price Target:
Regulus Resources faces significant challenges due to its inability to generate revenue and persistent financial losses, severely impacting its overall financial health. Despite a strong balance sheet, the lack of income and negative cash flows are critical concerns. Technical indicators show a lack of upward momentum, and the valuation is unattractive with a negative P/E ratio. Overall, the stock presents high risk with limited prospects for near-term improvement.

Regulus Resources (REG) vs. iShares MSCI Canada ETF (EWC)

Regulus Resources Business Overview & Revenue Model

Company DescriptionRegulus Resources Inc. is a Canadian-based mineral exploration company primarily focused on the exploration and development of base and precious metal projects in the Americas. The company is engaged in the identification, acquisition, and exploration of mineral properties, with a particular emphasis on copper and gold deposits. Regulus Resources is committed to advancing its flagship project, the AntaKori copper-gold project located in northern Peru, through strategic exploration and development activities.
How the Company Makes MoneyRegulus Resources makes money by exploring and developing mineral properties, primarily focusing on copper and gold. The company's revenue model centers around increasing the value of its mineral assets through exploration and potential resource expansion, which can lead to higher valuations and potential sales or joint venture partnerships. Key revenue streams include the sale of mineral properties, royalties from developed projects, and possible joint ventures with larger mining companies that provide funding in exchange for a stake in the project. Significant partnerships with other mining companies or investors can also contribute to Regulus Resources' earnings by providing capital and expertise to advance their projects.

Regulus Resources Financial Statement Overview

Summary
Regulus Resources shows a weak financial position with zero revenue and consistent losses, reflecting a significant risk. However, the company has a strong balance sheet with no debt and substantial cash reserves, providing some stability.
Income Statement
10
Very Negative
Regulus Resources has consistently reported zero revenue across all periods, indicating no operational income generation. The company is experiencing persistent losses, with significant negative EBIT and EBITDA figures, reflecting ongoing unprofitability. There is no revenue growth, and the net profit margin is negative due to continuous net losses.
Balance Sheet
65
Positive
The balance sheet is relatively strong with zero debt and a high equity ratio, showcasing financial stability. The company has a substantial cash reserve, which provides a buffer against ongoing operational losses. However, the lack of revenue generation remains a concern for long-term sustainability.
Cash Flow
20
Very Negative
The company exhibits negative operating and free cash flows, indicating cash outflows exceed inflows, primarily due to operational losses and capital expenditures. Despite the negative cash flow, the company has managed cash reserves through financing activities. The free cash flow growth is negative, highlighting challenges in achieving positive cash flow.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
-60.24K0.00-105.67K-104.97K-113.71K-139.84K
EBIT
-4.81M-4.63M-3.40M-1.96M-3.35M-4.70M
EBITDA
-3.89M-4.63M-2.94M-2.84M-3.23M-4.30M
Net Income Common Stockholders
-3.97M-4.21M-3.07M-3.48M-5.48M-5.26M
Balance SheetCash, Cash Equivalents and Short-Term Investments
15.90M13.35M18.42M249.17K9.50M2.75M
Total Assets
70.37M69.50M71.30M56.63M52.00M56.30M
Total Debt
0.000.008.38K843.07K253.08K8.92K
Net Debt
-15.90M-13.35M-18.42M593.91K-9.25M-2.74M
Total Liabilities
1.03M902.13K1.22M6.01M2.28M1.15M
Stockholders Equity
69.34M68.59M70.09M50.62M49.73M55.16M
Cash FlowFree Cash Flow
-4.86M-4.97M-10.61M-9.21M-9.33M-10.14M
Operating Cash Flow
-1.36M-1.71M-2.06M-2.90M-3.53M-1.70M
Investing Cash Flow
-2.80M-3.37M-1.83M-6.70M10.31M-8.53M
Financing Cash Flow
145.00K145.00K22.33M674.56K0.0010.58M

Regulus Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.39
Price Trends
50DMA
2.07
Positive
100DMA
2.10
Positive
200DMA
2.06
Positive
Market Momentum
MACD
0.08
Negative
RSI
80.18
Negative
STOCH
96.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:REG, the sentiment is Positive. The current price of 2.39 is above the 20-day moving average (MA) of 2.12, above the 50-day MA of 2.07, and above the 200-day MA of 2.06, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 80.18 is Negative, neither overbought nor oversold. The STOCH value of 96.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:REG.

Regulus Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$2.02B-1.19-21.37%3.64%2.88%-30.57%
TSADX
39
Underperform
C$1.33M18.87%29.37%-5.43%
TSREG
37
Underperform
C$297.93M-5.65%-43.69%
TSNRN
37
Underperform
C$10.52M-86.91%-200.00%
TSVVC
31
Underperform
C$14.32M-23.06%4815.85%-12.70%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:REG
Regulus Resources
2.45
0.74
43.27%
TSE:NRN
Northern Shield Resources
0.10
0.05
100.00%
TSE:ADX
Advantex Marketing International
TSE:VVC
VVC Exploration
0.02
-0.02
-50.00%
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.