Regulus Resources (REG) AI Stock Analysis

• Market Cap: C$470.53M
• Dividend Yield: N/A
• Average Volume (3M): 35.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: N/A
• EPS Growth: -67.96%
• Country: CA
• Employees: 57
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.02
• Shares Outstanding: 125,473,400
• 10 Day Avg. Volume: 45,297
• 30 Day Avg. Volume: 35,780
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$6.00
• Price Target Upside: 60.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 37 Underperform
• 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.

Positive Factors

Strong Balance Sheet

A strong balance sheet with zero debt and substantial cash reserves provides financial stability and a buffer against operational losses.

Strategic Focus on Copper and Gold

Focusing on copper and gold projects positions the company to benefit from long-term demand in these markets, enhancing potential asset value.

Potential for Strategic Partnerships

The potential for strategic partnerships can provide capital and expertise, accelerating project development and reducing financial risk.

Negative Factors

Zero Revenue Generation

The lack of revenue generation is a critical concern, as it limits the company's ability to self-fund operations and achieve profitability.

Persistent Financial Losses

Ongoing financial losses indicate operational inefficiencies and challenge the company's ability to achieve long-term financial sustainability.

Negative Cash Flow

Negative cash flow highlights the company's struggle to cover operational costs, risking depletion of cash reserves and financial instability.

Regulus Resources Business Overview & Revenue Model

Company Description

Regulus Resources Inc. operates as a mineral exploration company. Its flagship project is the AntaKori copper-gold-silver project comprises 20 mineral concessions that cover an area of 438 hectares located in the Yanacocha-Hualgayoc mining district in the Department of Cajamarca, Northern Peru. Regulus Resources Inc. was founded in 2010 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Regulus 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-83.92K	-52.84K	-106.00K	-105.00K	-114.00K	-140.00K
EBITDA	-4.19M	-4.63M	-2.94M	-2.61M	-3.00M	-4.30M
Net Income	-4.32M	-4.21M	-3.07M	-2.73M	-5.45M	-5.24M
Balance Sheet
Total Assets	69.54M	69.50M	71.30M	56.63M	52.00M	56.30M
Cash, Cash Equivalents and Short-Term Investments	9.31M	13.35M	18.42M	249.17K	9.50M	2.75M
Total Debt	0.00	0.00	8.38K	843.07K	253.08K	8.92K
Total Liabilities	1.58M	902.13K	1.22M	6.01M	2.28M	1.15M
Stockholders Equity	67.97M	68.59M	70.09M	50.62M	49.73M	55.16M
Cash Flow
Free Cash Flow	-5.16M	-4.97M	-10.61M	-9.21M	-9.33M	-10.14M
Operating Cash Flow	-1.15M	-1.71M	-2.06M	-2.90M	-3.53M	-1.70M
Investing Cash Flow	-3.95M	-3.37M	-1.83M	-6.70M	10.31M	-8.53M
Financing Cash Flow	0.00	145.00K	22.33M	674.56K	0.00	10.58M

Regulus Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.75 is above the 20-day moving average (MA) of 3.52, above the 50-day MA of 3.19, and above the 200-day MA of 2.49, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 61.74 is Neutral, neither overbought nor oversold. The STOCH value of 68.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:REG.

Regulus Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GLO	51 Neutral	C$252.84M	-56.86	-1.71%	―	52.34%	69.28%
OM	50 Neutral	C$417.24M	-17.19	-19.38%	―	―	-57.63%
PNPN	48 Neutral	C$180.86M	-4.22	-344.14%	―	―	-87.42%
MNO	45 Neutral	C$623.77M	-16.69	-62.98%	―	―	-23.64%
NICU	40 Underperform	C$629.53M	101.93	6.21%	―	―	―
REG	37 Underperform	C$470.53M	-108.38	-6.29%	―	―	-67.96%