Regulus Resources (REG) AI Stock Analysis

• Market Cap: C$631.49M
• Dividend Yield: N/A
• Average Volume (3M): 35.78K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.12
• Revenue Growth: N/A
• EPS Growth: -67.96%
• Country: CA
• Employees: 57
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 125,544,670
• 10 Day Avg. Volume: 45,297
• 30 Day Avg. Volume: 35,780
• PEG Ratio: 4.83
• Price to Book (P/B): 4.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -49.02
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: C$5.50 ▲(24.15% Upside)

The score is held back primarily by weak financial performance (pre-revenue status, recurring losses, and ongoing cash burn despite a low-debt balance sheet). Technicals add meaningful support due to a clear uptrend and positive momentum. Valuation contributes negatively given the loss-driven negative P/E and lack of dividend yield.

Positive Factors

Strong balance sheet / low leverage

Minimal debt and fairly stable equity provide durable financial flexibility for a pre-revenue explorer. Near-zero leverage reduces solvency and refinancing risk, allowing the company to fund drilling or strategic partnerships longer before urgent capital raises become necessary.

Focused on copper and gold in Peru

Concentration on copper and gold in Peru aligns the company with long-term structural demand for copper (electrification/renewables) and persistent gold appeal. Peru's prolific geology and industry interest increase the odds of attracting JV partners or transaction monetization over time.

Improving free cash flow trend vs 2023

Material improvement in free cash flow versus 2023 suggests better capital allocation and cost control in exploration activities. While still negative, the trend reduces near-term financing needs, extends project runway, and indicates operational adjustments that can be sustained into upcoming exploration cycles.

Negative Factors

Pre-revenue business model

The company generates no recurring revenue, meaning long-term success depends entirely on discovery and third-party monetization events. This structural characteristic creates binary outcomes, elevating execution and financing risk and making sustained value creation uncertain over the medium term.

Persistent negative operating and free cash flow

Consistent negative operating and free cash flows force reliance on external financing to fund exploration and technical studies. Over time this dilutes shareholders and can restrict project progression if capital markets worsen, representing a durable funding risk for a non-producing miner.

Ongoing losses and negative returns on equity

Sustained net losses and negative ROE indicate the company is eroding shareholder equity rather than generating returns. Unless exploration results lead to monetization or a profitable JV, continued losses will weaken investor confidence and make attracting non-dilutive capital more difficult over time.

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

Overall financial profile is mixed: the balance sheet is a strength with minimal leverage and fairly stable equity, but the business remains pre-revenue with persistent losses and negative gross profit. Cash flow is also a concern due to ongoing operating and free-cash-flow burn, implying reliance on external financing over time.

Income Statement

The income statement remains weak and largely pre-revenue (revenue is 0 across all years). Losses are persistent, with net income negative every year; 2025 improved versus 2024 (loss narrowed from about -4.2M to -3.5M), but profitability is still not in sight. Gross profit is also negative each year, indicating ongoing holding/exploration-style cost structure rather than a scaling operating business.

Balance Sheet

The balance sheet is a relative strength: leverage is minimal (debt is near zero in recent years and the debt-to-equity ratio is effectively ~0). Equity is substantial and fairly stable (roughly 66.8M in 2025 vs 68.6M in 2024), supporting financial flexibility. The key weakness is consistently negative returns on equity driven by ongoing losses, which steadily erode shareholder value over time if not reversed.

Cash Flow

Cash flow is pressured by sustained cash burn: operating cash flow is negative every year (about -2.2M in 2025), and free cash flow is also negative (about -5.8M in 2025). Free cash flow improved materially versus 2023 (when it was about -10.6M), but 2025 deteriorated versus 2024 (about -5.0M to -5.8M). Overall, the company appears reliant on financing to fund ongoing operations and investment needs.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-55.84K	-55.84K	-52.84K	-106.00K	-105.00K	-114.00K
EBITDA	-3.39M	-3.45M	-4.63M	-2.94M	-2.61M	-3.00M
Net Income	-3.51M	-3.51M	-4.21M	-3.07M	-2.73M	-5.45M
Balance Sheet
Total Assets	67.86M	67.86M	69.50M	71.30M	56.63M	52.00M
Cash, Cash Equivalents and Short-Term Investments	8.01M	8.01M	13.35M	18.42M	249.17K	9.50M
Total Debt	0.00	0.00	0.00	8.38K	843.07K	253.08K
Total Liabilities	1.04M	1.04M	902.13K	1.22M	6.01M	2.28M
Stockholders Equity	66.82M	66.82M	68.59M	70.09M	50.62M	49.73M
Cash Flow
Free Cash Flow	-5.83M	-5.83M	-4.97M	-10.61M	-9.21M	-9.33M
Operating Cash Flow	-2.22M	-2.22M	-1.71M	-2.06M	-2.90M	-3.53M
Investing Cash Flow	-3.30M	-3.62M	-3.37M	-1.83M	-6.70M	10.31M
Financing Cash Flow	0.00	0.00	145.00K	22.33M	674.56K	0.00

Regulus Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.43
• 50DMA: Positive
• 100DMA: Positive
• 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:REG, the sentiment is Positive. The current price of 4.43 is below the 20-day moving average (MA) of 4.89, above the 50-day MA of 4.16, and above the 200-day MA of 2.88, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 46.88 is Neutral, neither overbought nor oversold. The STOCH value of 18.43 is Positive, 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%
REG	59 Neutral	C$631.49M	-162.99	-6.29%	―	―	-67.96%
MLP	55 Neutral	C$301.78M	-28.09	―	―	―	-0.74%
OM	54 Neutral	C$738.18M	-26.39	-19.38%	―	―	-57.63%
ERD	53 Neutral	C$495.61M	-33.15	-24.29%	―	―	-1422.76%
ETG	49 Neutral	C$579.83M	-25.91	―	―	―	-41.18%
BZ	48 Neutral	C$717.93M	-32.53	-82.21%	―	―	-524.41%