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Red Lake Gold Inc (TSE:RGLD)
:RGLD

Red Lake Gold Inc (RGLD) AI Stock Analysis

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Red Lake Gold Inc

(RGLD)

Rating:41Neutral
Price Target:
Red Lake Gold Inc's overall score reflects a challenging operational and financial position. The lack of revenue, persistent losses, and negative cash flow are significant risks. Technical analysis shows bearish momentum, further weighing on the stock’s prospects. Valuation metrics are negative, with no earnings and no dividend yield to attract investors. Recent corporate events underline the reliance on external funding and potential legal risks, impacting the stock outlook negatively.

Red Lake Gold Inc (RGLD) vs. iShares MSCI Canada ETF (EWC)

Red Lake Gold Inc Business Overview & Revenue Model

Company DescriptionRed Lake Gold Inc. (RGLD) is a Canadian-based mining company engaged in the exploration and development of gold properties. The company's primary focus is on the Red Lake area in Ontario, known for its rich gold deposits. Red Lake Gold Inc. aims to discover and develop high-quality gold assets through strategic acquisitions and explorations, leveraging its expertise in geology and mining operations.
How the Company Makes MoneyRed Lake Gold Inc. generates revenue primarily through the exploration and development of gold mining projects. The company invests in geological surveys, drilling, and feasibility studies to identify viable gold reserves. Once these reserves are confirmed and the necessary permits are obtained, Red Lake Gold Inc. moves towards the extraction and processing of gold, which is then sold in the global market. Revenue is further supplemented by strategic partnerships and joint ventures with other mining companies, which can provide additional capital and resources for large-scale projects. The company's earnings are influenced by factors such as gold market prices, extraction costs, and the successful discovery of new gold deposits.

Red Lake Gold Inc Financial Statement Overview

Summary
Red Lake Gold Inc is facing significant operational challenges, reflected in its lack of revenue and persistent losses. Despite a strong balance sheet devoid of debt, the company's inability to generate positive cash flow from operations raises concerns. While the equity position is robust, the sustainability of current operations without revenue poses a significant risk.
Income Statement
10
Very Negative
Red Lake Gold Inc has consistently reported zero revenue, indicating no sales or production activity. The company has negative EBIT and EBITDA margins, reflecting operational losses. Net income margins are also negative, highlighting ongoing unprofitability.
Balance Sheet
75
Positive
The company has a strong equity position with no debt, resulting in a favorable debt-to-equity ratio. Stockholders' equity constitutes a significant portion of total assets, indicating financial stability. However, the lack of revenue generation poses a risk to sustaining equity levels long-term.
Cash Flow
50
Neutral
The company experienced fluctuations in free cash flow with significant negative values, although there was a recent improvement. Operating cash flow remains negative, indicating challenges in generating cash from operations. The reliance on financing activities to fund operations is evident.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.000.00
Gross Profit
0.000.000.000.000.00
EBIT
-333.26K-232.70K-237.51K-395.65K-277.18K
EBITDA
-358.26K-197.75K-237.51K-395.65K-277.18K
Net Income Common Stockholders
-358.26K-247.72K-237.51K-395.65K-277.18K
Balance SheetCash, Cash Equivalents and Short-Term Investments
269.38K42.53K332.24K343.11K504.04K
Total Assets
2.53M2.04M2.18M2.11M2.33M
Total Debt
0.000.000.000.000.00
Net Debt
-269.38K-42.53K-332.24K-343.11K-504.04K
Total Liabilities
22.78K13.08K13.13K17.88K21.49K
Stockholders Equity
2.50M2.02M2.17M2.09M2.30M
Cash FlowFree Cash Flow
-251.93K-427.31K-323.83K-210.93K-879.48K
Operating Cash Flow
-251.93K-245.66K-252.42K-183.23K-306.84K
Investing Cash Flow
-263.72K-181.65K-71.41K22.30K-547.64K
Financing Cash Flow
742.50K137.60K312.96K0.00896.83K

Red Lake Gold Inc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.06
Price Trends
50DMA
0.06
Positive
100DMA
0.07
Negative
200DMA
0.08
Negative
Market Momentum
MACD
<0.01
Positive
RSI
45.07
Neutral
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RGLD, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.06, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.07 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 Negative sentiment for TSE:RGLD.

Red Lake Gold Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSAEM
80
Outperform
$81.70B24.5411.45%1.35%32.68%419.46%
TSKNT
76
Outperform
C$3.76B14.9439.28%105.06%481.75%
TSBTO
71
Outperform
$6.62B-17.61%3.83%5.97%-1677.31%
TSSKE
52
Neutral
C$2.24B-137.38%-19.29%
51
Neutral
$2.02B-1.19-21.37%3.64%2.88%-30.57%
41
Neutral
C$3.27M-206.92%-539.74%
TSSGN
38
Underperform
C$43.01M-621.49%61.00%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:RGLD
Red Lake Gold Inc
0.06
-0.01
-14.29%
TSE:BTO
B2Gold
5.05
1.60
46.29%
TSE:AEM
Agnico Eagle
162.19
74.75
85.49%
TSE:SKE
Skeena Resources
19.68
13.42
214.38%
TSE:KNT
K92 Mining
15.67
8.10
107.00%
TSE:SGN
Scorpio Gold
0.22
0.07
46.67%

Red Lake Gold Inc Corporate Events

Legal ProceedingsBusiness Operations and Strategy
Red Lake Gold Faces Potential Impact from First Nation Litigation
Negative
Apr 16, 2025

Red Lake Gold Inc. has received additional correspondence from the Asubpeeschoseewagong Anishinabek, a First Nation in Ontario, regarding third-party litigation related to mining claims in the Red Lake region. The correspondence challenges the validity of mining claims under the Ontario Mining Act, citing a lack of consultation with the Grassy Narrows community, potentially impacting Red Lake Gold’s Whirlwind Jack Gold Project.

Spark’s Take on TSE:RGLD Stock

According to Spark, TipRanks’ AI Analyst, TSE:RGLD is a Underperform.

Red Lake Gold Inc’s overall score reflects its precarious operational and financial position. The lack of revenue, persistent losses, and negative cash flow are significant risks. Technical analysis shows bearish momentum, further weighing on the stock’s prospects. Valuation metrics are negative, with no earnings and no dividend yield to attract investors. The halted private placement highlights the company’s reliance on external funding, posing additional challenges.

To see Spark’s full report on TSE:RGLD stock, click here.

Private Placements and FinancingBusiness Operations and Strategy
Red Lake Gold Inc. Halts Private Placement Amid Market Challenges
Negative
Feb 27, 2025

Red Lake Gold Inc. has decided to discontinue its previously announced non-brokered private placement due to challenging market conditions and lack of interest from potential investors, including a key insider. This decision highlights the company’s ongoing dependency on external capital to sustain operations and meet exploration requirements, which are crucial for maintaining its mining claims.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.