Spruce Ridge Resources (SHL) AI Stock Analysis

• Market Cap: C$12.26M
• Dividend Yield: N/A
• Average Volume (3M): 274.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: -100.00%
• EPS Growth: -174.68%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 44
• Industry: Industrial Materials
• EPS (TTM): -0.02
• Shares Outstanding: 222,946,810
• 10 Day Avg. Volume: 188,400
• 30 Day Avg. Volume: 274,690
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -7.20
• P/FCF Ratio: 0.00
• 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

Spruce Ridge Resources' stock faces substantial challenges due to its lack of revenue and negative cash flows, which significantly impact its financial health. While technical indicators suggest short-term positive momentum, and recent exploration progress offers potential upside, the negative valuation metrics weigh heavily on its overall investment appeal.

Spruce Ridge Resources Business Overview & Revenue Model

Company Description

Spruce Ridge Resources Ltd. (SHL) is a Canadian-based mineral exploration company focused on the acquisition, exploration, and development of mineral properties. The company primarily operates within the mining sector, targeting the discovery and advancement of gold, copper, and other base metal resources. With a portfolio of strategically located exploration projects, Spruce Ridge Resources aims to identify and develop economically viable mineral deposits that can contribute to the supply chain of these essential commodities.

How the Company Makes Money

Spruce Ridge Resources makes money through the exploration and potential development of its mineral properties. The company generates revenue primarily by attracting investment to fund exploration activities, aiming to increase the value of its properties through successful drilling and resource estimation. The key revenue streams include selling or joint venturing properties to larger mining companies once significant mineral resources are identified. Additionally, Spruce Ridge may earn royalty payments or other performance-based incentives from these partnerships. The company's ability to make money is significantly influenced by factors such as commodity prices, exploration success, and the strategic positioning of its projects.

Spruce Ridge Resources Financial Statement Overview

Summary

Spruce Ridge Resources faces significant financial challenges due to the absence of revenue and consistent negative net income. Despite a favorable debt-to-equity ratio, the lack of profitability and negative cash flows pose substantial risks to its financial health and future growth.

Income Statement

The income statement reveals significant financial challenges for Spruce Ridge Resources. The company has experienced a consistent absence of revenue with negative gross profit, indicating operational inefficiencies. The net income has been negative over the years, and EBIT margins have remained deeply negative, showing lack of profitability. Revenue growth is non-existent due to zero revenue, highlighting a stagnant growth trajectory. This severely impacts the company's ability to generate profit and sustain business operations.

Balance Sheet

Spruce Ridge Resources maintains a solid equity base relative to its total assets, with a strong equity ratio. The absence of debt enhances financial stability, but the company has experienced a significant decline in stockholders' equity over time. The debt-to-equity ratio is favorable due to no debt, indicating low financial leverage. However, the lack of revenue and negative net income affects the return on equity negatively.

Cash Flow

The cash flow statement indicates persistent negative free cash flow, reflecting financial strain and an inability to generate positive cash flow from operations. Operating cash flow is negative, which raises concerns about operational sustainability. The free cash flow to net income ratio is unfavorable, underscoring further financial stress. The company has relied on financing activities to bolster cash reserves, emphasizing a lack of internal cash generation.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	60.63K	131.39K	0.00	0.00
	Gross Profit
-56.43K	-54.31K	-194.95K	-484.32K	-5.68K	-6.94K
	EBIT
-2.15M	-1.10M	-1.04M	-2.25M	-1.30M	-441.32K
	EBITDA
1.14M	345.59K	-992.33K	-2.15M	-23.92M	-9.47M
	Net Income Common Stockholders
-1.46M	320.79K	-5.81M	-10.66M	21.67M	8.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.47M	7.44M	9.30M	7.45M	10.93M	4.67M
	Total Assets
11.20M	14.43M	10.57M	16.84M	34.13M	11.85M
	Total Debt
0.00	0.00	60.00K	60.00K	60.00K	45.00
	Net Debt
-212.17K	-172.27K	-153.77K	-653.70K	-2.12M	45.00
	Total Liabilities
364.14K	241.90K	159.16K	612.23K	1.91M	386.60K
	Stockholders Equity
10.77M	13.10M	10.41M	16.22M	32.22M	11.46M
Cash Flow		Free Cash Flow
-1.98M	-1.42M	-449.93K	-3.15M	-1.39M	-989.81K
	Operating Cash Flow
-869.38K	-257.34K	-397.27K	-3.02M	-1.34M	-981.41K
	Investing Cash Flow
42.37K	-777.16K	-102.66K	-71.10K	134.29K	876.82K
	Financing Cash Flow
992.99K	992.99K	0.00	1.63M	3.39M	80.39K

Spruce Ridge Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SHL, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.58 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SHL.

Spruce Ridge Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNT	81 Outperform	C$3.04B	19.63	26.82%	―	77.93%	236.93%
Sector *	57 Neutral	$7.56B	4.34	-4.83%	6.50%	-0.19%	-64.60%
CNC	53 Neutral	$182.91M	―	-0.58%	―	―	91.44%
SHL	47 Neutral	C$12.26M	―	-40.83%	―	-100.00%	-174.68%
AZM	46 Neutral	C$42.06M	213.04	0.39%	―	―	―
BMK	37 Underperform	C$3.90M	―	25.02%	―	―	84.51%
FOM	36 Underperform	C$1.41B	―	-3.01%	―	―	8.92%

Spruce Ridge Resources Corporate Events

Homeland Nickel Reports Significant Exploration Progress

Homeland Nickel Inc. announced significant exploration updates on its Great Burnt Copper and South Pond Gold properties in Newfoundland, revealing high-grade copper and gold intersections. The company also reviewed its Red Flat Property in Oregon for future exploration, highlighting its historical nickel resources and excellent access for drilling.

Spark’s Take on TSE:SHL Stock

According to Spark, TipRanks’ AI Analyst, TSE:SHL is a Neutral.

Spruce Ridge Resources has significant financial challenges, with no revenue and negative cash flow impacting its financial stability. Despite positive technical indicators suggesting short-term momentum, the unattractive valuation due to a negative P/E ratio and lack of dividend yield limits its investment appeal.

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