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Spruce Ridge Resources Ltd (TSE:SHL)
:SHL
Canadian Market

Spruce Ridge Resources (SHL) AI Stock Analysis

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Spruce Ridge Resources

(SHL)

Rating:35Underperform
Price Target:
Spruce Ridge Resources faces significant financial challenges, with no revenue and negative cash flow impacting its stability. While corporate events hint at potential growth, the unattractive valuation and technical indicators showing mixed signals limit the stock's appeal.

Spruce Ridge Resources (SHL) vs. iShares MSCI Canada ETF (EWC)

Spruce Ridge Resources Business Overview & Revenue Model

Company DescriptionSpruce Ridge Resources Ltd., an exploration-stage company, engages in the acquisition, exploration, and development of mineral properties. It explores for gold, copper, and zinc deposits. The company holds a 100% interest in the Great Burnt copper-gold property located in central Newfoundland. It also holds an option to acquire interests in the Nora Lake gold property situated in Ontario; and the Viking/Kramer gold properties located in Western Newfoundland, as well as interest in the petroleum and natural gas rights covering an area of 793 hectares located in the Unity area of southwestern Saskatchewan. The company was incorporated in 1989 and is headquartered in Puslinch, Canada.
How the Company Makes MoneySpruce Ridge Resources generates revenue primarily through the exploration and development of its mineral properties, which involves identifying and confirming the presence of economically viable mineral deposits. The company makes money by either selling or leasing these properties to larger mining companies or by entering into joint ventures and partnerships to further develop and eventually produce minerals from these sites. Additionally, Spruce Ridge may engage in strategic transactions such as property sales or option agreements with other exploration and mining entities. The company's earnings are significantly influenced by commodity prices, exploration success, and its ability to secure partnerships and investment for its projects.

Spruce Ridge Resources Financial Statement Overview

Summary
Spruce Ridge Resources is facing severe financial challenges, with no revenue and consistent financial losses. While the balance sheet is stable with no debt, the negative cash flows and income highlight deep operational issues.
Income Statement
15
Very Negative
Spruce Ridge Resources shows no revenue in recent periods, with a significant negative net income and EBIT margin. The gross profit margin is negative due to the absence of revenue, indicating severe operational challenges. The company's financial performance shows consistent losses, which suggest a struggling core business model.
Balance Sheet
50
Neutral
The company maintains a solid equity position, with a high equity ratio indicating financial stability. The absence of debt is a positive sign, reducing financial risk. However, the persistent negative net income affects return on equity, highlighting profitability issues.
Cash Flow
20
Very Negative
The cash flow analysis reveals negative operating and free cash flows, which can strain liquidity. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting income to cash flow.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
0.000.0060.63K131.39K0.000.00
Gross Profit
-22.73K-54.31K-194.95K-484.32K-5.68K-6.94K
EBIT
-1.84M-1.10M-1.04M-2.25M-1.30M-441.32K
EBITDA
-1.82M345.59K-992.33K-2.15M-23.92M-9.47M
Net Income Common Stockholders
-4.74M320.79K-5.81M-10.66M21.67M8.61M
Balance SheetCash, Cash Equivalents and Short-Term Investments
310.007.44M9.30M7.45M10.93M4.67M
Total Assets
2.06M14.43M10.57M16.84M34.13M11.85M
Total Debt
41.00K0.0060.00K60.00K60.00K45.00
Net Debt
40.84K-172.27K-153.77K-653.70K-2.12M45.00
Total Liabilities
594.48K241.90K159.16K612.23K1.91M386.60K
Stockholders Equity
1.46M13.10M10.41M16.22M32.22M11.46M
Cash FlowFree Cash Flow
-1.34M-1.42M-449.93K-3.15M-1.39M-989.81K
Operating Cash Flow
-269.46K-257.34K-397.27K-3.02M-1.34M-981.41K
Investing Cash Flow
343.91K-777.16K-102.66K-71.10K134.29K876.82K
Financing Cash Flow
-467.01K992.99K0.001.63M3.39M80.39K

Spruce Ridge Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.06
Price Trends
50DMA
0.05
Positive
100DMA
0.04
Positive
200DMA
0.04
Positive
Market Momentum
MACD
<0.01
Negative
RSI
77.53
Negative
STOCH
66.67
Neutral
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 0.04, 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 77.53 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$7.23B3.16-4.49%5.63%0.82%-49.15%
44
Neutral
C$12.51M-12.23%-52.78%
TSVUL
40
Underperform
C$15.52M-3.96%-78.46%
TSWLF
40
Underperform
C$14.01M15.7495.47%64.12%
TSGGI
37
Underperform
C$9.63M-110.02%71.77%
TSNRM
37
Underperform
C$9.39M-45.87%72.76%
TSSHL
35
Underperform
C$13.38M-40.83%-100.00%-174.68%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SHL
Spruce Ridge Resources
0.06
0.02
50.00%
TSE:GGI
Garibaldi Resources
0.07
-0.03
-30.00%
TSE:NRM
Noram Lithium Corp
0.10
0.00
0.00%
TSE:VUL
Vulcan Minerals
0.12
-0.02
-14.29%
TSE:TGOL
White Metal Resources
0.06
0.02
50.00%
TSE:WLF
Wolfden Resources
0.08
0.03
60.00%

Spruce Ridge Resources Corporate Events

Business Operations and Strategy
Homeland Nickel Reports Significant Exploration Progress
Positive
Apr 7, 2025

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.

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.