Spruce Ridge Resources (SHL) AI Stock Analysis

• Market Cap: C$106.15M
• Dividend Yield: N/A
• Average Volume (3M): 186.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: N/A
• EPS Growth: -17400.00%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): <0.01
• Shares Outstanding: 221,146,800
• 10 Day Avg. Volume: 299,004
• 30 Day Avg. Volume: 186,428
• PEG Ratio: -0.28
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.73
• 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: 54 Neutral
• Price Target: C$0.41 ▲(410.00% Upside)

The score is held back primarily by weak financial performance (no TTM revenue, ongoing losses, and negative free cash flow), partially offset by low leverage and positive equity. Technicals are a key positive with strong trend and momentum, while valuation remains constrained by negative earnings and no dividend support.

Positive Factors

Low leverage / strong solvency

A near-zero debt position materially reduces solvency and interest-cost risk over the medium term. This gives management flexibility to pursue exploration, asset monetization or tuck-in opportunities without immediate debt-servicing pressure, improving survival odds during cash burn periods.

Positive equity buffer

Having positive shareholders' equity provides a tangible capital buffer against ongoing losses, allowing continued operations and potential asset-backed transactions. It supports ability to raise capital on clearer terms and absorb near-term cash outflows while strategic plans are executed.

Evidence of realizable asset value

A substantial, albeit non-recurring, 2021 profit indicates the company has previously realized significant asset or transaction value. That optionality suggests management can potentially unlock value through future disposals, joint ventures, or strategic transactions, adding upside beyond operations.

Negative Factors

No revenue and recurring losses

Lack of recurring revenue means the core business does not self-sustain; persistent net losses erode capital and force reliance on external funding. Over months this undermines margin development, makes long-term planning harder, and raises execution risk for any exploration or development strategy.

Persistent negative cash flow

Ongoing operating and free cash outflows signal structural cash burn, requiring repeated financing or asset sales. This pressure increases dilution risk, constrains capital allocation to projects, and reduces flexibility to invest in value-creating activities without diluting shareholders or taking unfavorable financing.

Eroding equity and negative returns

A marked decline in equity and sustained negative ROE indicate the company is burning through capital and failing to generate returns on the equity base. This erosion weakens the balance sheet buffer, elevates insolvency and refinancing risk, and reduces investor confidence in long-term capital preservation.

Spruce Ridge Resources Business Overview & Revenue Model

Company Description

Homeland Nickel, Inc. is a mineral exploration company, which engages in the acquisition, exploration and development of exploration, and evaluation properties. Its projects include Cleopatra property, Red Flat Nickel property, Eight Dollar Mountain, Shamrock property, and Benton option. The company was founded on April 4, 1989 and is headquartered in Toronto, Canada.

How the Company Makes Money

Spruce 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

Overall fundamentals are weak: the income statement shows inconsistent profitability with no TTM revenue and continued losses, and cash flow is persistently negative (TTM operating and free cash flow outflows). The main support is a relatively strong balance sheet with minimal debt and positive equity, though equity has declined over time.

Income Statement

Profitability is weak and inconsistent. In TTM (Trailing-Twelve-Months), the company generated no revenue and posted a sizable net loss (-1.74M) with negative operating earnings, indicating ongoing cost burn without an operating revenue base. Annual results show large losses in 2025 (-4.97M) and 2023 (-5.81M), with only an isolated profit in 2024 (0.32M) and a very large profit in 2021 (21.67M) that appears non-recurring given subsequent losses. Overall, earnings quality and revenue traction remain the key weaknesses.

Balance Sheet

The balance sheet is a relative strength due to minimal to no debt (debt-to-equity near 0 across periods), which reduces solvency risk. Equity remains positive (~9.50M in TTM (Trailing-Twelve-Months)), but it has declined meaningfully from earlier years (e.g., 32.22M in 2021), consistent with ongoing losses and dilution/burn risk. Returns on equity are currently negative (TTM ROE about -18%), reflecting that the equity base is not producing profits.

Cash Flow

Cash generation is weak with persistent cash outflows. TTM (Trailing-Twelve-Months) operating cash flow is negative (-1.75M) and free cash flow is also negative (-1.77M), signaling continued funding needs. Free cash flow growth is negative, and while free cash flow is close to net income in TTM (suggesting losses are largely cash-based), the overall pattern still points to ongoing cash burn and dependence on external capital.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2023	Dec 2021	Dec 2021
Income Statement
Total Revenue	0.00	0.00	60.63K	0.00	0.00	131.39K
Gross Profit	-17.65K	-18.94K	-195.00K	-54.31K	-5.68K	-484.00K
EBITDA	-1.71M	-2.24M	-992.00K	345.59K	23.15M	-2.15M
Net Income	-1.74M	-4.97M	-5.81M	320.79K	21.67M	-10.66M
Balance Sheet
Total Assets	9.95M	10.11M	10.57M	14.43M	34.13M	16.84M
Cash, Cash Equivalents and Short-Term Investments	3.30M	3.87M	9.30M	7.44M	10.93M	7.45M
Total Debt	0.00	0.00	60.00K	0.00	60.00K	60.00K
Total Liabilities	449.73K	521.68K	159.16K	241.90K	1.91M	612.23K
Stockholders Equity	9.50M	9.53M	10.41M	13.10M	32.22M	16.22M
Cash Flow
Free Cash Flow	-1.77M	-1.61M	-449.93K	-1.42M	-1.39M	-3.15M
Operating Cash Flow	-1.75M	-1.61M	-397.27K	-257.34K	-1.34M	-3.02M
Investing Cash Flow	1.83M	1.75M	-102.66K	-777.16K	134.29K	-71.10K
Financing Cash Flow	0.00	0.00	0.00	992.99K	3.39M	1.63M

Spruce Ridge Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.08 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.20, and below the 200-day MA of 0.10, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 62.73 is Neutral, neither overbought nor oversold. The STOCH value of 37.76 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

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%
SHL	54 Neutral	C$106.15M	-53.85	-17.20%	―	―	-17400.00%
PEX	53 Neutral	C$15.97M	-1.26	-82.13%	―	―	1.73%
ATHA	53 Neutral	C$16.96M	―	19.89%	―	―	―
XGC	50 Neutral	C$23.64M	20.00	―	―	―	―
RRI	49 Neutral	C$17.95M	7.82	-15.87%	―	―	-90.32%
NOB	36 Underperform	C$34.41M	56.52	―	―	―	-970.00%

Spruce Ridge Resources Corporate Events

Homeland Nickel Names Jordan Black Corporate Secretary as Errol Farr Steps Down

Homeland Nickel Inc. has appointed geotechnical engineer and mining entrepreneur Jordan Black as its new Corporate Secretary, following the resignation of former Corporate Secretary Errol Farr, who is stepping down to focus on his roles as CEO of two other public companies. Black brings experience as CEO and director of Ramp Metals, as a former geotechnical team lead at WSP Canada, and as a former vice president of business development at AI-driven exploration firm GoldSpot Discoveries, signaling Homeland’s intent to strengthen its governance and technical bench as it builds on recent operational momentum. In connection with his appointment, Black has been granted 500,000 stock options exercisable at $0.47 until January 26, 2029, aligning his incentives with long-term shareholder value.

The most recent analyst rating on (TSE:SHL) stock is a Hold with a C$0.46 price target. To see the full list of analyst forecasts on Spruce Ridge Resources stock, see the TSE:SHL Stock Forecast page.

Homeland Nickel Says No Material Change Behind Surge in Trading Activity

Homeland Nickel Inc. stated that its management is unaware of any undisclosed material change in its operations that would explain the recent spike in trading activity in its shares. The clarification, made at the request of the Canadian Investment Regulatory Organization, suggests the market move is not driven by new corporate developments, leaving investors to attribute the volatility to broader market dynamics or speculation rather than company-specific news.

The most recent analyst rating on (TSE:SHL) stock is a Hold with a C$0.32 price target. To see the full list of analyst forecasts on Spruce Ridge Resources stock, see the TSE:SHL Stock Forecast page.

Homeland Nickel Forms Patriot Nickel Corp to Boost U.S. Presence

Homeland Nickel Inc. has announced the formation of Patriot Nickel Corp, a Delaware-registered private company, to enhance its exposure to strategic holdings in the United States. This partnership aligns with the ‘America First’ trend and focuses on building a domestic supply of nickel in Southern Oregon. The agreement includes Homeland optioning its Cleopatra and Eight Dollar Mountain properties to Patriot, receiving 20% of Patriot’s common shares, and staged cash payments. This strategic move is expected to benefit Homeland’s shareholders by attracting American investor interest and minimizing dilution, while also positioning the company advantageously within the U.S. regulatory system.