Spruce Ridge Resources (SHL) AI Stock Analysis

• Market Cap: C$13.38M
• Dividend Yield: N/A
• Average Volume (3M): 102.54K
• 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: 42
• Industry: Industrial Materials
• EPS (TTM): -0.02
• Shares Outstanding: 222,946,810
• 10 Day Avg. Volume: 115,100
• 30 Day Avg. Volume: 102,541
• PEG Ratio: <0.01
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.97
• 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

• Rating: 35 Underperform
• 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 Business Overview & Revenue Model

Company Description

Spruce Ridge Resources Ltd. (SHL) is a Canadian-based exploration and mining company focused on the acquisition, exploration, and development of mineral properties. The company primarily operates in the precious and base metals sectors, targeting projects with the potential to yield gold, copper, and other valuable minerals. Spruce Ridge Resources leverages its expertise in identifying promising geological sites and advancing them through exploration to increase their value.

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

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

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

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

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
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
-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
-1.82M	345.59K	-992.33K	-2.15M	-23.92M	-9.47M
	Net Income Common Stockholders
-4.74M	320.79K	-5.81M	-10.66M	21.67M	8.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
310.00	7.44M	9.30M	7.45M	10.93M	4.67M
	Total Assets
2.06M	14.43M	10.57M	16.84M	34.13M	11.85M
	Total Debt
41.00K	0.00	60.00K	60.00K	60.00K	45.00
	Net Debt
40.84K	-172.27K	-153.77K	-653.70K	-2.12M	45.00
	Total Liabilities
594.48K	241.90K	159.16K	612.23K	1.91M	386.60K
	Stockholders Equity
1.46M	13.10M	10.41M	16.22M	32.22M	11.46M
Cash Flow		Free 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	-71.10K	134.29K	876.82K
	Financing Cash Flow
-467.01K	992.99K	0.00	1.63M	3.39M	80.39K

Spruce Ridge Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. 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 neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 44.25 is Neutral, 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 Negative 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	76 Outperform	C$3.76B	14.94	39.28%	―	105.06%	481.75%
Sector *	57 Neutral	$7.22B	3.15	-4.49%	5.63%	0.82%	-49.15%
CNC	54 Neutral	C$192.53M	―	-0.58%	―	―	91.44%
AZM	53 Neutral	C$50.64M	221.74	-0.64%	―	―	88.31%
FOM	46 Neutral	C$1.37B	―	-2.81%	―	―	8.92%
BMK	37 Underperform	$4.15M	―	25.02%	―	―	84.51%
SHL	35 Underperform	C$13.38M	―	-40.83%	―	-100.00%	-174.68%

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.