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Spruce Ridge Resources Ltd (TSE:SHL)
:SHL
Canadian Market
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Spruce Ridge Resources (SHL) AI Stock Analysis

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TSE:SHL

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 DescriptionHomeland 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 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.0060.63K131.39K0.00
Gross Profit-22.73K-18.94K-54.31K-195.00K-484.00K-5.68K
EBITDA-2.14M-2.24M345.59K-992.00K-2.15M-23.92M
Net Income-4.74M-4.97M320.79K-5.81M-10.66M21.67M
Balance Sheet
Total Assets10.51M10.11M14.43M10.57M16.84M34.13M
Cash, Cash Equivalents and Short-Term Investments3.82M3.87M7.44M9.30M7.45M10.93M
Total Debt0.000.000.0060.00K60.00K60.00K
Total Liabilities412.35K521.68K241.90K159.16K612.23K1.91M
Stockholders Equity10.02M9.53M13.10M10.41M16.22M32.22M
Cash Flow
Free Cash Flow-1.34M-1.61M-1.42M-449.93K-3.15M-1.39M
Operating Cash Flow-269.46K-1.61M-257.34K-397.27K-3.02M-1.34M
Investing Cash Flow343.91K1.75M-777.16K-102.66K-71.10K134.29K
Financing Cash Flow-467.01K0.00992.99K0.001.63M3.39M

Spruce Ridge Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.08
Price Trends
50DMA
0.07
Positive
100DMA
0.06
Positive
200DMA
0.05
Positive
Market Momentum
MACD
<0.01
Positive
RSI
54.21
Neutral
STOCH
33.33
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 0.08, above the 50-day MA of 0.07, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.21 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.37B6.45-0.08%2.84%3.09%-36.03%
44
Neutral
C$20.16M-14.02%-37.50%
40
Underperform
C$18.10M-0.86%86.00%
40
Underperform
C$25.55M31.00120.18%
37
Underperform
C$19.94M-110.70%-3647.27%
37
Underperform
C$8.95M-50.39%40.88%
35
Underperform
C$17.84M-43.21%-1815.38%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SHL
Spruce Ridge Resources
0.08
0.05
166.67%
TSE:GGI
Garibaldi Resources
0.14
0.08
133.33%
TSE:NRM
Noram Lithium Corp
0.10
-0.07
-41.18%
TSE:VUL
Vulcan Minerals
0.13
0.01
8.33%
TSE:TGOL
White Metal Resources
0.08
0.04
100.00%
TSE:WLF
Wolfden Resources
0.16
0.12
300.00%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: May 03, 2025