Solaris Resources (SLS) AI Stock Analysis

• Market Cap: C$1.17B
• Dividend Yield: N/A
• Average Volume (3M): 213.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: N/A
• EPS Growth: -69.63%
• Country: CA
• Employees: 66
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Other Precious Metals
• EPS (TTM): -0.14
• Shares Outstanding: 164,595,960
• 10 Day Avg. Volume: 166,692
• 30 Day Avg. Volume: 213,876
• PEG Ratio: 2.71
• Price to Book (P/B): -27.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.54
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -3.62
• 1Y Price Target: C$14.29
• Price Target Upside: 105.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 31 Underperform
• Price Target: ―

The overall stock score for Solaris Resources is 31, reflecting significant financial challenges including persistent losses, negative equity, and cash flow issues. While technical analysis provides mixed signals, the valuation remains unattractive due to the negative P/E ratio and lack of dividends. These factors collectively suggest a high-risk investment with substantial uncertainty.

Positive Factors

Drilling Success

The successful drill program should ultimately help in upgrading a notable amount of Inferred Resources to the Measured & Indicated Resource category.

Presidential Election

The presidential election result in Ecuador lowers the risk premium of owning Solaris Resources shares, as the new president supports a favorable permitting process for mining.

Royalty Funding Deal

The royalty funding deal reduces near-term dilution for Solaris Resources.

Negative Factors

Analyst Ratings

Analysts maintain a Hold rating for Solaris Resources, given the outlook for investors to prioritize capital allocation to U.S. mineral projects.

Financial Outlook

Increase in expenses due to higher than expected operating costs and multiple project initiatives, impacting financial outlook.

Long-term Cash Flow

The structure of the royalty funding deal reduces Solaris Resources' long-term cash flow potential from the Warintza project.

Solaris Resources Business Overview & Revenue Model

Company Description

Solaris Resources Inc. engages in acquisition, exploration, and development of mineral properties. It focuses on exploring copper, molybdenum, gold, lead, zinc, and silver. The company's flagship project is the 100% owned Warintza Copper and Gold Project comprising eight metallic mineral concessions, which covers an area of 268 km2 located in Ecuador. The company was formerly known as Solaris Copper Inc. and changed its name to Solaris Resources Inc. in December 2019. The company was incorporated in 2018 and is based in Vancouver, Canada.

How the Company Makes Money

Solaris Resources generates revenue primarily through the exploration and potential development of its mineral properties. The company's revenue model is centered around increasing the value of its projects through exploration activities, such as drilling and resource estimation, which enhance the attractiveness of these projects to potential investors or buyers. Revenue can be realized through the sale of mineral properties, joint ventures, or production agreements. Strategic partnerships with other mining companies or investors can also provide funding and technical expertise, contributing to the advancement of their projects. Additionally, as the projects progress towards production, Solaris may generate income through the sale of extracted minerals, primarily copper and gold.

Solaris Resources Financial Statement Overview

Summary

Solaris Resources faces significant financial challenges, with zero revenue, negative EBIT, net income, and equity indicating financial instability and operational difficulties. The company is in a precarious position with negative cash flows and heavy reliance on financing to cover deficits.

Income Statement

Solaris Resources has consistently reported zero revenue, indicating no sales activity. The company has been operating at a loss, with negative EBIT and net income figures across all periods. This reflects significant operational challenges and lack of profitability, which is a major concern for the company's financial health.

Balance Sheet

Solaris Resources has a negative stockholders' equity in the latest TTM period, indicating financial instability. The debt-to-equity ratio is not meaningful due to negative equity. The declining assets and increasing liabilities suggest deteriorating financial strength and potential liquidity issues.

Cash Flow

The company exhibits negative operating and free cash flows, indicating cash burn and potential liquidity challenges. Although there was a slight increase in financing cash flow, it is primarily used to cover deficits rather than growth. The cash flow situation underscores the need for operational improvements.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00
EBITDA	-72.20M	-40.42M	-59.70M	-59.05M	-19.31M
Net Income	-77.02M	-41.01M	-55.69M	-54.87M	-32.54M
Balance Sheet
Total Assets	57.20M	61.82M	38.53M	57.65M	94.92M
Cash, Cash Equivalents and Short-Term Investments	31.74M	38.87M	14.77M	33.90M	73.59M
Total Debt	49.64M	29.45M	235.00K	324.00K	135.00K
Total Liabilities	66.48M	36.39M	10.30M	14.53M	8.36M
Stockholders Equity	-17.20M	17.52M	20.32M	35.21M	78.64M
Cash Flow
Free Cash Flow	-61.05M	-38.40M	-59.51M	-48.34M	-14.80M
Operating Cash Flow	-58.39M	-38.31M	-58.39M	-46.66M	-14.11M
Investing Cash Flow	-2.66M	-347.00K	-1.35M	-1.09M	-684.00K
Financing Cash Flow	54.47M	62.27M	41.25M	7.21M	81.17M

Solaris Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SLS, the sentiment is Positive. The current price of 6.97 is above the 20-day moving average (MA) of 6.91, above the 50-day MA of 6.36, and above the 200-day MA of 4.98, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 54.36 is Neutral, neither overbought nor oversold. The STOCH value of 12.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SLS.

Solaris Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUN	75 Outperform	C$11.96B	25.63	2.66%	0.16%	-8.36%	-200.42%
IVN	69 Neutral	$15.07B	25.53	9.67%	―	―	137.28%
FM	67 Neutral	$19.51B	103.99	1.22%	―	-13.79%	―
TECK.B	66 Neutral	$25.64B	72.16	1.32%	1.92%	-22.39%	-77.05%
CS	64 Neutral	$5.90B	53.74	2.71%	―	37.30%	―
Sector *	57 Neutral	£2.55B	4.95	-9.48%	6884.38%	5.28%	-6.27%
SLS	31 Underperform	C$1.17B	―	-9999.00%	―	―	-69.63%

Solaris Resources Corporate Events

Solaris Resources Strengthens Leadership Amid Key Project Advancements

Solaris Resources Inc. has expanded its leadership team with key appointments to strengthen its finance and investor relations capabilities, signaling a strategic push to enhance operational efficiency and stakeholder engagement. These appointments come at a pivotal time as the company progresses with its Warintza project, aiming to maximize returns and de-risk activities, which could significantly bolster its market position in the copper industry.